22 non-cash actuarial gain
on benefit plans from the annual remeasurement process and $0.
Strong equity investment returns, offset by an increase in the defined benefits obligations due to changes in market conditions, were the main reasons behind the overall net actuarial gain
Had GE based pension cost on actual rather than expected return on plan assets, and not included the actuarial gain
, the company would have recorded an expense of $5.
If the actual return on pension plan assets is greater than the expected return, there is an actuarial gain
The difference between the actual and expected return on plan assets is an actuarial gain
or loss (see below).
Records the $800 increase in the liability for the actuary's adjustment while the corresponding debit is added to the deferred actuarial gain
or loss component of other comprehensive income.
If the actual experience of the plan differs from that which was assumed to occur by the choice of actuarial assumptions, an actuarial gain
or loss occurs.
Note 1: The effect on the Actuarial Accrued Liability and/or the Normal Cost resulting from changes in the Actuarial Assumptions, the Actuarial Cost Method or pension plan provisions should be described as such, not as an Actuarial Gain
For each period a statement of income is presented, the net actuarial gain
or loss and the prior service cost or credit must be recognized in other comprehensive income, separated into amounts initially recognized in other comprehensive income and amounts subsequently recognized as adjustments to other comprehensive income, as those amounts are included as components of net periodic benefit cost.
in thousands) 2003 2002 2001 Components of net periodic benefit costs: Service costs $5,897 $5,135 $4,716 Interest costs 15,211 14,877 14,498 Expected return on assets (20,730) (21,110) (20,672) Amortization of prior service costs 1,156 1,148 1,247 Recognized net actuarial gain
(417) (1,855) (2,687) Settlement (gain) loss -- -- (884) Amortization of net transition (950) (947) (965) obligations (assets) Net periodic benefit costs (income) 167 (2,752) (4,747) Less amount capitalized 14 (352) (391) Net periodic benefit costs (income) $153 ($2,400) ($4,356)
Finally, the company restated its 2005 results to correct the tax treatment associated with a non-recurring actuarial gain
that it recorded in the fourth quarter of 2005.
The excess of the net accumulated actuarial gain
(loss) over 10% of the greater of the benefit obligation and the fair value of plan assets is amortized over the average remaining service period of active employees.