Bemis Company 2007 Annual Report - IR Solutions

Accumulated other comprehensive income related to pension benefit plans is as follows:
U.S. Pension Plans
Non-U.S. Pension Plans
(in thousands) 2007 2006 2007 2006
Unrecognized net actuarial losses $114,655 $126,379 $3,317 $12,324
Unrecognized net prior service costs (benefits) 12,527 14,675 889 409
Unrecognized net transition costs 3,131 3,020
Tax expense (benefit) (47,248) (54,024) (2,726) (6,033)
Accumulated other comprehensive loss (income),
end of year $79,934 $87,030 $4,611 $9,720
follows:
Estimated amounts in accumulated other comprehensive income expected to be reclassified to net period cost during 2008 are as
Non-U.S.
U.S. Pension Plans
Pension Plans
(in thousands) 2007 2007
Net actuarial losses $ 4,702 $ 28
Net prior service costs (benefits) 2,289 72
Net transition costs 262
Total $ 6,991 $ 362
The accumulated benefit obligation for all defined benefit pension plans was $503,214,000 and $519,907,000 at December 31,
2007, and 2006, respectively.
Presented below are the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension
plans with projected benefit obligations in excess of plan assets and pension plans with accumulated benefit obligations in excess of plan
assets as of December 31, 2007 and 2006.
Projected Benefit Obligation
Accumulated Benefit Obligation
Exceeds the Fair Value of Plan’s Assets
Exceeds the Fair Value of Plan’s Assets
U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
(in thousands) 2007 2006 2007 2006 2007 2006 2007 2006
Projected benefit obligation $39,670 $385,127 $68,008 $71,314 $39,670 $35,205 $33,074 $64,653
Accumulated benefit obligation 33,747 335,075 54,534 52,482 33,747 28,723 23,096 52,482
Fair value of plan assets 0 349,186 53,812 53,880 0 0 19,987 48,910
The Company’s general funding policy is to make contributions as required by applicable regulations and when beneficial to the
Company for tax and planning purposes. The employer contributions for the years ended December 31, 2007 and 2006, were $5,087,000
and $28,653,000, respectively. The expected cash contribution for 2008 is $5,884,000 which is expected to satisfy plan funding
requirements and regulatory funding requirements.
For each of the years ended December 31, 2007 and 2006, the U.S. pension plans represented approximately 90 percent of the
Company’s total plan assets and approximately 88 percent of the Company’s total projected benefit obligation. Considering the
significance of the U.S. pension plans in comparison with the Company’s total pension plans, we separately present and discuss the
critical pension assumptions related to the U.S. pension plans and the non-U.S. pension plans.
The Company’s actuarial valuation date is December 31. The weighted-average discount rates and rates of increase in future
compensation levels used in determining the actuarial present value of the projected benefit obligation for the years ended December 31
are as follows:
U.S. Pension Plans
Non-U.S. Pension Plans
2007 2006 2007 2006
Weighted-average discount rate 6.25% 5.75% 4.38% 4.87%
Rate of increase in future compensation levels 4.75% 4.75% 3.79% 3.83%
The weighted-average discount rates, expected returns on plan assets, and rates of increase in future compensation levels used to
determine the net benefit cost for the years ended December 31 are as follows:
U.S. Pension Plans
Non-U.S. Pension Plans
2007 2006 2005 2007 2006 2005
Weighted-average discount rate 5.75% 5.50% 5.75% 4.05% 4.53% 5.25%
Expected return on plan assets 8.75% 8.75% 8.75% 6.05% 6.56% 6.66%
Rate of increase in future compensation levels 4.75% 4.75% 4.75% 3.79% 3.83% 4.14%
The weighted-average plan asset allocation at December 31, 2007, and 2006, and target allocation for 2008, are as follows:
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