Bemis Company 2007 Annual Report - IR Solutions

(in thousands) 2007 2006
Change in Plan Assets
Fair value of plan assets at the beginning of the year $ 0 $ 0
Employee contributions 439 1,439
Employer contribution 979 1,015
Medicare subsidies received 80
Benefits paid (1,418) (2,534)
Fair value of plan assets at the end of the year $ 0 $ 0
Funded (unfunded) status at year end: $(11,510) $(21,054)
Amount recognized in consolidated balance sheet consists of:
Prepaid benefit cost, non-current $ 0 $ 0
Accrued benefit liability, current (1,020) (1,144)
Accrued benefit liability, non-current (10,490) (19,910)
Deferred tax (4,391) (391)
Accumulated other comprehensive income (7,429) (629)
Net amount recognized in consolidated balance sheet $(23,330) $(22,074)
Accumulated other comprehensive income related to other postretirment benefit plans is as follows:
(in thousands) 2007 2006
Unrecognized net actuarial losses (gains) $(7,553) $(2,855)
Unrecognized net prior service costs (benefits) (4,267) 1,835
Tax expense (benefit) 4,391 391
Accumulated other comprehensive loss (income),
end of year $(7,429) $ (629)
follows:
Estimated amounts in accumulated other comprehensive income expected to be reclassified to net period cost during 2008 are as
(in thousands) 2007
Net actuarial (gains) losses $(501)
Net prior service costs (benefits) (455)
Total $(956)
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
(in thousands)
Benefit Payments
2008 $1,020
2009 1,065
2010 1,052
2011 1,113
2012 1,108
2013-2017 5,423
The employer contributions for the years ended December 31, 2007 and 2006, were $979,000 and $1,015,000, respectively.
The expected plan asset contribution for 2008 is $1,020,000 which is expected to satisfy plan funding requirements.
The health care cost trend rate assumption has a significant effect on the amounts reported. For measurement purposes, a 7.0
percent annual rate of increase in the per capita cost of covered health care benefits was assumed for both 2007 and 2006; each year’s
estimated rate was assumed to decrease gradually to 5.0 percent in annual one percent increments and remain at that level thereafter. A
one-percentage point change in assumed health care trends would have the following effects:
One Percentage
One Percentage
(in thousands) Point Increase Point Decrease
Effect on total of service and interest cost components for 2007 $266 $(228)
Effect on postretirement benefit obligation at December 31, 2007 $296 $(269)
The Company’s actuarial valuation date is December 31. The weighted-average discount rates used to determine the actuarial
present value of the net postretirement projected benefit obligation for the years ended December 31, 2007 and 2006 are 6.25 percent and
5.75 percent, respectively. The weighted-average discount rates used to determine the net postretirement benefit cost was 5.75 percent for
each of the years ended December 31, 2007, 2006, and 2005.
Note 8 – STOCK OPTION AND INCENTIVE PLANS
Since 1987, the Company's stock option and stock award plans have provided for the issuance of up to 19,800,000 shares of
common stock to key employees. As of December 31, 2007, 2006, and 2005, respectively, 6,146,961, 7,389,928, and 1,664,071 shares
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