NOTE 10-PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS
The Company maintains pension plans covering substantially all of its full-time employees for its U.S. operations and a majority of its international operations. Several plans provide pension benefits based primarily on years of service and employees' earnings. In certain instances, the Company adjusts benefits in connection with international employee transfers.
Retirement Growth Account Plan (U.S.)
The Retirement Growth Account Plan is a trust-based, noncontributory qualified defined benefit pension plan. The Company's funding policy consists of an annual contribution at a rate that provides for future plan benefits and maintains appropriate funded percentages. Such contribution is not less than the minimum required by the Employee Retirement Income Security Act of 1974, as amended, ("ERISA") and subsequent pension legislation and is not more than the maximum amount deductible for income tax purposes.
Restoration Plan (U.S.)
The Company also has an unfunded, nonqualified domestic noncontributory pension Restoration Plan to provide benefits in excess of Internal Revenue Code limitations.
International Pension Plans
The Company maintains International Pension Plans, the most significant of which are defined benefit pension plans. The Company's funding policies for these plans are determined by local laws and regulations.
Post-retirement Benefits
The Company maintains a domestic post-retirement benefit plan which provides certain medical and dental benefits to eligible employees. Employees hired after January 1, 2002 are not eligible for retiree medical benefits when they retire. Certain retired employees who are receiving monthly pension benefits are eligible for participation in the plan. Contributions required and benefits received by retirees and eligible family members are dependent on the age
of the retiree. It is the Company's practice to fund these benefits as incurred.
Certain of the Company's international subsidiaries and affiliates have post-retirement plans, although most participants are covered by government-sponsored or administered programs.
The measurement date as of which assets and liabilities are measured is June 30, 2006. The significant components of the above mentioned plans as of and for the year ended June 30 are summarized as follows:
|
Pension Plans |
|
Other than
Pension Plans |
 |
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
|
|
2005 |
|
|
|
|
2006 |
|
|
|
|
2005 |
|
|
|
|
2006 |
|
|
|
|
2005 |
|
|
| (In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in benefit obligation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefit obligation at beginning of year |
|
|
|
$ |
423.2 |
|
|
|
|
$ |
374.4 |
|
|
|
|
$ |
255.5 |
|
|
|
|
$ |
207.4 |
|
|
|
|
$ |
92.6 |
|
|
|
|
$ |
64.0 |
|
| Service cost |
|
|
|
|
21.5 |
|
|
|
|
|
19.3 |
|
|
|
|
|
16.2 |
|
|
|
|
|
11.3 |
|
|
|
|
|
5.1 |
|
|
|
|
|
3.5 |
|
| Interest cost |
|
|
|
|
21.2 |
|
|
|
|
|
21.2 |
|
|
|
|
|
10.8 |
|
|
|
|
|
9.8 |
|
|
|
|
|
5.6 |
|
|
|
|
|
4.2 |
|
| Plan participant contributions |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
1.3 |
|
|
|
|
|
1.3 |
|
|
|
|
|
0.4 |
|
|
|
|
|
0.2 |
|
| Actuarial loss (gain) |
|
|
|
|
(28.2 |
) |
|
|
|
|
32.0 |
|
|
|
|
|
(7.1 |
) |
|
|
|
|
35.9 |
|
|
|
|
|
(10.5 |
) |
|
|
|
|
22.9 |
|
| Foreign currency exchange rate impact |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
6.9 |
|
|
|
|
|
- |
|
|
|
|
|
(0.1 |
) |
|
|
|
|
- |
|
| Benefits, expenses, taxes and premiums paid |
|
|
|
|
(20.2 |
) |
|
|
|
|
(23.7 |
) |
|
|
|
|
(16.5 |
) |
|
|
|
|
(13.1 |
) |
|
|
|
|
(3.2 |
) |
|
|
|
|
(2.2 |
) |
| Plan amendments |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
0.9 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
| Special termination benefits |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
0.3 |
|
|
|
|
|
2.0 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
| Acquisitions, divestitures, adjustments |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
18.2 |
|
|
|
|
|
- |
|
|
|
|
|
11.9 |
|
|
|
|
|
- |
|
| Settlements and curtailments |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
(1.3 |
) |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
| Benefit obligation at end of year |
|
|
|
$ |
417.5 |
|
|
|
|
$ |
423.2 |
|
|
|
|
$ |
284.3 |
|
|
|
|
$ |
255.5 |
|
|
|
|
$ |
101.8 |
|
|
|
|
$ |
92.6 |
|
|
| Change in plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value of plan assets at beginning of year |
|
|
|
$ |
353.3 |
|
|
|
|
$ |
341.4 |
|
|
|
|
$ |
187.2 |
|
|
|
|
$ |
154.6 |
|
|
|
|
$ |
- |
|
|
|
|
$ |
- |
|
| Actual return on plan assets |
|
|
|
|
35.5 |
|
|
|
|
|
28.6 |
|
|
|
|
|
28.9 |
|
|
|
|
|
14.6 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
| Foreign currency exchange rate impact |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
4.7 |
|
|
|
|
|
0.6 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
| Employer contributions |
|
|
|
|
7.4 |
|
|
|
|
|
7.0 |
|
|
|
|
|
25.7 |
|
|
|
|
|
29.2 |
|
|
|
|
|
2.8 |
|
|
|
|
|
2.0 |
|
| Plan participant contributions |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
1.3 |
|
|
|
|
|
1.3 |
|
|
|
|
|
0.4 |
|
|
|
|
|
0.2 |
|
| Settlements and curtailments |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
| Acquisitions, divestitures, adjustments |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
10.8 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
| Benefits, expenses, taxes and premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| paid from plan assets |
|
|
|
|
(20.2 |
) |
|
|
|
|
(23.7 |
) |
|
|
|
|
(16.5 |
) |
|
|
|
|
(13.1 |
) |
|
|
|
|
(3.2 |
) |
|
|
|
|
(2.2 |
) |
|
| Fair value of plan assets at end of year |
|
|
|
$ |
376.0 |
|
|
|
|
$ |
353.3 |
|
|
|
|
$ |
242.1 |
|
|
|
|
$ |
187.2 |
|
|
|
|
$ |
- |
|
|
|
|
$ |
- |
|
|
| Funded status |
|
|
|
$ |
(41.5 |
) |
|
|
|
$ |
(69.9 |
) |
|
|
|
$ |
(42.2 |
) |
|
|
|
$ |
(68.3 |
) |
|
|
|
$ |
(101.8 |
) |
|
|
|
$ |
(92.6 |
) |
| Unrecognized net actuarial loss |
|
|
|
|
70.8 |
|
|
|
|
|
115.7 |
|
|
|
|
|
61.2 |
|
|
|
|
|
91.8 |
|
|
|
|
|
14.3 |
|
|
|
|
|
26.1 |
|
| Unrecognized prior service cost |
|
|
|
|
5.8 |
|
|
|
|
|
6.6 |
|
|
|
|
|
1.8 |
|
|
|
|
|
2.2 |
|
|
|
|
|
(0.1 |
) |
|
|
|
|
(0.1 |
) |
| Unrecognized net transition obligation |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
0.1 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
| Prepaid (accrued) benefit cost |
|
|
|
$ |
35.1 |
|
|
|
|
$ |
52.4 |
|
|
|
|
$ |
20.8 |
|
|
|
|
$ |
25.8 |
|
|
|
|
$ |
(87.6 |
) |
|
|
|
$ |
(66.6 |
) |
|
| Amounts recognized in the Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prepaid benefit cost |
|
|
|
$ |
88.3 |
|
|
|
|
$ |
105.8 |
|
|
|
|
$ |
78.0 |
|
|
|
|
$ |
34.9 |
|
|
|
|
$ |
- |
|
|
|
|
$ |
- |
|
| Accrued benefit liability |
|
|
|
|
(61.9 |
) |
|
|
|
|
(53.9 |
) |
|
|
|
|
(58.6 |
) |
|
|
|
|
(60.5 |
) |
|
|
|
|
(87.6 |
) |
|
|
|
|
(66.6 |
) |
| Intangible asset |
|
|
|
|
0.5 |
|
|
|
|
|
0.5 |
|
|
|
|
|
0.3 |
|
|
|
|
|
0.7 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
| Minimum pension liability |
|
|
|
|
8.2 |
|
|
|
|
|
- |
|
|
|
|
|
1.1 |
|
|
|
|
|
50.7 |
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
| Net amount recognized |
|
|
|
$ |
35.1 |
|
|
|
|
$ |
52.4 |
|
|
|
|
$ |
20.8 |
|
|
|
|
$ |
25.8 |
|
|
|
|
$ |
(87.6 |
) |
|
|
|
$ |
(66.6 |
) |
|
|
Pension Plans |
|
Other than
Pension Plans |
|
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
|
|
2005 |
|
|
2004 |
|
|
|
|
2006 |
|
|
|
|
2005 |
|
|
2004 |
|
|
|
|
2006 |
|
|
|
|
2005 |
|
|
2004 |
|
|
| ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Components of net periodic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service cost, net |
|
|
|
$ |
21.5 |
|
|
|
|
$ |
19.3 |
|
|
$ |
16.9 |
|
|
|
|
$ |
16.2 |
|
|
|
|
$ |
11.3 |
|
|
$ |
10.4 |
|
|
|
|
$ |
5.1 |
|
|
|
|
$ |
3.5 |
|
|
$ |
3.2 |
|
| Interest cost |
|
|
|
|
21.2 |
|
|
|
|
|
21.2 |
|
|
|
20.0 |
|
|
|
|
|
10.8 |
|
|
|
|
|
9.8 |
|
|
|
8.3 |
|
|
|
|
|
5.6 |
|
|
|
|
|
4.2 |
|
|
|
3.8 |
|
| Expected return on assets |
|
|
|
|
(24.9 |
) |
|
|
|
|
(24.1 |
) |
|
|
(20.6 |
) |
|
|
|
|
(12.1 |
) |
|
|
|
|
(11.2 |
) |
|
|
(9.9 |
) |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
| Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | 
