This excerpt taken from the NDAQ 10-K filed Feb 25, 2008.
Adoption of SFAS 158
On December 31, 2006, we adopted the recognition and disclosure provisions of SFAS 158. SFAS 158 requires us to recognize the funded status measured as the difference between the fair value of plan assets and the projected benefit obligations of our employee benefit plans in our December 31, 2006 Consolidated Balance Sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The adjustment to accumulated other comprehensive income at adoption represents the unrecognized net actuarial losses, unrecognized prior service cost and unrecognized transition asset remaining from the initial adoption of SFAS No. 87, Employers Accounting for Pensions, or SFAS 87, all of which were previously netted against the plans funded status in our Consolidated Balance Sheet pursuant to the provisions of SFAS 87. These amounts will be subsequently recognized as net periodic employee benefit cost pursuant to our historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic employee benefit cost in the same periods will be recognized as a component of other comprehensive income. Those amounts will be subsequently recognized as a component of net periodic benefit cost on the same basis as the amounts recognized in accumulated other comprehensive income at adoption of SFAS 158. We use a measurement date of December 31 for our pension, SERP and post-retirement plans.
The incremental effects of adopting the provisions of SFAS 158 on our Consolidated Balance Sheet at December 31, 2006 are presented in the following table. The adoption of SFAS 158 had no effect on our Consolidated Statement of Income for the year ended December 31, 2007 and 2006, or for any prior period presented, and it will not affect our operating results in future periods. Had we not been required to adopt SFAS 158 at December 31, 2006, we would have recognized an additional minimum liability pursuant to the provisions of SFAS 87 for our Pension Plan and SERP. The effect of recognizing the additional minimum liability is included in table below in the column labeled Before Application of SFAS 158.
At December 31, 2007, there was an unrecognized net actuarial loss of $10.2 million ($6.2 million net of tax) included in accumulated other comprehensive income, accrued personnel costs and other liabilities in the
The Nasdaq Stock Market, Inc.
Notes to Consolidated Financial Statements(Continued)
Consolidated Balance Sheets. The unrecognized net actuarial loss which is expected to be recognized in net periodic pension cost during the fiscal year ending December 31, 2008 is $0.6 million ($0.4 million net of tax).