ADT 1999 Annual Report Download - page 62

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60
The net pension cost recognized at September 30, 1999 and 1998 for all U.S. and non-U.S. defined benefit plans is as follows:
U.S. Plans Non-U.S. Plans
(in millions) 1999 1998 1999 1998
Change in benefit obligation
Benefit obligation at beginning of year $1,191.8 $1,263.2 $ 835.4 $ 717.4
Service cost 35.8 43.6 45.7 34.6
Interest cost 86.2 92.5 48.0 43.1
Employee contributions
——
8.7 7.5
Plan amendments 8.3 9.5 0.8 1.1
Actuarial (gain)/loss (74.4) 77.1 28.1 107.6
Benefits paid (68.8) (374.4) (49.2) (39.8)
Acquisitions 190.9 5.1 404.9 5.3
Divestitures (69.8)
—
(5.9)
—
Plan curtailments (136.3) (28.7) (10.7) (30.9)
Plan settlements (25.7) (9.8) (2.4) (33.8)
Special termination benefits 4.5 113.7 9.2 17.7
Currency translation adjustment
——
27.3 5.6
Benefit obligation at end of year $1,142.5 $1,191.8 $1,339.9 $ 835.4
Change in plan assets
Fair value of plan assets at beginning of year $ 997.4 $1,330.9 $ 700.5 $ 697.8
Actual return on plan assets 169.3 28.6 86.0 32.6
Employer contributions 24.7 21.0 38.8 30.8
Employee contributions
——
8.8 7.5
Acquisitions 155.8 4.3 376.9 2.0
Divestitures (84.2)
—
(7.5)
—
Plan settlements (25.7) (9.8) (2.4) (33.9)
Benefits paid (68.9) (374.4) (49.2) (39.8)
Administrative expenses paid (2.6) (3.2) (1.8) (1.4)
Currency translation adjustment
——
25.1 4.9
Fair value of plan assets at end of year $1,165.8 $ 997.4 $1,175.2 $ 700.5
Funded status $ 23.3 $ (194.4) $ (164.7) $(134.9)
Unrecognized net actuarial (gain)/loss (128.8) (7.5) 89.4 75.6
Unrecognized prior service cost 6.7 26.3 6.0 5.7
Unrecognized transition asset (5.1) (5.6) (4.5) (3.1)
Net amount recognized $ (103.9) $ (181.2) $ (73.8) $ (56.7)
Amounts recognized in the statement of financial position
Prepaid benefit cost $ 29.2 $ 26.7 $ 106.8 $ 53.8
Accrued benefit liability (141.7) (234.1) (222.1) (148.4)
Intangible asset 1.0 8.8 6.3 7.3
Accumulated other comprehensive income 7.6 17.4 35.2 30.6
Net amount recognized $ (103.9) $ (181.2) $ (73.8) $ (56.7)
U.S. Plans Non-U.S. Plans
Weighted-average assumptions as of September 30, 1999 1998 1999 1998
Discount rate 7.75% 6.75% 5.65% 5.47%
Expected return on plan assets 8.60 9.30 7.39 8.30
Rate of compensation increase 4.30 4.00 4.03 3.26