ADT 2001 Annual Report Download - page 76

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74
The curtailment/settlement gain in Fiscal 2001 relates partially to the freezing of certain pension plans. The curtailment/set-
tlement gains in Fiscal 1999 relate primarily to the termination of employees at AMP and the freezing of AMP’s pension plan. These
curtailment/settlement gains have been recorded in selling, general, administrative and other costs and expenses in the Consoli-
dated Statements of Operations.
The net pension cost recognized at September 30, 2001 and 2000 for all U.S. and non-U.S. defined benefit plans is as follows:
U.S. PLANS NON-U.S. PLANS
($ IN MILLIONS) 2001 2000 2001 2000
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year $1,085.8 $1,142.5 $1,367.6 $1,339.9
Service cost 28.7 9.6 63.8 59.6
Interest cost 131.9 84.6 79.4 75.1
Employee contributions
——
9.5 8.7
Plan amendments 2.8 0.1 2.8 0.6
Actuarial loss (gain) 88.7 (15.1) 34.6 (55.1)
Benefits paid (97.0) (77.0) (41.1) (44.1)
Acquisitions 957.2 19.2 110.4 132.3
Plan curtailments (54.6) (9.0) (11.4) (2.9)
Plan settlements (136.9) (71.0) (43.2) (10.1)
Special termination benefits 0.6 1.9 16.2 3.0
Currency translation adjustment
——
(6.9) (139.4)
Benefit obligation at end of year $2,007.2 $1,085.8 $1,581.7 $1,367.6
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year $1,304.2 $1,165.8 $1,253.1 $1,175.2
Actual return on plan assets (328.8) 258.7 (204.7) 121.7
Employer contributions 46.1 23.9 88.7 55.6
Employee contributions
——
9.5 8.7
Acquisitions 790.6 7.7 67.0 74.7
Plan settlements (136.9) (71.0) (43.2) (9.9)
Benefits paid (97.0) (77.0) (41.1) (44.1)
Administrative expenses paid (5.3) (3.9) (2.6) (1.7)
Currency translation adjustment
——
(9.4) (127.1)
Fair value of plan assets at end of year $1,572.9 $1,304.2 $1,117.3 $1,253.1
Funded status $ (434.3) $ 218.4 $ (464.4) $ (114.5)
Unrecognized net actuarial loss (gain) 323.3 (284.7) 319.2 (2.3)
Unrecognized prior service cost 6.4 4.4 6.1 5.3
Unrecognized transition asset (3.0) (4.0) (4.3) (3.8)
Net amount recognized $ (107.6) $ (65.9) $ (143.4) $ (115.3)
AMOUNTS RECOGNIZED ON THE CONSOLIDATED BALANCE SHEETS
Prepaid benefit cost $ 5.2 $ 47.6 $ 93.4 $ 107.6
Accrued benefit liability (391.1) (117.6) (403.3) (255.8)
Intangible asset 6.5 0.8 5.4 4.9
Accumulated other comprehensive income 271.8 3.3 161.1 28.0
Net amount recognized $ (107.6) $ (65.9) $ (143.4) $ (115.3)
WEIGHTED-AVERAGE ASSUMPTIONS
Discount rate 7.50% 8.00% 5.71% 5.75%
Expected return on plan assets 10.00 9.75 7.80 7.40
Rate of compensation increase 4.60 4.40 3.74 4.07