Avon 2001 Annual Report Download - page 36

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PAGE 60
Pension Benefits
U.S. Plans Non-U.S. Plans Postretirement Benefits
2002 2001 2002 2001 2002 2001
Change in benefit obligations:
Beginning balance $(588.6) $(520.1) $(410.8) $(394.1) $(176.1) $ (136.0)
Service cost (19.0) (18.7) (18.8) (15.6) (2.2) (1.2)
Interest cost (43.6) (41.9) (25.4) (23.3) (12.5) (10.7)
Actuarial loss (47.1) (63.8) (18.8) (12.2) (18.2) (44.2)
Benefits paid 61.3 68.5 30.9 22.1 14.2 16.9
Plan amendments (22.0) (.4) (2.0) —17.4 —
Settlements/special termination benefits —(12.2) 1.9 .7 —(1.2)
Foreign currency changes ——(38.7) 19.0 ——
Other ——(2.8) (7.4) (.1) .3
Ending balance $(659.0) $(588.6) $(484.5) $(410.8) $(177.5) $(176.1)
Change in plan assets:
Beginning balance $467.7 $ 529.4 $ 248.9 $ 269.9 $ — $—
Actual loss on plan assets (56.6) (26.4) (19.7) (18.5) ——
Company contributions 126.0 33.2 40.2 26.0 14.2 16.9
Plan participant contributions ——2.0 2.1 ——
Benefits paid (61.3) (68.5) (30.9) (22.1) (14.2) (16.9)
Foreign currency changes ——16.3 (7.9) ——
Settlements/special termination benefits ——(3.6) (.6) ——
Ending balance $ 475.8 $ 467.7 $ 253.2 $ 248.9 $ — $—
Funded status of the plan (183.2) (120.9) (231.3) (161.9) (177.5) (176.1)
Unrecognized actuarial loss 365.4 209.8 145.4 81.8 34.8 17.0
Unrecognized prior service cost 16.1 (4.4) 6.9 6.6 (50.7) (37.8)
Unrecognized net transition obligation ——1.8 1.9 .3 .2
Accrued benefit cost $ 198.3 $ 84.5 $ (77.2) $ (71.6) $(193.1) $ (196.7)
Amount recognized in the statements:
Prepaid benefit —$ 122.9 $ 21.5 $35.2 $ — $—
Accrued liability (130.0) (59.4) (214.5) (171.4) (193.1) (196.7)
Intangible asset 16.1 3.4 4.5 6.2 ——
Accumulated other comprehensive loss 312.2 17.6 111.3 58.4 ——
$ 198.3 $ 84.5 $ (77.2) $ (71.6) $(193.1) $ (196.7)
Weighted-average discount rate use
in determining the benefit obligation 6.8% 7.3% 5.7% 6.0% 6.8% 7.3%
Effective April 1, 2002, any plan participant who
retires on or after May 1, 2002 and chooses to receive 20%
or more of their benefit as an annuity at retirement is eli-
gible to receive:
• A new social security supplement payable until age of
65 and
• Retiree medical coverage, which beginning May 1,
2002 is available only if the retiree chooses to receive at
least 20% of their benefit as an annuity, regardless of
their age at retirement.
Postretirement Benefits > Avon provides health care and life
insurance benefits for the majority of employees who retire
under Avon’s retirement plans in the United States and
certain foreign countries. The cost of such health care ben-
efits is shared by Avon and its retirees.
The following provides a reconciliation of benefit
obligations, plan assets and funded status of these plans: