Avon 2004 Annual Report Download - page 50

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Global Beauty 71
Notes to Consolidated
Financial Statements
Reconciliation of Benefit Obligations, Plan Assets and Funded Status
Avon uses a December 31 measurement date for all of its employee benefit plans.
The following provides a reconciliation of benefit obligations, plan assets and funded status of these plans:
Pension Plans Postretirement
U.S. Plans Non-U.S. Plans Benefits
2004 2003 2004 2003 2004 2003
Change in Benefit Obligation:
Beginning balance $(705.5) $(659.0) $(571.3) $(484.5) $(201.2) $(177.5)
Service cost (25.5) (21.7) (20.6) (20.7) (2.5) (2.4)
Interest cost (48.1) (47.2) (32.7) (30.3) (11.5) (12.1)
Actuarial (loss) gain (139.4) (84.0) (61.1) .2 5.2 (21.5)
Plan participant contributions — — (3.4) (3.0) (5.4) (4.3)
Benefits paid 85.5 95.0 29.5 36.0 19.3 17.3
Plan amendments 18.4 11.4 17.8 (.9) — —
Settlements/special termination benefits — — 1.0 2.7 — .2
Foreign currency changes — — (43.9) (67.8) (.5) (.9)
Other — — (1.4) (3.0) — —
Ending balance $(814.6) $(705.5) $(686.1) $(571.3) $(196.6) $(201.2)
Change in Plan Assets:
Beginning balance $ 547.7 $ 475.8 $ 317.2 $ 253.2 $ — $ —
Actual return on plan assets 66.5 100.3 34.3 27.2 — —
Company contributions 95.7 66.6 45.7 39.0 13.9 13.0
Plan participant contributions — — 3.4 3.0 5.4 4.3
Benefits paid (85.5) (95.0) (29.5) (36.0) (19.3) (17.3)
Foreign currency changes — — 23.8 33.8 — —
Settlements/special termination benefits — — (1.7) (3.0) — —
Ending balance $ 624.4 $ 547.7 $ 393.2 $ 317.2 $ — $ —
Funded Status:
Funded status at end of year $(190.2) $(157.8) $(293.0) $(254.1) $(196.6) $(201.2)
Unrecognized actuarial loss 476.3 382.4 213.6 152.1 46.8 53.6
Unrecognized prior service cost (15.3) 2.8 8.6 6.8 (40.8) (45.8)
Unrecognized net transition obligation — — 1.0 1.2 .2 .3
Net amount recognized $ 270.8 $ 227.4 $ (69.8) $ (94.0) $(190.4) $(193.1)
Amount Recognized in Balance Sheet:
Prepaid benefit $ — $ — $ 24.5 $ 24.3 $ — $ —
Accrued liability (111.7) (80.9) (269.9) (237.2) (190.4) (193.1)
Intangible asset — 3.0 6.2 4.4 — —
Accumulated other comprehensive loss 382.5 305.3 169.4 114.5 — —
Net amount recognized $ 270.8 $ 227.4 $ (69.8) $ (94.0) $(190.4) $(193.1)
Accumulated benefit obligation $ 736.0 $ 629.0 $ 632.8 $ 524.5 N/A N/A