Avon 2005 Annual Report Download - page 38

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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
2005 2004 2005 2004 2005 2004
Change in Benefit Obligation:
Beginning balance $(814.6) $(705.5) $(686.1) $(571.3) $(196.6) $(201.2)
Service cost (29.5) (25.5) (21.2) (20.6) (2.3) (2.5)
Interest cost (48.9) (48.1) (33.5) (32.7) (9.3) (11.5)
Actuarial (loss) gain (72.4) (139.4) (58.0) (61.1) 4.2 5.2
Plan participant contributions – – (4.0) (3.4) (6.0) (5.4)
Benefits paid 83.0 85.5 32.5 29.5 19.8 19.3
Plan amendments (1.3) 18.4 6.8 17.8 12.5 –
Settlements/special termination benefits (.2) – 4.5 1.0 –
Foreign currency changes – – 55.5 (43.9) (.5) (.5)
Other – – (1.4) –
Ending balance $(883.9) $(814.6) $(703.5) $(686.1) $(178.2) $(196.6)
Change in Plan Assets:
Beginning balance $ 624.4 $ 547.7 $ 393.2 $ 317.2 $ – $ –
Actual return on plan assets 35.4 66.5 56.9 34.3 – –
Company contributions 116.2 95.7 45.8 45.7 13.8 13.9
Plan participant contributions – – 4.0 3.4 6.0 5.4
Benefits paid (83.0) (85.5) (32.5) (29.5) (19.8) (19.3)
Foreign currency changes – – (25.8) 23.8 – –
Settlements/special termination benefits – – (4.6) (1.7) – –
Ending balance $ 693.0 $ 624.4 $ 437.0 $ 393.2 $ – $ –
Funded Status:
Funded status at end of year $(190.9) $(190.2) $(266.5) $(293.0) $(178.1) $(196.6)
Unrecognized actuarial loss 527.2 476.3 214.0 213.6 41.0 46.8
Unrecognized prior service cost (11.6) (15.3) .1 8.6 (50.1) (40.8)
Unrecognized net transition obligation – – 1.0 1.0 .2 .2
Net amount recognized $ 324.7 $ 270.8 $ (51.4) $ (69.8) $(187.0) $(190.4)
Amount Recognized in Balance Sheet:
Prepaid benefit $ – $ – $ 22.8 $ 24.5 $ – $ –
Accrued liability (105.1) (111.7) (241.1) (269.9) (187.0) (190.4)
Intangible asset .6 – 4.5 6.2 – –
Accumulated other comprehensive loss 429.2 382.5 162.4 169.4 – –
Net amount recognized $ 324.7 $ 270.8 $ (51.4) $ (69.8) $(187.0) $(190.4)
Accumulated benefit obligation $ 798.1 $ 736.0 $ 654.2 $ 632.8 N/A N/A