DIRECTV 2003 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2003 DIRECTV annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Components of net periodic benefit cost for the years ended December 31:
Pension Benefits
Other
Postretirement
Benefits
2003 2002 2001 2003 2002 2001
(Dollars in Millions)
Components of net periodic benefit cost
Benefits earned during the year ........................... $23.0 $21.7 $16.0 $0.5 $0.5 $0.5
Interest accrued on benefits earned in prior years ............. 35.4 33.8 32.7 1.9 2.2 1.9
Expected return on assets ................................ (32.4) (36.5) (41.0) — — —
Amortization components
Amount resulting from changes in plan provisions ........ 2.2 2.2 2.1 — — —
Net amount resulting from changes in plan experience and
actuarial assumptions ............................. 4.4 3.0 0.4 — — (0.5)
Net periodic benefit cost ........................ $32.6 $24.2 $10.2 $2.4 $2.7 $1.9
Additional information
Increase in minimum liability included in other comprehensive
income ............................................ $26.8 $25.2 $ 2.0 — — —
Assumptions
Weighted-average assumptions used to determine benefit obligations at December 31:
Pension
Benefits
Other
Postretirement
Benefits
2003 2002 2003 2002
Discount rate .................................................... 6.14% 7.00% 5.89% 6.75%
Rate of compensation increase ...................................... 4.50% 5.00% 4.50% 5.00%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended
December 31:
Pension Benefits
Other
Postretirement
Benefits
2003 2002 2001 2003 2002 2001
Discount rate ..................................... 7.00% 7.25% 7.75% 6.75% 7.00% 7.50%
Expected long-term return on plan assets ............... 9.00% 9.50% 9.50% — — —
Rate of compensation increase ........................ 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
The Company’s expected long-term return on plan assets assumption is based on a periodic review and
modeling of the plans’ asset allocation and liability structure over a long-term horizon. Expectations of returns
for each asset class are the most important of the assumptions used in the review and modeling and are based on
comprehensive reviews of historical data and economic/financial market theory.
91