EMC 2003 Annual Report Download - page 58

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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The components of the change in benefit obligation of the Pension Plans are as follows (table in thousands):
December 31,
2003
December 31,
2002
Benefit obligation at beginning of year $ 326,753 $ 291,419
Service cost – 732
Interest cost 17,913 20,108
Participant contributions – 254
Foreign exchange loss 5,665 5,406
Curtailment gain – (3,812)
Benefits paid (8,150) (7,574)
Settlement payments (41,769) (398)
Actuarial loss 6,397 20,618
Benefit obligation at end of year $ 306,809 $ 326,753
The reconciliation of the beginning and ending balances of the fair value of the assets of the Pension Plans is as follows (table in thousands):
December 31,
2003
December 31,
2002
Fair value of plan assets at beginning of year $ 201,691 $ 228,624
Actual return (loss) on plan assets 62,905 (35,734)
Employer contributions 107,427 12,331
Participant contributions – 254
Foreign exchange gain 4,309 4,188
Benefits paid (8,150) (7,574)
Settlement payments (41,769) (398)
Fair value of plan assets at end of year $ 326,413 $ 201,691
In January 2003, we contributed an additional $107.4 million to the U.S. pension plan. We do not expect to make any contributions to the Pension Plans
in 2004. In January 2003, we settled the United Kingdom pension plan, which resulted in a disbursement of $41.6 million.
The funded status of the Pension Plans is as follows (table in thousands):
December 31,
2003
December 31,
2002
Funded status $ 19,604 $ (125,062)
Unrecognized actuarial loss 106,053 146,031
Unrecognized transition asset (1,463) (2,318)
Net amount recognized at year end $ 124,194 $ 18,651
85
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Amounts recognized in the balance sheet consist of the following (table in thousands):
December 31,
2003
December 31,
2002
Prepaid benefit cost $ 124,390 $ –
Accrued benefit liability (196) (125,029)
Accumulated other comprehensive loss – 143,680
Net amount recognized at year end $ 124,194 $ 18,651
The components of net periodic benefit cost of the Pension Plans are as follows (table in thousands):
2003 2002 2001
Service cost $ – $ 732 $ 1,580
Interest cost 17,913 20,108 19,058
Expected return on plan assets (21,954) (20,467) (20,969)