Eli Lilly 2013 Annual Report Download - page 76

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62
Note 15: Retirement Benefits
We use a measurement date of December 31 to develop the change in benefit obligation, change in plan
assets, funded status, and amounts recognized in the consolidated balance sheets at December 31 for our
defined benefit pension and retiree health benefit plans, which were as follows:
Defined Benefit
Pension Plans
Retiree Health
Benefit Plans
2013 2012 2013 2012
Change in benefit obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . $ 10,423.8 $ 9,191.2 $ 2,337.7 $ 2,308.6
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287.1 253.1 49.9 63.3
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437.2 455.1 98.1 114.9
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . (792.2) 834.0 (642.5) (57.0)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (402.3) (404.2) (79.6) (67.2)
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (0.6) (4.1) (28.4)
Foreign currency exchange rate changes and other
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.9 95.2 (2.3) 3.5
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . 9,976.4 10,423.8 1,757.2 2,337.7
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . 8,286.6 7,186.3 1,518.0 1,339.0
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . 1,144.6 922.7 365.7 183.4
Employer contribution . . . . . . . . . . . . . . . . . . . . . . . . . . 428.9 469.7 75.5 62.8
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (402.3) (404.2) (79.6) (67.2)
Foreign currency exchange rate changes and other
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.9 112.1 ——
Fair value of plan assets at end of year . . . . . . . . . . . . 9,481.7 8,286.6 1,879.6 1,518.0
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (494.7) (2,137.2) 122.4 (819.7)
Unrecognized net actuarial loss . . . . . . . . . . . . . . . . . . . 3,546.3 5,187.5 178.1 1,156.7
Unrecognized prior service (benefit) cost . . . . . . . . . . . . 50.7 54.9 (171.5) (203.4)
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,102.3 $ 3,105.2 $ 129.0 $ 133.6
Amounts recognized in the consolidated balance sheet
consisted of:
Sundry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 881.2 $ 125.5 $ 366.4 $ —
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . (62.8) (61.2) (7.7) (8.9)
Accrued retirement benefits . . . . . . . . . . . . . . . . . . . . . (1,313.1) (2,201.6) (236.3) (810.8)
Accumulated other comprehensive loss before income
taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,597.0 5,242.5 6.6 953.3
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,102.3 $ 3,105.2 $ 129.0 $ 133.6
The unrecognized net actuarial loss and unrecognized prior service cost (benefit) have not yet been
recognized in net periodic pension costs and are included in accumulated other comprehensive loss at
December 31, 2013.
During 2014, we expect the following components of accumulated other comprehensive loss to be recognized
as components of net periodic benefit cost:
Defined Benefit
Pension Plans
Retiree Health
Benefit Plans
Unrecognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 277.2 $ 20.0
Unrecognized prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 (31.2)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 280.8 $ (11.2)
We do not expect any plan assets to be returned to us in 2014.