Fluor 2004 Annual Report Download - page 88

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Defined benefit pension plan amounts recognized in the Consolidated Balance Sheet as of December 31, 2004 and 2003
are as follows:
December 31
2004 2003
(in thousands)
Pension assets $ 187,455 $ 173,613
Accrued benefit cost (34,124) (27,935)
Accumulated other comprehensive loss 43,594 38,168
Net amount recognized $ 196,925 $ 183,846
The following table sets forth selected aggregate information for defined benefit pension plans with benefit obligations in
excess of plan assets and accumulated benefit obligation in excess of plan assets as of December 31, 2004 and 2003:
Plans with Benefit Plan with Accumulated
Obligations in Excess of Benefit Obligations in
Plan Assets (1) Excess of Plan Assets
December 31 December 31
2004 2003 2004 2003
(in thousands)
Projected benefit obligation
Accumulated benefit obligation
Fair value of plan assets
$ 434,723
351,188
$ 370,639
309,193
$ 179,864
161,409
127,285
$ 148,104
132,907
104,972
(1) Includes three non-U.S. plans, one of which also has an accumulated
benefit obligations in excess of plan assets
Additional information:
Increase (decrease) in minimum liability included in other
comprehensive loss $ 6,189 $ (927)
In addition to the company’s defined benefit pension plans, the company and certain of its subsidiaries provide health
care and life insurance benefits for certain retired employees. The health care and life insurance plans are generally
contributory, with retiree contributions adjusted annually. Service costs are accrued currently. The accumulated postretire-
ment benefit obligation at December 31, 2004, 2003 and 2002 was determined in accordance with the current terms of the
company’s health care plans, together with relevant actuarial assumptions and health care cost trend rates projected at annual
rates ranging from 10 percent in 2005 down to 5 percent in 2010 and beyond. The effect of a 1 percent annual increase in
these assumed cost trend rates would increase the accumulated postretirement benefit obligation and the aggregate of the
annual service and interest costs by approximately $1.7 million and $0.1 million, respectively. The effect of a 1 percent
annual decrease in these assumed cost trend rates would decrease the accumulated postretirement benefit obligation and the
aggregate of the annual service and interest costs by approximately $1.6 million and $0.1 million, respectively.
F-21