Ford 2002 Annual Report Download - page 88

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84
NOTES TO FINANCIAL STATEMENTS
NOTE 20. RETIREMENT BENEFITS (CONTINUED)
The year-end status of these plans was as follows (in millions):
Health Care and
Pension Benefits Life Insurance
U.S. Plans Non-U.S. Plans
2002 2001 2002 2001 2002 2001
Change in Benefit Obligation
Benefit obligation at January 1 $ 35,223 $ 33,282 $ 15,991 $ 16,918 $ 25,433 $ 23,374
Service cost 556 531 377 396 427 374
Interest cost 2,453 2,410 977 974 1,801 1,697
Amendments (3) 6133 133 (264) (923)
Separation programs 132 330 102 24 16 114
Net transfers in/(out) ---(170) --
Plan participant contributions 39 40 95 83 14 -
Benefits paid (2,806) (2,496) (921) (768) (1,232) (1,145)
Foreign exchange translation --1,980 (637) 4(26)
Actuarial (gain)/loss 1,559 1,120 1,964 (962) 4,064 1,968
Benefit obligation at December 31 $ 37,153 $ 35,223 $ 20,698 $ 15,991 $ 30,263 $ 25,433
Change in Plan Assets
Fair value of plan assets at January 1 $ 35,819 $ 39,830 $ 12,935 $ 14,714 $ 2,692 $ 3,135
Actual return on plan assets (3,335) (1,558) (1,692) (931) 64 200
Company contributions 181 167 611 380 1,310 529
Net transfers in/(out) -(300)* -(152) --
Plan participant contributions 39 40 95 83 --
Benefits paid (2,806) (2,496) (921) (768) (1,232) (1,145)
Foreign exchange translation --1,322 (515) --
Other (21) 136 13 124 -(27)
Fair value of plan assets at December 31 $ 29,877 $ 35,819 $ 12,363 $ 12,935 $ 2,834 $ 2,692
Funded status $ (7,276) $ 596 $ (8,335) $ (3,056) $(27,429) $(22,741)
Unamortized prior service costs 2,831 3,358 784 768 (1,161) (1,043)
Unamortized net (gains)/losses and other 6,742 (1,939) 6,874 1,642 10,423 6,655
Net amount recognized $ 2,297 $ 2,015 $ (677) $ (646) $ (18,167) $(17,129)
Amounts Recognized in the Balance
Sheet Consist of Assets/(Liabilities)
Prepaid assets $ 3,429 $ 3,099 $ 1,728 $ 1,259 $-$-
Accrued liabilities (8,921) (1,356) (7,449) (2,779) (18,167) (17,129)
Intangible assets 2,797 72 890 352 --
Accumulated other comprehensive income 4,992 200 4,154 522 --
Net amount recognized $ 2,297 $ 2,015 $ (677) $ (646) $(18,167) $(17,129)
Pension Plans in Which Accumulated
Benefit Obligation Exceeds Plan
Assets at December 31
Accumulated benefit obligation $ 35,305 $ 1,302 $ 17,569 $ 5,109
Fair value of plan assets 29,773 184 11,756 2,721
Weighted Average Assumptions
as of December 31
Discount rate 6.75% 7.25% 5.65% 6.10% 6.75% 7.25%
Expected return on assets 8.75% 9.50% 8.40% 8.70% 6.00% 6.00%
Average rate of increase in compensation 5.20% 5.20% 3.80% 3.80% --
Initial health care cost trend rate ----11.00% 9.45%
Ultimate health care cost trend rate ----5.00% 5.00%
Number of years to ultimate trend rate ----56
* Payment of retiree health care benefits.
A one percentage point increase/(decrease) in the assumed health care cost trend rate would increase/(decrease) the postretirement
health care benefit obligation by approximately $3.9 billion/($3.3 billion) and the service and interest component of this expense by
$283 million/($221) million.