Honeywell 2002 Annual Report Download - page 272

retirees that include health care benefits and life insurance coverage. Pension
benefits for substantially all U.S. employees are provided through
non-contributory, defined benefit pension plans. Employees in foreign countries,
who are not U.S. citizens, are covered by various retirement benefit
arrangements, some of which are considered to be defined benefit pension plans
for accounting purposes. Our retiree medical plans cover U.S. employees who
retire with pension eligibility for hospital, professional and other medical
services. Most of the U.S. retiree medical plans require deductibles and
copayments, and virtually all are integrated with Medicare. Retiree
contributions are generally required based on coverage type, plan and Medicare
eligibility. The retiree medical and life insurance plans are not funded. Claims
and expenses are paid from our general assets.
Net periodic pension and other postretirement benefit costs (income) for our
significant plans include the following components:
Pension Benefits
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2002 2001 2000
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Service cost .............................. $ 201 $ 194 $ 193
Interest cost ............................. 753 765 702
Assumed return on plan assets ............. (1,164) (1,201) (1,151)
Amortization of transition asset .......... (7) (11) (13)
Amortization of prior service cost ........ 43 49 53
Recognition of actuarial (gains) losses ... 13 (52) (114)
Settlements and curtailments .............. 14 (54) (50)
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Benefit (income) .......................... $ (147) $ (310) $ (380)
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Other Postretirement Benefits
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2002 2001 2000
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Service cost .............................. $ 21 $ 20 $ 23
Interest cost ............................. 141 142 131
Assumed return on plan assets ............. -- -- --
Amortization of prior service (credit) .... (22) (19) (18)
Recognition of actuarial (gains) losses ... 10 2 (4)
Settlements and curtailments .............. (30) -- (34)
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Benefit cost .............................. $120 $145 $ 98
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The following table summarizes the balance sheet impact, including the benefit
obligations, assets, funded status and actuarial assumptions associated with our
significant pension and other postretirement benefit plans.
Other
Postretirement
Pension Benefits Benefits
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2002 2001 2002 2001
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Change in benefit obligation:
Benefit obligation at
beginning of year ............. $10,952 $10,132 $ 2,149 $ 1,952
Service cost ..................... 201 194 21 20
Interest cost .................... 753 765 141 142
Plan amendments .................. 25 37 (32) (6)
Actuarial losses ................. 633 748 215 210
Acquisitions (divestitures) ...... (105) (7) -- --
Benefits paid .................... (868) (857) (199) (169)
Settlements and curtailments ..... (48) (49) (34) --
Other ............................ 117 (11) (20) --
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Benefit obligation at
end of year ................... 11,660 10,952 2,241 2,149
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Change in plan assets:
Fair value of plan assets at
beginning of year ............. 11,051 12,264 -- --
Actual return on plan assets ..... (912) (383) -- --
Company contributions ............ 885 46 -- --
Acquisitions (divestitures) ...... (103) (8) -- --
Benefits paid .................... (868) (857) -- --
Other ............................ 125 (11) -- --
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Fair value of plan assets at
end of year ................... 10,178 11,051 -- --