Honeywell 2002 Annual Report Download - page 273

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Funded status of plans ........... (1,482) 99 (2,241) (2,149)
Unrecognized transition (asset) .. 1 (8) -- --
Unrecognized net loss ............ 3,829 1,118 528 297
Unrecognized prior service
cost (credit) ................. 193 239 (153) (157)
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Net amount recognized $ 2,541 $ 1,448 $ (1,866) $(2,009)
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Actuarial assumptions at December 31:
Discount rate .................... 6.75% 7.25% 6.75% 7.25%
Assumed rate of return on
plan assets ................... 10.00% 10.00% -- --
Assumed annual rate of
compensation increase ......... 4.00% 4.00% -- --
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The assumed rate of return on plan assets used to determine pension income in
2002, 2001 and 2000 was 10 percent. Based on our historic plan asset returns and
the continued deterioration in financial market returns in 2002 we are reducing
the assumed rate of return on plan assets from 10 to 9 percent for purposes of
determining 2003 pension benefit cost (income).
In 2002 we made voluntary contributions of $830 million to our U.S. defined
benefit pension plans to improve the funded status of our plans. The
contributions included $700 million of Honeywell common stock. We have appointed
an independent fiduciary to hold and make all investment decisions with respect
to the contributed shares. At December 31, 2002 and 2001, the fair value of our
pension plan assets invested in Honeywell common stock were $811 and $79
million, respectively.
The projected benefit obligation, accumulated benefit obligation and fair value
of plan assets for our pension plans with accumulated benefit obligations in
excess of plan assets
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