Kodak 2001 Annual Report Download - page 72

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70
Pension expense (income) for all plans included:
2001 2000 1999
(in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.
Service cost $94 $ 33 $89 $36 $107 $ 34
Interest cost 406 101 408 114 426 111
Expected return on plan assets (599) (149) (572) (157) (537) (137)
Amortization of:
Transition asset (59) (9) (59) (10) (59) (10)
Prior service cost 1718108
Actuarial loss –1–3210
(157) (16) (133) (6) (51) 16
Curtailments ––(3) – (1) –
Settlements –1–1––
Net pension (income) expense (157) (15) (136) (5) (52) 16
Other plans including unfunded plans 48 82 41 69 33 51
Total net pension (income) expense $(109) $ 67 $(95) $ 64 $ (19) $ 67
There was no curtailment gain or loss recognized as a result of the 2001
restructuring programs. The Company recorded a $3 million curtailment
gain in 2000 and a $9 million curtailment loss in 1999 as a result of the
reduction in employees from the 1997 restructuring program. Additionally,
the Company recorded a $10 million curtailment gain in 1999 as a result
of the sale of the Office Imaging operations.
The weighted assumptions used to compute pension amounts for
major plans were as follows:
2001 2000
U.S. Non-U.S. U.S. Non-U.S.
Discount rate 7.25% 5.90% 7.50% 6.00%
Salary increase
rate 4.30% 3.10% 4.30% 3.10%
Long-term rate
of return on
plan assets 9.50% 8.50% 9.50% 8.70%
The Company also sponsors an unfunded plan for certain U.S. employees,
primarily executives. The benefits of this plan are obtained by applying
KRIP provisions to all compensation, including amounts being deferred,
and without regard to the legislated qualified plan maximums, reduced
by benefits under KRIP. At December 31, 2001 and 2000, the projected
benefit obligations of this plan amounted to $200 million and $187
million, respectively. The Company has accrued in postemployment
liabilities its unfunded accumulated benefit obligation (ABO) of $183
million and $171 million as of December 31, 2001 and 2000,
respectively. Pension expense recorded in 2001, 2000 and 1999 related to
this plan was $18 million, $34 million and $21 million, respectively.