Mercedes 1999 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 1999 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 126

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

NOTES TO THE CONSOLIDATED BALANCE SHEETS
98
Assumed discount rates and rates of increase in remuneration
used in calculating the projected benefit obligations together with
long-term rates of return on plan assets vary according to the eco-
nomic conditions of the country in which the pension plans are
situated. The weighted-average assumptions used in calculating
the actuarial values for the principal pension plans were as follows
(in %):
Weighted-average assumptions as
of December 31:
Discount rate
Expected return on plan assets
Rate of compensation increase
6.0 6.0 6.5 7.5 6.5 6.8
7.7 7.7 7.7 9.8 9.8 9.8
2.8 3.0 3.5 5.9 6.0 6.0
German Plans
1999 1998 1997
The components of net periodic pension cost were as follows:
Service cost
Interest cost
Expected return on plan assets
Amortization of
Unrecognized net actuarial losses (gains)
Unrecognized prior service cost
Unrecognized net obligation
Other
Net periodic pension cost
267 430 258 429 243 295
756 1,185 732 1,033 718 998
(223) (1,872) (203) (1,514) (198) (1,372)
1 41 (2) 80 (1) 54
– 214 – 187 (2) 196
–129 –126 –125
1 2 (3) 3 – 21
802 129 782 344 760 317
Non-
German
Plans
German
Plans
1999
German
Plans
1998
Non-
German
Plans
German
Plans
1997
Non-
German
Plans
The projected benefit obligations and fair value of plan assets for
pension plans with accumulated benefit obligations in excess of
plan assets were €13,934 and €7,818, respectively, as of December
31, 1999 and €13,391 and €3,497, respectively, as of December 31,
1998.
Other Postretirement Benefits
Certain DaimlerChrysler operations in the U.S. and Canada pro-
vide postretirement health and life insurance benefits to their em-
ployees. Upon retirement from DaimlerChrysler the employees
may become eligible for continuation of these benefits. The ben-
efits and eligibility rules may be modified periodically.
At December 31, 1999, plan assets were invested in diversified
portfolios that consisted primarily of debt and equity securities.
1999 1998 1997
Non-German Plans