Mercedes 2004 Annual Report Download - page 147

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Net Pension Cost. The components of net pension cost were for
the years ended December 31, 2004, 2003 and 2002 as follows:
Contributions. Employer contributions to the Group’s defined
benefit pension plans were €1,649 million and €2,056 million for
the years ended December 31, 2004 and 2003, respectively. The
employer contribution to the Group’s defined benefit pension
plans is expected to approximate €1.5 billion in 2005, of which
€0.5 billion is estimated to be needed to satisfy minimum funding
and contractual requirements and an additional €1.0 billion is
expected to be contributed at the Group’s discretion. The Group
anticipates that the expected 2005 employer contribution will
comprise €1.5 billion in cash.
Estimated Future Pension Benefit Payments. Pension benefits
pertaining to the Group’s German and non-German plans were
€550 million and €1,541 million, respectively during 2004, and
€527 million and €1,599 million, respectively during 2003. The
total estimated future pension benefits to be paid by the Group’s
pension plans for the next 10 years approximates €23.0 billion
and are expected to be paid as follows:
Accumulated Benefit Obligation. For all pension plans that
have an accumulated benefit obligation in excess of plan assets,
information pertaining to the accumulated benefit obligation
and plan assets are presented as follows:
The pretax increase of the minimum pension liability in 2004
resulted in a reduction of stockholder’s equity by €1,224 million
and is included in other comprehensive income (loss). In 2003
there was a pretax increase of stockholder’s equity included in
other comprehensive income (loss) of €662 million for the
years ended December 31, respectively.
Other Postretirement Benefits
Certain DaimlerChrysler operations in the U.S. and Canada pro-
vide postretirement health and life insurance benefits to their
employees. Upon retirement from DaimlerChrysler, the employ-
ees may become eligible for continuation of these benefits.
The benefits and eligibility rules may be modified.
143
425
1,292
(1,725)
231
292
–
515
64
579
256
632
(509)
173
–
–
552
50
602
600
2,029
(2,379)
226
287
–
763
74
837
226
629
(595)
74
–
–
334
1
335
610
2,251
(3,287)
77
291
1
(57)
209
152
344
1,397
(1,870)
53
287
–
211
24
235
384
1,622
(2,692)
3
291
1
(391)
208
(183)
256
586
(614)
141
–
–
369
–
369
681
1,878
(2,339)
372
292
–
884
64
948
German
PlansTotal
2002
Non-German
Plans
German
PlansTotal
2003
Non-German
Plans
German
PlansTotal
2004
Non-German
Plans
(in millions of €)
Service cost
Interest cost
Expected return on plan assets
Amortization of:
Unrecognized net actuarial (gains) losses
Unrecognized prior service cost
Unrecognized net obligation
Net periodic pension cost (benefit)
Settlement/curtailment loss
Net pension cost (benefit)
(in billions of €)
3.7
8.5
12.2
2010-
2014
20092008200720062005
0.7
1.7
2.4
0.6
1.6
2.2
0.6
1.5
2.1
0.6
1.5
2.1
0.5
1.5
2.0
German Plans
Non-German Plans
Total
32,300
31,206
23,882
At December 31,
2002
31,487
30,547
25,660
33,749
32,627
27,141
At December 31,
2003
At December 31,
2004
Projected benefit obligation
Accumulated benefit obligation
Plan Assets
(in millions of €)