Pizza Hut 2002 Annual Report Download - page 65

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63.
Yum! Brands Inc.
The change in benefit obligation and plan assets and reconciliation of funded status is as follows:
Postretirement
Pension Benefits Medical Benefits
2002 2001 2002 2001
Change in benefit obligation
Benefit obligation at beginning of year $ 420 $ 351 $58 $48
Service cost 22 20 22
Interest cost 31 28 44
Plan amendments 14 1
——
Special termination benefits
—
2
——
Curtailment (gain) (3) (3)
——
Benefits and expenses paid (16) (17) (3) (3)
Actuarial loss 33 38 77
Benefit obligation at end of year $ 501 $ 420 $68 $58
Change in plan assets
Fair value of plan assets at beginning of year $ 291 $ 313
Actual return on plan assets (24) (51)
Employer contributions 148
Benefits paid (16) (17)
Administrative expenses (1) (2)
Fair value of plan assets at end of year $ 251 $ 291
Reconciliation of funded status
Funded status $ (250) $ (129) $ (68) $ (58)
Employer contributions(a) 25
———
Unrecognized actuarial loss 169 87 18 12
Unrecognized prior service cost 16 4
——
Net amount recognized at year-end $ (40) $ (38) $ (50) $ (46)
(a) Reflects a contribution made between the September 30, 2002 measurement date and December 28, 2002.
Amounts recognized in the statement of financial position consist of:
Accrued benefit liability $ (172) $ (84) $ (50) $ (46)
Intangible asset 18 8
——
Accumulated other comprehensive loss 114 38
——
$ (40) $ (38) $ (50) $ (46)
Other comprehensive loss attributable to change
in additional minimum liability recognition $76 $38
Additional year-end information for pension plans
with benefit obligations in excess of plan assets
Benefit obligation $ 501 $ 420
Fair value of plan assets 251 291
Additional year-end information for pension plans
with accumulated benefit obligations in excess of plan assets
Benefit obligation $ 501 $ 420
Accumulated benefit obligation 448 369
Fair value of plan assets 251 291
The assumptions used to compute the information above are set forth below:
Postretirement
Pension Benefits Medical Benefits
2002 2001 2000 2002 2001 2000
Discount rate 6.85% 7.60% 8.03% 6.85% 7.58% 8.27%
Long-term rate of return on plan assets 8.50% 10.00% 10.00%
———
Rate of compensation increase 3.85% 4.60% 5.03% 3.85% 4.60% 5.03%