Prudential 2002 Annual Report Download - page 133
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Notes to Consolidated Financial Statements
17. EMPLOYEE BENEFIT PLANS (continued)
Prepaid and accrued benefits costs are included in “Other assets” and “Other liabilities,” respectively, in the
Company’s Consolidated Statements of Financial Position. The status of these plans as of September 30, adjusted
for fourth-quarter activity, is summarized below:
Pension Benefits
Other
Postretirement
Benefits
2002 2001 2002 2001
(in millions)
Change in benefit obligation
Benefit obligation at the beginning of period .................................. $(6,607) $ (5,461) $(2,096) $(1,996)
Servicecost............................................................ (175) (167) (14) (18)
Interest cost ............................................................ (463) (431) (152) (150)
Plan participants’ contributions ............................................ — — (8) (8)
Amendments........................................................... (218) 6 141 —
Acquisitions ........................................................... — (765) — —
Annuitypurchase ....................................................... 68 232 — —
Actuarial (losses), net .................................................... (560) (510) (375) (77)
Contractual termination benefits ........................................... (1) (1) — —
Benefits paid ........................................................... 452 462 165 152
Foreign currency changes ................................................. (66) 28 — 1
Transfer from postemployment benefits ...................................... — — (95) —
Benefit obligation at end of period .......................................... $(7,570) $ (6,607) $(2,434) $(2,096)
Change in plan assets
Fair value of plan assets at beginning of period ................................ $8,629 $10,356 $ 1,343 $ 1,560
Actual return on plan assets ............................................... (299) (1,114) (38) (82)
Annuitypurchase ....................................................... (68) (232) — —
Employercontributions .................................................. 95 81 8 9
Plan participants’ contributions ............................................ — — 8 8
Benefits paid ........................................................... (452) (462) (165) (152)
Foreign currency changes ................................................. 9 — — —
Fair value of plan assets at end of period ..................................... $7,914 $ 8,629 $1,156 $1,343
Funded status
Funded status at end of period ............................................. $ 344 $ 2,022 $(1,278) $ (753)
Unrecognized transition (asset) liability ...................................... (129) (236) 41 188
Unrecognized prior service costs ........................................... 234 46 (9) 2
Unrecognized actuarial (gains) losses, net .................................... 1,477 (370) 349 (188)
Effects of fourth quarter activity ........................................... 11 7 2 1
Net amount recognized ................................................... $1,937 $ 1,469 $ (895) $ (750)
Amounts recognized in the Statements of Financial Position
Prepaid benefit cost ..................................................... $3,082 $ 2,570 $ — $ —
Accrued benefit liability .................................................. (1,285) (1,177) (895) (750)
Intangible asset ......................................................... 4 6 — —
Accumulated other comprehensive income ................................... 136 70 — —
Net amount recognized ................................................... $1,937 $ 1,469 $ (895) $ (750)
The projected benefit obligations, accumulated benefit obligations and fair value of plan assets for the
pension plans with accumulated benefit obligations in excess of plan assets were $1,480 million, $1,247 million
and $77 million, respectively, at September 30, 2002 and $1,217 million, $1,080 million and $1 million,
respectively, at September 30, 2001.
Growing and Protecting Your Wealth132