Raytheon 2004 Annual Report Download - page 105

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87
Notes to Consolidated Financial Statements (Continued)
The tables below provide a reconciliation of benefit obligations, plan assets, funded status, and related actuarial
assumptions of the Company’s domestic and foreign Pension Benefits and Other Benefits plans.
Change in Benefit Obligation Pension Benefits Other Benefits
(In millions) 2004 2003 2004 2003
Benefit obligation at beginning of year $13,496 $12,023 $1,657 $1,579
Service cost 341 271 16 15
Interest cost 815 799 93 106
Plan participants’ contributions 28 29 ––
Amendments 76(125) (46)
Actuarial loss 1,074 1,225 (200) 122
Divestitures/transfers (14) –(1) –
Foreign exchange 55 52 – –
Benefits paid (892) (909) (95) (119)
Benefit obligation at end of year $14,910 $13,496 $1,345 $1,657
Change in Plan Assets Pension Benefits Other Benefits
(In millions) 2004 2003 2004 2003
Fair value of plan assets at beginning of year $ 9,986 $9,156 $400 $ 353
Actual return on plan assets 1,716 1,629 32 25
Divestitures/transfers (16) (20) –8
Company contributions 415 69 102 133
Plan participants’ contributions 28 29 ––
Foreign exchange 36 32 ––
Benefits paid (892) (909) (95) (119)
Fair value of plan assets at end of year $11,273 $9,986 $439 $ 400
The fair value of plan assets for the Company’s domestic and foreign Pension Benefits plans was $10,873 million
and $400 million, respectively at December 31, 2004 and $9,661 million and $325 million, respectively, at
December 31, 2003.
Funded Status–unrecognized components Pension Benefits Other Benefits
(In millions) December 31: 2004 2003 2004 2003
Funded status $(3,637) $(3,510) $(906) $(1,257)
Unrecognized actuarial loss 5,126 5,265 556 797
Unrecognized transition obligation ––48 160
Unrecognized prior service cost 158 170 (328) (348)
Prepaid (accrued) benefit cost $ 1,647 $ 1,925 $(630) $ (648)
The table above reconciles the difference between the benefit obligation and the fair value of plan assets to the
amounts recorded on the Company’s balance sheet due to certain items that are amortized over future periods
rather than recognized in the current period.