US Bank 2002 Annual Report Download - page 92

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The Company uses a measurement date of projected benefit obligation is determined based on the
September 30 for its retirement plans. At the measurement present value of projected benefit distributions at an
date, plan assets are determined based on the fair value assumed discount rate. Information presented in the four
generally representing observable market prices. The tables below reflects a measurement date of September 30.
The following table sets forth the components of net periodic benefit cost for the retirement plans:
Pension Plans Post-Retirement Medical Plans
(Dollars in Millions) 2002 2001 2000 2002 2001 2000
Components of net periodic benefit cost
Service cost***************************************** $ 49.9 $ 61.0 $ 65.4 $ 3.3 $ 2.1 $ 2.0
Interest cost***************************************** 115.1 118.7 117.3 19.1 17.9 16.3
Expected return on plan assets************************ (214.1) (232.6) (201.6) (1.6) (1.0) (.6)
Net amortization and deferral************************** (6.5) (10.7) (13.2) (.1) .2 .2
Recognized actuarial (gain) loss *********************** .8 (1.2) .7 — (.1) (1.4)
Net periodic benefit cost ********************************* (54.8) (64.8) (31.4) 20.7 19.1 16.5
Curtailment and settlement (gain) loss ***************** (11.7) — (17.0) — — 10.3
Cost of special or contractual termination
benefits recognized ******************************* 2.7—————
Net periodic benefit cost after curtailment and settlement
(gain) loss, and cost of special or contractual termination
benefits recognized************************************ $ (63.8) $ (64.8) $ (48.4) $20.7 $19.1 $26.8
The following table summarizes benefit obligation and plan asset activity for the retirement plans:
Pension Plans Post-Retirement Medical Plans
(Dollars in Millions) 2002 2001 2002 2001
Projected benefit obligation
Benefit obligation at beginning of measurement period **************** $1,656.4 $1,595.4 $ 265.1 $ 244.1
Service cost ****************************************************** 49.9 61.0 3.3 2.1
Interest cost ****************************************************** 115.1 118.7 19.1 17.9
Plan participants’ contributions************************************** — — 10.4 10.3
Plan amendments ************************************************* — 4.0 — (2.4)
Actuarial loss ***************************************************** — 47.7 18.1 24.9
Benefit payments************************************************** (147.3) (170.4) (33.5) (31.8)
Curtailments ****************************************************** (.7) — — —
Settlements******************************************************* (5.0) — — —
Termination benefits *********************************************** 2.7 — — —
Benefit obligation at end of measurement period (a)******************* $1,671.1 $1,656.4 $ 282.5 $ 265.1
Fair value of plan assets
Fair value at beginning of measurement period *********************** $1,611.1 $2,283.2 $ 35.4 $ 21.8
Actual return on plan assets**************************************** (193.2) (531.8) .7 1.8
Employer contributions********************************************* 172.1 30.1 17.2 33.3
Plan participants’ contributions************************************** — — 10.4 10.3
Acquisition/divestitures ********************************************* ————
Settlements******************************************************* ————
Benefit payments************************************************** (147.3) (170.4) (33.5) (31.8)
Fair value at end of measurement period **************************** $1,442.7 $1,611.1 $ 30.2 $ 35.4
Funded status
Funded status at end of measurement period ************************ $ (228.4) $ (45.3) $(252.3) $(229.7)
Unrecognized transition (asset) obligation **************************** (.1) — 7.4 8.1
Unrecognized prior service cost************************************* (59.0) (74.8) (8.6) (9.5)
Unrecognized net (gain) loss *************************************** 867.8 473.2 41.0 16.6
Fourth quarter contribution ***************************************** 4.3 6.7 13.7 5.7
Net amount recognized ******************************************** $ 584.6 $ 359.8 $(198.8) $(208.8)
Components of statement of financial position
Prepaid benefit cost *********************************************** $ 763.9 $ 531.6 $ — $ —
Accrued benefit liability ******************************************** (179.3) (171.8) (198.8) (208.8)
Net amount recognized ******************************************** $ 584.6 $ 359.8 $(198.8) $(208.8)
(a) At December 31, 2002 and 2001, the accumulated benefit obligation for all funded qualified pension plans was $1.4 billion.
90 U.S. Bancorp