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Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements
78
Notes to the consolidated accounts
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2000
33 Pension and other benefit plans continued
US GAAP accounting:
The follow ing tables summarise the balance sheet impact, as well as the benefit obligations, assets, funded status and economic
assumptions associated with the key defined benefit pension plans and the other benefit plans as computed in accordance with SFAS 87
and SFAS 106. At 31 December 2000 these pension plans represented approximately 76% (1999: 79% ; 1998: 76% ) of all pension plans
while 100% of the other benefit plans are represented (1999: 100% ; 1998: 100% ), based on the market value of the funds plus the
provisions held in the Group’s accounts.
million
Pension plans Other benefits plans
2000 1999 2000 1999
Change in benefit obligations
Benefit obligations at 1 January 9 958 9 279 748 715
Service cost 231 217 16 14
Interest cost 698 518 64 45
Plan member contributions ————
Amendments ——1—
Plan mergers 1 097 ———
Actuarial (gains)/losses 225 (319) (14) (71)
Acquisitions/disposals 621 —349 —
Settlements/curtailments (39) (17) (2) (2)
Special termination benefits 32 17 1—
Benefits paid (762) (609) (61) (50)
Currency retranslations (14) 872 30 97
Benefit obligations at 31 December 12 047 9 958 1 132 748
Change in plan assets
Fair value of plan assets at 1 January 13 838 10 688 33
Plan mergers 1 397 ———
Actual return on plan assets 385 2 791 ——
Acquisitions/(disposals) 987 ———
Settlements (39) (18) ——
Employer contribution/surplus refunds (361) (69) 60 50
Plan member contributions ——1—
Benefits paid (762) (609) (61) (50)
Currency retranslations (44) 1 055 ——
Fair value of plan assets at 31 December 15 401 13 838 33
Funded status at 31 December 3 354 3 880 (1 129) (744)
Unrecognised net transition liability/(asset) (309) (375) 3—
Unrecognised net actuarial loss/(gain) (3 437) (3 981) (76) (61)
Unrecognised prior service cost 127 180 43
Other (SFAS 112 liabilities) n/a n/a (16) (13)
Net amount recognised at 31 December (265) (296) (1 214) (815)
Amount recognised in the statement of financial position consists of:
Prepaid benefit cost 797 526 ——
Accrued benefit liability (1 062) (823) (1 214) (817)
Additional minimum liability (11) (13) ——
Intangible asset 68——
Accumulated other comprehensive income 56—2
Net amount recognised at 31 December (265) (296) (1 214) (815)
Pension plans Other benefits plans
% %
2000 1999 1998 2000 1999 1998
Weighted-average assumptions as at
31 December
Discount rate 6.25 6.25 5.50 7.50 7.50 6.00
Expected return on plan assets 7.25 7.25 6.75 n/a n/a n/a
Rate of salary increases 3.75 3.75 3.50 4.50 4.50 4.50
Cost of living increases 2.50 2.50 2.25 n/a n/a n/a
The valuations of other benefit plans typically assume that medical cost inflation w ill fall from its current level (assumed to be approximately
8% in 2000) over the next few years and reach a constant level of approximately 5% within 6 years.