EMC 2002 Annual Report Download - page 73

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The funded status of the plan is as follows (table in thousands):
December 31,
2002
December 31,
2001
Funded status $ (5,803) $ (5,184)
Unrecognized actuarial gain (177) (967)
Unrecognized prior service credit (1,350) (1,450)
Accrued benefit liability $ (7,330) $ (7,601)
The components of net periodic benefit cost are as follows (table in thousands):
2002 2001 2000
Interest cost $ 416 $ 363 $ 457
Expected return on plan assets (30) (31) (33)
Amortization of prior service cost (101) (101) (101)
Recognized actuarial gain — (43) (21)
Net periodic benefit cost $ 285 $ 188 $ 302
The weighted-average assumptions used in the plan are as follows:
December 31,
2002
December 31,
2001
December 31,
2000
Discount rate 6.5% 7.3% 7.5%
Expected long-term rate of return on plan assets 9.0% 9.0% 9.0%
Rate of compensation increase N/A N/A N/A
The effects of a one percent change in the assumed health care cost trend rates are as follows (table in thousands):
1% increase 1% decrease
Effect on total service and interest cost components for 2002 $ 9 $ 8
Effect on year-end post retirement obligation 135 118
L. Commitments and Contingencies
Operating Lease Commitments
EMC leases office and warehouse facilities and equipment under various operating leases. Rent expense was $211.2 million, $266.5 million and
$229.1 million in 2002, 2001 and 2000, respectively. EMC's commitments under its operating leases, including facilities to be sublet (see Note C), are as
follows (table in thousands):
2003 $186,268
2004 119,299
2005 73,372
2006 48,242
2007 39,384
Thereafter 78,531
Total minimum lease payments $545,096
69