Exelon 2002 Annual Report Download - page 104

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plant sale are anticipated to be under IRS audit beginning
in 2003. Final resolution of this matter is not anticipated for
several years. As of December 31, 2002 and 2001, Exelon had
recorded valuation allowances of $13 million and $2 million,
respectively.
note 15 • retirement benefits
Exelon sponsors defined benefit pension plans and post-
retirement welfare benefit plans applicable to essentially all
ComEd,PECO, Generation and Business Services Company (BSC)
employees and certain employees of Enterprises.In 2001,Exelon
consolidated the former Unicom and PECO plans into Exelon
plans. Essentially all management employees, and electing
union employees,hired on or after January 1,2001 participate in
newly established cash balance pension plans. Approximately
4,700 management employees who were active participants in
the former Unicom and PECO pension plans on December 31,
2000, and remained employed by Exelon on January 1, 2002
elected to transfer to the cash balance plan. Benefits under
Exelon’s pension plans generally reflect each employee’s com-
pensation, years of service and age at retirement. Funding is
based upon actuarially determined contributions that take
into account the amount deductible for income tax purposes
and the minimum contribution required under the Employee
Retirement Income Security Act of 1974, as amended. The fol-
lowing tables provide a reconciliation of benefit obligations,
plan assets and funded status of the plans.
Notes To Consolidated Financial Statements
exelon corporation and subsidiary companies
102
Pension Benefits Other Postretirement Benefits
2002 2001 2002 2001
Change in benefit obligation:
Net benefit obligation at beginning of year $ 7,101 $ 6,695 $ 2,331 $ 2,275
Service cost 95 94 57 42
Interest cost 525 498 160 161
Plan participants’contributions ––84
Plan amendments 120 44 –(191)
Actuarial (gain)/loss 514 254 155 173
Curtailments/Settlements –(38) ––
Special accounting costs 448 –3
Gross benefits paid (505) (494) (156) (136)
Net benefit obligation at end of year $ 7,854 $ 7,101 $ 2,555 $ 2,331
Change in plan assets:
Fair value of plan assets at beginning of year $ 6,279 $ 7,000 $ 1,132 $ 1,188
Actual return on plan assets (581) (265) (125) (14)
Employer contributions 202 38 73 90
Plan participants’contributions ––84
Gross benefits paid (505) (494) (156) (136)
Fair value of plan assets at end of year $ 5,395 $ 6,279 $932$ 1,132
Funded status at end of year: $ (2,459) $ (822) $ (1,623) $ (1,199)
Miscellaneous adjustment (3) –––
Unrecognized net actuarial (gain)/loss 2,118 397 793 440
Unrecognized prior service cost 211 108 (149) (191)
Unrecognized net transition obligation (asset) (11) (17) 102 103
Net amount recognized at end of year $ (144) $ (334) $ (877) $ (847)
Amounts recognized in statements of financial position:
Prepaid benefit cost $145$–$–$–
Accrued benefit cost (289) (334) (877) (847)
Additional minimum liability (1,815) –––
Intangible asset 211 –––
Accumulated other comprehensive income 1,604 –––
Net amount recognized at end of year $ (144) $ (334) $ (877) $ (847)