Federal Express 2000 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2000 Federal Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 40

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40

28
The following table provides a reconciliation of the changes in the pension and postretirem ent health care
plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2000 and a state-
m ent of the funded status as of May 31, 2000 and 1999:
Pension Postretirem ent
In thousands Plans Health Care Plans
2000 1999 2000 1999
CHANGE IN BEN EFIT OBLIGATION
Benefit obligation at beginning of year $ 4,385,519 $4,121,795 $ 246,186 $ 217,027
Service cost 337,780 331,005 26,450 23,676
Interest cost 336,143 288,221 19,579 16,962
Amendm ents, benefit enhancem ents and acquisitions 12,853 125,145 1,420 1,681
Actuarial gain (510,132) (427,179) (28,607) (7,402)
Plan participant contributions ––1,112 679
Foreign currency exchange rate changes (618) 3,112 ––
Benefits paid (67,800) (56,580) (9,133) (6,437)
Benefit obligation at end of year $ 4,493,745 $4,385,519 $ 257,007 $ 246,186
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year $ 4,952,431 $4,434,870 $–$ –
Actual return on plan assets 630,706 451,738 ––
Foreign currency exchange rate changes (5,192) (1,283) ––
Company contributions 217,271 123,686 8,021 5,758
Plan participant contributions ––1,112 679
Benefits paid (67,800) (56,580) (9,133) (6,437)
Fair value of plan assets at end of year $ 5,727,416 $4,952,431 $–$ –
FUN DED STATUS OF THE PLANS $ 1,233,671 $ 566,912 $(257,007) $(246,186)
Unrecognized actuarial gain (1,173,903) (595,238) (49,286) (20,809)
Unrecognized prior service cost 121,697 132,116 254 291
Unrecognized transition amount (10,529) (11,852) ––
Prepaid (accrued) benefit cost $ 170,936 $ 91,938 $(306,039) $(266,704)
AMOUNTS RECOGN IZED IN THE BALAN CE SHEET AT MAY 31:
Prepaid benefit cost $ 302,935 $ 188,423 $–$ –
Accrued benefit liability (131,999) (96,485) (306,039) (266,704)
Minimum pension liability (12,662) (86,000) ––
Intangible asset 12,662 86,000 ––
Prepaid (accrued) benefit cost $ 170,936 $ 91,938 $(306,039) $(266,704)
N et periodic benefit cost for the years ended May 31 was as follows:
Post retirem ent
In thousands Pension Plans Health Care Plans
2000 1999 1998 2000 1999 1998
Service cost $ 337,780 $ 331,005 $ 250,753 $26,450 $23,676 $18,385
Interest cost 336,143 288,221 245,697 19,579 16,962 14,767
Expected return on plan assets (546,169) (483,709) (377,421) –––
N et am ortization and deferral 5,977 (1,948) (2,304) (93) (211) (709)
$ 133,731 $ 133,569 $ 116,725 $45,936 $40,427 $32,443
WEIGHTED-AVERAGE ACTUARIAL ASSUMPTIONS
2000 1999 1998 2000 1999 1998
Discount rate 8.5% 7.5% 7.0% 8.3% 7.3% 7.2%
Rate of increase in future
compensation levels 5.0 4.6 4.6 –––
Expected long-term rate of
return on assets 10.9 10.9 10.3 –––