Mercedes 1998 Annual Report Download - page 101

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Service cost 378 309 261 277 246 289
Interest cost 931 834 899 817 721 802
Expected return on plan assets (1,391) (326) (1,265) (305) (1,001) (274)
Amortization of
Unrecognized net actuarial losses 41 37 20 33 57 23
Unrecognized prior service cost 165 22 176 18 120 18
Unrecognized net obligation 124 2 123 2 105 2
Other 2 (2) 18 3 116 4
Net periodic pension cost 250 876 232 845 364 864
The components of net periodic pension cost were as follows:
1998 1997 1996
U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.
Plans Plans Plans Plans Plans Plans
The projected benefit obligations and fair value of plan assets
for pension plans with accumulated benefit obligations in
excess of plan assets were € 13,391 and € 3,497, respectively,
as of December 31, 1998 and € 12,048 and € 3,283
respectively, as of December 31, 1997.
Other Postretirement benefits
Certain DaimlerChrysler operations in North America provide
postretirement health and life insurance benefits to their em-
ployees. Upon retirement from DaimlerChrysler the employees
may become eligible for continuation of these benefits. The
benefits and eligibility rules may be modified periodically. At
December 31, 1998 plan assets were invested in diversified
portfolios that consisted primarily of debt and equity securities.
97
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following information with respect to the Group’s
postretirement benefit plans is presented by U.S. Plans and
Non-U.S. Plans; the latter concerning Canadian companies. The
schedules are in accordance with SFAS 132 which does not
change the method of accounting for such plans.
Change in accumulated postretirement
benefit obligations:
Accumulated postretirement benefit
obligations at beginning of year 8,950 717 7,508 528
Foreign currency exchange rate changes (713) (50) 1,157 81
Service cost 173 16 153 11
Interest cost 598 48 548 44
Plan participant contributions ––––
Plan amendments 279 1 (302) 2
Actuarial losses 348 25 291 99
Acquisitions and other – (52) 1 (27)
Benefits paid (431) (23) (406) (21)
Accumulated postretirement benefit
obligations at end of year 9,204 682 8,950 717
Change in plan assets:
Fair value of plan assets at beginning of year 91 – 66 –
Foreign currency exchange rate changes (24) – 11 –
Actual return on plan assets 13 – 12 –
Employer contributions 1,498 – 5 –
Benefits paid (4) – (3) –
Fair value of plan assets at end of year 1,574 – 91 –
At December 31, At December 31,
1998 1997
U.S. Plans Non-U.S. U.S. Plans Non-U.S.
Plans Plans