Mercedes 1998 Annual Report Download - page 102

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1998 1997
U.S. Plans Non-U.S. U.S. Plans Non-U.S.
Plans Plans
At December 31,
Funded status*) 7,629 682 8,859 717
Unrecognized actuarial net losses (800) (214) (494) (232)
Unrecognized prior service cost (269) (8) (25) (7)
Net amount recognized 6,560 460 8,340 478
*) Difference between the accumulated postretirement obligations and the
fair value of plan assets.
The amount recognized in the consolidated balance sheets
consist only of accrued postretirement health and life
insurance benefits.
Assumed discount rates and rates of increase in remuneration
used in calculating the accumulated postretirement benefit
obligations together with long-term rates of return on plan
assets vary according to the economic conditions of the
country in which the retirement plans are situated. The
weighted-average assumptions used in calculating the
actuarial values for the postretirement benefit plans were as
follows:
1998 1997 1996
U.S. Plans Non-U.S. U.S. Plans Non-U.S. U.S. Non-U.S.
Plans Plans Plans Plans
%%%%%%
Weighted-average assumptions as
of December 31:
Discount rate 6.5 6.3 6.8 6.5 7.3 6.5
Expected return on plan assets 10.0 – 8.5 – 8.5 –
Health care inflation rate in following
(or “base”) year 6.0 5.1 6.5 5.9 6.0 6.0
Ultimate health care inflation rate (2002) 5.0 4.7 5.0 4.8 5.1 5.1
A reconciliation of the funded status to the amounts
recognized in the consolidated balance sheets is as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
98