Mercedes 1999 Annual Report Download - page 105

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(in millions of €, except per share amounts)
NOTES TO THE CONSOLIDATED BALANCE SHEETS
1999 1998
Change in accumulated postretirement benefit
obligations:
Accumulated postretirement benefit
obligations at beginning of year
Foreign currency exchange rate changes
Service cost
Interest cost
Plan amendments
Actuarial (gains) losses
Acquisitions and other
Benefits paid
Accumulated postretirement benefit
obligations at end of year
Change in plan assets:
Fair value of plan assets at beginning of year
Foreign currency exchange rate changes
Actual return on plan assets
Employer contributions
Benefits paid
Fair value of plan assets at end of year
At December 31,
9,886 9,667
1,645 (763)
209 189
702 646
246 280
(1,687) 373
51 (52)
(525) (454)
10,527 9,886
1,574 91
273 (24)
241 13
773 1,498
(45) (4)
2,816 1,574
The following information is presented with respect to the Group’s
postretirement benefit plans.
1999 1998
Funded status*)
Unrecognized acturarial net gains (losses)
Unrecognized prior service cost
Net amount recognized
At December 31,
*) Difference between the accumulated postretirement obligations and the
fair value of plan assets.
7,711 8,312
574 (1,015)
(529) (277)
7,756 7,020
A reconciliation of the funded status to the amounts recognized in
the consolidated balance sheets is as follows:
The amount recognized in the consolidated balance sheets consists
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 obliga-
tions together with long-term rates of return on plan assets vary
according to the economic conditions of the country in which the
plans are situated. The weighted-average assumptions used in cal-
culating the actuarial values for the postretirement benefit plans
were as follows (in %):
Weighted-average assumptions as
of December 31:
Discount rate
Expected return on plan assets
Health care inflation rate in
following (or “base”) year
Ultimate health care inflation
rate (2002)
1999 1998 1997
7.8 6.5 6.8
10.0 10.0 8.5
5.8 6.0 6.5
5.0 5.0 5.0
The components of net periodic postretirement benefit cost were
as follows:
209 189 164
702 646 592
(169) (6) (5)
10 14 (1)
31 23 4
––(1)
––2
783 866 755
1999 1998 1997
Service cost
Interest cost
Expected return on plan assets
Amortization of:
Unrecognized net actuarial
losses (gains)
Unrecognized prior service cost
Unrecognized net asset
Other
Net periodic postretirement benefit
cost
The following schedule presents the effects of a one-percentage-
point change in assumed health care cost trend rates:
1-Percen-
tage
Point
Decrease
1-Percen-
tage
Point
Increase
Effect on total of service and interest cost
components
Effect on accumulated postretirements benefit
obligations
121 (99)
1,117 (870)
99