Mercedes 2001 Annual Report Download - page 107

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Notes to Consolidated Balance Sheets 103
The following information is presented with
respect to the Group’s postretirement benefit plans:
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
plans are situated. The weighted-average assumptions
used in calculating the actuarial values for the
postretirement benefit plans were as follows (in %):
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 losses
Settlement/curtailment loss
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 losses on plan assets
Employer contributions
Benefits paid
Fair value of plan assets at end of year
2001 2000
At December 31,
12,857 10,527
652 829
257 208
1,033 873
(18) 444
941 523
186 –
(13) 107
(800) (654)
15,095 12,857
2,995 2,816
167 224
(181) (55)
916
(8) (6)
2,982 2,995
A reconciliation of the funded status to the liabil-
ity recognized for accrued postretirement health and
life insurance benefits in pension plans and similar
obligations is as follows:
Weighted-average assumptions
at December 31:
Discount rate
Expected return on plan
assets
Health care inflation rate in
following (or “base”) year
Ultimate health care
inflation rate (2005)
2001 2000 1999
7.4 7.7 7.7
10.5 10.4 10.0
6.9 7.5 5.8
5.0 5.0 5.0
The components of net postretirement benefit cost
were as follows for the years ended December 31,
2001, 2000 and 1999:
(in millions of €)
Service cost
Interest cost
Expected return on plan assets
Amortization of:
Unrecognized net actuarial
(gains) losses
Unrecognized prior service
cost
Other
Net periodic postretirement
benefit cost
Settlement/curtailment loss
Net postretirement benefit
cost
19992001 2000
257 208 209
1,033 873 702
(346) (308) (169)
(7) 510
82 54 31
–(2) –
1,019 830 783
154 ––
1,173 830 783
(in millions of €)
2001 2000
Funded status*)
Unrecognized actuarial net losses
Unrecognized prior service cost
Net liability recognized
At December 31,
12,113 9,862
(1,828) (270)
(843) (956)
9,442 8,636
*) Difference between the accumulated postretirement
obligations and the fair value of plan assets.
(in millions of €)