Mercedes 2002 Annual Report Download - page 132
Download and view the complete annual report
Please find page 132 of the 2002 Mercedes 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.-
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
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
 |
 |
126 |Notes to Consolidated Balance Sheets
The expected return on plan assets for 2003 is 8.5%. The
components of net postretirement benefit cost were as follows
for the years ended December 31, 2002, 2001 and 2000:
The following schedule presents the effects of a one-percent-
age-point change in assumed health care cost trend rates:
Prepaid Employee Benefits
In 1996 DaimlerChrysler established a Voluntary Employees’
Beneficiary Association (“VEBA”) trust for payment of non-
pension employee benefits. At December 31, 2002 and 2001,
the VEBA had a balance of 12,833 million and 13,648 million,
respectively, of which 12,140 million and 12,848 million,
respectively, were designated and restricted for the payment
of postretirement health care benefits. No contributions to
the VEBA trust were made in 2002, 2001 and 2000.
A reconciliation of the funded status to the liability recog-
nized for accrued postretirement health and life insurance
benefits in pension plans and similar obligations is as follows:
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 coun-
try 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 %):
(in millions of 3)
At December 31,
20012002
Funded status 1
Unrecognized actuarial net losses
Unrecognized prior service cost
Net liabilitiy recognized
1 Difference between the accumulated postretirement obligations and the fair value
of plan assets.
13,701
(4,979)
(555)
8,167
12,113
(1,828)
(843)
9,442
200020012002
Weighted-average assumptions at
December 31:
Discount rate
Expected return on plan assets
(at the beginning of the year)
Health care inflation rate in
following (or “base”) year
Ultimate health care inflation
rate (2008)
6.8
10.5
10.0
5.0
7.4
10.5
6.9
5.0
7.7
10.4
7.5
5.0
(in millions of 3)1%-increase 1%-decrease
262
1,062
(345)
38
76
–
1,093
26
1,119
257
1,033
(346)
(7)
82
–
1,019
154
1,173
208
873
(308)
5
54
(2)
830
–
830
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
(in millions of 3) 2002 2001 2000
Effect on total of service and interest cost
components
Effect on accumulated postretirement benefit
obligations
178
1,811
(144)
(1,525)