National Oilwell Varco 2003 Annual Report Download - page 42

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41
The change in benefit obligation, plan assets and the funded status of the defined benefit pension
plans in the United States, United Kingdom, and Norway and defined postretirement plans in the
United States, using a measurement date of September 31, 2003 or 2002, follows (in thousands):
Pension benefits Postretirement benefits
At year end 2003 2002 2003 2002
Benefit obligation at beginning of year 64,710$ 49,605$ 8,489$ 7,416$
Service cost 2,991 274 40 40
Interest cost 7,471 3,336 496 552
Actuarial (gain) loss (9,483) 10,973 (518) 1,094
Benefits paid (4,759) (2,996) (628) (645)
Participant contributions 718 161 - 32
Acquisitions 69,360 - - -
Exchange rate gain 10,974 - - -
Other 250 3,357 156 -
Benefit obligation at end of year 142,232$ 64,710$ 8,035$ 8,489$
Accumulated benefit obligation at end of year 132,997$ 64,332$
Fair value of plan assets at beginning of year 44,675$ 51,211$ -$ -$
Actual return 8,811 (9,335) - -
Benefits paid (4,743) (2,996) (628) (645)
Contributions 3,782 1,621 628 645
Acquisitions 58,718 - - -
Exchange rate gain 9,367 - - -
Other (169) 4,174 - -
Fair value of plan assets at end of year 120,441$ 44,675$ - -
Funded status (21,791)$ (20,035)$ (8,035) (8,489)
Unrecognized actuarial net loss 22,016 31,815 3,587 4,270
Prior service costs not yet recognized 250 281 168 213
Minimum pension liability (26,485) (19,698) - -
Other 394 (10,543) 128 -
Prepaid (accrued) benefit cost (25,616)$ (18,180)$ (4,152) (4,006)
Net periodic benefit cost (credit) for our defined benefit pension plans in the United States, the United Kingdom
and Norway was as follows (in thousands):
For the year 2003 2002 2001 2003 2002 2001
Service cost - benefits earned during the period 2,991$ 422$ -$ 40$ 40$ 21$
Interest cost on projected benefit obligation 7,471 3,313 1,194 496 552 506
Expected return on plan assets (7,484) (3,886) (1,183) - -
Net amortization and deferral 1,412 74 46 211 257 178
Net periodic benefit cost (credit) 4,390$ (77)$ 57$ 747$ 849$ 705$
Pension benefits Postretirement benefits