Prudential 2003 Annual Report Download - page 151

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
15. EMPLOYEE BENEFIT PLANS (continued)
Prepaid and accrued benefits costs are included in “Other assets” and “Other liabilities,” respectively, in the
Company’s Consolidated Statements of Financial Position. The status of these plans as of September 30, adjusted for
fourth-quarter activity, is summarized below:
Pension Benefits
Other Postretirement
Benefits
2003 2002 2003 2002
(in millions)
Change in benefit obligation
Benefit obligation at the beginning of period .................................. $(7,570) $(6,607) $(2,434) $(2,096)
Service cost ............................................................ (180) (175) (14) (14)
Interest cost ............................................................ (444) (463) (152) (152)
Plan participants’ contributions ............................................. (1) — (11) (8)
Amendments ........................................................... (17) (218) 73 141
Acquisitions ............................................................ — — — —
Annuity purchase ........................................................ 3 68 — —
Actuarial losses, net ...................................................... (645) (560) (559) (375)
Settlements ............................................................. 436 — — —
Curtailments ............................................................ 130 — 1 —
Contractual termination benefits ............................................ (1) (1) — —
Special termination benefits ............................................... (61) — (1) —
Benefits paid ........................................................... 642 452 171 165
Foreign currency changes ................................................. (81) (66) (4) —
Divestiture ............................................................. — — 71 —
Transfer from postemployment benefits ...................................... — — — (95)
Benefit obligation at end of period .......................................... $(7,789) $(7,570) $(2,859) $(2,434)
Change in plan assets
Fair value of plan assets at beginning of period ................................ $7,914 $ 8,629 $ 1,156 $ 1,343
Actual return (loss) on plan assets ........................................... 1,391 (299) 128 (38)
Annuity purchase ........................................................ (3) (68) — —
Employer contributions ................................................... 74 95 8 8
Plan participants’ contributions ............................................. 1 — 10 8
Contributions for settlements ............................................... 423 — — —
Disbursement for settlements .............................................. (436) — — —
Benefits paid ........................................................... (642) (452) (171) (165)
Foreign currency changes ................................................. 9 9 — —
Fair value of plan assets at end of period ..................................... $8,731 $ 7,914 $ 1,131 $ 1,156
Funded status
Funded status at end of period .............................................. $ 942 $ 344 $(1,728) $(1,278)
Unrecognized transition (asset) liability ...................................... (23) (129) 6 41
Unrecognized prior service costs ............................................ 181 234 (74) (9)
Unrecognized actuarial losses, net ........................................... 1,428 1,477 866 349
Effects of fourth quarter activity ............................................ 9 11 1 2
Net amount recognized ................................................... $2,537 $ 1,937 $ (929) $ (895)
Amounts recognized in the Statements of Financial Position
Prepaid benefit cost ...................................................... $3,328 $ 3,082 $ — $ —
Accrued benefit liability .................................................. (1,003) (1,285) (929) (895)
Intangible asset ......................................................... 17 4 — —
Accumulated other comprehensive income .................................... 195 136 — —
Net amount recognized ................................................... $2,537 $ 1,937 $ (929) $ (895)
Accumulated benefit obligation ............................................. $(7,249) $(6,903) $(2,859) $(2,434)
Prudential Financial 2003 Annual Report 149