Sunbeam 2001 Annual Report Download - page 24

pension expense for the years ended Decem-
ber 31, 2001, 2000 and 1999 are as follows:
(thousands of dollars) 2001 2000 1999
Service cost of
benefits earned
during the period. $ 273 $ 280 $ 291
Interest cost on
projected benefit
obligation........ 907 853 807
Investment loss
(gain) on plan
assets ............ 1,793 (1,648) (1,670)
Net amortization
and deferral ...... (2,942) 630 802
Net periodic
pension expense. . $ 31 $ 115 $ 230
The following table is a reconciliation of
the benefit obligation and the fair value of plan
assets as of December 31, 2001 and 2000:
(thousands of dollars) 2001 2000
Change in benefit
obligation:
Benefit obligation at
beginning of year ...... $12,304 $11,541
Service cost.............. 273 280
Interest cost ............. 907 853
Amendments ............ 232 —
Actuarial gain ........... (113) (58)
Benefits paid ............ (386) (312)
Benefit obligation at end
of year ................ 13,217 12,304
Change in plan assets:
Fair value of plan assets at
beginning of year ...... 13,320 12,087
Actual return on plan
assets ................. (1,793) 1,648
Benefits paid ............ (445) (415)
Fair value of plan assets at
end of year ............ 11,082 13,320
Funded status ........... (2,135) 1,016
Unrecognized net
transitional asset....... — (1)
Unrecognized prior
service cost ............ 882 745
Unrecognized net loss
(gain) ................. 884 (2,098)
Additional minimum
liability ............... (1,279) —
Accrued benefit cost...... $(1,648) $ (338)
The actuarial assumptions used to com-
pute the funded status of the plan for 2001 and
2000 include a discount rate of 7.5% and an
expected long-term rate of return on assets of
9.0%.
In accordance with the provisions of SFAS
87, ‘‘Employer’s Accounting for Pensions,’’ the
Company recorded an additional minimum
liability of $1.3 million at December 31, 2001,
representing the excess of the unfunded accu-
mulated benefit obligation over the accrued
pension cost. The additional minimum liabil-
ity has been offset by an intangible asset to the
extent of previously unrecognized prior service
cost, with the remainder of $0.4 million re-
corded as a component of accumulated other
comprehensive loss.
The Company also provides certain postre-
tirement medical and life insurance benefits for
a portion of its non-union employees.
The components of net periodic postretire-
ment benefit expense for the years ended De-
cember 31, 2001, 2000 and 1999 are as follows:
(thousands of dollars) 2001 2000 1999
Service cost of benefits
earned................ $ 62 $ 60 $ 67
Interest cost on liability . . 112 105 105
Net amortization and
deferral ............... (15) (14) 2
Net postretirement
benefit cost ......... $159 $151 $174
The status of the Company’s unfunded pos-
tretirement benefit obligation at December 31,
2001 and 2000 are as follows:
(thousands of dollars) 2001 2000
Change in benefit
obligation:
Benefit obligation at
beginning of year ...... $1,553 $1,446
Service cost.............. 62 60
Interest cost ............. 112 105
Actuarial loss (gain) ...... 109 (9)
Benefits paid ............ (61) (49)
Benefit obligation at end
of year ................ 1,775 1,553
Unrecognized prior
service cost ............ (46) (49)
Unrecognized net gain . . . 339 443
Accrued benefit cost...... $2,068 $1,947
Alltrista
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