US Bank 2004 Annual Report Download - page 94
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Please find page 94 of the 2004 US Bank 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.The Company uses a measurement date of September 30 for its retirement plans. The following table summarizes benefit
obligation and plan asset activity for the retirement plans:
Post-Retirement
Pension Plans Medical Plans
(Dollars in Millions) 2004 2003 2004 2003
Projected benefit obligation
Benefit obligation at beginning of measurement period ******************* $1,801.1 $1,671.1 $ 320.3 $ 282.5
Service cost ******************************************************** 58.5 56.5 3.7 3.4
Interest cost ******************************************************** 109.5 107.7 18.1 18.5
Plan participants’ contributions **************************************** — — 16.2 14.9
Actuarial (gain) loss ************************************************** 150.3 161.7 (40.2) 38.9
Benefit payments**************************************************** (162.6) (140.8) (36.7) (36.5)
Curtailments ******************************************************** ————
Settlements ******************************************************** (5.7) (23.8) — —
Benefit obligation transferred to Piper Jaffray Companies ***************** — (31.3) — (1.4)
Benefit obligation at end of measurement period (a)(b)******************** $1,951.1 $1,801.1 $ 281.4 $ 320.3
Fair value of plan assets
Fair value at beginning of measurement period ************************** $1,975.8 $1,442.7 $ 38.9 $ 30.2
Actual return on plan assets ****************************************** 298.7 351.7 .2 .4
Employer contributions *********************************************** 20.8 346.0 20.2 29.9
Plan participants’ contributions **************************************** — — 16.2 14.9
Settlements ******************************************************** (5.7) (23.8) — —
Benefit payments**************************************************** (162.6) (140.8) (36.7) (36.5)
Fair value at end of measurement period (c)***************************** $2,127.0 $1,975.8 $ 38.8 $ 38.9
Funded status
Funded status at end of measurement period *************************** $ 175.9 $ 174.7 $(242.6) $(281.4)
Unrecognized transition (asset) obligation ******************************* — — 5.9 6.6
Unrecognized prior service cost *************************************** (44.8) (51.1) (6.3) (7.2)
Unrecognized net (gain) loss ****************************************** 840.8 854.7 38.6 80.0
Fourth quarter contribution ******************************************* 4.5 4.8 3.8 5.4
Net amount recognized ********************************************** $ 976.4 $ 983.1 $(200.6) $(196.6)
Components of statement of financial position
Prepaid benefit cost ************************************************* $1,155.6 $1,123.8 $ — $ —
Accrued benefit liability*********************************************** (179.2) (140.7) (200.6) (196.6)
Net amount recognized ********************************************** $ 976.4 $ 983.1 $(200.6) $(196.6)
(a) At December 31, 2004 and 2003, the accumulated benefit obligation for all qualified pension plans was $1.7 billion and $1.6 billion, respectively.
(b) U.S. Bancorp retained the qualified pension plan obligation for the inactive participants, relating to employees of the Piper Jaffray Companies. Therefore, all liabilities and plan assets related
to inactive participants in the qualified pension plan associated with the Piper Jaffray Companies are included in the pension plans benefit obligation.
(c) At December 31, 2004, the Company’s qualified pension plans held no company stock, and at December 31, 2003, the Company’s qualified pension plans held 799,803 shares of
U.S. Bancorp common stock with a fair value of $23.8 million. Dividends paid on the shares of U.S. Bancorp common stock held by the qualified pension plans totaled $.2 million and
$.6 million for the years ended December 31, 2004 and 2003, respectively.
The following table sets forth the components of net periodic benefit cost (income) for the retirement plans:
Pension Plans Post-Retirement Medical Plans
(Dollars in Millions) 2004 2003 2002 2004 2003 2002
Components of net periodic benefit cost (income)
Service cost******************************************* $ 58.5 $ 56.5 $ 49.9 $ 3.7 $ 3.4 $ 3.3
Interest cost******************************************* 109.5 107.7 115.1 18.1 18.5 19.1
Expected return on plan assets ************************** (203.1) (184.4) (214.1) (1.4) (1.2) (1.6)
Net amortization and deferral **************************** (6.3) (6.7) (6.5) (.1) (.2) (.1)
Recognized actuarial (gain) loss ************************** 50.4 (.5) .8 2.4 .5 —
Net periodic benefit cost (income) *************************** 9.0 (27.4) (54.8) 22.7 21.0 20.7
Curtailment and settlement (gain) loss********************* — 3.5 (11.7) — — —
Cost of special or contractual termination benefits recognized — — 2.7 — — —
Net periodic benefit cost (income) after curtailment and
settlement (gain) loss, and cost of special or contractual
termination benefits recognized ************************** $ 9.0 $ (23.9) $ (63.8) $22.7 $21.0 $20.7
92 U.S. BANCORP