US Bank 2004 Annual Report Download - page 95
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Please find page 95 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 following table sets forth the weighted-average plan assumptions and other data:
Company
(Dollars in Millions) 2004 2003 2002
Pension plan actuarial computations
Expected long-term return on plan assets (c) ******************************************************* 8.9% 8.9% 10.9%
Discount rate in determining benefit obligations (a) ************************************************** 6.0 6.2 6.8
Rate of increase in future compensation *********************************************************** 3.5 3.5 3.5
Post-retirement medical plan actuarial computations
Expected long-term return on plan assets********************************************************** 3.5% 3.5% 5.0%
Discount rate in determining benefit obligations ***************************************************** 6.0 6.2 6.8
Health care cost trend rate (b)
Prior to age 65 ***************************************************************************** 10.0% 11.0% 12.0%
After age 65 ******************************************************************************** 12.0 13.0 14.0
Effect of one percent increase in health care cost trend rate
Service and interest costs *********************************************************************** $ 1.4 $ 1.4 $ 1.3
Accumulated post-retirement benefit obligation ***************************************************** 21.1 22.5 19.7
Effect of one percent decrease in health care cost trend rate
Service and interest costs *********************************************************************** $ (1.3) $ (1.3) $ (1.2)
Accumulated post-retirement benefit obligation ***************************************************** (18.8) (20.0) (17.5)
(a) The discount rate at the measurement date approximated the Moody’s Aa corporate bond rating for projected benefit distributions with a duration of 11.9 and 12.2 years for 2004 and
2003, respectively.
(b) The pre-65 and post-65 rates are assumed to decrease gradually to 5.5% and 6.0% respectively by 2011 and remain at these levels thereafter
(c) In light of the market performance and the results of the independent analysis, the Company made a decision to re-measure its pension plans effective in the third quarter of 2002 based
on the current information at that time with respect to asset values, a reduction in the LTROR, discount rates, census data and other relevant factors. As a result of the remeasurement, the
LTROR was reduced to 9.9% for the last half of 2002.
The following table provides information for pension plans with benefit obligations in excess of plan assets:
(Dollars in Millions) 2004 2003
Benefit obligation******************************************************************************************** $233.9 $183.9
Accumulated benefit obligation ******************************************************************************** 222.6 174.8
Fair value of plan assets************************************************************************************** ——
The following benefit payments (net of participant contributions) are expected to be paid from the retirement plans:
Pension Post-Retirement
(Dollars in Millions) Plans Medical Plans
Estimated Future Benefit Payments
2005 ************************************************************************************************ $158.6 $ 24.8
2006 ************************************************************************************************ 132.9 21.9
2007 ************************************************************************************************ 130.9 22.6
2008 ************************************************************************************************ 127.3 23.2
2009 ************************************************************************************************ 125.9 23.7
2010 — 2014 **************************************************************************************** 606.3 119.6
U.S. BANCORP 93