Unilever 2004 Annual Report Download - page 131

128 Unilever Annual Report and Accounts 2004
Notes to the consolidated accounts
Unilever Group
18 Pensions and similar obligations (continued)
Funded status
The funded status of the plans, reconciled to the amount reported in the statement of financial position, is as follows:
€ million € million € million € million
Other post- Other post-
Pension Pension employment employment
plans plans benefit plans benefit plans
2004 2003 2004 2003
Fair value of plan assets 13 441 12 850 14 3
Benefit obligations (17 512) (16 718) (1 175) (1 049)
Funded status at 31 December (4 071) (3 868) (1 161) (1 046)
Unrecognised net transition liability/(asset) (82) (117) ––
Unrecognised net actuarial loss/(gain) 2 966 2 662 290 156
Unrecognised prior service cost 118 142 (2) 1
Other (SFAS 112 liabilities) n/a n/a –(29)
Net amount recognised at 31 December (1 069) (1 181) (873) (918)
Amount recognised in the statement of financial position consists of:
Prepaid benefit cost 1 333 1 147 ––
Accrued benefit liability (2 402) (2 328) (873) (918)
Additional minimum liability (2 208) (2 233) ––
Intangible asset 99 148 ––
Accumulated other comprehensive income 2 109 2 085 ––
Net amount recognised at 31 December (1 069) (1 181) (873) (918)
The projected benefit obligation (PBO), accumulated benefit obligation (ABO), and fair value of plan assets, in total and for plans where the
projected benefit obligation or accumulated benefit obligation is in excess of plan assets is as follows:
€ million € million € million € million € million € million
Plans where Plans where Plans where Plans where
Pension Pension PBO exceeds PBO exceeds ABO exceeds ABO exceeds
plans plans plan assets plan assets plan assets plan assets
2004 2003 2004 2003 2004 2003
As at 31 December
Projected benefit obligations 17 512 16 718 13 330 12 635 12 767 10 703
Accumulated benefit obligations 16 343 15 531 12 459 11 784 11 930 9 980
Fair value of plan assets 13 441 12 850 8 532 7 968 7 987 6 073
Net periodic cost
€ million € million € million € million € million € million
Other post- Other post- Other post-
Pension Pension Pension employment employment employment
plans plans plans benefit plans benefit plans benefit plans
2004 2003 2002 2004 2003 2002
Components of net periodic benefit cost(g)
Service cost (gross) 324 329 324 24 23 20
Interest cost 909 895 864 64 63 78
Expected returns on plan assets (917) (791) (1 189) –––
Expected employee contributions (32) (21) (9) –––
Amortisation of prior service cost 33 36 33 –1–
Amortisation of transition (asset) (35) (59) (63) –––
Amortisation of actuarial loss/(gain) 163 217 (45) 12 (1) (6)
Total before SFAS 88 events 445 606 (85) 100 86 92
Adjustments for SFAS 88 events 120 83 (118) 6(1) (23)
Net periodic benefit cost 565 689 (203) 106 85 69
(g) With effect from 1 January 2003, a number of additional pension plans were included in the SFAS 87 valuation exercise. This increased the
coverage from 90% to 100%.
In 2002 the Group did not calculate pension costs and balances under SFAS 87 for a number of small defined benefit plans. The amounts under
SFAS 87 would not have been materially different from those reported in the group accounts under SSAP 24, with €1 129 million provided in
the group balance sheet at 31 December 2002 and €158 million charged to the profit and loss account in 2002.