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Defined contribution plans
European Pensions
Fiscal 2002 Fiscal 2001
Benefit obligation:
Beginning of the year
1,590
1,490
Service cost
66
61
Plan participant contributions
16
11
Interest cost
86
81
Amendments
(28)
Actuarial loss (gain)
47
(4)
Benefits paid
(64)
(49)
End of the year
1,713
1,590
Plan Assets:
Fair value of assets, beginning of the year
1,400
1,464
Actual return on plan assets
(113)
(92)
Company contribution
93
66
Plan participant contribution
16
11
Benefits paid
(64)
(49)
Fair value of assets, end of the year
1,332
1,400
Funded status of plan
(381)
(190)
Unrecognized actuarial loss
387
136
Unrecognized prior service cost
(30)
(10)
Unrecognized net transition obligation
(4)
(7)
Net balances
(28)
(71)
Classification of the net balances is as follows:
Prepaid benefit cost
185
158
Accrued benefit liability
(225)
(229)
Deferred tax asset
4
Accumulated other comprehensive income
8
Net balances
(28)
(71)
European Pensions
Net periodic benefit cost
Fiscal 2002 Fiscal 2001
Fiscal 2000
Service cost of benefits earned
66 61
45
Interest cost on benefit obligation
86 81
71
Expected return on assets
(91) (95)
(91)
Amortization of transition asset
(4) -
Amortization of prior service cost
(1) (5)
(18)
Net periodic benefit cost
56 42
7
The assumptions used to develop the actuarial present value of benefit obligations and pension expense under SFAS No.
87 were as follows:
Pensions
European plans
Fiscal 2002 Fiscal 2001
Fiscal 2000
Discount rate for obligations
5.25% 5.25%
5.25%
Expected return on plan assets
6.50% 6.50%
6.50%
Average salary increases
2.50% 2.50%
2.50%
In the U.S., there are defined contribution plans principally in the form of savings, incentive compensation and bonus
plans. Additionally, certain union employees in the U.S. are covered by multi-employer plans, which are also accounted for
as defined contribution plans. The Company has contributed EUR 90, EUR 87 and EUR 80 to defined contribution plans
during fiscal years 2002, 2001, and 2000, respectively.
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