American Express 2001 Annual Report Download - page 71

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axp_69
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The funded status of the company’s pension plans is based on valuations as of September 30. The following tables provide a
reconciliation of the changes in the plans’ benefit obligation and fair value of assets for all plans accounted for under SFAS No. 87:
Reconciliation of Change in Benefit Obligation
(Millions) 2001 2000
Benefit obligation, October 1 prior year $ 1,403 $ 1,330
Service cost 102 95
Interest cost 106 98
Benefits paid (43) (40)
Actuarial loss 31 39
Settlements/Curtailments (42) (84)
Foreign currency exchange rate changes (16) (35)
Benefit obligation at September 30, $ 1,541 $ 1,403
Reconciliation of Change in Fair Value of Plan Assets
(Millions) 2001 2000
Fair value of plan assets, October 1 prior year $ 1,480 $ 1,347
Actual return on plan assets (239) 244
Employer contributions 47 41
Benefits paid (43) (40)
Settlements/Curtailments (42) (80)
Foreign currency exchange rate changes (13) (32)
Fair value of plan assets at September 30, $ 1,190 $ 1,480
The following table reconciles the plans’ funded status to the amounts recognized on the Consolidated Balance Sheets:
Funded Status
(Millions) 2001 2000
Funded status at September 30, $ (351) $77
Unrecognized net actuarial loss (gain) 209 (237)
Unrecognized prior service cost (42) (51)
Unrecognized net transition obligation (2) (3)
Fourth quarter contributions (net of benefit payments) 43
Net amount recognized at December 31, $ (182) $ (211)
The following table provides the amounts recognized on the Consolidated Balance Sheets as of December 31:
(Millions) 2001 2000
Accrued benefit liability $ (359) $ (314)
Prepaid benefit cost 17 89
Intangible asset 114
Minimum pension liability adjustment 159
—
Net amount recognized at December 31, $ (182) $ (211)