American Express 2003 Annual Report Download - page 102

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The components of the net pension cost for all defined benefit plans accounted for under SFAS No. 87, “Employers’ Account-
ing for Pensions,” are as follows:
(Millions) 2003 2002 2001
Service cost $115 $106 $ 102
Interest cost 118 112 106
Expected return on plan assets (146) (127) (122)
Amortization of:
Prior service cost (8) (9) (10)
Transition obligation (2) (1) (1)
Recognized net actuarial loss (gain) 18 6(1)
Settlement/curtailment loss (gain) 10 12 (1)
Net periodic pension benefit cost $105 $99 $73
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) 2003 2002
Benefit obligation, October 1 prior year $1,845 $1,541
Service cost 115 106
Interest cost 118 112
Benefits paid (53) (52)
Actuarial loss 72 141
Plan amendment 25 —
Settlements/curtailments (77) (66)
Foreign currency exchange rate changes 88 63
Benefit obligation at September 30, $2,133 $1,845
RECONCILIATION OF CHANGE IN FAIR VALUE OF PLAN ASSETS
(Millions) 2003 2002
Fair value of plan assets, October 1 prior year $1,352 $1,190
Actual gain (loss) on plan assets 241 (78)
Employer contributions 398 306
Benefits paid (53) (52)
Settlements/curtailments (75) (65)
Foreign currency exchange rate changes 81 51
Fair value of plan assets at September 30, $1,944 $1,352
The following table reconciles the plans’ funded status to the amounts recognized on the Consolidated Balance Sheets:
FUNDED STATUS
(Millions) 2003 2002
Funded status at September 30, $(189) $(493)
Unrecognized net actuarial loss 553 563
Unrecognized prior service cost 4(28)
Unrecognized net transition obligation 1—
Fourth quarter contributions 76
Net amount recognized at December 31, $376 $48
(p.100_axp_ notes to consolidated financial statements)