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| Notes to Consolidated Financial
Statements |
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| Year ended December 31, |
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2001 |
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2000 |
1999 |
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| Components of net periodic benefit cost
– OPB |
| Service cost |
| Interest cost |
| Expected return on plan
assets |
| Amortization of prior
service cost |
| Recognized
net actuarial loss |
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| Net periodic benefit cost |
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$598 |
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$ 533 |
$374 |
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| Weighted average assumptions as of December 31, |
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2001 |
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2000 |
1999 |
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| Discount rate: pensions and OPB |
| Expected return on plan assets |
| Rate of compensation increase |
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| Effect of 1% change in assumed health care costs |
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2001 |
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2000 |
1999 |
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| Effect on total of service and interest
cost |
| 1% increase |
| 1% decrease |
| Effect on postretirement benefit obligation |
| 1% increase |
| 1% decrease |
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| The Company has various noncontributory
plans covering substantially all employees.
All major pension plans
are funded and all but two have plan assets
that exceed accumulated benefit obligations.
Two pension plans
attributable to certain hourly employees have
accumulated benefit obligations that exceed
plan assets. The loss
of $555 in accumulated other comprehensive
income as of December 31, 2001, relates principally
to the unrecognized
net actuarial losses of these plans. |
| Certain of the pension plans provide that,
in the event there is a change in control
of the Company which is not
approved by the Board of Directors and the
plans are terminated within five years thereafter,
the assets in the plan
first will be used to provide the level of
retirement benefits required by the Employee
Retirement Income Security Act,
and then any surplus will be used to fund
a trust to continue present and future payments
under the postretirement
medical and life insurance benefits in the
Company’s group insurance benefit programs. |
| The Company has an agreement with the Government
with respect to certain of the Company pension
plans.
Under the agreement, should the Company terminate
any of the plans under conditions in which
the plan’s
assets exceed that plan’s obligations,
the Government will be entitled to a fair
allocation of any of the plan’s
assets based on plan contributions that were
reimbursed under Government contracts. Also,
the Revenue
Reconciliation Act of 1990 imposes a 20% nondeductible
excise tax on the gross assets reverted if
the
Company establishes a qualified replacement
plan or amends the terminating plan to provide
for benefit increases;
otherwise, a 50% tax is applied. Any net amount
retained by the Company is treated as taxable
income. |
| Effective October 6, 2000, the Company acquired
a substantial portion of Hughes’ pension
assets and liabilities.
The acquired pension plans’ assets exceeded
liabilities by $626. This acquisition comprised
a substantial portion
of the year 2000 ‘Acquisition/disposition,
net’ activity. |
| The Company has certain unfunded and partially
funded plans with a projected benefit obligation
of $3,301 and
$488, plan assets of $2,481 and $17, and unrecognized
prior service costs and actuarial losses of
$1,054 and
$125 as of December 31, 2001 and 2000. The
net provision for these plans was $34, $56
and $63 for the years
ended December 31, 2001, 2000 and 1999, respectively. |
| The principal defined contribution plans
are the Company-sponsored 401(k) plans and
a funded plan for unused
sick leave. The provision for these defined
contribution plans in 2001, 2000 and 1999,
was $452, $406 and
$409, respectively. |
| The Company’s postretirement benefits
other than pensions consist principally of
health care coverage for eligible
retirees and qualifying dependents, and to
a lesser extent, life insurance to certain
groups of retirees. Retiree
health care is provided principally until
age 65 for approximately half those retirees
who are eligible for health
care coverage. Certain employee groups, including
employees covered by most United Auto Workers
bargaining
agreements, are provided lifetime health care
coverage. |
| Benefit costs were calculated based on assumed
cost growth for retiree health care costs
of a 9% annual rate
for 2002, decreasing to a 5% annual growth
rate by 2010. In 2001, benefit costs for retiree
health care were
calculated based on an annual growth rate
of 9.5%, decreasing to a 5.5% annual growth
rate by 2010. |
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| 1,
2, 3,
4, 5,
6, 7,
8, 9,
10, 11,
12, 13,
14, 15, 16,
17, 18,
19, 20,
21, 22,
23, 24 |
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2002 The Boeing Company. All rights reserved. |
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