GSK Annual Report 2002

136 GlaxoSmithKline Notes to the financial statements
37 Reconciliation to US accounting principles continued
Pensions under US GAAP
The SFAS 132 disclosures for the year ended 31st December 2002 and 2001 are provided in relation to the employees of GlaxoSmithKline.
For 2000 the income statement disclosures are provided in relation to the employees of Glaxo Wellcome only.
During 2002, the Group decided to align the measurement date for all of its pension plans. As certain of the Group’s pension plans had
a measurement date for pension assets and liabilities of 30th September, the Group elected to change the measurement date for these
plans from 30th September to 31st December.
As a result, included in 2002 net loss is a £49 million credit to income (£37 million net of tax), treated as the cumulative effect of change
in accounting principle.
The average number of persons employed by the Group 2002 2001 2000
(including Directors) during the year Number Number Number
Manufacturing 36,548 37,154 20,477
Selling, general and administration 54,810 55,655 30,765
Research and development 14,808 15,090 9,659
106,166 107,899 60,901
2002 2001 2000
Pension and other post-retirement costs £m £m £m
UK pension schemes 103 26 6
US pension schemes 67 70 59
Other overseas pension schemes 51 70 31
Unfunded post-retirement healthcare schemes 78 57 16
Post-employment costs 40 28 7
339 251 119
Analysed as:
Funded defined benefit/hybrid schemes 149 123 57
Unfunded defined benefit schemes 48 11 10
Defined contribution schemes 24 32 29
Unfunded post-retirement healthcare schemes 78 57 16
Post-employment costs 40 28 7
339 251 119
The disclosures below include the additional information required by SFAS 132. The pension costs of the UK, US and major overseas
defined benefit pension plans have been restated in the following tables in accordance with US GAAP. Pension costs in 2002 of
£12 million, (2001 – £17 million, 2000 – £35 million) in respect of minor retirement plans, which have not been recalculated in
accordance with the requirements of SFAS 87, have been excluded.
2002 2001 2000
The net periodic pension cost/(income) for the major retirement plans comprised: £m £m £m
Service cost 219 194 119
Interest cost 388 351 161
Expected return on plan assets (470) (508) (253)
Amortisation of prior service cost 20 15 16
Amortisation of transition obligation (6) (9) (12)
Recognised net actuarial gain 3 (57) (70)
Net periodic pension cost/(income) under US GAAP 154 (14) (39)
Termination benefits and curtailment costs 56 2 7
Adjustment for change in accounting principle (62)
The major assumptions used in computing the above pension cost/(income) were: %pa %pa %pa
Rates of future pay increases 4.25 4.5 4.6
Discount rate 6.0 6.25 6.5
Expected long-term rates of return on plan assets 7.75 8.25 7.0
In aggregate, average international plan assumptions did not vary significantly from US assumptions.