E_mg_GB_03_vorne-29_3_04

MANAGEMENT SHARE STRATEGY SPECIAL SECTION MANAGEMENT REPORT FINANCIAL STATEMENTS FURTHER INFORMATION
Consolidated Balance Sheets • Statements of Income • Statements of Cash Flows • Statements of Changes in shareholders’ Equity • Fixed Assets Schedule • Notes • Independent Auditors’ Report
Amounts recognized in the consolidated balance sheets for the pension plans of companies reported
as continued operations consist of the following:
12/31/2003 12/31/2002
t ’000 German Foreign German Foreign
Accrued pension liability
(including minimum pension liability) 802,103 40,346 762,010 44,542
Prepaid expenses – – 1,379 – – 1,951
Intangible assets
Accumulated other comprehensive
– 4,209 – 286 – 8,080 – 323
income/loss – 80,969 – 20,541 – 48,035 – 25,018
Net amount recognized 716,925 18,140 705,895 17,250
The net amount recognized is calculated by netting the accrued net pension liability (excluding the
minimum pension liability) with the prepaid expenses.
The share of discontinued operations in the accumulated other comprehensive income/loss has
been adjusted for the purposes of the above reconciliation. This amount is not reclassified like the
accrued pension liability, prepaid expenses, and intangible assets in accordance with SFAS 144.
Actuarial assumptions used to determine costs and benefit obligations at NPV for the principal pension
plans were as follows:
Weighted-Average 12/31/2003 12/31/2002
Assumptions German Foreign German Foreign
% % % %
Discount rate 5.5 2.5 - 6.5 6.0 2.5 - 7.5
Rate of compensation increase
Expected long-term return
3.0 2.0 - 6.5 3.0 2.5 - 5.0
on plan assets 2.2 - 7.0 2.0 - 8.5 3.3 - 5.9 3.0 - 8.5
The actuarial assumptions for German pension plans were coordinated with actuarial experts
Dr. Dr. Heissmann GmbH, Wiesbaden.
Components of net periodic pension cost for the plan for companies reported as continued operations
were as follows:
1/1/2003 – 12/31/2003 10/1/2002 – 12/31/2002
Pension Plans Pension Plans
t ’000 German Foreign German Foreign
Service cost 9,634 6,572 2,174 1,730
Interest cost 42,241 11,540 10,988 2,878
Expected return on plan assets
Amortization of unrecognized
– 714 – 10,257 – 179 – 2,846
transitional amount
Amortization of service cost
7,255 607 1,814 119
arising from retroactive plan changes – – 115 – –
Amortization of actuarial losses 1,457 3,263 90 710
Net periodic pension cost 59,873 11,610 14,887 2,591
125