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 |
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on fixed amounts
per hour per employee. Contributions to these plans were $5 million
in 1998, $7 million in 1997 and $5 million in 1996.
The
company sponsors multiple defined benefit postretirement plans for
its U.S. employees. Medical plans have various levels of coverage
and plan participant contributions. Life insurance plans are noncontributory.
Canadian employees are covered under multiple defined benefit postretirement
plans that provide medical and life insurance benefits.
Weyerhaeuser
sponsors various defined contribution plans for US salaried and
hourly employees. The basis for determining plan contribution varies
by plan. The amounts charged to operations and contributed to the
plans for participating employees were $37 million, $34 million
and $32 million in 1998, 1997 and 1996, respectively.
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| |
The
assumptions used in the measurement of the company's benefit
obligations are as follows: |
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|
Pension
|
|
Other
|
|
Postretirement
|
|
Benefits
|
|
| |
|
1998
|
|
1997
|
|
1996
|
|
1998
|
|
1997
|
|
1996
|
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|
|
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|
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Discount
rate |
|
7.25%
|
|
7.75%
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|
7.75%
|
|
7.25%
|
|
7.75%
|
|
7.75%
|
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| |
Expected
return on plan
assets |
|
11.50%
|
|
11.50%
|
|
11.50%
|
|
5.75%
|
|
5.75%
|
|
5.75%
|
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| |
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|
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Rate
of compensation increase: |
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Salaried
|
|
4.50%
|
|
4.50%
|
|
4.50%
|
|
4.50%
|
|
4.50%
|
|
4.50%
|
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| |
|
Hourly |
|
3.00%
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|
3.00%
|
|
3.00%
|
|
3.00%
|
|
3.00%
|
|
3.00%
|
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| |
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| For
measurement purposes, a 7.5 percent annual rate of increase in the
per capita cost of covered health care benefits was assumed for 1998.
Beginning in 1999, the rate is assumed to decrease by 0.5 percent
annually to a level of 4.5 percent for the year 2004 and all years
thereafter.
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The
components of net periodic benefit costs are:
|
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|
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| |
Dollar
amounts in millions |
Pension
|
|
Other
|
|
Postretirement |
|
Benefits
|
|
| |
|
1998
|
|
1997
|
|
1996
|
|
1998
|
|
1997
|
|
1996
|
|
|
|
|
|
|
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|
|
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|
|
|
|
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Service
cost |
$
54
|
|
$
56
|
|
$
51
|
|
$
4
|
|
$
5
|
|
$
5
|
|
| |
Interest
cost |
134
|
|
128
|
|
115
|
|
18
|
|
15
|
|
16
|
|
| |
Expected
return on plan assets |
(236)
|
|
(194)
|
|
(171)
|
|
--
|
|
--
|
|
--
|
|
| |
Amortization
of (gain)/loss |
(23)
|
|
8
|
|
14
|
|
(1)
|
|
(2)
|
|
(1)
|
|
| |
Amortization
of prior service cost |
14
|
|
10
|
|
7
|
|
--
|
|
--
|
|
--
|
|
| |
Amortization
of unrecognized transition
(asset)/obligation |
(4)
|
|
(4)
|
|
(4)
|
|
--
|
|
--
|
|
--
|
|
| |
(Gain)/loss
due to closure, sale and other |
1
|
|
1
|
|
2
|
|
--
|
|
--
|
|
--
|
|
| |
|
$
(60)
|
|
$
5
|
|
$
14
|
|
$
21
|
|
$
18
|
|
$
20
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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The accrued
(prepaid) pension costs for the projected benefit obligation, accumulated
benefit obligation and fair value of plan assets
for pension plan(s) with accumulated benefit obligations in excess
of plan assets
were $178 million, $203 million and $102 million, respectively,
as of December
27, 1998, and $54 million, $81 million and $4 million, respectively,
as of December 28, 1997.
Assumed
health care cost trend rates have a significant effect on the amounts
reported for the health care plans. A one percent change in assumed
health care cost trend rates would have the following effects:
|
|
As
of December 27, 1998
Dollar amounts in millions |
1%
Increase
|
1%
Decrease
|
| |
|
|
| Effect
on total of service and interest cost components |
$
1
|
$
(1)
|
| Effect
on accumulated postretirement benefit obligation |
12
|
(11)
|
| |
|
|
| Note
7. Inventories |
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| |
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| Dollar
amounts in millions |
December
27, 1998
|
December
28, 1997
|
| |
|
|
| Logs
and chips |
$
108
|
$
103
|
| Lumber,
plywood and panels |
143
|
154
|
| Pulp,
newsprint and paper |
190
|
185
|
| Containerboard,
paperboard and packaging |
96
|
107
|
| Other
products |
150
|
152
|
| Materials
and supplies |
275
|
282
|
| |
$
962
|
$
983
|
| |
|
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|
