Reconciliation of the Present Value of Future Benefits for the Years Ended September 30, 2003 and 2002

(Dollars in millions)  September 30,
   2003 2002
Present value of future benefits, at beginning of year -- Single-Employer, net   $ 28,619   $ 13,497
Estimated recoveries, prior year   $ 38   $ 19
Assets of terminated plans pending trusteeship, net, prior year   $ 323   $ 577
Present value of future benefits at beginning of year, gross   $ 28,980   $ 14,093
Settlements and judgments, prior year   $ (161)   $ (177)
Net claims for probable terminations, prior year   $ (6,322)   $ (411)
Actuarial adjustments -- underwriting:    
Changes in method and assumptions $ 21   $ (67)  
Effect of experience $ 87   $ 137  
Total actuarial adjustments -- underwriting $ 108   $ 70  
Actuarial charges -- financial:    
Passage of time $ 1,770   $ 1,077  
Change in interest rates $ 4,283   $ 1,655  
Total actuarial charges -- financial $ 6,053   $ 2,732  
Total actuarial charges, current year   $ 6,161   $ 2,802
Terminations:    
Current year $ 13,431   $ 7,704  
Changes in prior year $ 47   $ 23  
Total terminations   $ 13,478   $ 7,727
Benefit payments, current year*   $ (2,488)   $ (1,537)
Estimated recoveries, current year   $ (68)   $ (38)
Assets of terminated plans pending trusteeship, net, current year   $ (172)   $ (323)
Settlements and judgments, current year   $ 67   $ 161
Net claims for probable terminations:    
Future benefits** $ 9,694   $ 12,392  
Estimated plan assets and recoveries from sponsors $ (4,528)   $ (6,070)  
Total net claims, current year   $ 5,166   $ 6,322
Present value of future benefits, at end of year—Single-Employer, net   $ 44,641   $ 28,619
Present value of future benefits, at end of year—Multiemployer   $ 3   $ 3
Total present value of future benefits, at end of year, net   $ 44,644   $ 28,622

* The benefit payments of $2,488 million and $1,537 million include $334 million in 2003 and $55 million in 2002 for benefits paid from plan assets by plans prior to trusteeship.

** The future benefits for probable terminations of $9,694 million and $12,392 million for fiscal years 2003 and 2002, respectively, include $173 million and $70 million, respectively, in net claims (future benefits less estimated plan assets and recoveries) for probable terminations not specifically identified and $9,521 million and $12,322 million, respectively, in net claims for specifically identified probables.

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