2003 FORM 10-K ZIMMER HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Changes in benefit obligations and plan assets, for the years ended December 31, 2003 and 2002 for the Company’s pension plans, were (in millions): Plans with projected benefit obligations in excess of plan assets as of December 31, 2003 and 2002 were as follows (in millions): Plans with accumulated benefit obligations in excess of plan assets as of December 31, 2003 and 2002 were as follows (in millions): 49 U.S. and Puerto Rico Non-U.S. 2003 2002 2003 2002 Accumulated benefit obligation $ – $21.5 $10.6 $0.5 Plan assets at fair market value – 20.5 9.1 0.1 U.S. and Puerto Rico Non-U.S. 2003 2002 2003 2002 Benefit obligation $58.8 $42.5 $32.1 $19.6 Plan assets at fair market value 39.7 21.3 24.3 15.0 U.S. and Puerto Rico Non-U.S. 2003 2002 2003 2002 Benefit obligation – beginning of year $ 42.5 $ 25.5 $ 21.6 $13.3 Obligation assumed from former parent – – – 3.9 Obligation assumed from Centerpulse – – 101.1 – Plan amendments 0.7 (1.6) – – Service cost 8.6 7.2 6.8 2.0 Interest cost 3.1 2.0 2.0 0.7 Employee contributions – – 2.3 – Benefits paid (0.6) (0.1) (7.8) (0.6) Actuarial (gain) loss 9.5 9.5 (6.4) 0.6 Translation (gain) loss – – 10.6 1.7 Benefit obligation – end of year $ 63.8 $ 42.5 $130.2 $21.6 Plan assets at fair market value – beginning of year $ 21.4 $ 2.2 $ 17.3 $12.5 Assets contributed by former parent – – – 3.6 Assets contributed by Centerpulse – – 94.3 – Actual return on plan assets 6.8 (1.0) 4.8 (2.0) Company contributions 18.1 20.6 6.3 2.7 Employee contributions – – 3.2 – Benefits paid (0.6) (0.1) (7.8) (0.6) Expenses (0.2) (0.3) – – Translation gain (loss) – – 9.9 1.1 Plan assets at fair market value – end of year $ 45.5 $ 21.4 $128.0 $17.3 Funded status $(18.3) $(21.1) $ (2.2) $(4.3) Unrecognized prior service cost (0.7) (1.5) – – Unrecognized actuarial (gain) loss 15.0 9.8 (0.6) 8.4 Net amount recognized $ (4.0) $(12.8) $ (2.8) $ 4.1 Amounts recognized in consolidated balance sheet: Prepaid pension $ 2.1 $ – $ 6.9 $ 5.0 Accrued benefit liability (7.2) (13.9) (9.7) (0.9) Accumulated other comprehensive income 1.1 1.1 – – Net amount recognized $ (4.0) $(12.8) $ (2.8) $ 4.1