Burger King 2013 Annual Report Download - page 94

Table of Contents
As of December 31, 2013, for the combined U.S. and International Pension Plans, we expect to amortize during 2014 from accumulated other
comprehensive income (loss) into net periodic pension cost an estimated $2.9 million of net prior service credit and $0.2 million of net actuarial gain.

The weighted-average assumptions used in computing the benefit obligations of the U.S. Pension Plans, International Pension Plans and U.S. Retiree
Medical Plan are as follows:
  

Discount rate as of year-end 4.84% 4.04% 4.58%

Discount rate as of year-end 4.84% 4.04% 4.58%

Discount rate as of year-end 4.70% 4.03% 4.82%
Range of compensation rate increase 3.52% 3.14% 3.44%
The discount rate used in the calculation of the benefit obligation at December 31, 2013 and December 31, 2012 for the U.S. Plans is derived from a
yield curve comprised of the yields of approximately 700 and 650 market-weighted corporate bonds, respectively, rated AA on average by Moody’s,
Standard & Poor’s, and Fitch, matched against the cash flows of the U.S. Plans. The discount rate used in the calculation of the benefit obligation at
December 31, 2013 and December 31, 2012 for the International Pension Plans is primarily derived from the yields on Swiss government bonds with a
maturity matched against the cash flows of the International Pension Plans.
The weighted-average assumptions used in computing the net periodic benefit cost of the U.S. Pension Plans, International Pension Plans and the
U.S. Retiree Medical Plan are as follows:
  

Discount rate 4.04% 4.58% 5.35%
Expected long-term rate of return on plan assets 6.05% 6.50% 7.50%

Discount rate 4.04% 4.58% 5.35%
Expected long-term rate of return on plan assets N/A N/A N/A

Discount rate 4.18% 4.86% 5.38%
Range of compensation rate increase 3.27% 3.47% 3.79%
Expected long-term rate of return on plan assets 5.64% 5.25% 6.49%
The expected long-term rate of return on plan assets is determined by expected future returns on the asset categories in target investment allocation. These
expected returns are based on historical returns for each asset’s category adjusted for an assessment of current market conditions.
The assumed healthcare cost trend rates are as follows:
  
Healthcare cost trend rate assumed for next year 8.00% 8.00% 8.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00% 5.00% 5.00%
Year that the rate reaches the ultimate trend rate 2020 2020 2020
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Source: Burger King Worldwide, Inc., 10-K, February 21, 2014 Powered by Morningstar® Document Research℠
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