Kraft 2010 Annual Report Download - page 89
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Future Benefit Payments:
Our estimated future benefit payments for our postretirement health care plans at December 31, 2010 were:
U.S. Plans Non-U.S. Plans
(in millions)
2011 $ 207 $ 12
2012 207 12
2013 208 13
2014 210 13
2015 210 14
2016-2020 1,037 76
Other Costs:
We made contributions to multiemployer medical plans totaling $35 million, $35 million in 2009, and $33 million in 2008.
Postemployment Benefit Plans
Obligations:
Our postemployment plans are not funded. The changes in the benefit obligations of the plans and net amount accrued at December 31, 2010 and 2009
were:
2010 2009
(in millions)
Accrued benefit obligation at
January 1 $ 116 $ 115
Service cost 9 8
Interest cost 10 8
Severance - -
Benefits paid (24) (35)
Assumption changes (8) 26
Actuarial gains (12) (7)
Acquisition 49 -
Currency - 1
Accrued postemployment costs at
December 31 $ 140 $ 116
The accrued postemployment costs exclude severance costs related to other Cost Savings Initiatives of $280 million in 2010 and $430 million in 2009.
The accrued benefit obligation was determined using a weighted-average discount rate of 6.3% in 2010 and 6.5% in 2009, an assumed ultimate annual
turnover rate of 0.5% in 2010 and 2009, assumed compensation cost increases of 4.0% in 2010 and 2009, and assumed benefits as defined in the
respective plans. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged
to expense when incurred.
Components of Net Postemployment Costs:
Net postemployment costs consisted of the following for the years ended December 31, 2010, 2009 and 2008:
2010 2009 2008
(in millions)
Service cost $ 9 $ 8 $ 6
Interest cost 10 8 7
Amortization of net (gains) / losses (2) 2 (2)
Net postemployment costs $ 17 $ 18 $ 11
The net postemployment costs exclude severance costs related to other Cost Savings Initiatives of $25 million in 2010 and $125 million in 2009. As of
December 31, 2010, the estimated net gain for the postemployment benefit plans that we expected to amortize from accumulated other comprehensive
earnings / (losses) into net postemployment costs during 2011 was insignificant.
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