Kraft 2012 Annual Report Download - page 67

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We used the following weighted-average assumptions to determine our benefit obligations under the pension plans at
December 29, 2012 and December 31, 2011:
U.S. Plans Non-U.S. Plans
2012 2011 2012 2011
Discount rate 4.05% N/A 4.00% 4.25%
Rate of compensation increase 4.00% N/A 3.00% 3.00%
Components of Net Pension Cost:
Net pension cost consisted of the following for the years ended December 29, 2012, December 31, 2011, and
December 31, 2010:
U.S. Plans Non-U.S. Plans
2012 2011 2010 2012 2011 2010
(in millions)
Service cost $ 32 $ - $ - $ 12 $ 7 $ 7
Interest cost 70 - - 32 26 24
Expected return on plan assets (105) - - (43) (35) (31)
Market-based changes (46) - - 17 68 3
Actuarial losses 5 - - 11 16 2
Amortization of prior service cost 1 -----
Net pension cost $ (43) $ - $ - $ 29 $ 82 $ 5
We determine the expected return on plan assets based on asset fair values as of the measurement date.
As of December 29, 2012, we expected to amortize an estimated $4 million of prior service cost from accumulated other
comprehensive earnings / (losses) into net periodic pension cost for the combined U.S. and non-U.S. pension plans during
2013.
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