Kraft 2012 Annual Report Download - page 72
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As of December 29, 2012, we expected to amortize an estimated $26 million of prior service credit from accumulated other
comprehensive earnings / (losses) into net postretirement health care costs during 2013.
We used the following weighted-average assumptions to determine our net postretirement cost for the years ended
December 29, 2012, December 31, 2011, and December 31, 2010:
2012 2011 2010
Discount rate 3.61% N/A N/A
Health care cost trend rate 7.06% N/A N/A
Future Benefit Payments:
Our estimated future benefit payments for our postretirement health care plans at December 29, 2012 were:
(in millions)
2013 $ 241
2014 243
2015 245
2016 246
2017 248
2018-2022 1,243
Other Costs:
We made contributions to multiemployer medical plans totaling $5 million in 2012. These plans provide medical benefits to
active employees and retirees under certain collective bargaining agreements.
Other Postemployment Benefit Plans
Obligations:
Our other postemployment plans are primarily not funded. The changes in and the amount of the accrued benefit
obligation at December 29, 2012 and December 31, 2011 were:
2012 2011
(in millions)
Accrued benefit obligation at beginning of year $ 52 $ 26
Service cost 4 2
Interest cost 2 1
Benefits paid (10) (15)
Assumption changes - 16
Actuarial losses (1) 6
Transfer from Mondele¯ z International 15 -
Other 1 16
Accrued benefit obligation at end of year $ 63 $ 52
In 2011, we recorded a Canadian postemployment plan, which was partially funded, with a net liability balance of
approximately $16 million. The liability was recorded in other above. The accrued benefit obligation was determined using
a weighted-average discount rate of 2.6% in 2012 and 3.4% in 2011, an assumed ultimate annual turnover rate of 0.5% in
2012 and 2011, a weighted-average assumed compensation cost increase of 3.5% in 2012 and 4.0% in 2011, and
assumed benefits as defined in the respective plans.
Other postemployment costs arising from actions that offer employees benefits in excess of those specified in the
respective plans are charged to expense when incurred.
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