Kraft 2013 Annual Report Download - page 61

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59
• Pension benefits – We provide pension coverage to certain U.S. and non-U.S. employees through separate
plans. Local statutory requirements govern many of these plans. Salaried and non-union hourly employees
hired prior to 2009 in the U.S. and 2011 in Canada are eligible to participate in our pension plans. We will
freeze U.S. pension plans for U.S. salaried and non-union hourly employees who are currently earning
pension benefits as of December 31, 2019 and non-U.S. pension plans for non-U.S. salaried and non-union
hourly employees who are currently earning pension benefits as of December 31, 2023. We will calculate
the pension benefits using the continuing pay and service through December 31, 2019 for the U.S. plans
and December 31, 2023 for the non-U.S. plans. The pension benefits of our unionized workers are in
accordance with the applicable collective bargaining agreement covering their employment.
• Postretirement benefits – Our U.S. and Canadian subsidiaries provide health care and other postretirement
benefits to most retirees. U.S. salaried and non-union hourly employees hired prior to 2004 are eligible to
participate in our U.S. postretirement benefit plans. The postretirement benefits of our unionized workers
are in accordance with the applicable collective bargaining agreement covering their employment.
• Other postemployment benefits – Our other postemployment benefits consist primarily of severance. These
plans cover most salaried and certain hourly employees, and their cost is charged to expense over the
working life of the covered employees.
Pension Plans
Obligations and Funded Status:
The projected benefit obligations, plan assets, and funded status of our pension plans at December 28, 2013 and
December 29, 2012 were:
U.S. Plans Non-U.S. Plans
December 28,
2013 December 29,
2012 December 28,
2013 December 29,
2012
(in millions)
Benefit obligation at beginning of year $ 7,130 $ — $ 1,418 $ 573
Service cost 100 32 21 12
Interest cost 287 70 55 32
Benefits paid (316) (154) (79) (47)
Actuarial (gains) / losses (778) (25) (47) 52
Plan amendments 9— — —
Currency — — (98) 3
— 7,207 — 790
Settlements (512) — — —
Curtailments (3) — (9) —
Special termination benefits 61 — 1 —
Other — — 5 3
Benefit obligation at end of year 5,978 7,130 1,267 1,418
Fair value of plan assets at beginning of year 5,460 — 1,089 470
Actual return on plan assets 654 122 144 68
Contributions 435 7 181 38
Benefits paid (316) (154) (79) (47)
Currency — — (82) 3
— 5,485 — 557
Settlements (512) — — —
Fair value of plan assets at end of year 5,721 5,460 1,253 1,089
Net pension liability recognized at end of year $ (257) $ (1,670) $ (14) $ (329)
The accumulated benefit obligation, which represents benefits earned to the measurement date, was $5,781 million
at December 28, 2013 and $6,802 million at December 29, 2012 for the U.S. pension plans. The accumulated
benefit obligation for the non-U.S. pension plans was $1,191 million at December 28, 2013 and $1,303 million at
December 29, 2012.