Kraft 2013 Annual Report Download - page 66

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64
Future Benefit Payments:
The estimated future benefit payments from our pension plans at December 28, 2013 were:
U.S. Plans Non-U.S. Plans
(in millions)
2014 $ 438 $ 72
2015 391 71
2016 403 71
2017 410 71
2018 412 71
2019-2023 2,147 365
Other Costs:
We made contributions to multiemployer pension plans of $2 million in 2013 and $1 million in 2012 subsequent to
the Spin-Off. These plans provide pension benefits to retirees under certain collective bargaining agreements. We
also sponsor and contribute to employee savings plans. These plans cover eligible salaried, non-union, and union
employees. Our contributions and costs are determined by the matching of employee contributions, as defined by
the plans. Amounts charged to expense for defined contribution plans totaled $61 million in 2013 and $12 million in
2012 subsequent to the Spin-Off.
Postretirement Benefit Plans
Obligations:
Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit
obligation at December 28, 2013 and December 29, 2012. were:
December 28,
2013 December 29,
2012
(in millions)
Accrued benefit obligation at beginning of year $ 3,738 $ —
Service cost 35 8
Interest cost 143 32
Benefits paid (188) (49)
Plan amendments (40) —
Currency (14) (2)
Actuarial (gains) / losses (403) 187
Special termination benefits 6 —
— 3,562
Accrued benefit obligation at end of year $ 3,277 $ 3,738
We used the following weighted average assumptions to determine our postretirement benefit obligations at
December 28, 2013 and December 29, 2012:
December 28,
2013 December 29,
2012
Discount rate 4.69% 3.89%
Health care cost trend rate assumed for next year 7.28% 7.53%
Ultimate trend rate 5.03% 5.03%
Year that the rate reaches the ultimate trend rate 2023 2023
Year-end discount rates for our U.S. and non-U.S. plans were developed from a model portfolio of high quality,
fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations.
Our expected health care cost trend rate is based on historical costs.