Kraft 2014 Annual Report Download - page 63
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Other Postemployment Benefit Plans
Obligations:
Our other postemployment plans are generally not funded. The changes in and the amount of the accrued benefit obligation at
December 27, 2014 and December 28, 2013 were:
We used the following weighted average assumptions to determine our other postemployment benefit obligations at December 27,
2014 and December 28, 2013:
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.
Components of Net Other Postemployment Cost:
Net other postemployment cost consisted of the following for the years ended December 27, 2014, December 28, 2013, and
December 29, 2012:
As of December 27, 2014, we did not expect to amortize any prior service costs / (credits) for the other postemployment benefit
plans from accumulated other comprehensive earnings / (losses) into net postemployment costs during 2015.
Our Participation in MondelƝz International’s Pension and Other Postemployment Benefit Plans and the Spin-Off Impact
Prior to the Spin-off, MondelƝz International provided defined benefit pension, postretirement health care, defined contribution, and
multiemployer pension and medical benefits to our eligible employees and retirees. As such, we applied the multiemployer plan
accounting approach and these liabilities were not reflected in our consolidated balance sheets. We provided pension coverage for
certain employees of our Canadian operations through separate plans and certain pension and postemployment benefits of our
Canadian operations, which were included in our financial statements prior to the Spin-Off. As part of the Spin-Off, the plans were
split and we assumed the obligations previously provided by MondelƝz International. Accordingly, MondelƝz International
transferred to us the plan assets and liabilities associated with our active, retired, and other former employees, including liabilities
for
58
December 27,
2014
December 28,
2013
(in millions)
Accrued benefit obligation at beginning of year $ 55 $63
Service cost 2 2
Interest cost 2 2
Benefits paid (10 ) (6 )
Actuarial losses / (gains) 19 (2 )
Other (4 ) (4 )
Accrued benefit obligation at end of year $ 64 $55
December 27,
2014
December 28,
2013
Discount rate 2.86 % 3.10 %
Assumed ultimate annual turnover rate 0.50 % 0.50 %
Rate of compensation increase 4.00 % 4.00 %
For the Years Ended
December 27,
2014
December 28,
2013
December 29,
2012
Service cost $ 2 $2 $ 4
Interest cost 2 2 2
Actuarial losses / (gains) 14 (2 ) 1
Other 5 (1 ) —
Net other postemployment cost $ 23 $1 $ 7