Mondelez 2012 Annual Report Download - page 43

Table of Contents
We recorded the following amounts in earnings from continuing operations for these employee benefit plans during the years ended
December 31, 2012, 2011 and 2010:
The 2012 net expense for employee benefit plans of $607 million increased by $89 million over the 2011 amount, primarily related
to higher amortization of the net loss from experience differences related to the U.S. and non-U.S. pension plans. The 2011 net
expense for employee benefit plans of $518 million increased by $59 million over the 2010 amount, primarily related to higher
amortization of the net loss from experience differences related to the U.S. pension plans and the incorporation of a Canadian
postemployment plan into our obligations.
We expect our 2013 net expense for employee benefit plans to decrease by approximately $66 million. The decrease is primarily
due to non-recurring costs in 2012 related primarily to certain benefit plan obligations transferred to Kraft Foods Group in the Spin-
Off and other 2012 one-time costs, partially offset by increased benefit plan expenses in 2013 due to lower discount rates.
In 2012, other comprehensive losses included $2,266 million of net actuarial pre-tax losses primarily related to the decrease in the
discount rate utilized to determine our pension plan benefit obligations at December 31, 2012 (65 basis point decrease for U.S.
plans and 81 basis point decrease for non-U.S. plans) and the decrease in the discount rate utilized to determine our
postretirement benefit obligations at December 31, 2012 (50 basis point decrease for U.S. plans and 21 basis point decrease for
our non-U.S. plans). In 2011, other comprehensive losses included $2,333 million of net actuarial pre-tax losses primarily related to
the decrease in the discount rate utilized to determine our pension plan benefit obligations at December 31, 2011 (68 basis point
decrease for U.S. plans and 49 basis point decrease for non-U.S. plans), unfavorable differences between our expected and actual
return on pension plan assets and the decrease in the discount rate utilized to determine our postretirement benefit obligations at
December 31, 2011 (60 basis point decrease for U.S. plans and 73 basis point decrease for our non-U.S. plans). In 2010, other
comprehensive earnings included $361 million of net actuarial pre-tax losses primarily related to the decrease in the discount rate
utilized to determine our pension plan benefit obligations at December 31, 2010 (40 basis point decrease for U.S. plans and 10
basis point decrease for non-U.S. plans) and the decrease in the discount rate utilized to determine our postretirement benefit
obligations at December 31, 2010 (40 basis point decrease for U.S. plans and 23 basis point decrease for our non-U.S. plans),
partially offset by favorable differences between our expected and actual return on pension plan assets.
In 2012, we contributed $349 million to our U.S. pension plans (including $202 million related to Kraft Foods Group U.S. pension
plans) and $329 million to our non-U.S. pension plans (including $42 million related to Kraft Foods Group non-U.S. pension plans).
In addition, employees contributed $24 million to our non-U.S. plans. Of our 2012 pension contributions, $315 million was voluntary
(including $185 million related to Kraft Foods Group pension plans). We make contributions to our U.S. and non-U.S. pension
plans, primarily, to the extent that they are tax deductible and do not generate an excise tax liability.
In 2013, we estimate that our pension contributions will be $8 million to our U.S. plans and $309 million to our non-
U.S. plans based
on current tax laws. We are currently only required to make a nominal cash contribution to our U.S. qualified pension plans under
the Pension Protection Act of 2006. Of the total 2013 pension contributions, none is expected to be voluntary. Our actual
contributions may be different due to many factors, including changes in tax and other benefit laws; significant differences between
expected and actual pension asset performance or interest rates; or other factors.
For salaried and non-union hourly employees hired in the U.S. after January 1, 2009, we discontinued benefits under our U.S.
pension plans, and we replaced them with an enhanced company contribution to our employee savings plan. Additionally, we will
be freezing the U.S. pension plans for current salaried and non-union hourly employees effective December 31, 2019.
40
2012
2011
2010
(in millions)
U.S. pension plan cost
$
168
$
118
$
92
Non-U.S. pension plan cost
220
180
188
Postretirement health care cost
84
66
66
Postemployment benefit plan cost
15
49
13
Employee savings plan cost
74
62
56
Multiemployer pension plan contributions
28
27
27
Multiemployer medical plan contributions
18
16
17
Net expense for employee benefit plans
$
607
$
518
$
459