Mondelez 2012 Annual Report Download - page 83

Table of Contents
For the U.S. plans, we determine the expected return on plan assets component of net periodic benefit cost using a calculated
market return value that recognizes the cost over a four year period. For our non-U.S. plans, we utilize a similar approach with
varying cost recognition periods for some plans, and with others, we determine the expected return on plan assets based on asset
fair values as of the measurement date.
As of December 31, 2012, for the combined U.S. and non-U.S. pension plans, we expected to amortize from accumulated other
comprehensive earnings / (losses) into net periodic pension cost during 2013:
We used the following weighted-average assumptions to determine our net pension cost for the years ended December 31:
Plan Assets:
The fair value of pension plan assets at December 31, 2012 was determined using the following fair value measurements:
80
• an estimated $191 million of net loss from experience differences; and
•
an estimated $4 million of prior service cost.
U.S. Plans
Non
-
U.S. Plans
2012
2011
2010
2012
2011
2010
Discount rate
4.56%
5.53%
5.85%
4.62%
5.11%
5.21%
Expected rate of return on
plan assets
8.00%
7.95%
7.99%
6.47%
6.77%
6.68%
Rate of compensation
increase
4.00%
4.00%
3.98%
3.58%
3.68%
3.59%
Asset Category
Total Fair
Value
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in millions)
Cash
$
210
$
210
$
–
$
–
U.S. equity securities
186
185
1
–
Non
-
U.S. equity securities
932
932
–
–
Pooled funds
-
equity securities
1,673
590
1,083
–
Total cash and equity securities
3,001
1,917
1,084
–
Government bonds
1,440
209
1,231
–
Pooled funds-fixed-income securities
963
285
668
10
Corporate bonds and other fixed-income securities
1,969
210
965
794
Total fixed-income securities
4,372
704
2,864
804
Real estate
342
97
6
239
Other
490
–
17
473
Total
$
8,205
$
2,718
$
3,971
$
1,516