Mondelez 2012 Annual Report Download - page 87

Table of Contents
Our contributions exceeded 5% of total contributions to the Bakery and Confectionery Union and Industry International Pension
Fund (“Fund”)
for fiscal years 2012, 2011 and 2010. Our contributions to the Fund were $25 million in 2012, $24 million in 2011 and
$24 million in 2010. We expect contributions to the Fund to be approximately $27 million for each of the next five years. On January
11, 2012, Hostess Brands, a significant contributor to the Fund, announced that it had filed voluntary petitions for reorganization
under Chapter 11 of the U.S. Bankruptcy Code and on November 21, 2012, Hostess received court approval to dissolve the
company. The full effect of Hostess’ bankruptcy reorganization on the Fund is not known. Once the bankruptcy proceedings are
concluded, our costs or withdrawal liability to the Fund might increase. The Fund’s actuarial valuation has been completed and the
zone status changed to “Red” for 2012. As a result of this certification, we are being charged a 10% surcharge on our contribution
rates. Our expected future contributions include the surcharge. The Fund adopted a rehabilitation plan on November 7, 2012 that
requires contribution increases and reduction to benefit provisions.
Our contributions to other multiemployer pension plans that were not individually significant were $5 million in 2012, $8 million in
2011 and $6 million in 2010. These contributions include contributions related to Kraft Foods Group employees who participated in
our multiemployer pension plans through October 1, 2012 of $2 million in 2012, $5 million 2011 and $3 million in 2010.
Other Costs:
We 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 in continuing operations for defined contribution plans totaled $74 million in 2012, $62 million in 2011 and $56 million in
2010.
Postretirement Benefit Plans
On October 1, 2012, in connection with the divestiture of Kraft Foods Group, we reduced our benefit obligation by $3,561 million,
long-term deferred tax assets by $1,382 million and accumulated other comprehensive losses by $877 million.
Obligations:
Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation at
December 31, 2012 and 2011 were:
The current portion of our accrued postretirement benefit obligation of $8 million at December 31, 2012 and $215 million at
December 31, 2011 was included in other accrued liabilities.
84
2012
2011
(in millions)
Accrued benefit obligation at January 1
$
3,453
$
3,263
Service cost
35
36
Interest cost
121
165
Benefits paid
(142
)
(221
)
Plan amendments
(51
)
(5
)
Currency
8
(3
)
Assumption changes
519
254
Actuarial (gains) / losses
47
(36
)
Impact of Spin
-
Off
(3,561
)
–
Other
29
–
Accrued benefit obligation at December 31
$
458
$
3,453