Mondelez 2013 Annual Report Download - page 103

Table of Contents
Year-end discount rates for our U.S., Canadian and U.K. 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. Year-end
discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as
closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-
year. Our expected
health care cost trend rate is based on historical costs.
Assumed health care cost trend rates have a significant impact on the amounts reported for the health care plans. A
one-percentage-point change in assumed health care cost trend rates would have the following effects as of December 31, 2013:
Components of Net Postretirement Health Care Costs:
Net postretirement health care costs consisted of the following for the years ended December 31, 2013, 2012 and 2011:
As of December 31, 2013, we expected to amortize from accumulated other comprehensive earnings / (losses) into pre-tax net
postretirement health care costs during 2014:
We used the following weighted-average assumptions to determine our net postretirement cost for the years ended December 31:
Future Benefit Payments:
Our estimated future benefit payments for our postretirement health care plans at December 31, 2013 were (in millions):
96
One
-
Percentage
-
Point
Increase
Decrease
(in millions)
Effect on postretirement benefit obligation
$
66
$
(53
)
Effect on annual service and interest cost
$
6
$
(5
)
2013
2012
2011
(in millions)
Service cost
$
15
$
35
$
36
Interest cost
20
121
165
Amortization:
Net loss from experience differences
12
65
60
Prior service credit
(12
)
(31
)
(32
)
Other
(1)
–
29
–
Net postretirement health care costs
related to discontinued operations –
(
135
)
(163
)
Net postretirement health care costs
included within continuing operations
$
35
$
84
$
66
(1)
In 2012, we recorded a $23 million unfunded U.S. postretirement plan obligation related to long
-
term disability benefits.
• an estimated $6 million of net loss from experience differences, and
• an estimated $10 million of prior service credit.
U.S. Plans
Non
-
U.S. Plans
2013
2012
2011
2013
2012
2011
Discount rate
4.20%
4.47%
5.30%
4.39%
4.14%
5.02%
Health care cost trend rate
7.50%
7.00%
7.50%
6.47%
6.21%
7.62%
Year ending:
2014
2015
2016
2017
2018
2019
-
2023
U.S. Plans
$5
$7
$8
$10
$12
$84
Non
-
U.S. Plans
$5
$5
$5
$5
$5
$30