Pepsi 2011 Annual Report Download - page 69

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to the 401(k) savings plan for all future salaried new hires of the
Company, as salaried new hires are no longer eligible to participate
in the dened benet pension plan, as well as implementing a new
dened benet pension formula for certain hourly new hires of the
Company. Pension plan design changes also included implementing
a new employer contribution to the 401(k) savings plan for certain
legacy PBG and PAS salaried employees (as such employees are also
not eligible to participate in the dened benet pension plan), as
well as implementing a new dened benet pension formula for
certain legacy PBG and PAS hourly employees. The retiree medical
plan design change included phasing out Company subsidies of
retiree medical benets.
As a result of these changes, we remeasured our pension and
retiree medical expenses and liabilities in the third quarter of 2010,
which resulted in a one- time pre- tax curtailment gain of $62million
included in retiree medical expenses.
The provisions of both the PPACA and the Health Care and
Education Reconciliation Act are reected in our retiree medical
expenses and liabilities and were not material to our nan-
cial statements.
Selected nancial information for our pension and retiree medical plans is as follows:
Pension Retiree Medical
U.S. International
2011 2010 2011 2010 2011 2010
Change in projected benefit liability
Liability at beginning of year $ 9,851 $ 6,606 $ 2,142 $ 1,709 $ 1,770 $ 1,359
Acquisitions/(divestitures) 11 2,161 (63) 90 – 396
Service cost 350 299 95 81 51 54
Interest cost 547 506 117 106 88 93
Plan amendments 21 28 (16) – 3 (132)
Participant contributions – – 3 3 – –
Experience loss/(gain) 1,484 583 224 213 (239) 95
Benet payments (414) (375) (69) (69) (110) (100)
Settlement/curtailment gain (20) (2) (15) (3) – –
Special termination benets 71 45 1 3 1 3
Foreign currency adjustment – – (41) (18) (1) 2
Other – – 3 27 – –
Liability at end of year $ 11,901 $ 9,851 $ 2,381 $ 2,142 $ 1,563 $ 1,770
Change in fair value of plan assets
Fair value at beginning of year $ 8,870 $ 5,420 $ 1,896 $ 1,561 $ 190 $ 13
Acquisitions/(divestitures) 11 1,633 (1) 52 – –
Actual return on plan assets 542 943 79 164 – 7
Employer contributions/funding 63 1,249 176 215 110 270
Participant contributions – – 3 3 – –
Benet payments (414) (375) (69) (69) (110) (100)
Settlement – – (30) (2) – –
Foreign currency adjustment – – (23) (28) – –
Fair value at end of year $ 9,072 $ 8,870 $ 2,031 $ 1,896 $ 190 $ 190
Funded status $ (2,829) $ (981) $ (350) $ (246) $ (1,373) $ (1,580)
PepsiCo, Inc.  Annual Report

Notes to Consolidated Financial Statements