Pizza Hut 2001 Annual Report Download - page 55

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53
PENSION AND POSTRETIREMENT
MEDICAL BENEFITS
Pension Benefits
We sponsor noncontributory defined benefit pension plans cov-
ering substantially all full-time U.S. salaried employees, certain
hourly employees and certain international employees. During
2001, the TRICON Retirement Plan (the “Plan”) was amended
such that any salaried employee hired or rehired by TRICON after
September 30, 2001 will not be eligible to participate in the
Plan. Benefits are based on years of service and earnings or
stated amounts for each year of service.
Postretirement Medical Benefits
Our postretirement plan provides health care benefits, princi-
pally to U.S. salaried, retirees and their dependents. This plan
includes retiree cost-sharing provisions. During 2001, the plan
was amended such that any salaried employee hired or rehired
by TRICON after September 30, 2001 will not be eligible to par-
ticipate in this plan. Employees hired prior to September 30,
2001 are eligible for benefits if they meet age and service
requirements and qualify for retirement benefits.
15
NOTE
The components of net periodic benefit cost are set forth
below:
Pension Benefits
2001 2000 1999
Service cost $20 $19 $20
Interest cost 28 24 22
Amortization of prior service cost 111
Expected return on plan assets (29) (25) (24)
Recognized actuarial loss 1——
Net periodic benefit cost $21 $19 $19
Additional (gain) loss recognized due to:
Curtailment $— $ (4) $ (4)
Special termination benefits 2——
Postretirement Medical Benefits
2001 2000 1999
Service cost $2 $2 $2
Interest cost 433
Amortization of prior service cost (1) (1) (2)
Net periodic benefit cost $5 $4 $3
Additional (gain) recognized due to:
Curtailment $— $ (1) $ (1)
Prior service costs are amortized on a straight-line basis over the
average remaining service period of employees expected to
receive benefits. Curtailment gains have generally been recog-
nized in facility actions net gain as they have resulted primarily
from refranchising and closure activities.