Pizza Hut 2005 Annual Report Download - page 66

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฀ ฀ Postretirement฀
฀ Pension฀Benefi฀ts฀ Medical฀Benefi฀ts
2005฀ 2004฀ 2005฀ 2004
Amounts฀recognized฀in฀the฀
฀ statement฀of฀financial
฀ position฀consist฀of:
฀ Accrued฀benefit฀liability฀ $฀(116)฀ $฀(111)฀ $฀(62)฀ $฀(58)
฀ Intangible฀asset฀ ฀ 7฀ ฀ 11฀ ฀ —฀ ฀ —
฀ Accumulated฀other฀
฀ ฀ comprehensive฀loss฀ ฀ 176฀ ฀ 153฀ ฀ —฀ ฀ —
$฀ 67฀ $฀ 53฀ $฀(62)฀ $฀(58)
Additional฀information:
Other฀comprehensive฀
฀ (income)฀loss฀attributable฀
฀ to฀change฀in฀additional฀
฀ minimum฀liability฀
฀ recognition฀ $฀ 23฀ $฀ (9)
Additional฀year-end฀
฀ information฀for฀pension฀
฀ plans฀with฀accumulated฀
฀ benefit฀obligations฀in฀
฀ excess฀of฀plan฀assets:
฀ Projected฀benefit฀
฀ ฀ obligation฀ $฀ 815฀ $฀ 700
฀ Accumulated฀benefit฀
฀ ฀ obligation฀ ฀ 736฀ ฀ 629
฀ Fair฀value฀of฀plan฀assets฀ ฀ 610฀ ฀ 518
Based฀on฀current฀funding฀rules,฀we฀are฀not฀required฀to฀make฀
contributions฀to฀the฀Plan฀in฀2006,฀but฀we฀may฀make฀discre-
tionary฀contributions฀during฀the฀year฀based฀on฀our฀estimate฀
of฀the฀Plan’s฀expected฀September฀30,฀2006฀funded฀status.
employees฀were฀amended฀such฀that฀any฀salaried฀employee฀
hired฀or฀rehired฀by฀YUM฀after฀September฀30,฀2001฀is฀not฀
eligible฀to฀participate฀in฀those฀plans.฀Benefi฀ts฀are฀based฀on฀
years฀of฀service฀and฀earnings฀or฀stated฀amounts฀for฀each฀
year฀of฀service.
Postretirement฀Medical฀Benefi฀ts฀ Our฀postretirement฀plan฀
provides฀ health฀care฀ benefi฀ts,฀principally฀ 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฀YUM฀
after฀September฀30,฀2001฀is฀not฀eligible฀to฀participate฀in฀
this฀plan.฀Employees฀hired฀prior฀to฀September฀30,฀2001฀are฀
eligible฀ for฀benefi฀ts฀ if฀they฀meet฀ age฀and฀service฀require-
ments฀and฀qualify฀for฀retirement฀benefi฀ts.
Obligation฀ and฀ Funded฀ Status฀ at฀ September฀ 30:฀ The฀
following฀chart฀summarizes฀the฀balance฀sheet฀impact,฀as฀well฀
as฀benefi฀t฀obligations,฀assets,฀and฀funded฀status฀associated฀
with฀the฀pension฀and฀postretirement฀medical฀benefi฀ts฀plans฀
based฀on฀actuarial฀valuations฀prepared฀as฀of฀September฀30,฀
2005฀and฀2004฀(the฀Plan฀Measurement฀Date).
฀ ฀ Postretirement฀
฀ Pension฀Benefi฀ts฀ Medical฀Benefi฀ts
2005฀ 2004฀ 2005฀ 2004
Change฀in฀benefit฀obligation
Benefit฀obligation฀at฀
฀ beginning฀of฀year฀ $฀ 700฀ $฀ 629฀ $฀ 81฀ $฀ 81
฀ ฀ Service฀cost฀ ฀ 33฀ ฀ 32฀ ฀ 2฀ ฀ 2
฀ ฀ Interest฀cost฀ ฀ 43฀ ฀ 39฀ ฀ 5฀ ฀ 5
฀ ฀ Plan฀amendments฀ ฀ —฀ ฀ 1฀ ฀ —฀ ฀ —
฀ ฀ Curtailment฀gain฀ ฀ (2)฀ ฀ (2)฀ ฀ —฀ ฀ —
฀ ฀ Settlement฀loss฀ ฀ 1฀ ฀ —฀ ฀ —฀ ฀ —
฀ ฀ Benefits฀and฀
฀ ฀ ฀ expenses฀paid฀ ฀ (33)฀ ฀ (26)฀ ฀ (4)฀ ฀ (4)
฀ ฀ Actuarial฀(gain)฀loss฀฀ ฀ 73฀ ฀ 27฀ ฀(15)฀ ฀ (3)
Benefit฀obligation฀at฀
฀ end฀of฀year฀ $฀ 815฀ $฀ 700฀ $฀ 69฀ $฀ 81
Change฀in฀plan฀assets
Fair฀value฀of฀plan฀assets฀
฀ at฀beginning฀of฀year฀ $฀ 518฀ $฀ 438
฀ ฀ Actual฀return฀on฀plan฀
฀ ฀ ฀ assets฀ ฀ 63฀ ฀ 53
฀ ฀ Employer฀contributions฀ ฀ 64฀ ฀ 54
฀ ฀ Benefits฀paid฀ ฀ (33)฀ ฀ (26)
฀ ฀ Administrative฀expenses฀ ฀ (2)฀ ฀ (1)
Fair฀value฀of฀plan฀assets฀
฀ at฀end฀of฀year฀ $฀ 610฀ $฀ 518฀
Funded฀status฀ $฀(205)฀ $฀(182)฀ $฀(69)฀ $฀(81)
Employer฀contributions(a) ฀ 10฀ ฀ 1฀ ฀ —฀ ฀ —
Unrecognized฀actuarial฀
฀ loss฀฀ ฀ 256฀ ฀ 225฀ ฀ 7฀ ฀ 23
Unrecognized฀prior฀
฀ service฀cost฀ ฀ 6฀ ฀ 9฀ ฀ —฀ ฀ —
Net฀amount฀recognized฀
฀ at฀year-end฀ $฀ 67฀ $฀ 53฀ $฀(62)฀ $฀(58)
(a)฀Refl฀ects฀contributions฀made฀between฀the฀September฀30฀measurement฀date฀and฀
December฀31฀for฀both฀2005฀and฀2004.
70.฀ ฀ ฀ |฀ ฀ ฀ Yum!฀Brands,฀Inc.