Snapple 2008 Annual Report Download - page 109

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(2) In accordance with SFAS 158, the Company elected the transition method under which DPS re-measured the
plan obligations and plan assets as of January 1, 2008, the first day of the 2008 fiscal year, for plans that
previously had a measurement date other than December 31.
The accumulated benefit obligations for the defined benefit pension plans were $230 million and $65 million
at December 31, 2008 and 2007, respectively. The pension plan assets and the projected benefit obligations of DPS’
U.S. plans represent approximately 93 percent of the total plan assets and the total projected benefit obligation of all
plans combined. The following table summarizes key pension plan information regarding plans whose accumulated
benefit obligations exceed the fair value of their respective plan assets (in millions):
2008 2007
Aggregate projected benefit obligation .................................... $228 $27
Aggregate accumulated benefit obligation ................................. 228 27
Aggregate fair value of plan assets ....................................... 158 22
The following table summarizes the components of the net periodic benefit cost and changes in plan assets and
benefit obligations recognized in Other Comprehensive Income (“OCI”) for the stand alone U.S. and foreign plans
for the years ended December 31, 2008, 2007 and 2006 (in millions):
2008 2007 2006 2008 2007 2006
For the Year Ended December 31,
Pension Plans Postretirement Benefit Plans
Net Periodic Benefit Costs(1)
Service cost.................................... $11 $ 2 $ 2 $ 1 $— $ —
Interest cost.................................... 19 4 3 1 — —
Expected return on assets.......................... (19) (5) (3) — — —
Amortization of actuarial (gain)/loss.................. 3 — — — — —
Amortization of prior service cost/(credit) ............. 1 — — — — —
Curtailment/settlements ........................... 16 (1) — — — —
Net periodic benefit costs ........................ $31 $— $ 2 $ 2 $— $ —
Changes Recognized in OCI(1)
Curtailment effects .............................. $(34) $— N/A $— $ (1) N/A
Settlements .................................... (16) 1 N/A — — N/A
Current year actuarial (gain)/loss .................... 60 (6) N/A 5 1 N/A
Recognition of actuarial gain/(loss) .................. (3) — N/A — — N/A
Current year prior service (credit)/cost ................ — — N/A — — N/A
Recognition of prior service credit/(cost) .............. (1) — N/A — — N/A
Total recognized in OCI ......................... $ 6 $(5) N/A $ 5 $— N/A
(1) Effective January 1, 2008, the Company separated commingled pension and post retirement plans which
contained participants of both the Company and other Cadbury companies into separate stand alone plans
sponsored by DPS. The net periodic benefit costs associated with these plans prior to the separation are detailed
below as a component of multi-employer plan costs for 2007 and 2006.
The estimated net actuarial loss and prior service cost for the defined benefit plans that will be amortized from
accumulated other comprehensive loss into periodic benefit cost in 2009 are approximately $5 million and less than
$1 million, respectively.
85
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)