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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
80
The following table summarizes amounts included in AOCL for the plans as of December 31, 2012 and 2011 (in millions):
Postretirement
Pension Plans Medical Plans
2012 2011 2012 2011
Prior service cost (credits) $ 3 $ 3 $(4)$(6)
Net losses 78 70 75
Amounts in AOCL $ 81 $ 73 $ 3 $(1)
Contributions and Expected Benefit Payments
The following table summarizes the contributions made to the Company's pension and other postretirement benefit plans for
the years ended December 31, 2012 and 2011 , as well as the projected contributions for the year ending December 31, 2013 (in
millions):
Projected Actual
2013 2012 2011
Pension plans $ 2 $ 2 $ 2
Postretirement medical plans — 1 1
Total $ 2 $ 3 $ 3
The following table summarizes the expected future benefit payments cash activity for the Company's pension and
postretirement medical plans in the future (in millions):
2013 2014 2015 2016 2017 2018-2022
Pension plans $ 17 $ 18 $ 18 $ 17 $ 19 $ 101
Postretirement medical plans 1 1 1 1 1 3
Actuarial Assumptions
The Company's pension expense was calculated based upon a number of actuarial assumptions including discount rate,
retirement age, compensation rate increases, expected long-term rate of return on plan assets for pension benefits and the healthcare
cost trend rate related to its postretirement medical plans.
The discount rate utilized to determine the Company's projected benefit obligations as of December 31, 2012 and 2011, as
well as projected 2013 net periodic benefit cost for U.S. plans, reflects the current rate at which the associated liabilities could be
effectively settled as of the end of the year. The Company set its rate to reflect the yield of a portfolio of high quality, fixed-income
debt instruments that would produce cash flows sufficient in timing and amount to settle projected future benefits.
For the year ended December 31, 2012 and 2011 , the expected long-term rate of return on U.S. pension fund assets held by
the Company's pension trusts was determined based on several factors, including the impact of active portfolio management and
projected long-term returns of broad equity and bond indices. The plans' historical returns were also considered. The expected
long-term rate of return on the assets in the plans was based on an asset allocation assumption of approximately 25% with equity
managers, with expected long-term rates of return of approximately 8.51% and 8.90% for the years ended December 31, 2012 and
2011, respectively and approximately 75% with fixed income managers, with an expected long-term rate of return of approximately
5.10% and 5.90% for the years ended December 31, 2012 and 2011, respectively.