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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
85
The following table summarizes amounts included in AOCL for the plans as of December 31, 2014 and 2013 (in millions):
Postretirement
Pension Plans Medical Plans
2014 2013 2014 2013
Prior service cost (credits) $ 2 $ 2 $(1)$(2)
Net losses 56 45 34
Amounts in AOCL $ 58 $ 47 $ 2 $ 2
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, 2014 and 2013 , as well as the projected contributions for the year ending December 31, 2015 (in
millions):
Projected Actual
2015 2014 2013
Pension plans $ 1 $ 12 $ 2
Postretirement medical plans — —1
Total $ 1 $ 12 $ 3
The contributions for the year ended December 31, 2014 included $10 million which were made to facilitate the purchase of
the annuity contracts.
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):
2015 2016 2017 2018 2019 2020-2024
Pension plans $ 11 $ 11 $ 12 $ 12 $ 13 $ 72
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 and 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, 2014 and 2013, as
well as projected 2015 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 years ended December 31, 2014, 2013 and 2012, 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 9.20%, 8.20% and 8.51% for the years ended December 31,
2014, 2013 and 2012, respectively and approximately 75% with fixed income managers, with an expected long-term rate of return
of approximately 3.90%, 6.00% and 5.10% for the years ended December 31, 2014, 2013 and 2012, respectively.