Tyson Foods 2011 Annual Report Download - page 65

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65
Amounts recognized in the Consolidated Balance Sheets consist of:
in millions
Pension Benefits
Other Postretirement
Qualified
Non-Qualified
Benefits
2011
2010
2011
2010
2011
2010
Accrued benefit liability
$(25)
$(23)
$(62)
$(42)
$(44)
$(45)
Accumulated other comprehensive
(income)/loss:
Unrecognized actuarial loss
45
40
17
1
0
0
Unrecognized prior service (cost)/credit
0
0
2
3
(5)
(6)
Net amount recognized
$20
$17
$(43)
$(38)
$(49)
$(51)
At October 1, 2011, and October 2, 2010, all pension plans had an accumulated benefit obligation in excess of plan assets. The
accumulated benefit obligation for all qualified pension plans was $99 million and $97 million at October 1, 2011, and October 2,
2010, respectively. Plans with accumulated benefit obligations in excess of plan assets are as follows:
in millions
Pension Benefits
Qualified
Non-Qualified
2011
2010
2011
2010
Projected benefit obligation
$99
$97
$62
$42
Accumulated benefit obligation
99
97
55
41
Fair value of plan assets
74
74
0
0
Net Periodic Benefit Cost
Components of net periodic benefit cost for pension and postretirement benefit plans recognized in the Consolidated Statements of
Income are as follows:
in millions
Pension Benefits
Other Postretirement
Qualified
Non-Qualified
Benefits
2011
2010
2009
2011
2010
2009
2011
2010
2009
Service cost
$0
$0
$0
$3
$3
$4
$0
$1
$0
Interest cost
5
5
6
2
2
2
2
2
3
Expected return on plan assets
(6)
(6)
(7)
0
0
0
0
0
0
Amortization of prior service cost
0
0
0
1
1
1
(1)
(1)
0
Recognized actuarial loss, net
3
1
1
0
0
0
1
0
1
Net periodic benefit cost
$2
$0
$0
$6
$6
$7
$2
$2
$4
Assumptions
Weighted average assumptions are as follows:
Pension Benefits
Other Postretirement
Qualified
Non-Qualified
Benefits
2011
2010
2009
2011
2010
2009
2011
2010
2009
Discount rate to determine net
periodic benefit cost
5.06%
6.00%
6.33%
5.50%
6.00%
6.50%
4.50%
5.71%
6.50%
Discount rate to determine
benefit obligations
4.53%
5.06%
6.00%
4.75%
5.50%
6.00%
4.09%
4.50%
5.71%
Rate of compensation increase
N/A
N/A
N/A
3.50%
3.50%
3.50%
N/A
N/A
N/A
Expected return on plan assets
7.79%
7.80%
8.00%
N/A
N/A
N/A
N/A
N/A
N/A
To determine the rate-of-return on assets assumption, we first examined historical rates of return for the various asset classes. We then
determined a long-term projected rate-of-return based on expected returns over the next five to 10 years.