Tyson Foods 2013 Annual Report Download - page 64

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64
NOTE 15: PENSIONS AND OTHER POSTRETIREMENT BENEFITS
At September 28, 2013, we had four noncontributory defined benefit pension plans consisting of three funded qualified plans and one
unfunded non-qualified plan. All three of our qualified plans are frozen and provide benefits based on a formula using years of service
and a specified benefit rate. Effective January 1, 2004, we implemented a non-qualified defined benefit plan for certain contracted
officers that uses a formula based on years of service and final average salary. We also have other postretirement benefit plans for
which substantially all of our employees may receive benefits if they satisfy applicable eligibility criteria. The postretirement
healthcare plans are contributory with participants’ contributions adjusted when deemed necessary.
We have defined contribution retirement programs for various groups of employees. We recognized expenses of $50 million, $47
million and $45 million in fiscal 2013, 2012 and 2011, respectively.
We use a fiscal year end measurement date for our defined benefit plans and other postretirement plans. We recognize the effect of
actuarial gains and losses into earnings immediately for other postretirement plans rather than amortizing the effect over future
periods.
Other postretirement benefits include postretirement medical costs and life insurance.
Benefit Obligations And Funded Status
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at September 28,
2013, and September 29, 2012:
in millions
Pension Benefits Other Postretirement
Qualified Non-Qualified Benefits
2013 2012 2013 2012 2013 2012
Change in benefit obligation
Benefit obligation at beginning of year $ 101 $ 99 $ 81 $ 62 $ 64 $ 44
Service cost — — 5 5 2 1
Interest cost 4 4 3 3 2 2
Plan participants’ contributions — — — — 1 1
Actuarial (gain)/loss (9) 5 (2) 13 7 25
Benefits paid (10)(7)(2)(2)(5) (9)
Benefit obligation at end of year 86 101 85 81 71 64
Change in plan assets
Fair value of plan assets at beginning of year 86 74 — — — —
Actual return on plan assets 3 13 — — — —
Employer contributions 6 6 2 2 4 8
Plan participants’ contributions — — — — 1 1
Benefits paid (10)(7)(2)(2)(5) (9)
Fair value of plan assets at end of year 85 86 — — — —
Funded status $(1) $ (15) $ (85) $ (81) $ (71) $ (64)