Mondelez 2014 Annual Report Download - page 92

Table of Contents
Other Costs:
We sponsor and contribute to employee defined contribution plans. These plans cover eligible salaried, non-union and union
employees. Our contributions and costs are determined by the matching of employee contributions, as defined by the plans.
Amounts charged to expense in continuing operations for defined contribution plans totaled $46 million in 2014, $66 million in 2013
and $74 million in 2012.
Postretirement Benefit Plans
Obligations:
Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation were:
The current portion of our accrued postretirement benefit obligation of $11 million at December 31, 2014 and $9 million at
December 31, 2013 was included in other accrued liabilities.
We used the following weighted-average assumptions to determine our postretirement benefit obligations:
Year-end discount rates for our U.S., Canadian and U.K. plans were developed from a model portfolio of high quality,
fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations. Year-end
discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as
closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-
year. Our expected
health care cost trend rate is based on historical costs.
Assumed health care cost trend rates have a significant impact on the amounts reported for the health care plans. A
one-percentage-point change in assumed health care cost trend rates would have the following effects:
89
As of December 31,
2014
2013
(in millions)
Accrued benefit obligation at January 1
$
422
$
458
Service cost
13
15
Interest cost
22
20
Benefits paid
(9
)
(7
)
Plan amendments – (
3
)
Currency
(11
)
(7
)
Assumption changes
75
(56
)
Actuarial (gains) / losses
14
(4
)
Other
12
6
Accrued benefit obligation at December 31
$
538
$
422
U.S. Plans
Non
-
U.S. Plans
As of December 31,
As of December 31,
2014
2013
2014
2013
Discount rate
4.20%
5.10%
4.52%
4.81%
Health care cost trend rate
assumed for next year
6.50%
7.00%
5.18%
4.76%
Ultimate trend rate
5.00%
5.00%
5.53%
5.54%
Year that the rate reaches the
ultimate trend rate
2018
2018
2018
2019
As of December 31, 2014
One
-
Percentage
-
Point
Increase
Decrease
(in millions)
Effect on postretirement benefit obligation
$
90
$
(71
)
Effect on annual service and interest cost
$
6
$
(5
)