Pepsi 2007 Annual Report Download - page 74

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Pension Retiree Medical
2007 2006 2007 2006 2007 2006
U.S. International
Change in projected benefit liability
Liability at beginning of year $5,947 $5,771 $1,511 $1,263 $1,370 $1,312
Service cost 244 245 59 52 48 46
Interest cost 338 319 81 68 77 72
Plan amendments 147 11 4 8 – –
Participant contributions – – 14 12 – –
Experience (gain)/loss (309) (163) (155) 20 (80) (34)
Benefit payments (319) (233) (46) (38) (77) (75)
Settlement/curtailment loss – (7) – (6) – –
Special termination benefits – 4 – – – 1
Foreign currency adjustment – – 96 126 9 –
Other – – 31 6 7 48
Liability at end of year $6,048 $5,947 $1,595 $1,511 $1,354 $1,370
Change in fair value of plan assets
Fair value at beginning of year $5,378 $5,086 $1,330 $1,099 $ – $ –
Actual return on plan assets 654 513 122 112 – –
Employer contributions/funding 69 19 58 30 77 75
Participant contributions – – 14 12 – –
Benefit payments (319) (233) (46) (38) (77) (75)
Settlement/curtailment loss – (7) – – – –
Foreign currency adjustment – – 91 116 – –
Other – – 26 (1) – –
Fair value at end of year $5,782 $5,378 $1,595 $1,330 $ – $ –
Reconciliation of funded status
Funded status $(266) $(569) $ – $(181) $(1,354) $(1,370)
Adjustment for fourth quarter contributions 15 6 107 13 19 16
Adjustment for fourth quarter special termination benefits (5) – – – – –
Net amount recognized $(256) $(563) $107 $(168) $(1,335) $(1,354)
Amounts recognized
Other assets $ 440 $ 185 $187 $ 6 $ – $ –
Other current liabilities (24) (19) (3) (2) (88) (84)
Other liabilities (672) (729) (77) (172) (1,247) (1,270)
Net amount recognized $(256) $(563) $107 $(168) $(1,335) $(1,354)
Amounts included in accumulated other comprehensive loss (pre-tax)
Net loss $1,136 $1,836 $287 $475 $276 $ 364
Prior service cost/(credit) 156 13 28 24 (88) (101)
Total $1,292 $1,849 $315 $499 $188 $ 263
Components of the (decrease)/increase in net loss
Change in discount rate $ (292) $(123) $(224) $ 2 $(50) $(30)
Employee-related assumption changes – (45) 61 6 (9) –
Liability-related experience different from assumptions (17) 5 7 6 (21) (4)
Actual asset return different from expected return
(255) (122) (25) (30) – –
Amortization of losses (136) (164) (30) (29) (18) (21)
Other, including foreign currency adjustments and
2003 Medicare Act
– (3) 23 46 10 17
Total $ (700) $(452) $(188) $ 1 $(88) $(38)
Liability at end of year for service to date $5,026 $4,998 $1,324 $1,239
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