Pepsi 2012 Annual Report Download - page 91

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Pension Retiree Medical
U.S. International
2012 2011 2012 2011 2012 2011
Amounts recognized
Other assets $ – $ – $ 51 $ 55 $ – $ –
Other current liabilities (51) (91) (2) (1) (71) (124)
Other liabilities (2,018) (2,738) (374) (404) (1,075) (1,249)
Net amount recognized $ (2,069) $ (2,829) $ (325) $ (350) $ (1,146) $ (1,373)
Amounts included in accumulated other comprehensive
loss (pre-tax)
Net loss/(gain) $ 4,212 $ 4,217 $ 1,096 $ 977 $ (44) $ 32
Prior service cost/(credit) 121 122 (3) (2) (92) (118)
Total $ 4,333 $ 4,339 $ 1,093 $ 975 $ (136) $ (86)
Components of the (decrease)/increase in net
loss/(gain) included in accumulated other
comprehensiveloss
Change in discount rate $ 776 $ 1,710 $ 188 $ 302 $ 84 $ 115
Employee-related assumption changes 135 (140) (2) (51) (67) (125)
Liability-related experience different from assumptions 66 (85) 14 (27) (80) (210)
Actual asset return different from expected return (486) 162 (60) 57 (13) 14
Amortization and settlement of losses (451) (147) (64) (55) – (12)
Other, including foreign currency adjustments (45) (9) 43 (16) – (20)
Total $ (5) $ 1,491 $ 119 $ 210 $ (76) $ (238)
Liability at end of year for service to date $ 11,643 $ 11,205 $ 2,323 $ 1,921
The components of benefit expense are as follows:
Pension Retiree Medical
U.S. International
2012 2011 2010 2012 2011 2010 2012 2011 2010
Components of benefit expense
Service cost $ 407 $ 350 $ 299 $ 100 $ 95 $ 81 $ 50 $ 51 $ 54
Interest cost 534 547 506 115 117 106 65 88 93
Expected return on plan assets (796) (704) (643) (146) (136) (123) (22) (14) (1)
Amortization of prior service cost/(credit) 17 14 12 1 2 2 (26) (28) (22)
Amortization of net loss 259 145 119 53 40 24 – 12 9
421 352 293 123 118 90 67 109 133
Settlement/curtailment loss/(gain)(a) 185 (8) (2) 4 30 1 – – (62)
Special termination benefits 8 71 45 1 1 3 5 1 3
Total $ 614 $ 415 $ 336 $ 128 $ 149 $ 94 $ 72 $ 110 $ 74
(a) Includes pension lump sum settlement charge of $195million in 2012. This charge is reflected in items affecting comparability (see “Items Affecting Comparability” in
Management’s Discussion and Analysis).
The estimated amounts to be amortized from accumulated other comprehensive loss into expense in 2013 for our pension
and retiree medical plans are as follows:
Pension Retiree Medical
U.S. International
Net loss $289 $ 68 $ 1
Prior service cost/(credit) 18 1 (22)
Total $307 $ 69 $ (21)
2012 PEPSICO ANNUAL REPORT 89
Notes to Consolidated Financial Statements