Pepsi 2015 Annual Report Download - page 121
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Table of Contents
104
The estimated amounts to be amortized from accumulated other comprehensive loss into pre-tax expense in
2016 for our pension and retiree medical plans are as follows:
Pension Retiree Medical
U.S. International
Net loss $ 168 $ 43 $ (2)
Prior service credit (1) — (37)
Total $ 167 $ 43 $ (39)
The following table provides the weighted-average assumptions used to determine projected benefit liability
and benefit expense for our pension and retiree medical plans:
Pension Retiree Medical
U.S. International
2015 2014 2013 2015 2014 2013 2015 2014 2013
Weighted-average assumptions
Liability discount rate 4.5% 4.2% 5.0% 4.0% 3.8% 4.7% 4.2% 3.8% 4.6%
Expense discount rate 4.2% 5.0% 4.2% 3.8% 4.7% 4.4% 3.8% 4.3% 3.7%
Expected return on plan assets 7.5% 7.5% 7.8% 6.5% 6.6% 6.6% 7.5% 7.5% 7.8%
Liability rate of salary increases 3.1% 3.5% 3.7% 3.6% 3.6% 3.9%
Expense rate of salary increases 3.5% 3.7% 3.7% 3.6% 3.9% 3.9%
The following table provides selected information about plans with accumulated benefit obligation and total
projected benefit liability in excess of plan assets:
Pension Retiree Medical
U.S. International
2015 2014 2015 2014 2015 2014
Selected information for plans with accumulated benefit obligation in excess of plan assets
Liability for service to date $ (6,536) $ (661) $ (155) $ (333)
Fair value of plan assets $ 5,698 $2
$ 112 $ 288
Selected information for plans with projected benefit liability in excess of plan assets
Benefit liability $ (13,033) $ (7,385) $ (511) $ (2,865) $ (1,300) $ (1,439)
Fair value of plan assets $ 11,397 $ 6,103 $ 406 $ 2,583 $ 354 $ 415
Of the total projected pension benefit liability at year-end 2015, $780 million relates to plans that we do not
fund because the funding of such plans does not receive favorable tax treatment.
Future Benefit Payments and Funding
Our estimated future benefit payments are as follows:
2016 2017 2018 2019 2020 2021-25
Pension $ 755 $ 780 $ 835 $ 880 $ 930 $ 5,335
Retiree medical (a) $ 120 $ 120 $ 120 $ 120 $ 115 $ 535
(a) Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the
2003 Medicare Act. Subsidies are expected to be approximately $2 to $3 million for each of the years from 2016 through 2020 and
approximately $9 million in total for 2021 through 2025.