Snapple 2009 Annual Report Download - page 120

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The following table summarizes the weighted-average assumptions used to determine benefit obligations at
the plan measurement dates for U.S. plans:
2009 2008 2009 2008
Pension Plans
Postretirement
Benefit Plans
Weighted-average discount rate .................................. 5.90% 6.50% 5.90% 6.50%
Rate of increase in compensation levels............................ 3.50% 3.50% N/A N/A
The following table summarizes the weighted average actuarial assumptions used to determine the net periodic
benefit costs for U.S. plans for the years ended December 31, 2009, 2008 and 2007:
2009 2008 2007 2009 2008 2007
Pension Plans
Postretirement
Benefit Plans
Weighted-average discount rate ...................... 6.50% 6.00% 5.90% 6.50% 6.00% 5.90%
Expected long-term rate of return on assets ............. 7.30% 7.30% 7.30% 7.30% 7.30% N/A
Rate of increase in compensation levels ................ 3.50% 3.50% N/A N/A N/A N/A
The following table summarizes the weighted-average assumptions used to determine benefit obligations at
the plan measurement dates for foreign plans:
2009 2008 2009 2008
Pension Plans
Postretirement
Benefit Plans
Weighted-average discount rate .................................. 6.52% 6.98% 5.50% 6.25%
Rate of increase in compensation levels............................ 3.85% 3.90% N/A N/A
The following table summarizes the weighted average actuarial assumptions used to determine the net periodic
benefit costs for foreign plans for the years ended December 31, 2009, 2008 and 2007:
2009 2008 2007 2009 2008 2007
Pension Plans
Postretirement
Benefit Plans
Weighted-average discount rate ...................... 6.99% 7.14% 6.06% 6.25% 5.25% 5.25%
Expected long-term rate of return on assets ............. 7.62% 7.66% 7.56% N/A N/A N/A
Rate of increase in compensation levels ................ 4.06% 4.23% 3.81% N/A N/A 3.50%
The following table summarizes the health care cost trend rate assumptions used to determine the postre-
tirement benefit obligation for U.S. plans:
Health care cost trend rate assumed for 2010 (Initial Rate) .................................. 9.00%
Rate to which the cost trend rate is assumed to decline (Ultimate Rate) ........................ 5.00%
Year that the rate reaches the ultimate trend rate ......................................... 2016
The effect of a 1% increase or decrease in health care trend rates on the U.S. and foreign postretirement benefit
plans would change the benefit obligation at the end of the year and the service cost plus interest cost by less than
$1 million.
100
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)