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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
82
14. Employee Benefit Plans
PENSION AND POSTRETIREMENT PLANS
Overview
The Company has U.S. and foreign pension and postretirement medical plans which provide benefits to a defined group of
employees. The Company has several non-contributory defined benefit plans and postretirement medical plans, each having a
measurement date of December 31. To participate in the defined benefit plans, eligible employees must have been employed by
the Company for at least one year. The postretirement benefits are limited to qualified expenses and are subject to deductibles, co-
payment provisions and other provisions. Employee benefit plan obligations and expenses included in the Company's Audited
Consolidated Financial Statements are determined using actuarial analyses based on plan assumptions including employee
demographic data such as years of service and compensation, benefits and claims paid and employer contributions, among others.
The Company also participates in various multi-employer defined benefit plans.
The Company's largest U.S. defined benefit pension plan, which is a cash balance plan, was suspended and the accrued benefit
was frozen effective December 31, 2008. Participants in this plan no longer earn additional benefits for future services or salary
increases. The cash balance plans maintain individual recordkeeping accounts for each participant which are annually credited
with interest credits equal to the 12-month average of one-year U.S. Treasury Bill rates, plus 1%, with a required minimum rate
of 5%.
During the years ended December 31, 2013, 2012 and 2011, the total amount of lump sum payments made to participants of
various U.S. defined pension plans exceeded the estimated annual interest and service costs. As a result, non-cash settlement
charges of $3 million were recognized for the years ended December 31, 2013 and 2011, respectively. There was no settlement
charge recognized for the year ended December 31, 2012.
Financial Statement Impact
The total pension and postretirement net periodic benefit costs recorded in the Company's Consolidated Statements of Income
for the years ended December 31, 2013, 2012 and 2011 were as follows (in millions):
For the Year Ended December 31,
2013 2012 2011
Total net periodic benefit costs
Pension plans $ 9 $ 5 $ 7
Postretirement medical plans (1)(3)(1)
Total $ 8 $ 2 $ 6