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GIS » Topics » Volatility in the securities markets, interest rates, and other factors or changes in our employee base could substantially increase our defined benefit pension, other postretirement, and postemployment benefit costs.These excerpts taken from the GIS 10-K filed Jul 11, 2008. Volatility
in the securities markets, interest rates, and other factors or
changes in our employee base could substantially increase our
defined benefit pension, other postretirement, and
postemployment benefit costs.
We sponsor a number of defined benefit plans for employees in
the United States, Canada, and various foreign locations,
including defined benefit pension, retiree health and welfare,
severance, directors’ life, and other postemployment
benefit plans. Our major defined benefit pension plans are
funded with trust assets invested in a globally diversified
portfolio of securities and other investments. Changes in
interest rates, mortality rates, health care costs, early
retirement rates, investment returns, and the market value of
plan assets can affect the funded status of our defined benefit
pension, other postretirement, and postemployment benefit plans
and cause volatility in the net periodic benefit cost and future
funding requirements of the plans. Although the aggregate fair
value of our defined benefit pension, other postretirement, and
postemployment benefit plan assets exceeded the aggregate
defined benefit pension, other postretirement, and
postemployment benefit obligations as of May 25, 2008, a
significant increase in our obligations or future funding
requirements could have a negative impact on our results of
operations and cash flows from operations.
Volatility in the securities markets, interest rates, and other factors or changes in our employee base could substantially increase our defined benefit pension, other postretirement, and postemployment benefit costs. We sponsor a number of defined benefit plans for employees in the United States, Canada, and various foreign locations, including defined benefit pension, retiree health and welfare, severance, directors’ life, and other postemployment benefit plans. Our major defined benefit pension plans are funded with trust assets invested in a globally diversified portfolio of securities and other investments. Changes in interest rates, mortality rates, health care costs, early retirement rates, investment returns, and the market value of plan assets can affect the funded status of our defined benefit pension, other postretirement, and postemployment benefit plans and cause volatility in the net periodic benefit cost and future funding requirements of the plans. Although the aggregate fair value of our defined benefit pension, other postretirement, and postemployment benefit plan assets exceeded the aggregate defined benefit pension, other postretirement, and postemployment benefit obligations as of May 25, 2008, a significant increase in our obligations or future funding requirements could have a negative impact on our results of operations and cash flows from operations. | EXCERPTS ON THIS PAGE:
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