|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the PBG 8-K filed Sep 16, 2009. Casualty Insurance
Costs – In the United States, we use a
combination of insurance and self-insurance mechanisms,
including a wholly owned captive insurance entity. This captive
entity participates in a reinsurance pool for a portion of our
workers’ compensation risk. We provide self-insurance for
the workers’ compensation risk retained by the Company and
automobile risks up to $10 million per occurrence, and
product and general liability risks up to $5 million per
occurrence. For losses exceeding these self-insurance
thresholds, we purchase casualty insurance from a third-party
provider. Our liability for casualty costs is estimated using
individual case-based valuations and statistical analyses and is
based upon historical experience, actuarial assumptions and
professional judgment. We do not discount our loss expense
reserves.
These excerpts taken from the PBG 10-K filed Feb 20, 2009. Casualty
Insurance Costs
Due to the nature of our business, we require insurance coverage
for certain casualty risks. In the United States, we use a
combination of insurance and self-insurance mechanisms,
including a wholly owned captive insurance entity. This captive
entity participates in a reinsurance pool for a portion of our
workers’ compensation risk. We provide self-insurance for
the workers’ compensation risk retained by the Company and
automobile risks up to $10 million per occurrence, and
product and general liability risks up to $5 million per
occurrence. For losses exceeding these self-insurance
thresholds, we purchase casualty insurance from third-party
providers.
At December 27, 2008, our net liability for casualty costs
was $235 million, of which $70 million was considered
short-term in nature. At December 29, 2007, our net
liability for casualty costs was $222 million, of which
$65 million was considered short-term in nature.
Our liability for casualty costs is estimated using individual
case-based valuations and statistical analyses and is based upon
historical experience, actuarial assumptions and professional
judgment. We do not discount our loss expense reserves. These
estimates are subject to the effects of trends in loss severity
and frequency and are subject to a significant degree of
inherent variability. We evaluate these estimates periodically
during the year and we believe that they are appropriate;
however, an increase or decrease in the estimates or events
outside our control could have a material impact on reported net
income. Accordingly, the ultimate settlement of these costs may
vary significantly from the estimates included in our financial
statements.
Casualty Insurance Costs Due to the nature of our business, we require insurance coverage for certain casualty risks. In the United States, we use a combination of insurance and self-insurance mechanisms, including a wholly owned captive insurance entity. This captive entity participates in a reinsurance pool for a portion of our workers’ compensation risk. We provide self-insurance for the workers’ compensation risk retained by the Company and automobile risks up to $10 million per occurrence, and product and general liability risks up to $5 million per occurrence. For losses exceeding these self-insurance thresholds, we purchase casualty insurance from third-party providers. At December 27, 2008, our net liability for casualty costs was $235 million, of which $70 million was considered short-term in nature. At December 29, 2007, our net liability for casualty costs was $222 million, of which $65 million was considered short-term in nature. Our liability for casualty costs is estimated using individual case-based valuations and statistical analyses and is based upon historical experience, actuarial assumptions and professional judgment. We do not discount our loss expense reserves. These estimates are subject to the effects of trends in loss severity and frequency and are subject to a significant degree of inherent variability. We evaluate these estimates periodically during the year and we believe that they are appropriate; however, an increase or decrease in the estimates or events outside our control could have a material impact on reported net income. Accordingly, the ultimate settlement of these costs may vary significantly from the estimates included in our financial statements. Casualty Insurance
Costs – In the United States, we use a
combination of insurance and self-insurance mechanisms,
including a wholly owned captive insurance entity. This captive
entity participates in a reinsurance pool for a portion of our
workers’ compensation risk. We provide self-insurance for
the workers’ compensation risk retained by the Company and
automobile risks up to $10 million per occurrence, and
product and general liability risks up to $5 million per
occurrence. For losses exceeding these self-insurance
thresholds, we purchase casualty insurance from a third-party
provider. Our liability for casualty costs is estimated using
individual case-based valuations and statistical analyses and is
based upon historical experience, actuarial assumptions and
professional judgment. We do not discount our loss expense
reserves.
Casualty Insurance Costs – In the United States, we use a combination of insurance and self-insurance mechanisms, including a wholly owned captive insurance entity. This captive entity participates in a reinsurance pool for a portion of our workers’ compensation risk. We provide self-insurance for the workers’ compensation risk retained by the Company and automobile risks up to $10 million per occurrence, and product and general liability risks up to $5 million per occurrence. For losses exceeding these self-insurance thresholds, we purchase casualty insurance from a third-party provider. Our liability for casualty costs is estimated using individual case-based valuations and statistical analyses and is based upon historical experience, actuarial assumptions and professional judgment. We do not discount our loss expense reserves. These excerpts taken from the PBG 10-K filed Feb 27, 2008. Casualty Insurance
Costs – In the United States, we use a
combination of insurance and self-insurance mechanisms,
including a wholly owned captive insurance entity. This captive
entity participates in a reinsurance pool for a portion of our
workers’ compensation risk. We provide self-insurance for
the workers’ compensation risk retained by the Company and
automobile risks up to $10 million per occurrence, and
product and general liability risks up to $5 million per
occurrence. For losses exceeding these
self-insurance
thresholds, we purchase casualty insurance from a
third-party
provider. Our liability for casualty costs was $240 million
as of December 29, 2007 of which $65 million was
reported in accounts payable and other current liabilities and
$175 million was recorded in other liabilities in our
Consolidated Balance Sheet. At December 30, 2006, our
liability for casualty costs was $214 million of which
$62 million was reported in accounts payable and other
current liabilities and $152 million was recorded in other
liabilities in our Consolidated Balance Sheet. Our liability for
casualty costs is estimated using individual case-based
valuations and statistical analyses and is based upon historical
experience, actuarial assumptions and professional judgment. We
do not discount our loss expense reserves.
Casualty Insurance Costs – In the United States, we use a combination of insurance and self-insurance mechanisms, including a wholly owned captive insurance entity. This captive entity participates in a reinsurance pool for a portion of our workers’ compensation risk. We provide self-insurance for the workers’ compensation risk retained by the Company and automobile risks up to $10 million per occurrence, and product and general liability risks up to $5 million per occurrence. For losses exceeding these self-insurance thresholds, we purchase casualty insurance from a third-party provider. Our liability for casualty costs was $240 million as of December 29, 2007 of which $65 million was reported in accounts payable and other current liabilities and $175 million was recorded in other liabilities in our Consolidated Balance Sheet. At December 30, 2006, our liability for casualty costs was $214 million of which $62 million was reported in accounts payable and other current liabilities and $152 million was recorded in other liabilities in our Consolidated Balance Sheet. Our liability for casualty costs is estimated using individual case-based valuations and statistical analyses and is based upon historical experience, actuarial assumptions and professional judgment. We do not discount our loss expense reserves. | EXCERPTS ON THIS PAGE:
RELATED TOPICS for PBG: |
| |||||||
