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This excerpt taken from the PBG 8-K filed Sep 16, 2009. Pension and Postretirement
Medical Benefit Plans – We sponsor pension
and other postretirement medical benefit plans in various forms
in the U.S. and other similar plans in our international
locations, covering employees who meet specified eligibility
requirements.
On December 30, 2006, we adopted the funded status
provision of Statement of Financial Accounting Standards
(“SFAS”) No. 158, “Employers’
Accounting for Defined Benefit Pension and Other Postretirement
Plans” (“SFAS 158”), which requires that we
recognize the overfunded or underfunded status of each of the
pension and other postretirement plans. In addition, on
December 30, 2007, we adopted the measurement date
provisions of SFAS 158, which requires that our assumptions
used to measure our annual pension and postretirement medical
expenses be determined as of the year-end balance sheet date and
all plan assets and liabilities be reported as of that date. For
fiscal years ended 2007 and prior, the majority of the pension
and other postretirement plans used a September 30 measurement
date and all plan assets and obligations were generally reported
as of that date. As part of measuring the plan assets and
benefit obligations on December 30, 2007, we adjusted our
opening balances of retained earnings and accumulated other
comprehensive loss for the change in net periodic benefit cost
and fair value, respectively, from the previously used September
30 measurement date. The adoption of the measurement date
provisions resulted in a net decrease in the pension and other
postretirement medical benefit plans liability of
$9 million, a net decrease in retained earnings of
$16 million, net of noncontrolling interests of
$2 million and taxes of $9 million and a net decrease
in accumulated other comprehensive loss of $19 million, net
of noncontrolling interests of $2 million and taxes of
$14 million. There was no impact on our results of
operations.
The determination of pension and postretirement medical plan
obligations and related expenses requires the use of assumptions
to estimate the amount of benefits that employees earn while
working, as well as the present value of those benefit
obligations. Significant assumptions include discount rate;
expected rate of return on plan assets; certain employee-related
factors such as retirement age, mortality, and turnover; rate of
salary increases for plans where benefits are based on earnings;
and for retiree medical plans, health care cost trend rates. We
evaluate these assumptions on an annual basis at each
measurement date based upon historical experience of the plans
and management’s best judgment regarding future
expectations.
Differences between the assumed rate of return and actual return
of plan assets are deferred in accumulated other comprehensive
loss in equity and amortized to earnings utilizing the
market-related value method. Under this method, differences
between the assumed rate of return and actual rate of return
from any one year will be recognized over a five year period in
the market related value.
Other gains and losses resulting from changes in actuarial
assumptions and from differences between assumed and actual
experience are determined at each measurement date and deferred
in accumulated other comprehensive loss in equity. To the extent
the amount of all unrecognized gains and losses exceeds
10 percent of the larger of the benefit obligation or plan
assets, such amount is amortized to earnings over the average
remaining service period of active participants.
The cost or benefit from benefit plan changes is also deferred
in accumulated other comprehensive loss in equity and amortized
to earnings on a straight-line basis over the average remaining
service period of the employees expected to receive benefits.
See Note 12 for further discussion on our pension and
postretirement medical benefit plans.
These excerpts taken from the PBG 10-K filed Feb 20, 2009. Pension and Postretirement
Medical Benefit Plans – We sponsor pension
and other postretirement medical benefit plans in various forms
in the U.S. and other similar plans in our international
locations, covering employees who meet specified eligibility
requirements.
On December 30, 2006, we adopted the funded status
provision of Statement of Financial Accounting Standards
(“SFAS”) No. 158, “Employers’
Accounting for Defined Benefit Pension and Other Postretirement
Plans” (“SFAS 158”), which requires that we
recognize the overfunded or underfunded status of each of the
pension and other postretirement plans. In addition, on
December 30, 2007, we adopted the measurement date
provisions of SFAS 158, which requires that our assumptions
used to measure our annual pension and postretirement medical
expenses be determined as of the year-end balance sheet date and
all plan assets and liabilities be reported as of that date. For
fiscal years ended 2007 and prior, the majority of the pension
and other postretirement plans used a September 30 measurement
date and all plan assets and obligations were generally reported
as of that date. As part of measuring the plan assets and
benefit obligations on December 30, 2007, we adjusted our
opening balances of retained earnings and accumulated other
comprehensive loss for the change in net periodic benefit cost
and fair value, respectively, from the previously used September
30 measurement date. The adoption of the measurement date
provisions resulted in a net decrease in the pension and other
postretirement medical benefit plans liability of
$9 million, a net decrease in retained earnings of
$16 million, net of minority interest of $2 million
and taxes of $9 million and a net decrease in accumulated
other comprehensive loss of $19 million, net of minority
interest of $2 million and taxes of $14 million. There
was no impact on our results of operations.
The determination of pension and postretirement medical plan
obligations and related expenses requires the use of assumptions
to estimate the amount of benefits that employees earn while
working, as well as the present value of those benefit
obligations. Significant assumptions include discount rate;
expected rate of return on plan assets; certain employee-related
factors such as retirement age, mortality, and turnover; rate of
salary increases for plans where benefits are based on earnings;
and for retiree medical plans, health care cost trend rates. We
evaluate these assumptions on an annual basis at each
measurement date based upon historical experience of the plans
and management’s best judgment regarding future
expectations.
Differences between the assumed rate of return and actual return
of plan assets are deferred in accumulated other comprehensive
loss in equity and amortized to earnings utilizing the
market-related value method. Under this method, differences
between the assumed rate of return and actual rate of return
from any one year will be recognized over a five year period in
the market related value.
Other gains and losses resulting from changes in actuarial
assumptions and from differences between assumed and actual
experience are determined at each measurement date and deferred
in accumulated other comprehensive loss in equity. To the extent
the amount of all unrecognized gains and losses exceeds
10 percent of the larger of the benefit obligation or plan
assets, such amount is amortized to earnings over the average
remaining service period of active participants.
The cost or benefit from benefit plan changes is also deferred
in accumulated other comprehensive loss in equity and amortized
to earnings on a straight-line basis over the average remaining
service period of the employees expected to receive benefits.
See Note 12 for further discussion on our pension and
postretirement medical benefit plans.
Pension and Postretirement Medical Benefit Plans – We sponsor pension and other postretirement medical benefit plans in various forms in the U.S. and other similar plans in our international locations, covering employees who meet specified eligibility requirements. On December 30, 2006, we adopted the funded status provision of Statement of Financial Accounting Standards (“SFAS”) No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans” (“SFAS 158”), which requires that we recognize the overfunded or underfunded status of each of the pension and other postretirement plans. In addition, on December 30, 2007, we adopted the measurement date provisions of SFAS 158, which requires that our assumptions used to measure our annual pension and postretirement medical expenses be determined as of the year-end balance sheet date and all plan assets and liabilities be reported as of that date. For fiscal years ended 2007 and prior, the majority of the pension and other postretirement plans used a September 30 measurement date and all plan assets and obligations were generally reported as of that date. As part of measuring the plan assets and benefit obligations on December 30, 2007, we adjusted our opening balances of retained earnings and accumulated other comprehensive loss for the change in net periodic benefit cost and fair value, respectively, from the previously used September 30 measurement date. The adoption of the measurement date provisions resulted in a net decrease in the pension and other postretirement medical benefit plans liability of $9 million, a net decrease in retained earnings of $16 million, net of minority interest of $2 million and taxes of $9 million and a net decrease in accumulated other comprehensive loss of $19 million, net of minority interest of $2 million and taxes of $14 million. There was no impact on our results of operations. The determination of pension and postretirement medical plan obligations and related expenses requires the use of assumptions to estimate the amount of benefits that employees earn while working, as well as the present value of those benefit obligations. Significant assumptions include discount rate; expected rate of return on plan assets; certain employee-related factors such as retirement age, mortality, and turnover; rate of salary increases for plans where benefits are based on earnings; and for retiree medical plans, health care cost trend rates. We evaluate these assumptions on an annual basis at each measurement date based upon historical experience of the plans and management’s best judgment regarding future expectations. Differences between the assumed rate of return and actual return of plan assets are deferred in accumulated other comprehensive loss in equity and amortized to earnings utilizing the market-related value method. Under this method, differences between the assumed rate of return and actual rate of return from any one year will be recognized over a five year period in the market related value. Other gains and losses resulting from changes in actuarial assumptions and from differences between assumed and actual experience are determined at each measurement date and deferred in accumulated other comprehensive loss in equity. To the extent the amount of all unrecognized gains and losses exceeds 10 percent of the larger of the benefit obligation or plan assets, such amount is amortized to earnings over the average remaining service period of active participants. The cost or benefit from benefit plan changes is also deferred in accumulated other comprehensive loss in equity and amortized to earnings on a straight-line basis over the average remaining service period of the employees expected to receive benefits. See Note 12 for further discussion on our pension and postretirement medical benefit plans. These excerpts taken from the PBG 10-K filed Feb 27, 2008. Pension and Postretirement
Medical Benefit Plans – We sponsor pension
and other postretirement medical benefit plans in various forms
in the U.S. and other similar plans in our international
locations, covering employees who meet specified eligibility
requirements.
38
Table of Contents
The assets, liabilities and expense associated with our
international plans were not significant to our results of
operations, and accordingly other assumptions regarding these
plans are not included in the discussion below.
The discount rate assumption used in our pension and
postretirement medical benefit plans’ accounting is based
on current interest rates for high-quality, long-term corporate
debt as determined on each measurement date. In evaluating the
expected rate of return on assets for a given fiscal year, we
consider the actual 10 to
15-year
historical returns on asset classes in the PBG sponsored pension
plans’ investment portfolio, reflecting the
weighted-average return of our asset allocation and use them as
a guide for future returns. We use a market-related value method
that recognizes each year’s asset gain or loss over a
five-year period. Therefore, it takes five years for the gain or
loss from any one year to be fully included in the other gains
and losses calculation. Other gains and losses resulting from
changes in actuarial assumptions and from differences between
assumed and actual experience are also determined at each
measurement. To the extent the amount of all unrecognized gains
and losses exceeds 10 percent of the larger of the pension
benefit obligation or plan assets, such amount is amortized over
the average remaining service period of active participants. We
amortize prior service costs on a straight-line basis over the
average remaining service period of employees expected to
receive benefits.
See Note 10 for further discussion on our pension and
postretirement medical benefit plans.
Pension and Postretirement Medical Benefit Plans – We sponsor pension and other postretirement medical benefit plans in various forms in the U.S. and other similar plans in our international locations, covering employees who meet specified eligibility requirements. 38 Table of ContentsThe assets, liabilities and expense associated with our international plans were not significant to our results of operations, and accordingly other assumptions regarding these plans are not included in the discussion below. The discount rate assumption used in our pension and postretirement medical benefit plans’ accounting is based on current interest rates for high-quality, long-term corporate debt as determined on each measurement date. In evaluating the expected rate of return on assets for a given fiscal year, we consider the actual 10 to 15-year historical returns on asset classes in the PBG sponsored pension plans’ investment portfolio, reflecting the weighted-average return of our asset allocation and use them as a guide for future returns. We use a market-related value method that recognizes each year’s asset gain or loss over a five-year period. Therefore, it takes five years for the gain or loss from any one year to be fully included in the other gains and losses calculation. Other gains and losses resulting from changes in actuarial assumptions and from differences between assumed and actual experience are also determined at each measurement. To the extent the amount of all unrecognized gains and losses exceeds 10 percent of the larger of the pension benefit obligation or plan assets, such amount is amortized over the average remaining service period of active participants. We amortize prior service costs on a straight-line basis over the average remaining service period of employees expected to receive benefits. See Note 10 for further discussion on our pension and postretirement medical benefit plans. | EXCERPTS ON THIS PAGE:
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