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PBG » Topics » Sensitivity Analysis

This excerpt taken from the PBG 8-K filed Sep 16, 2009.
Sensitivity Analysis
It is unlikely that in any given year the actual rate of return will be the same as the assumed long-term rate of return. The following table provides a summary for the last three years of actual rates of return versus expected long-term rates of return for our pension plan assets:
 
                         
    2008     2007     2006  
Expected rates of return on plan assets (net of administrative expenses)
    8.50 %     8.50 %     8.50 %
Actual rates of return on plan assets (net of administrative expenses)
    (28.50 )%     12.64 %     9.74 %
                         
 
Sensitivity of changes in key assumptions for our pension and postretirement plans’ expense in 2009 are as follows:
 
•  Discount rate – A 25 basis point change in the discount rate would increase or decrease the 2009 expense for the pension and postretirement medical benefit plans by approximately $9 million.
 
•  Expected rate of return on plan assets – A 25 basis point change in the expected return on plan assets would increase or decrease the 2009 expense for the pension plans by approximately $4 million. The postretirement medical benefit plans have no expected return on plan assets as they are funded from the general assets of the Company as the payments come due.
 
•  Contribution to the plan – A $20 million decrease in planned contributions to the plan for 2009 will increase our pension expense by $1 million.
 
These excerpts taken from the PBG 10-K filed Feb 20, 2009.
Sensitivity Analysis
It is unlikely that in any given year the actual rate of return will be the same as the assumed long-term rate of return. The following table provides a summary for the last three years of actual rates of return versus expected long-term rates of return for our pension plan assets:
 
                         
    2008     2007     2006  
Expected rates of return on plan assets (net of administrative expenses)
    8.50 %     8.50 %     8.50 %
Actual rates of return on plan assets (net of administrative expenses)
    (28.50 )%     12.64 %     9.74 %
                         
 
Sensitivity of changes in key assumptions for our pension and postretirement plans’ expense in 2009 are as follows:
 
•  Discount rate – A 25 basis point change in the discount rate would increase or decrease the 2009 expense for the pension and postretirement medical benefit plans by approximately $9 million.
 
•  Expected rate of return on plan assets – A 25 basis point change in the expected return on plan assets would increase or decrease the 2009 expense for the pension plans by approximately $4 million. The postretirement medical benefit plans have no expected return on plan assets as they are funded from the general assets of the Company as the payments come due.
 
•  Contribution to the plan – A $20 million decrease in planned contributions to the plan for 2009 will increase our pension expense by $1 million.
 
Sensitivity
Analysis





It is unlikely that in any given year the actual rate of return
will be the same as the assumed long-term rate of return. The
following table provides a summary for the last three years of
actual rates of return versus expected long-term rates of return
for our pension plan assets:


 













































































                         

 

 

2008

 

 

2007


 

 

2006


 


Expected rates of return on plan assets (net of administrative
expenses)


 

 

8.50

%

 

 

8.50

%

 

 

8.50

%


Actual rates of return on plan assets (net of administrative
expenses)


 

 

(28.50

)%

 

 

12.64

%

 

 

9.74

%

 

 

 

 

 

 

 

 

 

 

 

 

 






 



Sensitivity of changes in key assumptions for our pension and
postretirement plans’ expense in 2009 are as follows:


 
































• 
 Discount rate – A 25 basis point change in the
discount rate would increase or decrease the 2009 expense for
the pension and postretirement medical benefit plans by
approximately $9 million.
 
• 
 Expected rate of return on plan assets – A
25 basis point change in the expected return on plan assets
would increase or decrease the 2009 expense for the pension
plans by approximately $4 million. The postretirement
medical benefit plans have no expected return on plan assets as
they are funded from the general assets of the Company as the
payments come due.
 
• 
 Contribution to the plan – A $20 million decrease
in planned contributions to the plan for 2009 will increase our
pension expense by $1 million.


 




These excerpts taken from the PBG 10-K filed Feb 27, 2008.
Sensitivity Analysis
It is unlikely that in any given year the actual rate of return will be the same as the assumed long-term rate of return of 8.50 percent. The following table provides a summary of the last three years of

19

Table of Contents

     
PART II (continued)    
     

actual returns versus the expected long-term returns for our pension plans:
 
                         
    2007     2006     2005  
Expected return on plan assets
(net of administrative expenses)
    8.50 %     8.50 %     8.50 %
Actual return on plan assets
(net of administrative expenses)
    12.64 %     9.74 %     13.33 %
                         
 
Sensitivity of changes in key assumptions for our pension and postretirement plans’ expense in 2008 are as follows:
 
• Discount rate – A 25-basis point change in the discount rate would increase or decrease the expense for our pension and postretirement medical benefit plans in 2008 by approximately $9 million.
• Expected return on plan assets – A 25-basis point change in the expected return on plan assets would increase or decrease the expense for our pension plans in 2008 by approximately $3 million. The postretirement medical benefit plans have no expected return on plan assets as they are funded from the general assets of the Company as the payments come due.
 
For further information about our pension and postretirement plans see Note 10 in the Notes to Consolidated Financial Statements.
 
Sensitivity
Analysis





It is unlikely that in any given year the actual rate of return
will be the same as the assumed long-term rate of return of
8.50 percent. The following table provides a summary of the
last three years of




19





Table of Contents
























     

PART
II
(continued)


 

 

 

 

 








actual returns versus the expected long-term returns for our
pension plans:


 













































































                         

 

 

2007

 

 

2006


 

 

2005


 


Expected return on plan assets

(net of administrative expenses)


 

 

8.50

%

 

 

8.50

%

 

 

8.50

%


Actual return on plan assets

(net of administrative expenses)


 

 

12.64

%

 

 

9.74

%

 

 

13.33

%

 

 

 

 

 

 

 

 

 

 

 

 

 






 



Sensitivity of changes in key assumptions for our pension and
postretirement plans’ expense in 2008 are as follows:


 























•

 Discount rate – A 25-basis point change in the
discount rate would increase or decrease the expense for our
pension and postretirement medical benefit plans in 2008 by
approximately $9 million.
•

 Expected return on plan assets – A 25-basis point
change in the expected return on plan assets would increase or
decrease the expense for our pension plans in 2008 by
approximately $3 million. The postretirement medical
benefit plans have no expected return on plan assets as they are
funded from the general assets of the Company as the payments
come due.


 



For further information about our pension and postretirement
plans see Note 10 in the Notes to Consolidated Financial
Statements.


 




EXCERPTS ON THIS PAGE:

8-K
Sep 16, 2009
10-K (2 sections)
Feb 20, 2009
10-K (2 sections)
Feb 27, 2008

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