Coca Cola 2011 Annual Report Download - page 123

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The following table sets forth the changes in AOCI for our benefit plans (in millions, pretax):
Pension Benefits Other Benefits
December 31, 2011 2010 2011 2010
Beginning balance in AOCI $ (1,006) $ (1,119) $72$ 118
Recognized prior service cost (credit) 55(61) (61)
Recognized net actuarial loss (gain) 90 63 23
Prior service credit (cost) arising in current year 57 612 —
Net actuarial (loss) gain arising in current year (1,194) 41 (57) 8
Impact of divestitures1—(8) ——
Translation gain (loss) (7) 6(2) 4
Ending balance in AOCI $ (2,055) $ (1,006) $ (34) $72
1Primarily related to the sale of our Norwegian bottling operation to New CCE. Refer to Note 2.
The following table sets forth amounts in AOCI for our benefit plans (in millions, pretax):
Pension Benefits Other Benefits
December 31, 2011 2010 2011 2010
Prior service credit (cost) $14$ (49) $73$ 122
Net actuarial loss (2,069) (957) (107) (50)
Ending balance in AOCI $ (2,055) $ (1,006) $ (34) $72
Amounts in AOCI expected to be recognized as components of net periodic pension cost in 2012 are as follows (in millions,
pretax):
Pension Benefits Other Benefits
Amortization of prior service cost (credit) $ (2) $ (52)
Amortization of actuarial loss 137 7
$ 135 $ (45)
Assumptions
Certain weighted-average assumptions used in computing the benefit obligations are as follows:
Pension Benefits Other Benefits
December 31, 2011 2010 2011 2010
Discount rate 4.75% 5.50% 4.75% 5.25%
Rate of increase in compensation levels 3.25% 4.00% N/A N/A
Certain weighted-average assumptions used in computing net periodic benefit cost are as follows:
Pension Benefits Other Benefits
December 31, 2011 2010 2009 2011 2010 2009
Discount rate 5.50% 5.75% 6.00% 5.25% 5.50% 6.25%
Rate of increase in compensation levels 4.00% 3.75% 3.75% N/A N/A N/A
Expected long-term rate of return on plan assets 8.25% 8.00% 8.00% 4.75% 4.75% 4.75%
The expected long-term rate of return assumption for U.S. pension plan assets is based upon the target asset allocation and is
determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class, as well as
correlations among asset classes. We evaluate the rate of return assumption on an annual basis. The expected long-term rate of
121