Coca Cola 2013 Annual Report Download - page 110

In 2010, the Company issued time-based restricted stock replacement awards, including restricted stock units, in connection with
our acquisition of CCE’s former North America business. These awards were converted into equivalent shares of the Company’s
common stock. These restricted share awards entitle the participant to dividend equivalents (which vest, in some cases, only if the
restricted share unit vests), but not the right to vote. As of December 31, 2013, the Company had 59,000 outstanding nonvested
time-based restricted stock replacement awards, including restricted stock units. These time-based restricted awards were not
significant to our consolidated financial statements.
NOTE 13: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
Our Company sponsors and/or contributes to pension and postretirement health care and life insurance benefit plans covering
substantially all U.S. employees. We also sponsor nonqualified, unfunded defined benefit pension plans for certain associates. In
addition, our Company and its subsidiaries have various pension plans and other forms of postretirement arrangements outside
the United States.
We refer to the funded defined benefit pension plan in the United States that is not associated with collective bargaining
organizations as the ‘‘primary U.S. plan.’’ As of December 31, 2013, the primary U.S. plan represented 57 percent and 63 percent
of the Company’s consolidated projected benefit obligation and pension assets, respectively.
In December 2013, the Company modified The Coca-Cola Company Retiree Health Plan. Effective January 1, 2015, the current
prescription drug plan will be replaced by a Company-sponsored Medicare Part D Plan. The change reduced the accumulated
postretirement benefit obligation of the plan by approximately $71 million. The Coca-Cola Refreshments Welfare Plan for
Retirees will not be impacted by this change because of variations in the design of the plan.
Obligations and Funded Status
The following table sets forth the changes in benefit obligations and the fair value of plan assets for our benefit plans
(in millions):
Pension Benefits Other Benefits
2013 2012 2013 2012
Benefit obligation at beginning of year1$ 9,693 $ 8,255 $ 1,104 $ 953
Service cost 280 291 36 34
Interest cost 378 388 42 43
Foreign currency exchange rate changes (69) (7) (2) 3
Amendments (1) (3) (73) (2)
Actuarial loss (gain) (899) 1,259 (91) 115
Benefits paid2(538) (420) (77) (53)
Settlements (9) (35) ——
Curtailments —6——
Special termination benefits 21——
Other38(42) 711
Benefit obligation at end of year1$ 8,845 $ 9,693 $ 946 $ 1,104
Fair value of plan assets at beginning of year $ 7,584 $ 6,171 $ 202 $ 185
Actual return on plan assets 1,043 822 40 16
Employer contributions 639 1,056 ——
Foreign currency exchange rate changes (43) (17) ——
Benefits paid (474) (366) (2) (2)
Settlements (5) (34) ——
Other32(48) 33
Fair value of plan assets at end of year $ 8,746 $ 7,584 $ 243 $ 202
Net liability recognized $ (99) $ (2,109) $ (703) $ (902)
1For pension benefit plans, the benefit obligation is the projected benefit obligation. For other benefit plans, the benefit obligation is the accumulated
postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $8,523 million and $9,345 million as of
December 31, 2013 and 2012, respectively.
2Benefits paid to pension plan participants during 2013 and 2012 included $64 million and $54 million, respectively, in payments related to unfunded
pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during 2013 and 2012 included $75 million
and $51 million, respectively, that were paid from Company assets.
3In 2012, primarily relates to the transfer of assets and liabilities associated with the Company’s consolidated Philippine bottling operations to assets
held for sale and liabilities held for sale as of December 31, 2012. Refer to Note 2 for additional information.
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