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News Breaks | | | | February 15, 2013 | | 06:37 EDT |  | KRFT | Kraft Foods sets change in post-employment benefit strategy
The company is executing a four-part strategy to better manage and reduce the volatility of expenses and cash outlays related to its post-employment benefit obligations. The company has adopted a mark-to-market accounting policy for its post-employment benefit obligations and is in the process of reflecting the new accounting in its historical financial statements. Management has made a one-time adjustment to the actuarial assumptions used to value plan obligations in the areas of retirement, mortality and medical cost trend rates to reflect the population now covered under its plans, including the addition of the North American retirees of Mondelēz International assumed as part of its separation agreement with that company. Management is taking actions to migrate pension plan assets toward a mix of approximately 80% fixed income and 20% equities to better align plan assets with the demographics of plan participants. As a result, the company now expects returns on assets to be approximately 5.50%, down from a previous expectation of approximately 7.75%. Kraft's funding strategy has been modified to align future cash flows with expenses and reduce cash flow volatility for the company as a whole. To accomplish this strategy, the company will make a pension contribution of approximately $600M in 2013 and anticipates level, annual pension contributions of approximately $225M thereafter. | |
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| May 15, 2013 | | 16:55 EDT | | KRFT | Berkshire Hathaway gives quarterly update on stakes
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