Pension Benefits | Other Postretirement | |||||||||||
U.S. Plans | Non-U.S. Plans | Benefits | ||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||
Change in projected benefit obligation | ||||||||||||
Benefit obligation at beginning of year | $ | 394,623 | $ | 326,627 | $ | 204,180 | $ | 137,439 | $ | 63,206 | $ | 53,749 |
Acquisition | - | - | - | 32,162 | - | - | ||||||
Service cost | 106 | 90 | 1,799 | 1,457 | 623 | 541 | ||||||
Interest cost | 14,719 | 16,098 | 7,486 | 8,222 | 2,133 | 2,469 | ||||||
Participant contributions | - | - | - | - | 523 | 665 | ||||||
Actuarial (gain)/loss | (44,510) | 67,827 | (3,633) | 34,527 | (11,524) | 10,157 | ||||||
Other | - | - | - | (139) | - | - | ||||||
Curtailments | (796) | - | (436) | (228) | - | - | ||||||
Settlement | - | - | (1,325) | (203) | - | - | ||||||
Divestitures | - | - | - | (1,237) | - | - | ||||||
Benefits paid | (16,474) | (16,019) | (7,927) | (7,640) | (4,150) | (4,375) | ||||||
Currency change effect | - | - | 6,263 | (180) | - | - | ||||||
Benefit obligation at end of year | 347,668 | 394,623 | 206,407 | 204,180 | 50,811 | 63,206 | ||||||
Change in plan assets | ||||||||||||
Fair value of plan assets at beginning of year | 332,308 | 304,540 | 164,086 | 124,303 | 42,569 | 37,289 | ||||||
Acquisition | - | - | - | 18,839 | - | - | ||||||
Actual return on plan assets | 40,905 | 42,282 | 16,473 | 19,272 | 11,964 | 5,367 | ||||||
Employer contributions | 1,494 | 1,505 | 2,027 | 4,635 | 3,290 | 3,623 | ||||||
Participant contributions | - | - | - | - | 523 | 665 | ||||||
Other | - | - | - | (139) | - | - | ||||||
Benefits paid¹ | (16,474) | (16,019) | (5,871) | (2,764) | (4,150) | (4,375) | ||||||
Currency change effect | - | - | 5,437 | (60) | - | - | ||||||
Fair value of plan assets at end of year | 358,233 | 332,308 | 182,152 | 164,086 | 54,196 | 42,569 | ||||||
Plan assets in excess of (less than) benefit obligation as of year end | $ | 10,565 | $ | (62,315) | $ | (24,255) | $ | (40,094) | $ | 3,385 | $ | (20,637) |
1 Amount excludes benefit payments made from sources other than plan assets. |
The asset allocation for the company’s U.S. and non-U.S. pension plans at the end of 2013 and 2012 follows. | |||||||||||||||||
U.S. Pension Plans | Non-U.S. Pension Plans | Other Postretirement Plans | |||||||||||||||
Target | Percentage of Plan Assets at Year-End | Target | Percentage of Plan Assets at Year-End | Target | Percentage of Plan Assets at Year-End | ||||||||||||
Asset Category | 2013 | 2013 | 2012 | 2013 | 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||
Equities | 60.0% | 61.9% | 60.4% | 50.2% | 50.2% | 48.0% | 0.0% | 0.0% | 0.0% | ||||||||
Fixed income | 40.0% | 37.3% | 38.8% | 48.4% | 46.4% | 48.6% | 0.0% | 0.0% | 0.0% | ||||||||
Real Estate | 0.0% | 0.0% | 0.0% | 1.4% | 1.1% | 1.1% | 0.0% | 0.0% | 0.0% | ||||||||
Insurance | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 100.0% | 99.4% | 98.7% | ||||||||
Cash | 0.0% | 0.8% | 0.8% | 0.0% | 2.3% | 2.3% | 0.0% | 0.6% | 1.3% | ||||||||
Total | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
November 30, 2013 | |||||||||||
U.S. Pension Plans | Level 1 | Level 2 | Level 3 | Total Assets | |||||||
Equities | $ | 132,768 | $ | 88,946 | $ | - | $ | 221,714 | |||
Fixed income | 50,925 | 82,411 | 463 | 133,799 | |||||||
Cash | 2,720 | - | - | 2,720 | |||||||
Total | $ | 186,413 | $ | 171,357 | $ | 463 | $ | 358,233 | |||
Non-U.S. Pension Plans | Level 1 | Level 2 | Level 3 | Total Assets | |||||||
Equities | $ | 34,045 | $ | 57,380 | $ | - | $ | 91,425 | |||
Fixed income | 48,767 | 35,158 | 590 | 84,515 | |||||||
Real Estate | - | - | 1,940 | 1,940 | |||||||
Cash | 4,272 | - | - | 4,272 | |||||||
Total | $ | 87,084 | $ | 92,538 | $ | 2,530 | $ | 182,152 | |||
Other Postretirement Benefits | Level 1 | Level 2 | Level 3 | Total Assets | |||||||
Insurance | $ | - | $ | - | $ | 53,875 | $ | 53,875 | |||
Cash | 321 | - | - | 321 | |||||||
Total | $ | 321 | $ | - | $ | 53,875 | $ | 54,196 | |||
December 1, 2012 | |||||||||||
U.S. Pension Plans | Level 1 | Level 2 | Level 3 | Total Assets | |||||||
Equities | $ | 121,792 | $ | 78,920 | $ | - | $ | 200,712 | |||
Fixed income | 51,994 | 76,445 | 516 | 128,955 | |||||||
Cash | 2,641 | - | - | 2,641 | |||||||
Total | $ | 176,427 | $ | 155,365 | $ | 516 | $ | 332,308 | |||
Non-U.S. Pension Plans | Level 1 | Level 2 | Level 3 | Total Assets | |||||||
Equities | $ | 30,086 | $ | 48,651 | $ | - | $ | 78,737 | |||
Fixed income | 46,340 | 32,937 | 514 | 79,791 | |||||||
Real Estate | - | - | 1,768 | 1,768 | |||||||
Cash | 3,790 | - | - | 3,790 | |||||||
Total | $ | 80,216 | $ | 81,588 | $ | 2,282 | $ | 164,086 | |||
Other Postretirement Benefits | Level 1 | Level 2 | Level 3 | Total Assets | |||||||
Insurance | $ | - | $ | - | $ | 42,001 | $ | 42,001 | |||
Cash | 568 | - | - | 568 | |||||||
Total | $ | 568 | $ | - | $ | 42,001 | $ | 42,569 |
Pension Benefits | ||||||
U.S. Plans | Non-U.S. Plans | Postretirement benefits | ||||
Amounts expected to be amortized from accumulated other comprehensive income into net periodic benefit costs over next fiscal year as of November 30, 2013 | ||||||
Amortization of prior service cost (benefit) | $ | 29 | $ | (4) | $ | (3,771) |
Amortization of net actuarial (gain) loss | 4,575 | 3,002 | 2,709 | |||
$ | 4,604 | $ | 2,998 | $ | (1,062) |
Pension Benefits | Other Postretirement | |||||||||||
U.S. Plans | Non-U.S. Plans | Benefits | ||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||
Statement of financial position as of fiscal year-end | ||||||||||||
Non-current assets | $ | 29,560 | $ | - | $ | 8,959 | $ | 384 | $ | 6,858 | $ | - |
Accrued benefit cost | ||||||||||||
Current liabilities | (1,505) | (1,495) | (2,711) | (3,291) | (314) | (311) | ||||||
Non-current liabilities | (17,490) | (60,820) | (30,503) | (37,187) | (3,159) | (20,326) | ||||||
Ending balance | $ | 10,565 | $ | (62,315) | $ | (24,255) | $ | (40,094) | $ | 3,385 | $ | (20,637) |
Pension Benefits | Other | ||||||||
Weighted-average assumptions used to | U.S. Plans | Non-U.S. Plans | Postretirement Benefits | ||||||
Determine benefit obligations | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 |
Discount rate | 4.74% | 3.81% | 5.05% | 3.74% | 3.79% | 5.36% | 4.34% | 3.46% | 4.73% |
Rate of compensation increase1 | 4.50% | 4.50% | 5.00% | 1.84% | 1.87% | 2.14% | N/A | N/A | N/A |
Weighted-average assumptions used to | |||||||||
Determine net costs for years ended | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 |
Discount rate | 3.81% | 5.05% | 5.46% | 3.74% | 5.26% | 5.10% | 3.46% | 4.73% | 4.96% |
Expected return on plan assets | 7.75% | 8.00% | 8.00% | 5.96% | 6.08% | 6.18% | 8.75% | 8.75% | 8.75% |
Rate of compensation increase | 4.50% | 5.00% | 4.17% | 1.84% | 1.86% | 2.13% | N/A | N/A | N/A |
The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of November 30, 2013 and December 1, 2012: | ||||||||
Pension Benefits and Other Postretirement Benefits | ||||||||
U.S. Plans | Non-U.S. Plans | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Accumulated benefit obligation | $ | 18,673 | $ | 439,974 | $ | 116,265 | $ | 138,318 |
Fair value of plan assets | - | 374,877 | 91,708 | 107,727 | ||||
The following amounts relate to pension plans with projected benefit obligations in excess of plan assets as of November 30, 2013 and December 1, 2012: | ||||||||
Pension Benefits and Other Postretirement Benefits | ||||||||
U.S. Plans | Non-U.S. Plans | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Projected benefit obligation | $ | 18,996 | $ | 457,829 | $ | 124,922 | $ | 148,206 |
Fair value of plan assets | - | 374,877 | 91,708 | 107,727 |
One-Percentage Point | ||||
Increase | Decrease | |||
Effect on service and interest cost components – annual | $ | 2 | $ | (114) |
Effect on accumulated postretirement benefit obligation | $ | 27 | $ | (2,452) |
U.S. Pension Plans | Fixed Income | Total | ||||||
Level 3 balance at beginning of year | $ | 516 | $ | 516 | ||||
Purchases, sales, issuances and settlements, net | (53) | (53) | ||||||
Level 3 balance at end of year | $ | 463 | $ | 463 | ||||
Non-U.S. Pension Plans | Fixed Income | Real Estate | Total | |||||
Level 3 balance at beginning of year | $ | 514 | $ | 1,768 | $ | 2,282 | ||
Net transfers into / (out of) level 3 | 33 | (12) | 21 | |||||
Net gains | 17 | 137 | 154 | |||||
Currency change effect | 26 | 47 | 73 | |||||
Level 3 balance at end of year | $ | 590 | $ | 1,940 | $ | 2,530 | ||
Other Postretirement Benefits | Insurance | Total | ||||||
Level 3 balance at beginning of year | $ | 42,001 | $ | 42,001 | ||||
Net transfers into / (out of) level 3 | (213) | (213) | ||||||
Purchases, sales, issuances and settlements, net | (343) | (343) | ||||||
Net gains | 12,430 | 12,430 | ||||||
Level 3 balance at end of year | $ | 53,875 | $ | 53,875 |
Information about the expected cash flows follows: | |||||||
Pension Benefits | Other | ||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||
Employer contributions | |||||||
2014 | $ | 1,505 | $ | 765 | $ | 3,721 | |
Expected benefit payments | |||||||
2014 | $ | 17,325 | $ | 9,738 | $ | 3,721 | |
2015 | 17,791 | 8,605 | 3,723 | ||||
2016 | 18,364 | 8,644 | 3,728 | ||||
2017 | 19,075 | 9,016 | 3,736 | ||||
2018 | 19,649 | 9,185 | 3,738 | ||||
2019-2023 | 105,633 | 49,727 | 18,346 |
Assumed health care trend rates | 2013 | 2012 | 2011 |
Health care cost trend rate assumed for next year | 7.25% | 7.25% | 7.25% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Fiscal year that the rate reaches the ultimate trend rate | 2019 | 2018 | 2018 |
Components of net periodic benefit cost and other supplemental information for the years ended November 30, 2013, December 1, 2012 and December 3, 2011 follow: | ||||||||||||||||||
Pension Benefits | Other | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | ||||||||||||||||
Net periodic cost (benefit) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||
Service cost | $ | 106 | $ | 90 | $ | 2,304 | $ | 1,799 | $ | 1,457 | $ | 1,364 | $ | 623 | $ | 541 | $ | 514 |
Interest cost | 14,719 | 16,098 | 16,736 | 7,486 | 8,222 | 7,449 | 2,133 | 2,469 | 2,676 | |||||||||
Expected return on assets | (22,720) | (23,758) | (25,438) | (9,390) | (8,021) | (7,881) | (3,725) | (3,263) | (3,087) | |||||||||
Amortization: | ||||||||||||||||||
Prior service cost | 49 | 49 | 24 | (4) | (4) | (4) | (4,134) | (4,693) | (4,693) | |||||||||
Actuarial (gain)/ loss | 6,742 | 3,858 | 3,689 | 3,778 | 2,487 | 2,723 | 5,717 | 5,155 | 5,932 | |||||||||
Divestitures | - | - | - | - | 7 | - | - | - | - | |||||||||
Curtailment (gain)/loss | 102 | - | 101 | 53 | 46 | - | - | - | - | |||||||||
Settlement charge/(credit) | - | - | - | 153 | 65 | - | - | - | - | |||||||||
Net periodic benefit cost (benefit) | $ | (1,002) | $ | (3,663) | $ | (2,584) | $ | 3,875 | $ | 4,259 | $ | 3,651 | $ | 614 | $ | 209 | $ | 1,342 |
Amounts in accumulated other comprehensive income that have not been recognized as components of net periodic benefit cost | Pension Benefits | Other Postretirement | ||||||||||
U.S. Plans | Non-U.S. Plans | Benefits | ||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||
Unrecognized actuarial loss | $ | 100,579 | $ | 170,813 | $ | 64,290 | $ | 77,905 | $ | 25,988 | $ | 51,469 |
Unrecognized prior service cost (benefit) | 147 | 298 | (21) | (24) | (6,317) | (10,452) | ||||||
Ending balance | $ | 100,726 | $ | 171,111 | $ | 64,269 | $ | 77,881 | $ | 19,671 | $ | 41,017 |