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H. J. Heinz Company and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)
Obligations and Funded Status:
The following table sets forth the changes in benefit obligation, plan assets and funded status of
the Company’s principal defined benefit plans and other postretirement benefit plans at April 27,
2011 and April 28, 2010.
Pension Benefits
Other Retiree Benefits
2011 2010 2011 2010
(Dollars in thousands)
Change in Benefit Obligation:
Benefit obligation at the beginning of the
year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,585,984 $2,230,102 $ 235,297 $ 234,175
Service cost. . . . . . . . . . . . . . . . . . . . . . . . . . 32,329 30,486 6,311 5,999
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . 142,133 149,640 12,712 15,093
Participants’ contributions . . . . . . . . . . . . . . 2,444 2,674 822 905
Amendments. . . . . . . . . . . . . . . . . . . . . . . . . 377 5,807 (3,710) (21,115)
Actuarial (gain)/loss . . . . . . . . . . . . . . . . . . . (8,457) 238,168 (3,786) 9,672
Divestitures . . . . . . . . . . . . . . . . . . . . . . . . . — (413) — —
Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . (3,275) (4,663) — —
Curtailment . . . . . . . . . . . . . . . . . . . . . . . . . — (3,959) — —
Benefits paid. . . . . . . . . . . . . . . . . . . . . . . . . (159,307) (156,807) (16,986) (18,395)
Exchange/other . . . . . . . . . . . . . . . . . . . . . . . 173,088 94,949 3,770 8,963
Benefit obligation at the end of the year . . $2,765,316 $2,585,984 $ 234,430 $ 235,297
Change in Plan Assets:
Fair value of plan assets at the beginning of
the year. . . . . . . . . . . . . . . . . . . . . . . . . . . $2,869,971 $1,874,702 $ — $ —
Actual return on plan assets . . . . . . . . . . . . . 318,494 561,997 — —
Divestitures . . . . . . . . . . . . . . . . . . . . . . . . . — (413) — —
Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . (3,275) (4,663) — —
Employer contribution . . . . . . . . . . . . . . . . . 22,411 539,939 16,164 17,490
Participants’ contributions . . . . . . . . . . . . . . 2,444 2,674 822 905
Benefits paid. . . . . . . . . . . . . . . . . . . . . . . . . (159,307) (156,807) (16,986) (18,395)
Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,143 52,542 — —
Fair value of plan assets at the end of the
year . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,261,881 2,869,971 — —
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . $ 496,565 $ 283,987 $(234,430) $(235,297)
Amounts recognized in the consolidated balance sheets consist of the following:
Pension Benefits
Other Retiree Benefits
2011 2010 2011 2010
(Dollars in thousands)
Other non-current assets . . . . . . . . . . . $ 644,598 $ 424,554 $ — $ —
Other accrued liabilities . . . . . . . . . . . . (31,589) (12,842) (18,259) (18,874)
Other non-current liabilities . . . . . . . . (116,444) (127,725) (216,171) (216,423)
Net amount recognized . . . . . . . . . . . $ 496,565 $ 283,987 $(234,430) $(235,297)
Certain of the Company’s pension plans have projected benefit obligations in excess of the fair
value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets
at April 27, 2011 were $175.0 million and $27.0 million, respectively. For pension plans having
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