ANYTIMEkANYPLACEkANYWHERE - Heinz

The weighted-average rates used for the years ended May 3, 2000, April 28, 1999 and
April 29, 1998 in determining the net pension costs and projected benefit obligations for
defined benefit plans were as follows:
2000 1999 1998
Expected rate of return 9.5% 9.5% 9.6%
Discount rate 6.8% 6.3% 6.9%
Compensation increase rate 4.6% 4.7% 4.9%
11. POSTRETIREMENT
BENEFITS OTHER THAN
PENSIONS AND OTHER
POSTEMPLOYMENT
BENEFITS
The company and certain of its subsidiaries provide health care and life insurance benefits for
retired employees and their eligible dependents. Certain of the company’s U.S. and Canadian
employees may become eligible for such benefits. The company currently does not fund these
benefit arrangements and may modify plan provisions or terminate plans at its discretion.
Net postretirement costs consisted of the following:
(Dollars in thousands) 2000 1999 1998
Components of defined benefit net periodic benefit cost:
Service cost $ 3,903 $ 3,603 $ 3,339
Interest cost 10,475 10,483 11,280
Amortization of:
Prior service cost (655) (649) (5,633)
Net actuarial gain (3,144) (3,430) (3,664)
Loss due to curtailment and special termination
benefits 1,536 3,732 1,085
Net periodic benefit cost $12,115 $13,739 $ 6,407
The following table sets forth the combined status of the company’s postretirement benefit
plans at May 3, 2000 and April 28, 1999.
(Dollars in thousands) 2000 1999
Change in benefit obligation:
Benefit obligation at the beginning of the year $ 158,488 $ 157,975
Service cost 3,903 3,603
Interest cost 10,475 10,483
Participants’ contributions 889 858
Actuarial loss/(gain) 6,644 (3,688)
Curtailment (154) –
Special termination benefits 1,389 2,779
Benefits paid (11,864) (12,709)
Exchange (220) (813)
Benefit obligation at the end of the year 169,550 158,488
Funded status (169,550) (158,488)
Unamortized prior service cost (6,583) (6,711)
Unamortized net actuarial gain (42,825) (52,826)
Net accrued benefit liability $(218,958) $(218,025)
(65)