72 as of the projected benefit obligation of the us

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72
As of December 31, 2011, the projected benefit obligation of the U.S. qualified pension plans was $5,571 million, and the fair value of plan assets was $4,274 million. The majority of this underfunding was due to the negative impact that the recent credit crisis and financial system instability had on the value of our pension plan assets and the decrease in the weighted-average discount rate used to calculate the Company’s benefit obligation. As of December 31, 2011, the projected benefit obligation of all pension plans other than the U.S. qualified pension plans was $2,684 million, and the fair value of all other pension plan assets was $1,897 million. The majority of this underfunding is attributable to an international pension plan for certain non-U.S. employees that is unfunded due to tax law restrictions, as well as our unfunded U.S. nonqualified pension plans. These U.S. nonqualified pension plans provide, for certain associates, benefits that are not permitted to be funded through a qualified plan because of limits imposed by the Internal Revenue Code of 1986. The expected benefit payments for these unfunded pension plans are not included in the table above. However, we anticipate annual benefit payments for these unfunded pension plans to be approximately $60 million in 2012 and remain near that level through 2030, decreasing annually thereafter. Refer to Note 13 of Notes to Consolidated Financial Statements. In 2012, we expect to contribute an additional $953 million to various plans, of which approximately $900 million was contributed in the first quarter of 2012 to the Company’s U.S. pension plans. Refer to Note 13 of Notes to Consolidated Financial Statements. We did not include our estimated contributions to our various plans in the table above. On December 14, 2011, the Company entered into a definitive agreement with Aujan Industries (‘‘Aujan’’), one of the largest independent beverage companies in the Middle East, to acquire approximately half of the equity in Aujan’s existing beverage business, excluding Aujan’s Iranian manufacturing and distribution business. Under the terms of the agreement, we will acquire 50 percent of the Aujan entity that holds the rights to Aujan-owned brands, and 49 percent of Aujan’s bottling and distribution company, which will continue to hold the licensed brand Vimto. Total consideration for this investment, which will be accounted for under the equity method, is approximately $980 million, which we expect to fund from our existing cash reserves. Closing of the transaction is subject to certain conditions and is expected to occur in the first half of 2012. We did not include our anticipated investment in Aujan in the table above. In general, we are self-insured for large portions of many different types of claims; however, we do use commercial insurance above our self-insured retentions to reduce the Company’s risk of catastrophic loss. Our reserves for the Company’s self-insured losses are estimated through actuarial procedures of the insurance industry and by using industry assumptions, adjusted for our

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