CHS 2014 Annual Report Download - page 49

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Components of net periodic benefit costs for the years ended August 31, 2014, 2013 and 2012 are as follows:
NON-QUALIFIED
QUALIFIED PENSION BENEFITS PENSION BENEFITS OTHER BENEFITS
(DOLLARS IN THOUSANDS) 2014 2013 2012 2014 2013 2012 2014 2013 2012
Components of net periodic benefit costs:
Service cost $ 30,417 $ 31,387 $ 26,010 $ 860 $ 721 $ 279 $ 1,729 $ 2,936 $ 2,556
Interest cost 29,900 25,445 24,119 1,660 1,316 1,343 1,918 2,275 2,638
Expected return on assets (47,655) (49,728) (40,904) ——————
Prior service cost (credit)
amortization 1,593 1,597 1,831 229 228 228 (493) (120) (104)
Actuarial loss amortization 18,228 22,615 15,131 957 921 428 (180) 1,104 891
Transition amount amortization — — —————562936
Net periodic benefit cost $ 32,483 $ 31,316 $ 26,187 $ 3,706 $ 3,186 $ 2,278 $ 2,974 $ 6,757 $ 6,917
Weighted-average assumptions to determine the net periodic benefit cost:
Discount rate 4.80% 3.80% 5.00% 4.50% 4.25% 5.00% 3.75% 3.75% 4.75%
Expected return on plan assets 6.75% 7.25% 7.25% N/A N/A N/A N/A N/A N/A
Rate of compensation increase 4.85% 4.50% 4.50% 4.75% 4.75% 4.75% 4.50% 4.50% 4.50%
Weighted-average assumptions to determine the benefit obligations:
Discount rate 4.00% 4.80% 3.80% 4.50% 4.50% 4.00% 4.60% 3.75% 3.75%
Rate of compensation increase 4.90% 4.85% 4.50% 4.80% 4.75% 4.75% 4.50% 4.50% 4.50%
The estimated amortization in fiscal 2015 from accumu- Assumed health care cost trend rates have a significant
lated other comprehensive loss into net periodic benefit effect on the amounts reported for the health care plans.
cost is as follows: A one-percentage point change in the assumed health
care cost trend rates would have the following effects:
NON-
QUALIFIED QUALIFIED
PENSION PENSION OTHER
(DOLLARS IN THOUSANDS) 1% INCREASE 1% DECREASE
(DOLLARS IN THOUSANDS) BENEFITS BENEFITS BENEFITS
Effect on total of service and interest
Amortization of prior service cost
cost components $ 390 $ (370)
(benefit) $ 1,648 $ 229 $ (120)
Effect on postretirement benefit
Amortization of net actuarial (gain)
obligation 5,000 (4,800)
loss 19,604 1,044 (421)
We provide defined life insurance and health care bene-
For measurement purposes, a 6.9% annual rate of
fits for certain retired employees and Board of Directors
increase in the per capita cost of covered health care
participants. The plan is contributory based on years of
benefits was assumed for the year ended August 31,
service and family status, with retiree contributions
2014. The rate was assumed to decrease gradually to
adjusted annually.
4.8% by 2026 and remain at that level thereafter.
CHS 2014 47