Capital One 2013 Annual Report Download - page 242

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Pre-tax amounts recognized in accumulated other comprehensive income that have not yet been recognized as a
component of net periodic benefit cost consist of the following:
Table 16.2 Amounts Recognized in OCI
December 31,
2013 2012 2013 2012
(Dollars in millions) Defined Pension Benefits Other Postretirement Benefits
Prior service credit .................................. $0 $0 $ (1) $2
Net actuarial gain (loss) .............................. (52) (76) 14 2
Accumulated other comprehensive (loss) income .......... $(52) $(76) $13 $4
Pre-tax amounts recorded in accumulated other comprehensive income as of December 31, 2013 that are
expected to be recognized as a component of our net periodic benefit cost in 2014 consist of the following:
(Dollars in millions)
Defined
Pension
Benefits
Other
Postretirement
Benefits
Prior service credit ....................................................... $ 0 $1
Net actuarial gain (loss) ................................................... (1) 2
Net gain (loss) .......................................................... $(1) $3
The following table presents weighted-average assumptions used in the accounting for the plans:
Table 16.3 Assumptions Used in the Accounting for the Plans
December 31,
2013 2012 2013 2012
Defined Pension Benefits Other Postretirement Benefits
Assumptions for benefit obligations at measurement
date:
Discount rate ...................................... 4.6% 3.7% 4.6% 3.7%
Rate of compensation increase ........................ n/a n/a n/a n/a
Assumptions for periodic benefit cost for the year ended:
Discount rate ...................................... 3.7% 4.5% 3.7% 4.5%
Expected long-term rate of return on plan assets .......... 6.5% 6.5% 6.5% 6.5%
Rate of compensation increase ........................ n/a n/a n/a n/a
Assumptions for year-end valuations:
Health care cost trend rate assumed for next year:
Pre-age 65 .................................... n/a n/a 7.5% 7.7%
Post-age 65 ................................... n/a n/a 7.7% 8.0%
Rate to which the cost trend rate is assumed to decline (the
ultimate trend rate) ............................... n/a n/a 4.5% 4.5%
Year the rate reaches the ultimate trend rate .............. n/a n/a 2028 2028
To develop the expected long-term rate of return on plan assets assumption, consideration was given to the
current level of expected returns on risk-free investments (primarily government bonds), the historical level of
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