Delta Airlines 2014 Annual Report Download - page 86

Net Periodic Cost
Assumptions
We used the following actuarial assumptions to determine our benefit obligations and our net periodic cost for the periods presented:
Healthcare Cost Trend Rate. Assumed healthcare cost trend rates have an effect on the amounts reported for the other postretirement benefit plans.
A 1% change in the healthcare cost trend rate used in measuring the accumulated plan benefit obligation for these plans, which provide benefits to
eligible retirees and their dependents who are under age 65 , at December 31, 2014 , would have the following effects:
79
Pension Benefits Other Postretirement and
Postemployment Benefits
Year Ended December 31, Year Ended December 31,
(in millions) 2014 2013 2012 2014 2013 2012
Service cost
$
—
$
—
$
—
$
52
$
49
$
56
Interest cost
928
861
930
155
143
164
Expected return on plan assets
(829
)
(734
)
(705
)
(84
)
(84
)
(77
)
Amortization of prior service credit
—
—
—
(
26
)
(26
)
(21
)
Recognized net actuarial loss
134
221
143
4
25
23
Settlements
—
6
—
—
—
—
Special termination benefits
—
—
—
—
—
116
Net periodic cost
$
233
$
354
$
368
$
101
$
107
$
261
Defined contribution plan costs
551
490
426
—
—
—
Total cost
$
784
$
844
$
794
$
101
$
107
$
261
December 31,
Benefit Obligations
(1)(2)
2014 2013
Weighted average discount rate
4.14
%
5.01
%
Year Ended December 31,
Net Periodic Cost
(2)
2014 2013 2012
Weighted average discount rate - pension benefit
4.99
%
4.10
%
4.95
%
Weighted average discount rate - other postretirement benefit
(3)
4.88
%
4.00
%
4.63
%
Weighted average discount rate - other postemployment benefit
5.00
%
4.13
%
4.88
%
Weighted average expected long-term rate of return on plan assets
8.94
%
8.94
%
8.94
%
Assumed healthcare cost trend rate
(4)
7.00
%
7.00
%
7.00
%
(1)
Our 2014 and 2013 benefit obligations are measured using a mortality table projected to 2022 and 2017
, respectively.
(2)
Future compensation levels do not impact our frozen defined benefit pension plans or other postretirement plans and impact only a small portion of our other postemployment liability.
(3)
Our assumptions reflect various remeasurements of certain portions of our obligations and represent the weighted average of the assumptions used for each measurement date.
(4)
Assumed healthcare cost trend rate at December 31, 2014 is assumed to decline gradually to 5.00% by 2024
and remain level thereafter.
(in millions) 1% Increase 1% Decrease
Increase (decrease) in total service and interest cost
$
1
$
(2
)
Increase (decrease) in the accumulated plan benefit obligation
14
(28
)