Dow Chemical 2013 Annual Report Download - page 138
Download and view the complete annual report
Please find page 138 of the 2013 Dow Chemical annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143 -
144 -
145 -
146 -
147 -
148 -
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
 |
 |
116
The weighted-average assumptions used to determine other postretirement benefit obligations and net periodic benefit costs for
the U.S. plans are provided below:
U.S. Plan Assumptions for Other
Postretirement Benefits
Benefit Obligations
at December 31
Net Periodic Costs
for the Year
2013 2012 2011 2013 2012 2011
Discount rate 4.37% 3.67% 4.66% 3.67% 4.66% 5.15%
Expected long-term rate of return on plan assets — — — —% 1.00% 3.60%
Initial health care cost trend rate 7.45% 7.84% 8.28% 7.84% 8.28% 8.70%
Ultimate health care cost trend rate 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Year ultimate trend rate to be reached 2020 2019 2019 2020 2019 2019
Increasing the assumed medical cost trend rate by one percentage point in each year would decrease the accumulated
postretirement benefit obligation at December 31, 2013 by $25 million and decrease the net periodic postretirement benefit cost
for the year by $1 million. Decreasing the assumed medical cost trend rate by one percentage point in each year would increase
the accumulated postretirement benefit obligation at December 31, 2013 by $29 million and the net periodic postretirement
benefit cost for the year by $1 million.
Net Periodic Benefit Cost for All Significant Plans
Defined Benefit Pension Plans Other Postretirement Benefits
In millions 2013 2012 2011 2013 2012 2011
Service cost $ 471 $ 378 $ 347 $ 19 $ 17 $ 15
Interest cost 1,012 1,093 1,121 78 92 100
Expected return on plan assets (1,248) (1,262) (1,305) — (1) (6)
Amortization of prior service cost (credit) 25 26 28 (4) (4) (1)
Amortization of unrecognized loss 788 519 374 4 1 1
Curtailment/settlement/other (1) (2) 5 — (4) — 9 —
Net periodic benefit cost $ 1,053 $ 754 $ 561 $ 97 $ 114 $ 109
(1) Included $9 million of curtailment costs recorded in 2012 related to the 4Q12 Restructuring plan (see Note 3).
(2) The 2013 impact primarily relates to settlements associated with the wind-up of a Canadian pension plan.
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss
for All Significant Plans
Defined Benefit Pension Plans Other Postretirement Benefits
In millions 2013 2012 2011 2013 2012 2011
Net (gain) loss $ (2,343) $ 3,135 $ 2,009 $ (404) $ 163 $ 20
Amortization of prior service (cost) credit (25) (26) (28) 4 4 1
Amortization of unrecognized loss (793) (519) (370) (4) (1) (1)
Total recognized in other comprehensive
(income) loss $ (3,161) $ 2,590 $ 1,611 $ (404) $ 166 $ 20
Total recognized in net periodic benefit
cost and other comprehensive (income)
loss $ (2,108) $ 3,344 $ 2,172 $ (307) $ 280 $ 129