Fluor 2013 Annual Report Download - page 126

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table sets forth the change in the accumulated postretirement benefit obligation:
Year Ended
December 31,
(in thousands) 2013 2012
Change in accumulated postretirement benefit obligation
Benefit obligation at beginning of year $ 14,512 $ 16,828
Service cost ——
Interest cost 351 592
Employee contributions 421 399
Actuarial (gain) loss (596) (955)
Benefits paid (2,059) (2,352)
Benefit obligation at end of year $ 12,629 $ 14,512
Funded status $(12,629) $(14,512)
Unrecognized net actuarial losses totaling $2 million and $3 million as of December 31, 2013 and
2012, respectively, were classified in accumulated other comprehensive loss. The accumulated
postretirement benefit obligation classified in current liabilities was approximately $3 million as of both
December 31, 2013 and 2012. The remaining balance of the accumulated postretirement benefit obligation
was classified in noncurrent liabilities for both years.
The discount rate used in determining the accumulated postretirement benefit obligation was
3.40 percent as of December 31, 2013 and 2.65 percent as of December 31, 2012. The discount rate used
for accumulated postretirement obligation is determined based on the same considerations discussed
above that impact defined benefit plans in the United States. Benefit payments, as offset by retiree
contributions, are not expected to change significantly in the future.
The preceding information does not include amounts related to benefit plans applicable to employees
associated with certain contracts with the U.S. Department of Energy because the company is not
responsible for the current or future funded status of these plans.
In addition to the company’s defined benefit pension plans discussed above, the company participates
in multiemployer pension plans for its union construction and maintenance craft employees. Contributions
are based on the hours worked by employees covered under various collective bargaining agreements.
Company contributions to these multiemployer pension plans were $19 million, $24 million and
$36 million during 2013, 2012 and 2011, respectively. The company does not have any significant future
obligations or funding requirements related to these plans other than the ongoing contributions that are
paid as hours are worked by plan participants. None of these multiemployer pension plans are individually
significant to the company.
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