Fluor 2014 Annual Report Download - page 120

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FLUOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
During 2015, approximately $10 million for the U.S. plan and $7 million for the non-U.S. plans of the
amount of accumulated other comprehensive loss shown above is expected to be recognized as
components of net periodic pension expense, excluding any additional expenses that may be recognized in
conjunction with the settlement of the U.S. plan.
For the defined benefit pension plans in the United States, the Netherlands and the Philippines, the
projected benefit obligations exceeded the plan assets. In the aggregate, these plans had projected benefit
obligations of $1.5 billion and plan assets with a fair value of $1.3 billion.
The total accumulated benefit obligation for the U.S. and non-U.S. plans as of December 31, 2014 was
$815 million and $937 million, respectively. The total accumulated benefit obligation for the U.S. and
non-U.S. plans as of December 31, 2013 was $687 million and $853 million, respectively. The accumulated
benefit obligation exceeded plan assets for the U.S. plan as of December 31, 2014. Plan assets exceeded the
accumulated benefit obligation for each of the company’s non-U.S plans as of December 31, 2014 and 2013
and for the U.S. plan as of December 31, 2013.
In addition to the company’s U.S. defined benefit pension plan, the company and certain of its
subsidiaries provide health care and life insurance benefits for certain retired U.S. employees. The health
care and life insurance plans are generally contributory, with retiree contributions adjusted annually. The
accumulated postretirement benefit obligation as of December 31, 2014 and 2013 was determined in
accordance with the current terms of the company’s health care plans, together with relevant actuarial
assumptions and health care cost trend rates projected at annual rates ranging from 7.5 percent in 2015
down to 5 percent in 2025 and beyond. The effect of a one percent annual increase in these assumed cost
trend rates would increase the accumulated postretirement benefit obligation and interest cost by
approximately $0.4 million and less than $0.1 million, respectively. The effect of a one percent annual
decrease in these assumed cost trend rates would decrease the accumulated postretirement benefit
obligation and interest cost by approximately $0.4 million and less than $0.1 million, respectively.
Net periodic postretirement benefit cost included the following components:
Year Ended December 31,
(in thousands) 2014 2013 2012
Service cost $ — $ — $ —
Interest cost 388 351 592
Expected return on assets — — —
Amortization of prior service cost — — —
Recognized net actuarial loss 151 341 640
Net periodic postretirement benefit cost $539 $692 $1,232
F-27