JCPenney 2015 Annual Report Download - page 86
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Table of Contents
The following table provides a reconciliation of benefit obligations, plan assets and the funded status of the Primary Pension Plan and supplemental pension
plans:
Beginning balance $ 5,254 $ 4,477 $ 191 $ 219
Service cost 69 61 — —
Interest cost 196 211 7 9
Amendments — 20 — —
Settlements (1,555)
—
—
—
Transfer of benefits — 56 — (56)
Actuarial loss/(gain) (247) 818 (3) 39
Benefits (paid) (390) (389) (19) (20)
Balance at measurement date $ 3,327 $ 5,254 $ 176 $ 191
Beginning balance $ 5,474 $ 5,140 $ — $ —
Company contributions — — 19 20
Actual return on assets(1) (242) 723 — —
Settlements (1,555) — — —
Benefits (paid) (390) (389) (19) (20)
Balance at measurement date $ 3,287 $ 5,474 $ — $ —
$ (40) (2) $ 220 (2) $ (176) (3) $ (191) (3)
In 2015, the funded status of the Primary Pension Plan decreased by $260 million primarily due to the performance of plan assets. The actual one-year return
on pension plan assets at the measurement date was a negative 4.7% in 2015, bringing the annualized return since inception of the plan to 8.8%.
The following pre-tax amounts were recognized in Accumulated other comprehensive income/(loss) in the Consolidated Balance Sheets as of the end of 2015
and 2014:
Net actuarial loss/(gain) $ 333
$ 213
$ 13
$ 17
Prior service cost/(credit) 57 65
(4) (4)
Total $ 390 (1) $ 278
$ 9
$ 13
The weighted-average actuarial assumptions used to determine benefit obligations for each of the years below were as follows:
Discount rate
4.73%
3.87%
4.89%
Salary progression rate
3.9%
3.5%
3.5%
86