National Oilwell Varco 2015 Annual Report Download - page 91
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Table of Contents
During 2014, the Company sold certain industrial assets of which the impact on the defined benefit plans is reflected in the table below.
Net periodic benefit cost for our defined benefit plans aggregated $5 million, $7 million and $10 million for the years ended December 31, 2015, 2014 and
2013, respectively.
The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway,
Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2015 and 2014, is as follows
(in millions):
Benefit obligation at beginning of year $ 792 $ 846 $ 53 $ 45
Service cost 6 8 — —
Interest cost 26 35 3 2
Actuarial loss (gain) (38) 116 (7) 15
Benefits paid (34) (43) (5) (4)
Participants contributions — — 1 1
Exchange rate loss (gain) (33) (51) — —
Acquisitions (disposals) — (118) — (6)
Curtailments (16) (1) — —
Other — — 45 —
Benefit obligation at end of year $ 703 $ 792 $ 90 $ 53
Fair value of plan assets at beginning of year $ 660 $ 706 $ — $ —
Actual return 3 68 — —
Benefits paid (34) (43) (5) (4)
Company contributions 12 21 4 3
Participants contributions — — 1 1
Exchange rate gain (loss) (23) (31) — —
Acquisitions (disposals) (17) (61) — —
Fair value of plan assets at end of year $ 601 $ 660 $ — $ —
Funded status $(102) $(132) $ (90) $ (53)
Accumulated benefit obligation at end of year $ 685 $ 764
Liabilities associated with the funded status of the defined benefit pension plans are included in the balances of accrued liabilities and other liabilities in the
Consolidated Balance Sheet.
Defined Benefit Pension Plans
Assumed long-term rates of return on plan assets, discount rates and rates of compensation increases vary for the different plans according to the local
economic conditions. The assumption rates used for benefit obligations are as follows:
Discount rate:
United States plan 3.40% - 3.90% 3.40% - 3.90%
International plans 2.10% - 3.60% 2.10% - 3.60%
Salary increase:
United States plan N/A N/A
International plans 2.00% - 4.20% 2.00% - 4.20%
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