Tyson Foods 2015 Annual Report Download - page 77
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Please find page 77 of the 2015 Tyson Foods 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.NetPeriodicBenefitCost
ComponentsofnetperiodicbenefitcostforpensionandpostretirementbenefitplansrecognizedintheConsolidatedStatementsofIncomeareasfollows:
inmillions
PensionBenefits
OtherPostretirement
Qualified
Non-Qualified
Benefits
2015
2014
2013
2015
2014
2013
2015
2014
2013
Servicecost $ 10
$ 1
$ —
$ 8
$ 7
$ 5
$ 5
$ 2
$ 2
Interestcost 78
10
4
8
5
3
7
3
2
Expectedreturnonplanassets (102)
(13)
(5)
—
—
—
—
—
—
Amortizationofpriorservicecost —
—
—
—
—
1
(1)
—
(1)
Recognizedactuarial(gain)loss,net 2
2
4
4
2
3
9
(8)
7
Recognizedsettlement(gain)loss 8
—
—
—
—
—
(2)
—
—
Netperiodicbenefit(credit)cost $ (4)
$ —
$ 3
$ 20
$ 14
$ 12
$ 18
$(3)
$ 10
AsofOctober3,2015,theamountsexpectedtobereclassifiedintoearningswithinthenext12monthsrelatedtonetperiodicbenefitcostforthequalifiedand
non-qualifiedpensionsare$2millionand$5million,respectively.AsofOctober3,2015,theamountexpectedtobereclassifiedintoearningswithinthenext12
monthsrelatedtonetperiodicbenefitcreditfortheotherpostretirementbenefitsis$18million.
Assumptions
Weightedaverageassumptionsareasfollows:
PensionBenefits
OtherPostretirement
Qualified
Non-Qualified
Benefits
2015
2014
2013
2015
2014
2013
2015
2014
2013
Discountratetodeterminenetperiodic
benefitcost 4.32%
4.37%
4.02%
4.36%
5.01%
4.23%
3.97%
4.41%
3.66%
Discountratetodeterminebenefit
obligations 4.47%
4.32%
4.77%
4.41%
4.36%
5.09%
3.54%
3.97%
4.48%
Rateofcompensationincrease 0.01%
0.01%
n/a
2.31%
2.11%
3.50%
n/a
n/a
n/a
Expectedreturnonplanassets 4.61%
6.37%
5.44%
n/a
n/a
n/a
n/a
n/a
n/a
Todeterminetheexpectedreturnonplanassetsassumption,wefirstexaminedhistoricalratesofreturnforthevariousassetclasseswithintheplans.Wethen
determinedalong-termprojectedrate-of-returnbasedonexpectedreturns.
Ourdiscountrateassumptionsusedtoaccountforpensionandotherpostretirementbenefitplansreflecttheratesatwhichthebenefitobligationscouldbe
effectivelysettled.Theseweredeterminedusingacashflowmatchingtechniquewherebytheratesofayieldcurve,developedfromhigh-qualitydebtsecurities,
wereappliedtothebenefitobligationstodeterminetheappropriatediscountrate.AsofOctober3,2015andSeptember27,2014,allpensionandother
postretirementbenefitplansusedtheRP-2014mortalitytables.
Wehavefiveotherpostretirementbenefitplanswhicharehealthcareandlifeinsurancerelated.Twooftheseplans,whichbenefitobligationstotaled$24millionat
October3,2015,werenotimpactedbyhealthcarecosttrendratesasoneconsistsoffixedannualpaymentsandoneislifeinsurancerelated.Twoofthehealthcare
plans,whichbenefitobligationstotaled$23millionatOctober3,2015,werenotimpactedbyhealthcarecosttrendratesduetoplanamendments.Theremaining
plan,whichthebenefitobligationtotaled$67millionatOctober3,2015,utilizedassumedhealthcarecosttrendratesof9.0%and7.6%forretireeswhoqualify
anddonotqualifyforMedicare,respectively.Thehealthcarecosttrendratewillbegradingdowntoanultimaterateof4.5%in2024/2025.Aone-percentage-
pointchangeinassumedhealth-carecosttrendrateswouldhavethefollowingeffects:
inmillions
OnePercentagePointIncrease
OnePercentagePointDecrease
Effectonpostretirementbenefitobligation $ 8
$ 7
Effectontotalserviceandinterestcomponents —
—
75