Boeing 2013 Annual Report Download - page 99

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87
Amounts recognized in Accumulated other comprehensive loss at December 31 were as follows:
Pension
Other
Postretirement
Benefits
2013 2012 2013 2012
Net actuarial loss $15,460 $26,387 $561 $1,651
Prior service costs/(credits) 788 904 (614) (799)
Total recognized in Accumulated other comprehensive loss $16,248 $27,291 ($53) $852
The estimated amount that will be amortized from Accumulated other comprehensive loss into net periodic
benefit cost during the year ended December 31, 2014 is as follows:
Pension
Other
Postretirement
Benefits
Recognized net actuarial loss $1,032 $7
Amortization of prior service costs/(credits) 178 (141)
Total $1,210 ($134)
The ABO for all pension plans was $63,491 and $69,312 at December 31, 2013 and 2012. Key information
for our plans with ABO in excess of plan assets as of December 31 is as follows:
2013 2012
Projected benefit obligation $63,445 $75,851
Accumulated benefit obligation 58,334 69,272
Fair value of plan assets 52,905 56,129
Assumptions
The following assumptions, which are the weighted average for all plans, are used to calculate the benefit
obligation at December 31 of each year and the net periodic benefit cost for the subsequent year.
December 31, 2013 2012 2011
Discount rate:
Pension 4.80% 3.80% 4.40%
Other postretirement benefits 4.20% 3.30% 4.00%
Expected return on plan assets 7.50% 7.50% 7.75%
Rate of compensation increase 4.00% 4.00% 3.90%
The discount rate for each plan is determined based on the plans’ expected future benefit payments using
a yield curve developed from high quality bonds that are rated as Aa or better by at least half of the four
rating agencies utilized as of the measurement date. The yield curve is fitted to yields developed from
bonds at various maturity points. Bonds with the ten percent highest and the ten percent lowest yields are
omitted. A portfolio of about 400 bonds is used to construct the yield curve. Since corporate bond yields
are generally not available at maturities beyond 30 years, it is assumed that spot rates will remain level
beyond that 30-year point. The present value of each plan’s benefits is calculated by applying the spot/
discount rates to projected benefit cash flows. All bonds are U.S. issues, with a minimum outstanding of
$50.