Boeing 2015 Annual Report Download - page 103

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87
Note 14 – Postretirement Plans
The majority of our employees have earned benefits under defined benefit pension plans. Nonunion and
the majority of union employees that had participated in defined benefit pension plans will transition to a
company-funded defined contribution retirement savings plan in 2016.
We fund our major pension plans through trusts. Pension assets are placed in trust solely for the benefit
of the plans’ participants, and are structured to maintain liquidity that is sufficient to pay benefit obligations
as well as to keep pace over the long-term with the growth of obligations for future benefit payments.
We also have other postretirement benefits (OPB) other than pensions which consist principally of health
care coverage for eligible retirees and qualifying dependents, and to a lesser extent, life insurance to
certain groups of retirees. Retiree health care is provided principally until age 65 for approximately half
those retirees who are eligible for health care coverage. Certain employee groups, including employees
covered by most United Auto Workers bargaining agreements, are provided lifetime health care coverage.
The funded status of the plans is measured as the difference between the plan assets at fair value and
the projected benefit obligation (PBO). We have recognized the aggregate of all overfunded plans in Other
assets, and the aggregate of all underfunded plans in either Accrued retiree health care or Accrued pension
plan liability, net. The portion of the amount by which the actuarial present value of benefits included in
the PBO exceeds the fair value of plan assets, payable in the next 12 months, is reflected in Accrued
liabilities.
The components of net periodic benefit cost were as follows:
Pension
Other Postretirement
Benefits
Years ended December 31, 2015 2014 2013 2015 2014 2013
Service cost $1,764 $1,661 $1,886 $140 $129 $148
Interest cost 2,990 3,058 2,906 248 289 263
Expected return on plan assets (4,031)(4,169) (3,874) (8) (8) (6)
Amortization of prior service costs/
(credits) 196 177 196 (136) (144) (180)
Recognized net actuarial loss 1,577 1,020 2,231 31 8 95
Settlement/curtailment/other losses 290 461 104 10 1
Net periodic benefit cost $2,786 $2,208 $3,449 $285 $275 $320
Net periodic benefit cost included in
Earnings from operations $2,366 $3,215 $3,036 $288 $287 $353
In 2015, we recorded charges of $290 related to curtailments and other benefit changes associated with
certain of our defined benefit plans.