CenterPoint Energy 2015 Annual Report Download - page 99

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ThediscountrateassumptionwasdeterminedbymatchingtheprojectedcashflowsofCenterPointEnergy’splansagainstahypotheticalyieldcurveofhigh-
qualitycorporatebondsrepresentedbyaseriesofannualizedindividualdiscountratesfromone-halfto99years.
Formeasurementpurposes,medicalcostsareassumedtoincrease6.00%and5.50%forthepre-65andpost-65retireesduring2016,respectively,andthe
prescriptioncostisassumedtoincrease11.00%during2016,afterwhichtheseratesdecreaseuntilreachingtheultimatetrendrateof5.00%in2024.
CenterPointEnergy’schangesinaccumulatedcomprehensivelossrelatedtodefinedbenefit,postretirementandotherpostemploymentplansareasfollows:
Year Ended December 31,
2015
2014
(in millions)
BeginningBalance $ (85)
$ (88)
Othercomprehensiveincome(loss)beforereclassifications(1) 21
(3)
Amountsreclassifiedfromaccumulatedothercomprehensiveincome:
Priorservicecost(2) 1
2
Actuariallosses(2) 10
9
Totalreclassificationsfromaccumulatedothercomprehensiveincome 11
11
Taxexpense (12)
(5)
Netcurrentperiodothercomprehensiveincome 20
3
EndingBalance $ (65)
$ (85)
(1) Totalothercomprehensiveincome(loss)relatedtothere-measurementofpension,postretirementandotherpostemploymentplans.
(2) Theseaccumulatedothercomprehensivecomponentsareincludedinthecomputationofnetperiodiccost.
Amountsrecognizedinaccumulatedothercomprehensivelossconsistofthefollowing:
December 31,
2015
2014
Pension
Benefits
Postretirement
Benefits
Pension
Benefits
Postretirement
Benefits
(in millions)
Unrecognizedactuarialloss(gain) $ 106
$(2)
$ 113
$ 14
Unrecognizedpriorservicecost(credit) 3
(1)
4
2
Netamountrecognizedinaccumulatedothercomprehensiveloss $ 109
$(3)
$ 117
$ 16
Thechangesinplanassetsandbenefitobligationsrecognizedinothercomprehensiveincomeduring2015areasfollows:
Pension
Benefits
Postretirement
Benefits
(in millions)
Netgain $ —
$ 18
Amortizationofnetloss 7
1
Amortizationofpriorservicecredit 1
—
Totalrecognizedincomprehensiveincome $ 8
$ 19
The total expense recognized in net periodic costs and other comprehensive income was $82 million and $-0- for pension and postretirement benefits,
respectively,fortheyearendedDecember31,2015.
93