CenturyLink 2015 Annual Report Download - page 171

Net Periodic Benefit Expense
The actuarial assumptions used to compute the net periodic benefit expense for our qualified pension, non-
qualified pension and post-retirement benefit plans are based upon information available as of the beginning of
the year, as presented in the following table.
Pension Plans Post-Retirement Benefit Plans
2015 2014 2013 2015 2014 2013
Actuarial assumptions at
beginning of year:
Discount rate .........3.50% - 4.10% 4.20% - 5.10% 3.50% - 4.20% 3.80% 4.50% 3.60%
Rate of compensation
increase ........... 3.25% 3.25% 3.25% N/A N/A N/A
Expected long-term rate
of return on plan
assets ............. 7.50% 7.50% 7.50% 7.50% 6.00% - 7.50% 6.00% - 7.30%
Initial health care cost
trend rate .......... N/A N/A N/A 6.00% / 6.50% 6.00% / 6.50% 6.50% / 7.00%
Ultimate health care cost
trend rate .......... N/A N/A N/A 4.50% 4.50% 4.50%
Year ultimate trend rate
is reached .......... N/A N/A N/A 2025 2024 2022
N/A—Not applicable
Net periodic (income) expense for our qualified and non-qualified pension plans includes the following
components:
Pension Plans
Years Ended December 31,
2015 2014 2013
(Dollars in millions)
Service cost ........................................... $ 83 77 91
Interest cost ........................................... 568 602 544
Expected return on plan assets ............................. (898) (891) (896)
Settlements ............................................ — 63 —
Recognition of prior service cost ........................... 5 5 5
Recognition of actuarial loss .............................. 161 22 84
Net periodic pension benefit income ........................ $ (81) (122) (172)
Net periodic expense (income) for our post-retirement benefit plans includes the following components:
Post-Retirement Plans
Years Ended December 31,
2015 2014 2013
(Dollars in millions)
Service cost ........................................... $ 24 22 24
Interest cost ........................................... 140 159 140
Expected return on plan assets ............................. (21) (33) (39)
Recognition of prior service cost ........................... 19 20 —
Recognition of actuarial loss .............................. — — 4
Net periodic post-retirement benefit expense ................. $162 168 129
We report net periodic benefit (income) expense for our qualified pension, non-qualified pension and post-
retirement benefit plans in both cost of services and products and selling, general and administrative expenses on
our consolidated statements of operations for the years ended December 31, 2015, 2014 and 2013.
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