Chevron 2015 Annual Report Download - page 63

Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts
The accumulated benefit obligations for all U.S. and international pension plans were $12,032 and $4,684, respectively, at
December 31, 2015, and $12,833 and $4,995, respectively, at December 31, 2014.
Information for U.S. and international pension plans with an accumulated benefit obligation in excess of plan assets at
December 31, 2015 and 2014, was:
Pension Benefits
2015 2014
U.S. Int’l. U.S. Int’l.
Projected benefit obligations $ 13,500 $ 1,623 $ 14,182 $ 1,938
Accumulated benefit obligations 11,969 1,357 12,765 1,525
Fair value of plan assets 10,198 207 11,009 262
The components of net periodic benefit cost and amounts recognized in the Consolidated Statement of Comprehensive
Income for 2015, 2014 and 2013 are shown in the table below:
Pension Benefits
2015 2014 2013 Other Benefits
U.S. Int’l. U.S. Int’l. U.S. Int’l. 2015 2014 2013
Net Periodic Benefit Cost
Service cost $ 538 $ 185 $ 450 $ 190 $ 495 $ 197 $72 $50$66
Interest cost 502 277 494 340 471 314 151 148 149
Expected return on plan assets (783) (262) (788) (298) (701) (274) ———
Amortization of prior service costs (credits) (8) 22 (9) 21 2 21 14 14 (50)
Recognized actuarial losses 356 78 209 96 485 143 34 753
Settlement losses 320 6 237 208 173 12 ———
Curtailment losses (gains) — (14) ———— ———
Total net periodic benefit cost 925 292 593 557 925 413 271 219 218
Changes Recognized in Comprehensive Income
Net actuarial (gain) loss during period 513 (260) 2,233 (17) (2,244) (476) (362) 514 (659)
Amortization of actuarial loss (676) (84) (446) (304) (658) (155) (34) (7) (53)
Prior service (credits) costs during period —(6) — 4 (78) 18 —2—
Amortization of prior service (costs) credits 8 (24) 9 (21) (2) (21) (14) (14) 50
Total changes recognized in other
comprehensive income (155) (374) 1,796 (338) (2,982) (634) (410) 495 (662)
Recognized in Net Periodic Benefit Cost and Other
Comprehensive Income $ 770 $ (82) $2,389 $ 219 $(2,057) $ (221) $ (139) $ 714 $ (444)
Net actuarial losses recorded in “Accumulated other comprehensive loss” at December 31, 2015, for the company’s U.S.
pension, international pension and OPEB plans are being amortized on a straight-line basis over approximately 10, 10 and 16
years, respectively. These amortization periods represent the estimated average remaining service of employees expected to
receive benefits under the plans. These losses are amortized to the extent they exceed 10 percent of the higher of the
projected benefit obligation or market-related value of plan assets. The amount subject to amortization is determined on a
plan-by-plan basis. During 2016, the company estimates actuarial losses of $335, $56 and $19 will be amortized from
“Accumulated other comprehensive loss” for U.S. pension, international pension and OPEB plans, respectively. In addition,
the company estimates an additional $324 will be recognized from “Accumulated other comprehensive loss” during 2016
related to lump-sum settlement costs from the main U.S. pension plan.
The weighted average amortization period for recognizing prior service costs (credits) recorded in “Accumulated other
comprehensive loss” at December 31, 2015, was approximately 4 and 11 years for U.S. and international pension plans,
respectively, and 7 years for OPEB plans. During 2016, the company estimates prior service (credits) costs of $(9), $15 and
$14 will be amortized from “Accumulated other comprehensive loss” for U.S. pension, international pension and OPEB
plans, respectively.
Chevron Corporation 2015 Annual Report 61