Dow Chemical 2015 Annual Report Download - page 132

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122
Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans
In millions
Defined
Benefit Pension Plans
Other Postretirement
Benefits
Change in projected benefit obligations: 2015 2014 2015 2014
Benefit obligations at beginning of year $ 27,979 $ 25,027 $ 1,707 $ 1,742
Service cost 484 411 14 14
Interest cost 975 1,096 59 72
Plan participants’ contributions 19 21 — —
Plan amendments (1) 30 (500) — —
Actuarial changes in assumptions and experience (929) 4,096 11 63
Acquisition/divestiture/other activity (2) (894) (1) — —
Benefits paid (1,289) (1,316) (172) (169)
Currency impact (723) (779) (22) (15)
Termination benefits/curtailment cost/settlements (3) — (76) — —
Benefit obligations at end of year $ 25,652 $ 27,979 $ 1,597 $ 1,707
Change in plan assets:
Fair value of plan assets at beginning of year $ 19,629 $ 18,827 $ — $ —
Actual return on plan assets 314 1,961 — —
Currency impact (488) (593) — —
Employer contributions 844 815 — —
Plan participants’ contributions 19 21 — —
Acquisition/divestiture/other activity (4) (255) (86) — —
Benefits paid (1,289) (1,316) — —
Fair value of plan assets at end of year $ 18,774 $ 19,629 $ — $ —
Less: Fair value of assets due to Olin $ (179) $ — $ — $ —
Net fair value of plan assets at end of year $ 18,595 $ 19,629 $ — $ —
Funded status at end of year $ (7,057) $ (8,350) $ (1,597) $ (1,707)
Net amounts recognized in the consolidated balance sheets at December 31:
Noncurrent assets $ 317 $ 263 $ — $ —
Current liabilities (64) (68) (146) (147)
Noncurrent liabilities (7,310) (8,545) (1,451) (1,560)
Net amounts recognized in the consolidated balance sheets $ (7,057) $ (8,350) $ (1,597) $ (1,707)
Pretax amounts recognized in AOCL at December 31:
Net loss (gain) (5) $ 10,012 $ 10,845 $ (154) $ (176)
Prior service credit (5) (328) (419) (3) (5)
Pretax balance in AOCL at end of year $ 9,684 $ 10,426 $ (157) $ (181)
(1) The 2014 plan amendments include a change in post-termination interest rates in the U.S. and new legislation in The
Netherlands.
(2) The 2015 impact includes the transfer of benefit obligations associated with the Reverse Morris Trust transaction with
Olin of $618 million and the transfer of benefit obligations associated with the divestiture of ANGUS to Golden Gate
Capital of $34 million. See Notes 5 and 6 as well as the following paragraph for further information. The 2015 impact
also includes the transfer of benefit obligations of $248 million in the U.S. through the purchase of annuity contracts from
an insurance company.
(3) The 2014 impact relates to settlements associated with the wind-up of a pension plan in The Netherlands and a pension
plan in Canada.
(4) The 2015 impact includes the transfer of plan assets associated with the divestiture of ANGUS to Golden Gate Capital of
$9 million. The 2015 impact also includes the purchase of annuity contracts of $247 million associated with the transfer
of benefit obligations to an insurance company.
(5) The 2014 amounts were adjusted for the Defined Benefit Pension Plans to reclassify $500 million between the "Net loss
(gain)" and "Prior service credit" lines.
On October 5, 2015 ("Closing Date"), (i) the Company completed the transfer of its U.S. Gulf Coast Chlor-Alkali and Vinyl,
Global Chlorinated Organics and Global Epoxy businesses into a new company ("Splitco"), (ii) participating Dow shareholders
tendered, and the Company accepted, Dow shares for Splitco shares in a public exchange offer, and (iii) Splitco merged with a