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E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
F-44
For determining U.S. pension plans' net periodic benefit costs, the discount rate, expected return on plan assets and the rate of
compensation increase were 4.29 percent, 8.50 percent and 4.20 percent for 2015.
For determining U.S. pension plans' net periodic benefit costs, the discount rate, expected return on plan assets and the rate of
compensation increase were 4.90 percent, 8.75 percent and 4.50 percent for 2014.
For determining U.S. pension plans' net periodic benefit costs, the discount rate, expected return on plan assets and the rate of
compensation increase were 4.10 percent, 8.75 percent and 4.40 percent for 2013.
In the U.S., the discount rate is developed by matching the expected cash flow of the benefit plans to a yield curve constructed
from a portfolio of high quality fixed-income instruments provided by the plan's actuary as of the measurement date. For non-
U.S. benefit plans, the company utilizes prevailing long-term high quality corporate bond indices to determine the discount rate
applicable to each country at the measurement date.
The long-term rate of return on assets in the U.S. was selected from within the reasonable range of rates determined by historical
real returns (net of inflation) for the asset classes covered by the investment policy, expected performance, and projections of
inflation over the long-term period during which benefits are payable to plan participants. Consistent with prior years, the long-
term rate of return on plan assets in the U.S. reflects the asset allocation of the plan and the effect of the company's active management
of the plans' assets. For non-U.S. plans, assumptions reflect economic assumptions applicable to each country.
In October 2014, the Society of Actuaries released final reports of new mortality tables and a mortality improvement scale for
measurement of retirement program obligations in the U.S. The company has adopted these tables in measuring the 2014 long-
term employee benefit obligations. In October 2015, the Society of Actuaries released an updated mortality improvement scale
reflecting a decline in longevity projection from the October 2014 release. The company adopted the release in measuring the
2015 long-term employee benefit obligations in the U.S.
Assumed health care cost trend rates at December 31, 2015 2014
Health care cost trend rate assumed for next year 7% 7%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5% 5%
Year that the rate reaches the ultimate trend rate 2023 2022
Assumed health care cost trend rates have a modest effect on the amount reported for the health care plan. A one-percentage point
change in assumed health care cost trend rates would have the following effects:
1-Percentage
Point Increase 1-Percentage
Point Decrease
Increase (decrease) on total of service and interest cost $ 2 $ (2)
Increase (decrease) on post-retirement benefit obligation 26 (25)