Emerson 2014 Annual Report Download - page 47

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2014 Emerson > 43
(10) Retirement Plans
Retirement plans expense includes the following components:
u.s. plans non-u.s. plans
2012 2013 2014 2012 2013 2014
Defined benefit plans:
Service cost (benefits earned during the period) $ 55 70 59 27 31 32
Interest cost 172 167 182 50 46 53
Expected return on plan assets (275) (280) (286) (43) (50) (58)
Net amortization and other 168 226 153 19 18 18
Net periodic pension expense 120 183 108 53 45 45
Defined contribution plans 103 113 119 59 63 59
Total retirement plans expense $ 223 296 227 112 108 104
The decline in net periodic pension expense in 2014 is attributable to a higher interest rate assumption than in 2013
and favorable pension asset investment performance. Pension expense increased in 2013 primarily due to a lower
interest rate assumption. For defined contribution plans, the Company makes cash contributions based on plan
requirements, which are expensed as incurred. The Company has two small businesses that participate in multiemployer
pension plans. Such participation is insignificant individually and in total. Cash contributed was inconsequential in all
years. The Company could potentially incur immaterial liabilities upon withdrawal from these plans, although it has
no intention to do so. Additionally, as with participation in any multiemployer plan, there is a theoretical but remote
possibility the Company could incur material liabilities should all other participating employers be unable to fund
their obligations.
Details of the changes in the actuarial present value of the projected benefit obligation and the fair value of plan
assets for defined benefit pension plans follow:
u.s. plans non-u.s. plans
2013 2014 2013 2014
Projected benefit obligation, beginning $4,203 3,863 1,143 1,269
Service cost 70 59 31 32
Interest cost 167 182 46 53
Actuarial (gain) loss (403) 415 85 89
Benefits paid (176) (188) (46) (47)
Foreign currency translation and other 2 5 10 (66)
Projected benefit obligation, ending $3,863 4,336 1,269 1,330
Fair value of plan assets, beginning $3,719 4,112 809 899
Actual return on plan assets 454 461 86 106
Employer contributions 113 85 47 45
Benefits paid (176) (188) (46) (47)
Foreign currency translation and other 2 3 3 (15)
Fair value of plan assets, ending $4,112 4,473 899 988
Net amount recognized in the balance sheet $ 249 137 (370) (342)
Location of net amount recognized in the balance sheet:
Noncurrent asset $ 435 344 3 33
Current liability (10) (10) (10) (8)
Noncurrent liability (176) (197) (363) (367)
Net amount recognized in the balance sheet $ 249 137 (370) (342)
Pretax accumulated other comprehensive loss $ (871) (961) (343) (346)