Emerson 2015 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 2015 Emerson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 66

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66

46 | 2015 Annual Report
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.
The Company will begin transitioning from defined benefit to defined contribution retirement plans in 2016. The
principal U.S. defined benefit pension plan has been closed to employees hired after January 1, 2016, and current
employees not meeting combined age and years of service criteria will cease accruing benefits effective October 1,
2016. Affected employees will be enrolled in an enhanced defined contribution plan. The impact of these actions
had an inconsequential impact on the Company’s financial statements at September 30, 2015. Over time, defined
benefit plan expense will decline while defined contribution plan expense will increase, with an expectation of
reduced earnings volatility.
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
2014 2015 2014 2015
Projected benefit obligation, beginning $3,863 4,336 1,269 1,330
Service cost 59 69 32 37
Interest cost 182 182 53 46
Actuarial (gain) loss 415 137 89 44
Benefits paid (174) (181) (36) (36)
Settlements (14) (205) (14) (25)
Acquisitions (Divestitures), net — (70) (28) (4)
Foreign currency translation and other 5 (5) (35) (144)
Projected benefit obligation, ending $4,336 4,263 1,330 1,248
Fair value of plan assets, beginning $4,112 4,473 899 988
Actual return on plan assets 461 (137) 106 49
Employer contributions 85 20 45 33
Benefits paid (174) (181) (36) (36)
Settlements (14) (205) (14) (25)
Acquisitions (Divestitures), net — (44) — (2)
Foreign currency translation and other 3 2 (12) (72)
Fair value of plan assets, ending $4,473 3,928 988 935
Net amount recognized in the balance sheet $ 137 (335) (342) (313)
Location of net amount recognized in the balance sheet:
Noncurrent asset $ 344 1 33 32
Current liability (10) (11) (8) (8)
Noncurrent liability (197) (325) (367) (337)
Net amount recognized in the balance sheet $ 137 (335) (342) (313)
Pretax accumulated other comprehensive loss $ (961) (1,322) (346) (306)
Approximately $182 of the $1,628 of pretax losses deferred in accumulated other comprehensive income (loss)
at September 30, 2015 will be amortized to expense in 2016. As of September 30, 2015, U.S. pension plans were
underfunded by $335 and non-U.S. plans were underfunded by $313. The U.S. funded status includes unfunded
plans totaling $191 and the non-U.S. status includes unfunded plans totaling $215.
As of the September 30, 2015 and 2014 measurement dates, the plans’ total accumulated benefit obligation
was $5,254 and $5,277, respectively. Also as of the measurement dates, the total projected benefit obligation,
accumulated benefit obligation and fair value of plan assets for individual plans with accumulated benefit
obligations in excess of plan assets were $1,245, $1,139 and $648, respectively, for 2015, and $1,028, $928
and $455, respectively, for 2014.