Honeywell 2015 Annual Report Download - page 74

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HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS
—(Continued)
(Dollars in millions, except per share amounts)
The estimated net loss and prior service (credit) for other postretirement benefits that will be amortized from
accumulated other comprehensive (income) loss into net periodic benefit (income) in 2016 are expected to be $22 million
and ($76) million.
Major actuarial assumptions used in determining the benefit obligations and net periodic benefit (income) cost for our
significant benefit plans are presented in the following table as weighted averages.
The discount rate for our U.S. pension and other postretirement benefits plans reflects the current rate at which the
associated liabilities could be settled at the measurement date of December 31. To determine discount rates for our U.S.
pension and other postretirement benefit plans, we use a modeling process that involves matching the expected cash
outflows of our benefit plans to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We
use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. The discount rate used to
determine the other postretirement benefit obligation is lower principally due to a shorter expected duration of other
postretirement plan obligations as compared to pension plan obligations.
70
Other Changes in Plan Assets and Benefits Obligations
Recognized in Other Comprehensive (Income) Loss
Years Ended December 31,
2015
2014
2013
Actuarial (gains) losses
$
(55
)
$
46
$
(108
)
Prior service (credit)
(290
)
(87
)
(175
)
Prior service credit recognized during year
30
20
13
Actuarial losses recognized during year
(34
)
(24
)
(27
)
Settlements and curtailments
—
—
42
Total recognized in other comprehensive (income)
$
(349
)
$
(45
)
$
(255
)
Total recognized in net periodic benefit cost and other comprehensive (income) loss
$
(312
)
$
1
$
(239
)
Pension Benefits
U.S. Plans
Non
-
U.S. Plans
2015
2014
2013
2015
2014
2013
Actuarial assumptions used to determine benefit obligations as of
December 31:
Discount rate
4.46
%
4.08
%
4.89
%
3.49
%
3.26
%
4.29
%
Expected annual rate of compensation increase
4.48
%
4.50
%
4.50
%
2.11
%
2.53
%
2.81
%
Actuarial assumptions used to determine net periodic benefit (income)
cost for years ended December 31:
Discount rate
4.08
%
4.89
%
4.06
%
3.26
%
4.29
%
4.29
%
Expected rate of return on plan assets
7.75
%
7.75
%
7.75
%
6.94
%
6.96
%
6.99
%
Expected annual rate of compensation increase
4.50
%
4.50
%
4.50
%
2.53
%
2.81
%
3.55
%
Other
Postretirement
Benefits
2015
2014
2013
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate
3.80
%
3.45
%
4.05
%
Actuarial assumptions used to determine net periodic benefit cost for years ended December
31:
Discount rate
3.45
%
4.05
%
3.40
%