Lockheed Martin 2015 Annual Report Download - page 102

The following table provides amounts recognized on our Balance Sheets related to our qualified defined benefit pension
plans and our retiree medical and life insurance plans (in millions):
Qualified Defined Benefit
Pension Plans
Retiree Medical and
Life Insurance Plans
2015 2014 2015 2014
Prepaid pension asset $ 201 $ 204 $— $—
Accrued postretirement benefit liabilities (11,807) (11,413) (1,070) (1,102)
Accumulated other comprehensive loss (pre-tax) related to:
Net actuarial losses 19,632 20,794 627 741
Prior service (credit) cost (3,565) (3,985) 167 14
Total (a) $16,067 $16,809 $ 794 $ 755
(a) Accumulated other comprehensive loss related to postretirement benefit plans, after tax, of $11.3 billion and $11.8 billion at
December 31, 2015 and 2014 (Note 12) includes $16.1 billion ($10.4 billion after tax) and $16.8 billion ($10.8 billion after tax) for
qualified defined benefit pension plans, $794 million ($514 million after tax) and $755 million ($488 million after tax) for retiree
medical and life insurance plans and $620 million ($408 million after tax) and $692 million ($460 million after tax) for other plans.
The accumulated benefit obligation (ABO) for all qualified defined benefit pension plans was $43.5 billion and
$45.2 billion at December 31, 2015 and 2014, of which $43.4 billion and $45.0 billion related to plans where the ABO was in
excess of plan assets. The ABO represents benefits accrued without assuming future compensation increases to plan
participants. Certain key information related to our qualified defined benefit pension plans as of December 31, 2015 and
2014 is as follows (in millions):
2015 2014
Plans where ABO was in excess of plan assets
Projected benefit obligation $ 43,575 $ 45,741
Less: fair value of plan assets 31,768 34,328
Unfunded status of plans (a) (11,807) (11,413)
Plans where ABO was less than plan assets
Projected benefit obligation 127 141
Less: fair value of plan assets 328 345
Funded status of plans (b) $ 201 $ 204
(a) Represent accrued pension liabilities, which are included on our Balance Sheets.
(b) Represent prepaid pension assets, which are included on our Balance Sheets in other noncurrent assets.
We also sponsor nonqualified defined benefit plans to provide benefits in excess of qualified plan limits. The aggregate
liabilities for these plans at December 31, 2015 and 2014 were $1.2 billion and $1.1 billion, which also represent the plans’
unfunded status. We have set aside certain assets totaling $421 million and $397 million as of December 31, 2015 and 2014
in a separate trust which we expect to be used to pay obligations under our nonqualified defined benefit plans. In accordance
with GAAP, those assets may not be used to offset the amount of the benefit obligation similar to the postretirement benefit
plans in the table above. The unrecognized net actuarial losses at December 31, 2015 and 2014 were $632 million and
$662 million. The unrecognized prior service credit at December 31, 2015 was $95 million and was $121 million at
December 31, 2014. The expense associated with these plans totaled $117 million in 2015, $115 million in 2014 and
$108 million in 2013. We also sponsor a small number of other postemployment plans and foreign benefit plans. The
aggregate liability for the other postemployment plans was $70 million and $88 million as of December 31, 2015 and 2014.
The expense for the other postemployment plans, as well as the liability and expense associated with the foreign benefit
plans, was not material to our results of operations, financial position or cash flows. The actuarial assumptions used to
determine the benefit obligations and expense associated with our nonqualified defined benefit plans and postemployment
plans are similar to those assumptions used to determine the benefit obligations and expense related to our qualified defined
benefit pension plans and retiree medical and life insurance plans as described below.
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