Raytheon 2014 Annual Report Download - page 116

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
107
The PBO and fair value of plans assets for Pension Benefits plans with PBOs in excess of plan assets were $25,916 million
and $19,459 million, respectively, at December 31, 2014 and $21,529 million and $18,068 million, respectively, at
December 31, 2013.
The ABO and fair value of plan assets for Pension Benefits plans with ABOs in excess of plan assets were $23,520 million
and $19,406 million, respectively, at December 31, 2014 and $18,980 million and $17,425 million, respectively, at
December 31, 2013. The ABO for all Pension Benefits plans was $24,298 million and $21,050 million at December 31, 2014
and December 31, 2013, respectively.
The tables below provide a reconciliation of benefit obligations, plan assets, funded status and related actuarial assumptions
of our domestic and foreign Pension Benefits and Other Benefits plans.
Change in Projected Benefit Obligation Pension Benefits Other Benefits
(In millions) 2014 2013 2014 2013
Projected benefit obligation at beginning of year $22,970 $24,657 $ 732 $ 818
Service cost 448 579 68
Interest cost 1,128 996 35 32
Plan participants’ contributions 12 15 50 43
Amendments 12 ———
Plan curtailments/settlements (4)(6)——
Actuarial loss (gain) 4,007 (1,798)67 (70)
Foreign exchange loss (gain) (42)———
Benefits paid (1,882)(1,473)(108)(99)
Projected benefit obligation at end of year $26,649 $22,970 $ 782 $ 732
The PBO for our domestic and foreign Pension Benefits plans was $25,745 million and $904 million, respectively at
December 31, 2014 and $22,157 million and $813 million, respectively, at December 31, 2013.
Change in Plan Assets Pension Benefits Other Benefits
(In millions) 2014 2013 2014 2013
Fair value of plan assets at beginning of year $19,628 $17,450 $ 431 $ 408
Actual return (loss) on plan assets 1,254 2,563 25 57
Company contributions 1,250 1,078 20 22
Plan participants’ contributions 12 15 50 43
Plan settlements (4)(6)——
Foreign exchange gain (loss) (38)1——
Benefits paid (1,882)(1,473)(108)(99)
Fair value of plan assets at end of year $20,220 $19,628 $ 418 $ 431
Retirement Plan Assumptions
Weighted-Average Net Periodic Benefit Cost Assumptions Pension Benefits
2014 2013 2012
Discount rate 5.06% 4.15% 5.00%
Expected long-term rate of return on plan assets 8.67% 8.67% 8.68%
Rate of compensation increase
Range 2% -7% 2% -7% 2% -7%
Average 4.40% 4.40% 4.40%