Raytheon 2015 Annual Report Download - page 119

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
109
Change in Plan Assets Pension Benefits PRB Benefits
(In millions) 2015 2014 2015 2014
Fair value of plan assets at beginning of year $20,220 $19,628 $ 418 $ 431
Actual return (loss) on plan assets (19)1,254 (2)25
Company contributions 539 1,250 22 20
Plan participants’ contributions 10 12 50 50
Plan settlements (4)(4)(9)—
Foreign exchange gain (loss) (42)(38)——
Benefits paid (1,804)(1,882)(99)(108)
Fair value of plan assets at end of year $18,900 $20,220 $ 380 $ 418
Retirement Plan Assumptions
Weighted-Average Net Periodic Benefit Cost Assumptions Pension Benefits
2015 2014 2013
Discount rate 4.06% 5.06% 4.15%
Expected long-term rate of return on plan assets 7.91% 8.67% 8.67%
Rate of compensation increase
Range 2%–7% 2%–7% 2%–7%
Average 4.41% 4.40% 4.40%
Weighted-Average Net Periodic Benefit Cost Assumptions PRB Benefits
2015 2014 2013
Discount rate 4.05% 5.01% 4.00%
Expected long-term rate of return on plan assets 7.01% 8.24% 8.24%
Rate of compensation increase
Range 2%–7% 2%–7% 2%–7%
Average 4.50% 4.50% 4.50%
Health care trend rate*4.00% 4.00% 4.00%
* Currently at the ultimate trend rate.
Weighted-Average Year-End Benefit Obligation Assumptions Pension Benefits PRB Benefits
2015 2014 2015 2014
Discount rate 4.45% 4.06% 4.42% 4.05%
Rate of compensation increase
Range 2%–7% 2%–7% 2%–7% 2%–7%
Average 4.40% 4.40% 4.50% 4.50%
Health care trend rate* 4.00% 4.00%
* Currently at the ultimate trend rate.
The weighted-average year-end benefit obligation discount rate for our domestic Pension Benefits plans was 4.47% and 4.08%
at December 31, 2015 and December 31, 2014, respectively. Our foreign Pension Benefits plan assumptions have been included
in the Pension Benefits assumptions in the table above.
The long-term ROA represents the average rate of earnings expected over the long term on the assets invested to provide for
anticipated future benefit payment obligations. The long-term ROA used to calculate net periodic pension cost is set annually
at the beginning of each year. Given the long-term nature of the ROA assumption, which we believe should not be solely
reactive to short-term market conditions that may not persist, we expect the long-term ROA to remain unchanged unless there