US Bank 2015 Annual Report Download - page 123

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The following table sets forth the components of net periodic benefit cost and other amounts recognized in accumulated other
comprehensive income (loss) for the years ended December 31 for the retirement plans:
Pension Plans Postretirement Welfare Plan
(Dollars in Millions) 2015 2014 2013 2015 2014 2013
Components Of Net Periodic Benefit Cost
Service cost .................................................. $188 $152 $168 $– $ – $ 3
Interest cost .................................................. 195 197 170 3 3 4
Expected return on plan assets .................................. (223) (208) (176) (1) (1) (2)
Prior service cost (credit) and transition obligation (asset) amortization . . . (4) (5) (5) (3) (3) (1)
Actuarial loss (gain) amortization ................................. 234 158 264 (4) (6) (9)
Net periodic benefit cost .......................................... $390 $294 $421 $(5) $ (7) $ (5)
Other Changes In Plan Assets And Benefit Obligations
Recognized In Other Comprehensive Income (Loss)
Net actuarial gain (loss) arising during the year ...................... $(146) $(719) $ 555 $ 4 $(14) $ –
Net actuarial loss (gain) amortized during the year ................... 234 158 264 (4) (6) (9)
Net prior service credit (cost) arising during the year .................. – – – – – 35
Net prior service cost (credit) and transition obligation (asset) amortized
during the year .............................................. (4) (5) (5) (3) (3) (1)
Total recognized in other comprehensive income (loss) ................. $ 84 $(566) $ 814 $(3) $(23) $25
Total recognized in net periodic benefit cost and other comprehensive
income (loss)(a)(b) .............................................. $(306) $(860) $ 393 $ 2 $(16) $30
(a) The pretax estimated actuarial loss (gain) and prior service cost (credit) for the pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit
cost in 2016 are $175 million and $(5) million, respectively.
(b) The pretax estimated actuarial loss (gain) and prior service cost (credit) for the postretirement welfare plan that will be amortized from accumulated other comprehensive income (loss) into net
periodic benefit cost in 2016 are $(4) million and $(3) million, respectively.
The following table sets forth weighted average assumptions used to determine the projected benefit obligations at December 31:
Pension Plans
Postretirement
Welfare Plan
(Dollars in Millions) 2015 2014 2015 2014
Discount rate(a) ..................................................................... 4.45% 4.13% 3.59% 3.46%
Rate of compensation increase(b) ...................................................... 4.06 4.07 * *
Health care cost trend rate for the next year(c) ............................................ 6.50% 7.00%
Effect on accumulated postretirement benefit obligation
One percent increase ............................................................. $ 5 $ 6
One percent decrease ............................................................. (5) (5)
(a) The discount rates were developed using a cash flow matching bond model with a modified duration for the qualified pension plan, non-qualified pension plan and postretirement welfare plan of
15.0, 11.9, and 6.3 years, respectively, for 2015, and 15.9, 12.4 and 6.8 years, respectively, for 2014.
(b) Determined on an active liability-weighted basis.
(c) The rate is assumed to decrease gradually to 5.00 percent by 2019 and remain at this level thereafter.
* Not applicable
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