BB&T 2015 Annual Report Download - page 136

TableofContents
The weighted average expected long-term rate of return on plan assets represents the average rate of return expected to be earned on plan assets over the
period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, BB&T considers long-term compound
annualized returns of historical market data for each asset category, as well as historical actual returns on the plan assets. Using this reference information, the
Company develops forward-looking return expectations for each asset category and a weighted average expected long-term rate of return for the plan based
on target asset allocations contained in BB&T's Investment Policy Statement. For 2016, the expected rate of return on plan assets is 7.0%.
Financial data relative to qualified and nonqualified defined benefit pension plans is summarized in the following tables for the years indicated. On the
Consolidated Balance Sheets, the qualified pension plan prepaid asset is recorded as a component of other assets and the nonqualified pension plans accrued
liability is recorded as a component of other liabilities. The data is calculated using an actuarial measurement date of December 31.
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  
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Net Periodic Pension Cost:
Service cost $ 176 $ 138 $ 150
Interest cost 157 140 120
Estimated return on plan assets (327) (296) (257)
Net amortization and other 67 17 91
Net periodic benefit cost 73 (1) 104
Pre-Tax Amounts Recognized in OCI:
Net actuarial loss (gain) 230 532 (535)
Net amortization (67) (17) (91)
Net amount recognized in OCI 163 515 (626)
Total net periodic pension costs (income) recognized in
total comprehensive income, pre-tax $ 236 $ 514 $ (522)
The following actuarial assumptions were used to determine benefit obligations:
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 
Weighted average assumed discount rate 4.68 % 4.27 %
Assumed rate of annual compensation increases 4.50 4.50
 
 
   
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Projected benefit obligation, beginning of year $ 3,227 $ 2,437 $ 367 $ 304
Service cost 164 128 12 10
Interest cost 141 124 16 16
Actuarial (gain) loss (164) 607 (3) 45
Benefits paid (80) (69) (15) (8)
Acquisitions 185 ― 15 ―
Projected benefit obligation, end of year $ 3,473 $ 3,227 $ 392 $ 367
Accumulated benefit obligation, end of year $ 2,997 $ 2,744 $ 309 $ 295
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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