GE 2015 Annual Report Download - page 234

FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION
206 GE 2015 FORM 10-K
ASSUMPTIONS USED TO MEASURE BENEFIT COST
Other pension plans (weighted average) Principal retiree benefit plans
December 31 2015 2014 2013 2015 2014 2013
Discount rate 3.53 % 4.39 % 3.92 % 3.89% (a) 4.61% (a) 3.74 % (a)
Expected return on assets 6.95 6.92 6.82 7.00 7.00 7.00
(a) Weighted average discount rates of 3.92%, 4.47% and 3.77% were used for determination of costs in 2015, 2014 and 2013, respectively.
The Society of Actuaries issued new mortality tables in 2014 projecting longer life expectancies that resulted in higher postretirement
obligations for U.S. companies. We updated our mortality assumptions as of December 31, 2014, which resulted in an increase of $612
million in our principal retiree benefit obligations.
BENEFIT OBLIGATIONS
Other pension plans Principal retiree benefit plans
(In millions) 2015 2014 2015 201
4
Balance at January 1 $ 15,589 $ 13,535 $ 10,703 $ 9,913
Service cost for benefits earned 416 403 145 164
Interest cost on benefit obligations 555 587 335 424
Participant contributions 15 9 50 52
Plan amendments (12) (29) (3,291)(a) (586)
A
ctuarial loss (gain) (406) (b) 2,170 (b) (444)(b) 1,440 (c)
Benefits paid (576) (493) (691) (704)
A
cquisitions (dispositions)/ other - net 6,859 (d) 48 (50) -
Exchange rate adjustments (822) (641) - -
Balance at December 31(e) $ 21,618 $ 15,589 $ 6,757 $ 10,703
(a) Principally related to plan amendments affecting post-65 retiree health and retiree life insurance for certain production participants.
(b) Primarily associated with discount rate changes.
(c) Principally associated with discount rate and mortality assumption changes.
(d) Substantially all related to Alstom acquisition.
(e) The benefit obligation for retiree health plans was $4,838 million and $8,445 million at December 31, 2015 and 2014, respectively.
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THE COMPOSITION OF OUR PLAN ASSETS
The fair value of other pension plans' and principal retiree benefit SODQV¶ investments is presented below. The inputs and valuation
techniques used to measure the fair value of the assets are consistently applied and described in Note 1.
Other pension plans Principal retiree benefit plans
December 31 (in millions) 2015 2014 2015 2014
Equity securities
U.S. equity securities $ 667 $ 635 $ 203 $ 205
Non-U.S. equity securities 6,323 5,285 162 125
Debt securities
Fixed income and cash investment funds 6,258 4,071 84 133
U.S. corporate 242 222 52 47
Other debt securities 551 365 93 103
Private equities 703 262 75 94
Real estate 1,358 690 6 64
Other investments 1,266 856 20 42
Total plan assets $ 17,368 $ 12,386 $ 695 $ 813
Virtually all of the private equity, real estate and the majority of other investments are considered level 3 investments. The remaining
investments are substantially all considered level 1 or level 2. A description of the fair value leveling hierarchy is provided in the
Accounting Principles and Policy section of Note 1.
206 GE 2015 FORM 10-K