XML 63 R52.htm IDEA: XBRL DOCUMENT v2.4.0.8
RETIREMENT MEDICAL PLANS (Tables)
 12 Months Ended
Sep. 30, 2014
Postretirement Medical Plans with Prescription Drug Benefits [Abstract]  
Schedule Of Retiree Medical Liability Expense Assumptions
The company’s retiree medical obligations were measured as of September 30, 2014 and 2013. The following are the assumptions used in the measurement of the APBO and retiree medical expense:
 
 
2014
 
2013
 
2012
Discount rate
4.20
%
 
4.80
%
 
3.90
%
Health care cost trend rate
7.40
%
 
7.00
%
 
7.20
%
Ultimate health care trend rate
5.00
%
 
5.00
%
 
5.00
%
Year ultimate rate is reached
2022

 
2022

 
2023
Retiree Medical Liability Components At Balance Sheet Date
The APBO as of the September 30, 2014 and 2013 measurement dates are summarized as follows (in millions):
 
 
2014
 
2013
Retirees
$
465

 
$
495

Employees eligible to retire
4

 
8

Employees not eligible to retire
8

 
8

     Total
$
477

 
$
511
Rollforward Of Retiree Medical Liability
The following reconciles the change in APBO and the amounts included in the consolidated balance sheet for years ended September 30, 2014 and 2013, respectively (in millions):
 
 
2014
 
2013
APBO — beginning of year
$
511

 
$
554

Service cost
—

 
1

Interest cost
23

 
21

Participant contributions
2

 
3

Actuarial gain
(2
)
 
(20
)
Foreign currency rate changes
(1
)
 
(1
)
Curtailment gain
(16
)
 
(5
)
Benefit payments
(40
)
 
(42
)
APBO — end of year
477

 
511

Other (1)
2

 
2

Retiree medical liability
$
479

 
$
513


(1)
The company recorded a $2 million reserve for retiree medical liabilities at September 30, 2014 and 2013 as its best estimate for retroactive benefits related to the previously mentioned injunction.
Schedule Of Retiree Medical Liability Current and Long Term Components
The retiree medical liability is included in the consolidated balance sheet as follows (in millions):
 
 
September 30,
 
2014
 
2013
Current — included in compensation and benefits
$
33

 
$
37

Long-term — included in retirement benefits
446

 
476

Retiree medical liability
$
479

 
$
513
Amount Of Retiree Medical Obligations Recorded In Accumulated Other Comprehensive Loss Net Of Tax
The following table summarizes the amounts included in Accumulated Other Comprehensive Loss net of tax related to retiree medical liabilities as of September 30, 2014 and 2013 and changes recognized in Other Comprehensive Income (Loss) net of tax for the years ended September 30, 2014 and 2013.
 
 
Net Actuarial
Loss
 
Prior
Service
Cost
(Benefit)
 
Total
Balance at September 30, 2013
$
169

 
$
(19
)
 
$
150

Net actuarial gain for the year
(3
)
 
—

 
(3
)
Curtailment gain
—

 
(16
)
 
(16
)
Recognized prior service costs due to curtailment

—

 
15

 
15

Amortization for the year
(23
)
 
7

 
(16
)
       Deferred tax impact
(1
)
 
—

 
(1
)
Balance at September 30, 2014
$
142

 
$
(13
)
 
$
129

 
 
 
 
 
 
Balance at September 30, 2012
$
197

 
$
(6
)
 
$
191

Net actuarial (gain) loss for the year
1

 
(21
)
 
(20
)
Amortization for the year
(27
)
 
8

 
(19
)
Curtailment gain
(5
)
 
—

 
(5
)
Deferred tax impact
3

 
—

 
3

Balance at September 30, 2013
$
169

 
$
(19
)
 
$
150
Components Of Retiree Medical Expense
The components of retiree medical expense for years ended September 30 are as follows (in millions):

 
2014
 
2013
 
2012
Service cost
$
—

 
$
1

 
$
1

Interest cost
23

 
21

 
24

Amortization of:
 
 
 
 
 
Prior service benefit
(7
)
 
(8
)
 
(9
)
Actuarial losses
23

 
27

 
26

Recognized prior service costs due to curtailment

$
(15
)
 
$
—

 
$
—

Retiree medical expense
$
24

 
$
41

 
$
42
Retiree Medical Plan Effect Of One Percentage Point Change In Assumed Health Care Cost Trend Rates
A one-percentage point change in the assumed health care cost trend rate for all years to, and including, the ultimate rate would have the following effects (in millions):
 
 
2014
 
2013
Effect on total service and interest cost
 
 
 
1% Increase
$
2

 
$
3

1% Decrease
(2
)
 
(2
)
Effect on APBO
 
 
 
1% Increase
46

 
50

1% Decrease
(40
)
 
(43
)
Retiree Medical Plan Estimated Future Benefit Payments
The company expects future benefit payments as follows (in millions):
 
 
Gross
Benefit
Payments
 
Gross
Receipts(1)
Fiscal 2015
$
38

 
$
5

Fiscal 2016
39

 
6

Fiscal 2017
39

 
6

Fiscal 2018
40

 
7

Fiscal 2019
40

 
7

Fiscal 2020 – 2024
202

 
41

____________________

(1)
Consists of subsidies and rebates available under EGWP.