Refer to the ExxonMobil information in Case 14-3.

Required:
Explain how pension expense and OCI would change if ExxonMobil were using IAS 19.

Transcribed Image Text:

Pension Benefits Postretirement Benefits U.S. Non-U.S 2015 2014 2015 2014 2015 2014 (percent) Weighted-average assumptions used to determine benefit obligations at December 31 Discount rate 4.25 4.00 3.60 3.10 4.25 4.00 5.75 5.754.805.30 5.75 5.75 Long-term rate of compensation ncrease (millions of dollars) Change in benefit obligation Benefit obligation at Janay 20,529 Service cost Interest cost Actuarial loss/(gain) Benefits paid (1) (2) Foreign exchange rate changes Amendments, divestments, and other 864 785 (545) 3,192 (1,517) 4,929 (617) 1,522 17,304 30,047 27,357 590 9,436 7,868 140 383 689 170 807 850 ,138 (2,050) (1,427) ,287) ,366 (482) (525) (48) 96 Benefit obligation at December 31 19.583 20,529 25.117 30,047 8,282 9436 (3,242) (2,540)(106) (61) 465) (24) (423) Accumulated benefit obligation at December 31 15,666 16,38522,362 26,318 Pension Benefits Postretirement Benefits U.S. Non-US. 2015 2014 2015 2014 2015 2014 (millions of dollars) Change in plan assets Fair value at January 1 Actual return on plan assets Foreign exchange rate changes Company contribution Benefit paid (1) Other 12,915 ,190 20,095 19,283 468 620 918 3,153 ー (2,109) (1,738) 554 1,632 (1,248) (890) (912) (112) 245 10,985 12,915 18,41720,095 (307) 1,497 1,476 42 (96) (224) 31 Fair value at December 31 414 468 Other Postretirement (millions of dollars) U.S. Pension Non-U.S. Pension Benefits $ 2,997 Net actuarial loss (gain) Prior service cost 6,589 $9,642 429 27 51 Other Postretirement Benefits Pension Benefits U.S. Non-U.S. 2015 2014 2013 2015 2014 2013 2015 2014 2013 Weighted-average (percent) assumptions used to determine net periodic benefit cost for years ended December 31 Discount rate Long-term rate of returrn 4.00 5.00 4.00 3.10 4.30 3.80 4.00 5.00 4.00 7.00 7.25 7.25 5.90 6.30 6.40 7.00 7.25 7.25 compensation increase 5.75 5.75 5.75 5.30 5.40 5.50 5.75 5.75 5.75 on funded assets Long-term rate of Components of net (millions of dollars) periodic benefit cost Service cost Interest cost Expected return on plan 864 677 80 689 590 697 170 140176 785 807 749 850 ,38 1,076 346 383 352 (830) (799) (835 1,094) (1,193) (1,128) (28) (37) (41) 544 409 646 730 628 852 206 6 228 6 8 787120 17 (24) 421 Amortization of actuarial loss/(gain) Amortization of prior service cost Net pe nsion enhancement and curtailment settlement cost 499 276 723 22 Net periodic benefit cost ,868 1,378 2,091 1,284 1,283 1,636 670 616 736