At December 31, 2015, ExxonMobil had 4,156 million shares of outstanding common stock. The closing market price of each share of stock at December 31, 2015, was $77.95.

Presented below are excerpts from the 2015 annual report of ExxonMobil Corporation.

The benefit obligations and plan assets associated with the Corporations principal benefit plans are measured on December 31.

(1) Benefit payments for funded and unfunded plans.

(2) For 2015 and 2014, other postretirement benefits paid are net of $15 million and $21 million of Medicare subsidy receipts, respectively.

For selection of the discount rate for U.S. plans, several sources of information are considered, including interest rate market indicators and the discount rate determined by use of a yield curve based on high-quality, noncallable bonds with cash flows that match estimated outflows for benefit payments. For major non-U.S. plans, the discount rate is determined by using bond portfolios with an average maturity approximating that of the liabilities or spot yield curves, both of which are constructed using high-quality, local-currency-denominated bonds.

(1)Benefit payments for funded plans.

At December 31, 2014, the following amounts were in accumulated other comprehensive income:

Required:

1. What is the amount of assets or liabilities recognized on ExxonMobils balance sheet for its U.S. pension benefits at December 31, 2015?

2. Compute the December 31, 2015, balance of Accumulated Other Comprehensive IncomeActuarial Losses (Gains) for the U.S. Pension Plans. The amounts are before taxes. Be sure to label your items and show your computations. The Net pension enhancement and curtailment/settlement cost of $499 million in pension expense should be treated in the same way that you treat Amortization of actuarial loss/(gain).

   

3. Based on information in the pension note, would you expect the 2016 expense for the U.S. pension plans to be higher or lower than its 2015 amount? Explain.

4. Compute the short-term pension risk ratio and the short-term OPEB risk ratio as of December 31, 2015. Consider U.S. and non-U.S. pension plans.

5. Compute the long-term pension risk ratio and the long-term OPEB risk ratio as of December 31, 2015. Consider U.S. and non-U.S. pension plans.

6. Based on your answers to requirements 4 and 5, explain whether ExxonMobil has significant pension and OPEB risk.