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8-K
SUNEDISON, INC. filed this Form 8-K on 09/09/2013
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Effective January 1, 2012, the amortization period for the unamortized unrealized loss was changed to the remaining life expectancy of the plan participants, which was derived from an actuarial mortality table. This change was triggered since substantially all the plan participants are now inactive/retired. Prior to 2012, the amortization period was derived based on the average remaining service period of the active participants expected to receive benefits. This change has reduced the amortization expense related to the unrealized loss.

Net periodic post-retirement benefit cost (income) consists of the following:

 

     Pension Plans      Health Care and Other Plans  

Year ended December 31,

   2012      2011      2012      2011  
In millions                            

Service cost

   $ 1.1        $ 2.9        $ —        $ —    

Interest cost

     7.8          9.4          0.8          1.1    

Expected return on plan assets

     (13.8)         (15.4)         —          —    

Amortization of prior service cost

     —          —          (0.7)         (0.5)   

Net actuarial loss (gain)

     4.1          7.9          (0.5)         (1.5)   

Settlement charges

     6.7          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net periodic benefit cost (income)

   $           5.9        $           4.8        $           (0.4)       $           (0.9)   
  

 

 

    

 

 

    

 

 

    

 

 

 

In 2012, our Parent’s pension plans experienced significant lump sum payment activity related to the 2011 global reduction in workforce previously described in Note 3. This event triggered settlement accounting with both the U.S. and foreign plans because there were significant pension benefit obligations settled during 2012.

To determine pension and other post-retirement and post-employment benefit measurements for the plans, our Parent uses a measurement date of December 31. The following is a table of actuarial assumptions used to determine the net periodic benefit cost (income):

 

     Pension Plans      Health Care and Other Plans  

Year ended December 31,

   2012      2011      2012      2011  

Weighted-average assumptions:

           

Discount rate

             3.65%                 4.58%                 3.93%                 5.09%   

Expected return on plan assets

     8.34%         8.36%         NA         NA   

Rate of compensation increase

     3.62%         3.63%         3.75%         3.75%   

Current medical cost trend rate

     NA         NA         8.00%         8.00%   

Ultimate medical cost trend rate

     NA         NA         5.00%         5.00%   

Year the rate reaches ultimate trend rate

     NA         NA         2018         2017   

 

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