JOHNSON CONTROLS INC | 2013 | FY | 3

The table that follows contains the ABO and reconciliations of the changes in the PBO, the changes in plan assets and the funded status (in millions):
 
Pension Benefits
 
Postretirement
Benefits
 
U.S. Plans
 
Non-U.S. Plans
 
September 30,
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Benefit Obligation
$
2,839

 
$
3,586

 
$
1,905

 
$
1,904

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Change in Projected Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
3,736

 
2,953

 
2,025

 
1,852

 
266

 
259

Service cost
90

 
69

 
38

 
41

 
5

 
5

Interest cost
151

 
150

 
64

 
73

 
11

 
13

Plan participant contributions
—

 
—

 
5

 
6

 
6

 
7

Acquisitions
—

 
—

 
2

 
6

 
—

 
—

Divestitures (1)
—

 
—

 
(20
)
 
(2
)
 
—

 
—

Actuarial (gain) loss
(452
)
 
722

 
84

 
109

 
(21
)
 
7

Amendments made during the year
(2
)
 
—

 
1

 
(6
)
 
—

 
—

Benefits and settlements paid
(621
)
 
(158
)
 
(176
)
 
(93
)
 
(22
)
 
(31
)
Estimated subsidy received
—

 
—

 
—

 
—

 
1

 
2

Curtailment
—

 
—

 
(15
)
 
(2
)
 
—

 
—

Other
—

 
—

 
4

 
41

 
—

 
2

Currency translation adjustment
—

 
—

 
(15
)
 
—

 
(1
)
 
2

 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at end of year
$
2,902

 
$
3,736

 
$
1,997

 
$
2,025

 
$
245

 
$
266

 
 
 
 
 
 
 
 
 
 
 
 
Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
2,985

 
$
2,372

 
$
1,657

 
$
1,471

 
$
223

 
$
156

Actual return on plan assets
282

 
504

 
110

 
155

 
12

 
35

Acquisitions
—

 
—

 
1

 
—

 
—

 
—

Divestitures
—

 
—

 
—

 
(1
)
 
—

 
—

Employer and employee contributions
10

 
267

 
85

 
97

 
13

 
63

Benefits paid
(136
)
 
(158
)
 
(64
)
 
(74
)
 
(22
)
 
(31
)
Settlement payments
(485
)
 
—

 
(112
)
 
(19
)
 
—

 
—

Other
—

 
—

 
3

 
16

 
—

 
—

Currency translation adjustment
—

 
—

 
(24
)
 
12

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at end of year
$
2,656

 
$
2,985

 
$
1,656

 
$
1,657

 
$
226

 
$
223

 
 
 
 
 
 
 
 
 
 
 
 
Funded status
$
(246
)
 
$
(751
)
 
$
(341
)
 
$
(368
)
 
$
(19
)
 
$
(43
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in the statement of financial position consist of:
Prepaid benefit cost
$
29

 
$
3

 
$
83

 
$
61

 
$
51

 
$
39

Accrued benefit liability
(275
)
 
(754
)
 
(424
)
 
(429
)
 
(70
)
 
(82
)
 
 
 
 
 
 
 
 
 
 
 
 
Net amount recognized
$
(246
)
 
$
(751
)
 
$
(341
)
 
$
(368
)
 
$
(19
)
 
$
(43
)
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Assumptions (2)
 
 
 
 
 
 
 
 
 
 
 
Discount rate (3)
4.90
%
 
4.15
%
 
3.60
%
 
3.40
%
 
4.90
%
 
4.15
%
Rate of compensation increase
3.30
%
 
3.25
%
 
2.60
%
 
2.40
%
 
NA

 
NA


(1)
Fiscal 2013 includes $14 million of projected benefit obligations transferred to liabilities held for sale on the consolidated statement of financial position for non-U.S. plans. Refer to Note 3, "Assets and Liabilities Held for Sale," of the notes to consolidated financial statements for further information regarding the Company's disposal groups classified as held for sale.

(2)
Plan assets and obligations are determined based on a September 30 measurement date at September 30, 2013 and 2012.

(3)
The Company considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As a result, the Company uses different discount rates for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the U.S. pension and postretirement plans, the Company uses a discount rate provided by an independent third party calculated based on an appropriate mix of high quality bonds. For the non-U.S. pension and postretirement plans, the Company consistently uses the relevant country specific benchmark indices for determining the various discount rates.

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