Discover Financial Services | 2013 | FY | 3


The following table provides a reconciliation of the changes in the benefit obligation and fair value of plan assets as well as a summary of the Company’s funded status (dollars in millions):
 
Pension
 
Postretirement
 
For the Calendar Year Ended December 31, 2013
 
For the One Month Ended December 31, 2012
 
For the Calendar Year Ended December 31, 2013
 
For the One Month Ended December 31, 2012
 
 
 
 
Reconciliation of benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
523

 
$
535

 
$
13

 
$
13

Service cost

 

 

 

Interest cost
21

 
2

 
1

 

Employee contributions

 

 
1

 

Actuarial (gain) loss
(78
)
 
(13
)
 
(1
)
 

Plan amendments

 

 

 

Benefits paid
(14
)
 
(1
)
 
(1
)
 

Benefit obligation at end of year
$
452

 
$
523

 
$
13

 
$
13

 
 
 
 
 
 
 
 
Reconciliation of fair value of plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
368

 
$
368

 
$

 
$

Actual return on plan assets
13

 
1

 

 

Employer contributions

 

 

 

Employee contributions

 

 
1

 

Benefits paid
(14
)
 
(1
)
 
(1
)
 

Fair value of plan assets at end of year
$
367

 
$
368

 
$

 
$

 
 
 
 
 
 
 
 
Funded status (recorded in accrued expenses and other liabilities)
$
(85
)
 
$
(155
)
 
$
(13
)
 
$
(13
)
 
 
 
 
 
 
 
 

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