Rendering

Component: (Network and Table)
Network
2311301 - Disclosure - Retirement and Deferred Compensation Plans (Tables)
(http://www.apachecorp.com/role/RetirementAndDeferredCompensationPlansTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Changes in Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension and Postretirement Benefit Plans
The following tables set forth the benefit obligation, fair value of plan assets and funded status as of December 31, 2016, 2015, and 2014, and the underlying weighted average actuarial assumptions used for the U.K. Pension Plan and U.S. postretirement benefit plan. Apache uses a measurement date of December 31 for its pension and postretirement benefit plans.
 
 
 
2016
 
2015
 
2014
 
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
 
(In millions)
Change in Projected Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation beginning of year
 
$
202

 
$
26

 
$
216

 
$
22

 
$
189

 
$
28

Service cost
 
4

 
2

 
5

 
2

 
5

 
3

Interest cost
 
7

 
1

 
8

 
1

 
9

 
1

Foreign currency exchange rate changes
 
(39
)
 

 
(10
)
 

 
(13
)
 

Actuarial losses (gains)
 
32

 
(2
)
 
(10
)
 

 
31

 
(9
)
Effect of curtailment and settlements
 

 

 

 
2

 

 

Benefits paid
 
(4
)
 
(3
)
 
(7
)
 
(2
)
 
(5
)
 
(2
)
Retiree contributions
 

 
2

 

 
1

 

 
1

Projected benefit obligation at end of year
 
202

 
26

 
202

 
26

 
216

 
22

Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
197

 

 
206

 

 
191

 

Actual return on plan assets
 
46

 

 
1

 

 
25

 

Foreign currency exchange rates
 
(39
)
 

 
(10
)
 

 
(13
)
 

Employer contributions
 
6

 
1

 
7

 
1

 
8

 
1

Benefits paid
 
(4
)
 
(3
)
 
(7
)
 
(2
)
 
(5
)
 
(2
)
Retiree contributions
 

 
2

 

 
1

 

 
1

Fair value of plan assets at end of year
 
206

 

 
197

 

 
206

 

Funded status at end of year
 
$
4

 
$
(26
)
 
$
(5
)
 
$
(26
)
 
$
(10
)
 
$
(22
)
Amounts recognized in Consolidated Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Current liability
 
$

 
$
(2
)
 
$

 
$
(2
)
 
$

 
$
(1
)
Non-current asset (liability)
 
4

 
(24
)
 
(5
)
 
(24
)
 
(10
)
 
(21
)
 
 
$
4

 
$
(26
)
 
$
(5
)
 
$
(26
)
 
$
(10
)
 
$
(22
)
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated gain (loss)
 
$
(25
)
 
$
9

 
$
(32
)
 
$
9

 
$
(37
)
 
$
10

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Assumptions used as of December 31
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
2.70
%
 
3.76
%
 
3.90
%
 
3.95
%
 
3.70
%
 
3.62
%
Salary increases
 
4.80
%
 
N/A

 
4.60
%
 
N/A

 
4.60
%
 
N/A

Expected return on assets
 
3.40
%
 
N/A

 
4.10
%
 
N/A

 
3.90
%
 
N/A

Healthcare cost trend
 
 
 
 
 
 
 
 
 
 
 
 
Initial
 
N/A

 
7.00
%
 
N/A

 
7.00
%
 
N/A

 
7.00
%
Ultimate in 2025
 
N/A

 
5.00
%
 
N/A

 
5.00
%
 
N/A

 
5.00
%
 
 
Allocations for Plan Asset Holding and Target Allocation for Company's Plan Asset
A breakout of previous allocations for plan asset holdings and the target allocation for the Company’s plan assets are summarized below:
 
 
 
Target
Allocation
 
Percentage of
Plan Assets at
Year-End
 
 
2016
 
2016
 
2015
Asset Category
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
U.K. quoted equities
 
14
%
 
14
%
 
14
%
Overseas quoted equities
 
26
%
 
26
%
 
26
%
Total equity securities
 
40
%
 
40
%
 
40
%
Debt securities:
 
 
 
 
 
 
U.K. Government bonds
 
47
%
 
47
%
 
48
%
U.K. corporate bonds
 
12
%
 
12
%
 
12
%
Debt securities
 
59
%
 
59
%
 
60
%
Cash
 
1
%
 
1
%
 
%
Total
 
100
%
 
100
%
 
100
%
 
 
Fair Values of Plan Assets for Each Major Asset Category Based on Nature and Significant Concentration of Risks in Plan Assets
The following tables present the fair values of plan assets for each major asset category based on the nature and significant concentration of risks in plan assets at December 31, 2016 and December 31, 2015:
 
 
 
Fair Value Measurements Using:
 
 
 
 
Quoted Price
in Active
Markets
(Level 1)
 
Significant
Other Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total Fair
Value
 
 
(In millions)
December 31, 2016
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
U.K. quoted equities(1)
 
$
28

 
$

 
$

 
$
28

Overseas quoted equities(2)
 
54

 

 

 
54

Total equity securities
 
82

 

 

 
82

Debt securities:
 
 
 
 
 
 
 
 
U.K. Government bonds(3)
 
97

 

 

 
97

U.K. corporate bonds(4)
 
25

 

 

 
25

Total debt securities
 
122

 

 

 
122

Cash
 
2

 

 

 
2

Fair value of plan assets
 
$
206

 
$

 
$

 
$
206

December 31, 2015
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
U.K. quoted equities(1)
 
$
27

 
$

 
$

 
$
27

Overseas quoted equities(2)
 
53

 

 

 
53

Total equity securities
 
80

 

 

 
80

Debt securities:
 
 
 
 
 
 
 
 
U.K. Government bonds(3)
 
93

 

 

 
93

U.K. corporate bonds(4)
 
24

 

 

 
24

Total debt securities
 
117

 

 

 
117

Fair value of plan assets
 
$
197

 
$

 
$

 
$
197

 
(1)
This category comprises U.K. passive equities, which are benchmarked against the FTSE 350 Index.
(2)
This category includes overseas equities, which comprises 30 percent passive global equities benchmarked against the MSCI World (NDR) Index, 12 percent passive global equities (hedged) benchmarked against the MSCI World (NDR) Hedged Index, 30 percent fundamental indexation global equities benchmarked against the FTSE RAFI Developed 1000 index, 12 percent fundamental indexation global equities (hedged) benchmarked against the FTSE RAFI Developed 1000 Hedge Index, and 16 percent emerging markets benchmarked against the MSCI Emerging Markets (NDR) Index, which has a performance target of 2 percent per annum over the benchmark over a rolling three-year period.
(3)
This category includes U.K. Government bonds, which comprises 48 percent index-linked gilts benchmarked against the FTSE Actuaries Government Securities Index-Linked Over 5 Years Index, 37 percent sterling nominal LDI bonds, and 15 percent sterling inflation linked LDI bonds, both benchmarked against ILIM Custom Benchmark index.
(4)
This category comprises U.K. corporate bonds: 12 percent benchmarked against the BofAML Sterling Corporate & Collaterlised (excluding Subordinated) Index with a performance target of 0.75 percent per annum over the benchmark over a rolling five-year period.
 
 
Components of Net Periodic Cost and Underlying Weighted Average Actuarial Assumptions Used for Pension and Postretirement Benefit Plans
The following tables set forth the components of the net periodic cost and the underlying weighted average actuarial assumptions used for the pension and postretirement benefit plans as of December 31, 2016, 2015, and 2014:
 
 
 
2016
 
2015
 
2014
 
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
 
(In millions)
Component of Net Periodic Benefit Costs
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
4

 
$
2

 
$
5

 
$
2

 
$
5

 
$
3

Interest cost
 
7

 
1

 
8

 
1

 
9

 
1

Expected return on assets
 
(7
)
 

 
(8
)
 

 
(11
)
 

Amortization of actuarial (gain) loss
 
1

 
(1
)
 
2

 

 
1

 

Curtailment (gain) loss
 

 

 

 

 

 

Net periodic benefit cost
 
$
5

 
$
2

 
$
7

 
$
3

 
$
4

 
$
4

Weighted Average Assumptions used to determine Net Period Benefit Cost for the Years ended December 31
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.90
%
 
3.95
%
 
3.70
%
 
3.62
%
 
4.60
%
 
4.33
%
Salary increases
 
4.60
%
 
N/A

 
4.60
%
 
N/A

 
4.90
%
 
N/A

Expected return on assets
 
4.10
%
 
N/A

 
3.90
%
 
N/A

 
5.60
%
 
N/A

Healthcare cost trend
 
 
 
 
 
 
 
 
 
 
 
 
Initial
 
N/A

 
7.00
%
 
N/A

 
7.00
%
 
N/A

 
7.00
%
Ultimate in 2025
 
N/A

 
5.00
%
 
N/A

 
5.00
%
 
N/A

 
5.00
%
 
 
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates
A one-percentage-point change in assumed health care cost trend rates would have the following effects:
 
 
 
Postretirement Benefits
 
 
1% Increase
 
1% Decrease
 
 
(In millions)
Effect on service and interest cost components
 
$
1

 
$
(1
)
Effect on postretirement benefit obligation
 
5

 
(4
)
 
 
Expected Future Benefit Payment
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 
 
 
Pension
Benefits
 
Postretirement
Benefits
 
 
(In millions)
2017
 
$
4

 
$
2

2018
 
4

 
2

2019
 
4

 
2

2020
 
4

 
2

2021
 
4

 
2

Years 2022-2026
 
24

 
9