Long-Term Employee Benefits

In connection with the completed separation of its Performance Chemicals segment on July 1, 2015 (See Note 2), the company entered into an Employee Matters Agreement with Chemours which provides that employees of Chemours no longer participate in benefit plans sponsored or maintained by the company as of the separation date. Upon separation, the company pension and other long-term employee benefit plans transferred assets and obligations to the Chemours plans resulting in a net decrease in the underfunded status of the sponsored pension and other long-term employee benefit plans of $21. Additionally, as a result of the transfer of unrecognized losses to Chemours, deferred income tax liabilities and accumulated other comprehensive loss, net of tax, decreased $88 and $278, respectively.

Pension Plans

As a result of the separation, the company recorded a pension curtailment gain of $7 and re-measured the principal U.S. pension plan as of July 1, 2015. In connection with the re-measurement, the company updated the discount rate assumed at December 31, 2014, from 4.10 percent to 4.50 percent. The re-measurement decreased the underfunded status of the pension plan by $634 with a corresponding reduction to net loss within other comprehensive income (loss) for the three and nine months ended September 30, 2015.

In determining the U.S. pension plan 2015 net periodic benefit costs, the company updated the expected return on plan assets assumption from 8.75 percent to 8.50 percent.

The company recorded a charge of $32 ($21 after-tax) during the three and nine months ended September 30, 2015, which related to settlements that occurred in prior periods. In addition, accumulated other comprehensive loss at January 1, 2013 has been revised to adjust for $54, after-tax, for settlement charges that should have been recorded in previous periods with a corresponding reduction in reinvested earnings. The settlement charges were related to the company’s Pension Restoration Plan which provides for lump sum benefit payments to certain eligible retirees. The company recognizes pension settlements when lump sum payments exceed the sum of service and interest cost components of net periodic pension cost of the plan for the year. The impact of these adjustments is not material to the company’s current or previously issued financial statements.

The following sets forth the components of the company’s net periodic benefit cost for pensions:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Service cost	$	50		$	61		$	179		$	181
Interest cost	270			290			815			875
Expected return on plan assets	(375		)	(405		)	(1,180		)	(1,211		)
Amortization of loss	172			151			591			450
Amortization of prior service (benefit) cost	(3		)	1			(6		)	2
Curtailment (gain) loss	(7		)	—			(7		)	4
Settlement loss	44			2			53			4
Net periodic benefit cost - Total	$	151		$	100		$	445		$	305
Less: Discontinued operations	(7		)	9			(5		)	31
Net periodic benefit cost - Continuing operations	$	158		$	91		$	450		$	274

Other Long-Term Employee Benefit Plans

As a result of the separation noted above, the company recorded an other long-term employee benefit plans curtailment gain of $274 and re-measured the associated plans as of July 1, 2015. In connection with the re-measurement, the company updated the plans' demographics and the discount rate assumed at December 31, 2014, from 3.95 percent to 4.30 percent. The re-measurement resulted in a net increase of $73 to the company's other long-term employee benefit obligation with a corresponding increase to net loss within other comprehensive income (loss) for the three and nine months ended September 30, 2015.

The following sets forth the components of the company’s net periodic benefit cost for other long-term employee benefits:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Service cost	$	3		$	4		$	12		$	13
Interest cost	28			30			83			91
Amortization of loss	20			15			58			43
Amortization of prior service benefit	(39		)	(54		)	(143		)	(160		)
Curtailment gain	(274		)	—			(274		)	—
Net periodic benefit cost- Total	$	(262	)	$	(5	)	$	(264	)	$	(13	)
Less: Discontinued operations	(274		)	1			(272		)	3
Net periodic benefit cost - Continuing operations	$	12		$	(6	)	$	8		$	(16	)