United states securities and exchange commission

Beginning in 2016, the Company has elected to utilize a full yield curve approach in the estimation of the service and interest cost components of net periodic pension and post-retirement benefit cost for its major pension and other post-retirement benefit plans by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected
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cash flows. In 2015 and prior years, the Company estimated these components of net periodic pension and post-retirement benefit cost by applying a single weighted-average discount rate, derived from the yield curve used to measure the benefit obligation at the beginning of the period.

In March 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.K. pension plans, that if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the second quarter of 2016. In total, lump sum payments from plan assets of £116 million ( $159 million using June 30, 2016 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the second quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of £103 million ( $141 million using June 30, 2016 Exchange rates) as well as a non-cash settlement charge of £42 million ( $61 million using average June 2016 exchange rate) in the second quarter of 2016.

In August 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.S. pension plans, that if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the fourth quarter of 2016. In total, lump sum payments from plan assets of $281 million were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.S. pension plan during the fourth quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of $325 million as well as a non-cash settlement charge of $158 million in the fourth quarter of 2016.

The weighted-average assumptions used to determine benefit obligations are as follows:

	U.K.				U.S.				Other
	2016		2015		2016		2015		2016		2015
Discount rate	2.77%		3.96%		3.53-4.11%		3.69-4.43%		1.85-3.81%		2.43-3.96%
Rate of compensation increase	3.70 - 4.20%		3.63-4.13%		N/A		N/A		1.00-3.50%		2.00-3.50%
Underlying price inflation	1.83%		1.88%		N/A		N/A		2.00-2.50%		2.00-2.50%

The weighted-average assumptions used to determine the net periodic benefit cost are as follows:

	U.K.						U.S.						Other
	2016		2015		2014		2016		2015		2014		2016		2015		2014
Discount rate	3.96%		3.70%		4.55%		3.69 - 4.43%		3.37 - 4.08%		3.97 - 4.87%		2.43 - 3.96%		2.03 - 3.91%		3.60 - 4.71%
Expected return on plan assets, net of administration expenses	4.55%		5.09%		6.00%		7.81%		7.96%		8.80%		3.47 - 4.95%		3.99 - 5.21%		4.70 - 6.50%
Rate of compensation increase	3.63 - 4.13%		3.55 - 4.05%		3.70 - 4.40%		N/A		N/A		N/A		2.00 - 3.50%		2.25 - 3.50%		2.25 - 3.50%