Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
The discount rate used to measure our benefit obligations is determined at the end of each year. As of December 31, 2015, we used discount rates of 4.80% for the domestic pension plan and 4.65% for the domestic postretirement benefit plan and a weighted-average discount rate of 3.61% for our significant foreign pension plans to measure our benefit obligations. A 25 basis point increase or decrease in the discount rate would have decreased or increased the December 31, 2015 benefit obligation by approximately $24.0 and $26.0, respectively.
The expected rate of return on pension plan assets is another significant assumption that impacts our net pension cost and is determined at the beginning of the year. Our expected rate of return considers asset class index returns over various market and economic conditions, current and expected market conditions, risk premiums associated with asset classes and long-term inflation rates. We determine both a short-term and long-term view and then select a long-term rate of return assumption that matches the duration of our liabilities.
For 2015, the weighted-average expected rates of return of 7.00% and 5.01% were used in the calculation of net pension costs for the domestic and significant foreign pension plans, respectively. For 2016, we plan to use expected rates of return of 7.00% and 5.43% for the domestic and significant foreign pension plans, respectively. Changes in the rates are typically due to lower or higher expected future returns based on the mix of assets held. A lower expected rate of return would increase our net pension cost. A 25 basis point increase or decrease in the expected return on plan assets would have decreased or increased the 2015 net pension cost by approximately $1.0.
RECENT ACCOUNTING STANDARDS
See Note 15 to the Consolidated Financial Statements for further information on certain accounting standards that have been adopted during 2015 or that have not yet been required to be implemented and may be applicable to our future operations.