Eme r s on 2013 Ann u al R e por t 47 11 Postretirement Plans The Company sponsors unfunded postretirement beneft plans primarily health care for certain US retirees and their dependents The components of net postretirement benefts expense for the years ended September 30 follow 2011 2012 2013 Service cost 3 2 2 Interest cost 17 16 12 Net amortization 7 11 13 Net postretirement expense 13 7 1 Reconciliations of the actuarial present value of accumulated postretirement beneft obligations follow 2012 2013 Benefit obligation beginning 392 367 Service cost 2 2 Interest cost 16 12 Actuarial gain loss 10 83 Benefits paid 17 20 Plan amendments 16 Benefit obligation ending recognized in balance sheet 367 278 As of September 30 2013 there were 169 of deferred actuarial gains in accumulated other comprehensive income of which approximately 21 will be amortized into earnings in 2014 The assumed discount rates used in measuring the beneft obligations as of September 30 2013 2012 and 2011 were 400 percent 325 percent and 425 percent respectively The assumed health care cost trend rate for 2014 is 70 percent declining to 50 percent in 2018 and for 2013 was 75 percent declining to 50 percent in 2018 A onepercentagepoint increase or decrease in the assumed health care cost trend rate for each year would increase or decrease postretirement expense and the beneft obligation by inconsequential amounts The Company estimates that future health care beneft payments will be 26 in 2014 26 in 2015 25 in 2016 25 in 2017 25 in 2018 and 113 in total over the fve years 2019 through 2023 12 c ontingent l iabilities and c ommitments Emerson is a party to a number of pending legal proceedings and claims including those involving general and product liability and other matters several of which claim substantial amounts of damages The Company accrues for such liabilities when it is probable that future costs including legal fees and expenses will be incurred and such costs can be reasonably estimated Accruals are based on developments to date managements estimates of the outcomes of these matters the Companys experience in contesting litigating and settling similar matters and any related insurance coverage Although it is not possible to predict the ultimate outcome of these matters the Company historically has been successful in defending itself against claims and suits that have been brought against it and will continue to defend itself vigorously in all such matters While the Company believes a material adverse impact is unlikely given the inherent uncertainty of litigation a remote possibility exists that a future development could have a material adverse impact on the Company The Company enters into certain indemnifcation agreements in the ordinary course of business in which the indemnifed party is held harmless and is reimbursed for losses incurred from claims by third parties usually up to a prespecifed limit In connection with divestitures of certain assets or businesses the Company often provides indemnities to the buyer with respect to certain matters including as examples environmental or unidentifed tax liabilities related to periods prior to the disposition Because of the uncertain nature of the indemnities the maximum liability cannot be quantifed As such contingent liabilities are recorded when they are both probable and reasonably estimable Historically payments under indemnity arrangements have been inconsequential On October 22 2012 Invensys Systems Inc fled a suit for patent infringement against the Company and its whollyowned indirect subsidiary Micro Motion Inc in the Eastern District of Texas captioned Invensys Systems Inc v Emerson Electric Co and Micro Motion Inc USA The complaint alleges infringement on Invensys patents by Micro Motions Coriolis fowmeter Enhanced Core Processors The Invensys suit seeks unspecifed damages for past infringement and an injunction preventing the Company and Micro Motion from engaging in future infringement It is too early in the litigation to assess any potential fnancial impact The Company and Micro Motion believe that the Invensys claims are without merit and that they have strong defenses to the claims and intend to aggressively defend the suit