Note 12—Employee Pension and Other Postretirement Benefits

In April 2014, the pension plan was amended. Pension benefits accrued after December 31, 2014 for the majority of eligible employees will be earned under the cash balance plan formula, which was established effective October 1, 2012 for all future eligible employees. For those employees whose benefits will be earned under the cash balance plan formula, benefits earned under the previous final average pay formula will become fixed as of December 31, 2014. The health benefit plan was also amended on April 2014 to discontinue the availability of retiree health benefits for the majority of employees. As a result of these amendments, key assumptions used in computing plan benefit obligations and net periodic benefit cost were updated and the Company remeasured the plans' assets and benefit obligations as of April 30, 2014. For further information regarding key assumptions and measurement of pension plan assets and benefit obligations, see Note 16 to the Consolidated Financial Statements in Part II, Item 8 "Financial Statements and Supplementary Data" in our 2013 Form 10-K.

The following table summarizes the discount rates used in computing the present value of the pension and other benefit obligations at April 30, 2014 and December 31, 2013.

	Pension Benefits						Other Benefits

	April 30, 2014			December 31, 2013			April 30, 2014			December 31, 2013
Discount rate in determining benefit obligations		4.50	%		4.90	%		4.20	%		4.60	%

The plan amendments decreased the pension plan's and health plan's benefit obligation by $150 million and $29 million, respectively, and changes in discount rates and actuarial revisions increased the pension plan's and health plan's benefit obligations by $162 million and $21 million, respectively. These changes also resulted in an increase in accumulated other comprehensive loss before income taxes of $4 million. As a result of these amendments to the plans, estimated future benefit payments from 2014 through 2023 increased $93 million.

The following tables summarize the components of net periodic benefit cost for the three and six months ended June 30, 2014 and 2013. As a result of the amendments to the pension and health benefit plans and resulting remeasurements, 2014 total net periodic benefit cost will decrease from approximately $71 million to approximately $39 million.

	Pension Benefits						Other Benefits						Superannuation, SERP(1) and ESBP(2)

	For the Three Months Ended June 30,						For the Three Months Ended June 30,						For the Three Months Ended June 30,
(Dollars in millions)	2014			2013			2014			2013			2014		2013
Components of net periodic benefit cost:
Service cost	$	18		$	21		$	2		$	3		$	—	$	—
Interest cost		26			24			3			3			1		1
Expected return on plan assets		(47	)		(42	)		(4	)		(4	)		—		—
Amortization of prior service cost		(3	)		—			(1	)		—			—		—
Recognized net actuarial loss		14			27			—			2			1		—


Total net periodic benefit cost	$	8		$	30		$	—		$	4		$	2	$	1

	Pension Benefits						Other Benefits						Superannuation, SERP(1) and ESBP(2)

	For the Six Months Ended June 30,						For the Six Months Ended June 30,						For the Six Months Ended June 30,
(Dollars in millions)	2014			2013			2014			2013			2014		2013
Components of net periodic benefit cost:
Service cost	$	39		$	43		$	5		$	7		$	1	$	—
Interest cost		54			49			6			6			2		2
Expected return on plan assets		(95	)		(83	)		(9	)		(8	)		—		—
Amortization of prior service cost		(3	)		—			(1	)		—			—		—
Recognized net actuarial loss		28			54			—			3			1		1


Total net periodic benefit cost	$	23		$	63		$	1		$	8		$	4	$	3

(1): Supplemental Executives Retirement Plan (SERP).
(2): Executive Supplemental Benefit Plans (ESBP).