Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Funded status of the defined benefit pension plans

The following table presents the funded status of the defined benefit pension plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation.

(dollars in millions)	Pension *
At or for the Years Ended December 31,	2019		2018		2017
Projected benefit obligation, beginning of period	$	320	$	354	$	385
Interest cost	12		11		13
Actuarial loss (gain)	47		(30)		17
Benefits paid:
Plan assets	(15)		(15)		(14)
Settlement	—		—		(47)
Projected benefit obligation, end of period	364		320		354
Fair value of plan assets, beginning of period	308		341		354
Actual return on plan assets, net of expenses	69		(19)		47
Company contributions	1		1		1
Benefits paid:
Plan assets	(15)		(15)		(14)
Settlement	—		—		(47)
Fair value of plan assets, end of period	363		308		341
Funded status, end of period	$	(1)	$	(12)	$	(13)
Other liabilities recognized in the consolidated balance sheet	$	(1)	$	(12)	$	(13)
Pretax net gain (loss) recognized in accumulated other comprehensive income (loss)	$	4	$	(3)	$	4

*Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million, $9 million and $10 million at December 31, 2019, 2018 and 2017, respectively.

Schedule of PBO and ABO exceeding fair value of plan assets

Defined benefit pension plan obligations in which the PBO was in excess of the related plan assets and the ABO was in excess of the related plan assets were as follows:

(dollars in millions)	PBO and ABO Exceeds Fair Value of Plan Assets
December 31,	2019		2018
Projected benefit obligation	$	364	$	320
Accumulated benefit obligation	364		320
Fair value of plan assets	363		308

Components of net periodic benefit cost

The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans:

(dollars in millions)	Pension
Years Ended December 31,	2019		2018		2017
Components of net periodic benefit cost:
Interest cost	$	12	$	11	$	13
Expected return on assets	(15)		(18)		(18)
Settlement gain	—		—		(2)
Net periodic benefit cost	(3)		(7)		(7)
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss:
Net actuarial loss (gain)	(7)		7		(12)
Amortization of net actuarial gain (loss)	—		—		2
Total recognized in other comprehensive income or loss	(7)		7		(10)
Total recognized in net periodic benefit cost and other comprehensive income	$	(10)	$	—	$	(17)

Summary of weighted average assumptions

The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs:

	Pension
December 31,	2019		2018
Projected benefit obligation:
Discount rate	3.08	%	4.12	%
Net periodic benefit costs:
Discount rate	4.12	%	3.49	%
Expected long-term rate of return on plan assets	5.03	%	5.27	%

Expected future benefit payments

The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2019 are as follows:

(dollars in millions)	Pension
2020	$	16
2021	16
2022	16
2023	17
2024	17
2025-2029	89

Information about plan assets measured at fair value

The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

(dollars in millions)	Level 1		Level 2		Level 3		Total
December 31, 2019
Assets:
Cash and cash equivalents	$	3	$	—	$	—	$	3
Equity securities:
U.S.	1		—		—		1
International (a)	1		—		—		1
Fixed income securities:
U.S. investment grade (b)	49		290		—		339
U.S. high yield (c)	—		5		—		5
Total	$	54	$	295	$	—	$	349
Investments measured at NAV (d)							14
Total investments at fair value							$	363
December 31, 2018
Assets:
Cash and cash equivalents	$	4	$	—	$	—	$	4
Equity securities:
U.S. (e)	—		7		—		7
International (a)	—		6		—		6
Fixed income securities:
U.S. investment grade (b)	—		287		—		287
U.S. high yield (c)	—		4		—		4
Total	$	4	$	304	$	—	$	308

(a) Includes investment mutual funds in companies in emerging and developed markets.

(b) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(c) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade.

(d) We have elected the practical expedient to exclude certain investments that were measured at net asset value ("NAV") per share (or equivalent) from the fair value hierarchy.

(e) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in small cap and large cap companies.