Employee Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2020

Weighted-Average Assumptions Used for Benefit Obligations

This is a summary of the weighted-average assumptions used to determine our benefit obligations at December 31 for the plans:

	Qualified Pension Plan				SERP
	2020		2019		2020		2019
Discount rate	2.68	%	3.40	%	2.52	%	3.33	%
Rate of compensation increase	2.25-3.25		2.25-3.25		2.25-3.25		2.25-3.25

Assumptions of Net Benefit Costs

This is a summary of the weighted-average assumptions used to determine our net periodic benefit cost for the plans:

	Qualified Pension Plan						SERP
	2020		2019		2018		2020		2019		2018
Discount rate	3.40	%	4.34	%	3.73	%	3.33	%	4.25	%	3.61	%
Expected return on plan assets	7.00		7.00		7.25		n/a		n/a		n/a
Rate of compensation increase	2.25-3.25		2.25-3.25		2.75-3.25		2.25-3.25		2.25-3.25		2.75-3.25

Benefit Obligation Activity Using An Actuarial Measurement Date For Qualified Plan And SERP

Benefit obligation activity using an actuarial measurement date for our qualified pension plan and SERP at December 31 follows:

(Dollars in millions)	At December 31,
	2020		2019
Change in projected benefit obligation:
Benefit obligation, January 1	$	350	$	318
Service cost	9		8
Interest cost	12		13
Actuarial loss	51		45
Benefits paid	(35)		(34)
Projected benefit obligation, December 31	$	387	$	350
Change in plan assets:
Fair value of plan assets, January 1	$	354	$	318
Actual return on plan assets	34		70
Employer contribution	4		—
Benefits paid	(35)		(34)
Fair value of plan assets, December 31	$	357	$	354
Funded status, December 31	$	(30)	$	4
Accumulated benefit obligation	$	360	$	327

Reconciliation Of The Funded Status For Qualified Plan And SERP

A reconciliation follows of the funded status for our qualified plan and SERP at the end of the measurement period to the amounts recognized in the consolidated balance sheets at December 31:

(Dollars in millions)	At December 31,
	2020		2019
Pension amounts recognized in the consolidated balance sheets:
Other (liability) assets	$	(30)	$	4
Total	$	(30)	$	4
Pension amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	41	$	9
Total	$	41	$	9

Components Of Net Periodic Benefit Cost As Well As Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income For Qualified Plan And SERP

Below are the components of our net periodic benefit cost, as well as other changes in plan assets and benefit obligations recognized in other comprehensive income for our qualified plan and SERP at December 31:

(Dollars in millions)	Years ended December 31,
	2020		2019		2018
Net periodic benefit cost:
Service cost	$	9	$	8	$	11
Non-service costs (benefit):
Interest cost	12		13		13
Expected return on plan assets	(21)		(20)		(22)
Amortization of actuarial loss and prior service cost	3		1		1
Other	3		1		2
Net periodic benefit cost	$	6	$	3	$	5
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial (gain) loss	$	38	$	(5)	$	7
Amortization of actuarial loss	(6)		(2)		(3)
Total recognized in other comprehensive (income) loss	$	32	$	(7)	$	4
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	38	$	(4)	$	9

Fair Value Hierarchy Of Assets Measured At Fair Value On A Recurring Basis

(Dollars in millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2020
Fixed maturities, available for sale:
United States Government	$	31	$	—	$	—	$	31
Corporate	—		20		—		20
States, municipalities and political subdivisions	—		9		—		9
Total fixed maturities, available for sale	31		29		—		60
Common equities	266		—		—		266
Total	$	297	$	29	$	—	$	326
At December 31, 2019
Fixed maturities, available for sale:
United States Government	$	25	$	—	$	—	$	25
Corporate	—		27		—		27
States, municipalities and political subdivisions	—		25		—		25
Total fixed maturities, available for sale	25		52		—		77
Common equities	260		—		—		260
Total	$	285	$	52	$	—	$	337

Expected Future Benefit Payments For Qualified Plan And SERP

We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service:

(Dollars in millions)	Years ended December 31,
	2021		2022		2023		2024		2025		2026 - 2030
Expected future benefit payments	$	49	$	22	$	25	$	27	$	29	$	163