Employee Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2011

Benefit Obligation Activity Using an Actuarial Measurement Date for Qualified Plan and SERP

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

	At December 31,
(In millions)	2011			2010
Change in projected benefit obligation:
Benefit obligation at January 1	$	245		$	221
Service cost		11			10
Interest cost		14			14
Actuarial loss		30			6
Benefits paid		(19	)		(6	)
Projected benefit obligation at December 31	$	281		$	245
Accumulated benefit obligation	$	236		$	213
Change in plan assets:
Fair value of plan assets at January 1	$	183		$	144
Actual return on plan assets		17			20
Employer contributions		35			25
Benefits paid		(19	)		(6	)
Fair value of plan assets at December 31	$	216		$	183
Unfunded status:
Unfunded status at December 31	$	(65	)	$	(62	)

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:

	At December 31,
(In millions)	2011			2010
Pension amounts recognized as other liabilities in the consolidated balance sheets:	$	(65	)	$	(62	)
Amounts recognized in accumulated other comprehensive income not yet recognized:
Net actuarial loss	$	86		$	60
Prior service cost		2			3
Total	$	88		$	63

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

Here 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:

	Years ended December 31,
(In millions)	2011			2010			2009
Service cost	$	11		$	10		$	10
Interest cost		14			14			12
Expected return on plan assets		(16	)		(14	)		(12	)
Amortization of actuarial loss and prior service cost		4			2			1
Net periodic benefit cost	$	13		$	12		$	11

	Years ended December 31,
(In millions)	2011			2010			2009
Current year actuarial loss	$	30		$	0		$	15
Recognition of actuarial loss		(4	)		(2	)		0
Recognition of prior service cost		(1	)		(1	)		(1	)
Total loss (gain) recognized in other comprehensive income	$	25		$	(3	)	$	14

Fair Value Hierarchy of Assets Measured at Fair Value on a Recurring Basis

basis at December 31, 2011 and 2010. The pension plan did not have any liabilities carried at fair value or any Level 3 assets at or during the years ended December 31, 2011 and 2010. There have been no transfers between Level 1 and Level 2 for the period ended December 31, 2011 and 2010.

	Asset fair value measurements at December 31, 2011 using:
(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Fixed maturities, available for sale:
Corporate securities	$	-	$	25	$	-	$	25
States, municipalities and political subdivisions		-		34		-		34
Total fixed maturities, available for sale		-		59		-		59
Common equities, available for sale		149		-		-		149
Preferred equities, available for sale		4		-		-		4
Total	$	153	$	59	$	-	$	212
	Asset fair value measurements at December 31, 2010 using:
(In millions)	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Fixed maturities, available for sale:
Corporate securities	$	-	$	27	$	-	$	27
States, municipalities and political subdivisions		-		21		-		21
Total fixed maturities, available for sale		-		48		-		48
Common equities, available for sale		122		-		-		122
Preferred equities, available for sale		4		-		-		4
Total	$	126	$	48	$	-	$	174

Expected Future Benefit Payments for Qualified Plan and SERP

We expect to contribute $14 million to our qualified plan and $2 million to the SERP during 2012. We expect to make the following benefit payments for our qualified plan and SERP, reflecting expected future service:

	Years ended December 31,
(In millions)	2012		2013		2014		2015		2016		2017 - 2021
Expected future benefit payments	$	23	$	26	$	22	$	16	$	20	$	127

Benefit Obligations

Weighted-Average Assumptions Used

The weighted-average assumptions used to determine benefit obligations at December 31 follow:

	Qualified Pension Plan						SERP
	2011			2010			2011			2010
Discount rate		5.10	%		5.85	%		4.75	%		5.55	%
Rate of compensation increase		3.50-5.50			3.50-5.50			3.50-5.50			3.50-5.50

Net Periodic Benefit Cost

Weighted-Average Assumptions Used

Here is a summary of the weighted-average assumptions we use to determine our net expense for the plan:

	Qualified Pension Plan									SERP
	2011			2010			2009			2011			2010			2009
Discount rate		5.85	%		6.10	%		6.00	%		5.55	%		6.10	%		6.00	%
Expected return on plan assets		7.50			8.00			8.00			n/a			n/a			n/a
Rate of compensation increase		3.50-5.50			4.00-6.00			4.00-6.00			3.50-5.50			4.00-6.00			4.00-6.00