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Retirement Plans
 9 Months Ended
Sep. 30, 2015
Retirement Plans [Abstract]  
Retirement Plans

 

(14)  Retirement Plans: 

The following tables provide the components of net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Pension Benefits

 

 

For the three months ended

 

For the nine months ended

 

 

September 30,

 

September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2015

 

2014

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Components of net periodic pension benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$
14 

 

$
9 

 

$
41 

 

$
29 

Interest cost on projected benefit obligation

 

 
22 

 

 
19 

 

 
66 

 

 
59 

Expected return on plan assets

 

 
(32)

 

 
(23)

 

 
(96)

 

 
(70)

Amortization of unrecognized loss

 

 
9 

 

 
5 

 

 
22 

 

 
14 

Net periodic pension benefit cost

 

$
13 

 

$
10 

 

$
33 

 

$
32 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement Benefits

 

 

   Other Than Pensions (OPEB)

 

 

For the three months ended

 

For the nine months ended

 

 

September 30,

 

September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2015

 

2014

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Components of net periodic postretirement benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$
5 

 

$
3 

 

$
14 

 

$
8 

Interest cost on projected benefit obligation

 

 
7 

 

 
5 

 

 
22 

 

 
15 

Amortization of prior service cost/(credit)

 

 
(1)

 

 
(1)

 

 
(3)

 

 
(3)

Amortization of unrecognized loss

 

 
1 

 

 
1 

 

 
6 

 

 
2 

Net periodic postretirement benefit cost

 

$
12 

 

$
8 

 

$
39 

 

$
22 

 

During the first nine months of 2015 and 2014, we capitalized $15 million and $11 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. Based on current assumptions and plan asset values, we estimate that our 2015 pension and OPEB expenses will be approximately $90 million to $100 million before amounts capitalized into the cost of capital expenditures and the impact of pension settlement costs, if any, as compared to $74 million in 2014. We made total cash contributions to our pension plan during the nine months ended September 30, 2015 of $62 million and estimate that there are no further contributions required in 2015.

 

Our pension plan assets decreased from $1,673 million at December 31, 2014 to $1,576 million at September 30, 2015, a decrease of $97 million, or 6%.  This decrease is a result of benefit payments of $104 million and negative investment returns of $60 million, offset by asset transfers from the AT&T pension plan trust of $5 million related to the Connecticut Acquisition and cash contributions of $62 million during the first nine months of 2015.