Retirement Plans

6 Months Ended

Jun. 30, 2016

Retirement Plans [Abstract]

Retirement Plans

(13)  Retirement Plans: 

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

	Pension Benefits
	For the three months ended				For the six months ended
	June 30,				June 30,
($ in millions)	2016		2015		2016		2015
Components of net periodic pension benefit cost
Service cost	$	34	$	14	$	47	$	27
Interest cost on projected benefit obligation		42		22		65		44
Expected return on plan assets		(65)		(32)		(92)		(64)
Amortization of unrecognized loss		11		6		21		13
Net periodic pension benefit cost	$	22	$	10	$	41	$	20

	Postretirement Benefits
	Other Than Pensions (OPEB)
	For the three months ended				For the six months ended
	June 30,				June 30,
($ in millions)	2016		2015		2016		2015
Components of net periodic postretirement benefit cost
Service cost	$	5	$	4	$	8	$	9
Interest cost on projected benefit obligation		10		8		17		15
Amortization of prior service cost/(credit)		(2)		(1)		(5)		(2)
Amortization of unrecognized loss		-		2		1		5
Net periodic postretirement benefit cost	$	13	$	13	$	21	$	27

During the first six months of 2016 and 2015, we capitalized $12million and $10 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. We made total cash contributions to our pension plan during the six months ended June 30, 2016 of $10million. 

In connection with the completion of the Verizon Acquisition, certain employees were transferred to the Frontier Communications Pension Plan (the Plan) effective April 1, 2016.  Assets of $868 million, representing approximately 90% of the total amount expected to be received, were transferred into the Plan during the second quarter of 2016, with the remainder to be transferred by the end of 2016.

Our pension plan assets increased from $1,572 million at December 31, 2015 to $2,628 million at June 30, 2016, an increase of $1,056 million, or 67%. This increase was a result of asset transfers from the Verizon pension plan trusts of $968 million related to the Verizon Acquisition, including approximately $100 million that represents a receivable of the Frontier Communications Pension Plan as of June 30, 2016, positive investment returns of $138 million, net of investment management and administrative fees, and contributions of $10 million, partially offset by benefit payments of $60 million during the first half of 2016. We expect to make cash contributions to our pension plan of approximately $10 million to $15 million for the full year of 2016, including the impact of the Verizon Acquisition.