Retirement and Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Defined Benefit Retirement Plans with an Underfunded Status

The following table summarizes the defined benefit retirement plans as of and for the years ended December 31:

($ in millions)	2020		2019
Fair value of plan assets at January 1	$	175	164
Actual return on assets	13		26
Contributions	2		2
Settlement	(9)		(9)
Benefits paid	(8)		(8)
Fair value of plan assets at December 31	$	173	175
Projected benefit obligation at January 1	$	194	181
Interest cost	6		7
Settlement	(9)		(9)
Actuarial loss	20		23
Benefits paid	(8)		(8)
Projected benefit obligation at December 31	$	203	194
Underfunded projected benefit obligation at December 31	$	(30)	(19)
Accumulated benefit obligation at December 31(a)	$	203	194

(a)Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2020 and 2019.

Net Periodic Benefit Cost and Other Changes In Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

The following table summarizes net periodic benefit cost and other changes in the Plan’s assets and benefit obligations recognized in OCI for the years ended December 31:

($ in millions)	2020		2019	2018
Components of net periodic benefit cost:
Interest cost	$	6	7	7
Expected return on assets	(4)		(8)	(11)
Amortization of net actuarial loss	6		6	6
Settlement	3		3	3
Net periodic benefit cost	$	11	8	5
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain)	$	12	5	(1)
Amortization of net actuarial loss	(6)		(6)	(6)
Settlement	(3)		(3)	(3)
Total recognized in other comprehensive income	3		(4)	(10)
Total recognized in net periodic benefit cost and other comprehensive income	$	14	4	(5)

Plan Assets Measured at Fair Value on a Recurring Basis

The following tables summarize Plan assets measured at fair value on a recurring basis as of December 31:

	Fair Value Measurements Using(a)
2020 ($ in millions)	Level 1		Level 2	Level 3	Total Fair Value
Cash equivalents	$	4	—	—	4
Mutual and exchange-traded funds	68		—	—	68
Debt securities:
U.S. Treasury and federal agencies securities	57		6	—	63
Mortgage-backed securities:
Non-agency commercial mortgage-backed securities	—		1	—	1
Asset-backed securities and other debt securities(b)	—		37	—	37
Total debt securities	$	57	44	—	101
Total Plan assets	$	129	44	—	173

(a)For further information on fair value hierarchy levels, refer to Note 1.

(b)Includes corporate bonds.

	Fair Value Measurements Using(a)
2019 ($ in millions)	Level 1		Level 2	Level 3	Total Fair Value
Cash equivalents	$	14	—	—	14
Mutual and exchange-traded funds	76		—	—	76
Debt securities:
U.S. Treasury and federal agencies securities	57		6	—	63
Mortgage-backed securities:
Non-agency commercial mortgage-backed securities	—		1	—	1
Asset-backed securities and other debt securities(b)	—		21	—	21
Total debt securities	$	57	28	—	85
Total Plan assets	$	147	28	—	175

(a)For further information on fair value hierarchy levels, refer to Note 1.

(b)Includes corporate bonds.

Plan Assumptions

The following table summarizes the weighted-average plan assumptions for the years ended December 31:

	2020		2019	2018
For measuring benefit obligations at year end:(a)
Discount rate	2.26	%	3.05	4.10
For measuring net periodic benefit cost:(a)
Discount rate	3.05		4.10	3.47
Expected return on plan assets	2.64		5.50	6.00

(a)Since the Plan’s benefits were frozen, except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits.

Weighted Average Allocation of Plan Assets

The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31:

	Targeted Range(b)	2020		2019
Equity securities(a)	0-55  %	3		19
Fixed-income securities	50-100	90		59
Alternative strategies	0-5	—		—
Cash or cash equivalents	0-100	7		22
Total		100	%	100

(a)Includes mutual and exchange-traded funds.

(b)These reflect the targeted ranges for the year ended December 31, 2020.