Retirement and Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Retirement and Benefit Plans

Defined Benefit Retirement Plans with an Underfunded Status

The following table summarizes the Plan as of and for the years ended December 31:
($ in millions)		2017	2016
Fair value of plan assets at January 1	$	172	166
Actual return on assets		28	11
Contributions		6	20
Settlement		(11)	(15)
Benefits paid		(10)	(10)
Fair value of plan assets at December 31	$	185	172
Projected benefit obligation at January 1	$	206	220
Interest cost		8	9
Settlement		(11)	(15)
Actuarial loss		16	2
Benefits paid		(10)	(10)
Projected benefit obligation at December 31	$	209	206
Underfunded projected benefit obligation at December 31	$	(24)	(34)
Accumulated benefit obligation at December 31(a)	$	209	206

(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, 2017 and 2016.

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)			2017	2016	2015
Components of net periodic benefit cost:
	Interest cost	$	8	9	9
	Expected return on assets		(10)	(11)	(13)
	Amortization of net actuarial loss		7	11	10
	Settlement		4	7	7
Net periodic benefit cost		$	9	16	13
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
	Net actuarial (gain) loss	$	(1)	2	9
	Amortization of net actuarial loss		(7)	(11)	(10)
	Settlement		(4)	(7)	(7)
Total recognized in other comprehensive income			(12)	(16)	(8)
Total recognized in net periodic benefit cost and other comprehensive income		$	(3)	-	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)
2017 ($ in millions)			Level 1	Level 2	Level 3	Total Fair Value
Equity securities		$	73	-	-	73
Mutual and exchange-traded funds:
	Money market funds		7	-	-	7
	International funds		-	30	-	30
	Domestic funds		-	29	-	29
	Debt funds		-	1	-	1
	Alternative strategies		1	9	-	10
	Commodity funds		5	-	-	5
Total mutual and exchange-traded funds		$	13	69	-	82
Debt securities:
	U.S. Treasury and federal agencies securities		8	2	-	10
	Mortgage-backed securities:
	Agency residential mortgage-backed securities		-	1	-	1
	Agency commercial mortgage-backed securities		-	2	-	2
	Non-agency commercial mortgage-backed securities		-	1	-	1
	Asset-backed securities and other debt securities(b)		-	16	-	16
Total debt securities		$	8	22	-	30
Total plan assets		$	94	91	-	185

• For further information on fair value hierarchy levels, refer to Note 1.
• Includes corporate bonds.

		Fair Value Measurements Using(a)
2016 ($ in millions)			Level 1	Level 2	Level 3	Total Fair Value
Equity securities(b)		$	56	-	-	56
Mutual and exchange-traded funds:
	Money market funds		6	-	-	6
	International funds		-	31	-	31
	Domestic funds		-	39	-	39
	Debt funds		-	5	-	5
	Alternative strategies		1	9	-	10
	Commodity funds		6	-	-	6
Total mutual and exchange-traded funds		$	13	84	-	97
Debt securities:
	U.S. Treasury and federal agencies securities		7	1	-	8
	Mortgage-backed securities:
	Agency residential mortgage-backed securities		-	1	-	1
	Agency commercial mortgage-backed securities		-	2	-	2
	Asset-backed securities and other debt securities(c)		-	8	-	8
Total debt securities		$	7	12	-	19
Total plan assets		$	76	96	-	172

• For further information on fair value hierarchy levels, refer to Note 1.
• Includes holdings in Bancorp common stock.
• Includes corporate bonds.

Plan Assumptions

The following table summarizes the weighted-average plan assumptions for the years ended December 31:
		2017		2016	2015
For measuring benefit obligations at year end:(a)
	Discount rate	3.47	%	3.97	4.16
	Expected return on plan assets	6.00		7.00	7.00
For measuring net periodic benefit cost:(a)
	Discount rate	3.97		4.16	3.82
	Expected return on plan assets	6.00		7.00	7.00

(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)		2017		2016
Equity securities			76	%	73
Bancorp common stock			1		2
Total equity securities(a)	60-90	%	77		75
Fixed-income securities	5-25		16		14
Alternative strategies	3-11		3		6
Cash	0-13		4		5
Total			100	%	100

• Includes mutual and exchange-traded funds.
• These reflect the targeted ranges for both the years ended December 31, 2017 and 2016.