Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Accumulated Benefit Obligation, Change in Benefit Obligation, Change in Plan Assets, Plans' Funded Status and Amount Included in Consolidated Balance Sheets

The following tables provide information relating to the accumulated benefit obligation, change in benefit obligation, change in plan assets, the plans’ funded status and the amount included in the Consolidated Balance Sheets for the qualified and non-qualified plans described above (collectively, the Plans):

TABLE 17.1



December 31	2018									2017
	Qualified			Non-Qualified			Total			Qualified			Non-Qualified			Total
(in millions)
Accumulated benefit obligation	$	145		$	18		$	163		$	161		$	20		$	181
Projected benefit obligation at beginning of year	$	162		$	20		$	182		$	133		$	20		$	153
Acquisition	—			—			—			30			—			30
Interest cost	6			—			6			6			1			7
Actuarial loss	(12		)	(1		)	(13		)	9			—			9
Benefits paid	(11		)	(1		)	(12		)	(9		)	(1		)	(10		)
Settlement	—			—			—			(7		)	—			(7		)
Projected benefit obligation at end of year	$	145		$	18		$	163		$	162		$	20		$	182
Fair value of plan assets at beginning of year	$	164		$	—		$	164		$	137		$	—		$	137
Acquisition	—			—			—			25			—			25
Actual return on plan assets	(7		)	—			(7		)	18			—			18
Corporation contribution	4			1			5			—			1			1
Benefits paid	(11		)	(1		)	(12		)	(9		)	(1		)	(10		)
Settlement	—			—			—			(7		)	—			(7		)
Fair value of plan assets at end of year	$	150		$	—		$	150		$	164		$	—		$	164
Funded status of plans	$	5		$	(18	)	$	(13	)	$	2		$	(20	)	$	(18	)

Schedule of Actuarial Assumptions Used in Determination of Projected Benefit Obligation

Actuarial assumptions used in the determination of the projected benefit obligation in the Plans are as follows:

TABLE 17.2



Assumptions at December 31	2018		2017
Weighted average discount rate	4.18	%	3.53	%
Rates of average increase in compensation levels	3.50		3.50

Schedule of Net Periodic Pension Cost and Other Comprehensive Income

The net periodic pension cost and other comprehensive income for the Plans included the following components:

TABLE 17.3



Year Ended December 31	2018			2017			2016
(in millions)
Interest cost	$	6		$	7		$	6
Expected return on plan assets	(11		)	(11		)	(9		)
Actuarial loss amortization	2			2			2
Total pension income	(3		)	(2		)	(1		)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial loss	6			3			2
Amortization of actuarial loss	(2		)	(2		)	(2		)
Total amount recognized in other comprehensive income	4			1			—
Total amount recognized in net periodic benefit cost and other comprehensive income	$	1		$	(1	)	$	(1	)

Schedule of Actuarial Assumptions Used in Determination of Net Periodic Pension Cost

The plans have an actuarial measurement date of December 31. Actuarial assumptions used in the determination of the net periodic pension cost in the Plans are as follows:

TABLE 17.4



Assumptions for the Year Ended December 31	2018		2017		2016
Weighted average discount rate	4.19	%	3.96	%	4.19	%
Rates of increase in compensation levels	3.50		3.50		3.50
Expected long-term rate of return on assets	7.25		7.25		7.25

Schedule of Impact of Changes in Discount Rate, Return on Plan Assets on Pension Expense

The impact of changes in the discount rate and expected long-term rate of return on plan assets would have had the following effects on 2018 pension expense:

TABLE 17.5



(in millions)	Estimated Effect on Pension Expense
0.5% decrease in the discount rate	$	—
0.5% decrease in the expected long-term rate of return on plan assets	1

Schedule of Estimated Future Cash Flows

The following table provides information regarding estimated future cash flows relating to the Plans at December 31, 2018:

TABLE 17.6



(in millions)
Expected employer contributions:	2019	$	1
Expected benefit payments:	2019	10
	2020	10
	2021	10
	2022	10
	2023	11
	2024 – 2028	53

Schedule of Contribution Expense

Our contribution expense is presented in the following table:

TABLE 17.7



Year Ended December 31	2018		2017		2016
(in millions)
401(k) contribution expense	$	15	$	12	$	9

Schedule of Asset Allocations for Pension Plans

The following table presents asset allocations for our pension plans as of December 31, 2018 and 2017, and the target allocation for 2019, by asset category:

TABLE 17.8



	Target Allocation	Percentage of Plan Assets
December 31	2019	2018		2017
Asset Category
Equity securities	45 - 65	55	%	64	%
Debt securities	30 - 50	41		33
Cash equivalents	0 - 10	4		3

Schedule of Fair Values of Pension Plan Assets by Asset Category

The fair values of our pension plan assets by asset category are as follows:

TABLE 17.9



(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2018
Asset Class
Cash	$	6	$	—	$	—	$	6
Equity securities:
F.N.B. Corporation	6		—		—		6
Other large-cap U.S. financial services companies	3		—		—		3
Other large-cap U.S. companies	43		—		—		43
International companies	1		—		—		1
Mutual fund equity investments:
U.S. equity index funds:
U.S. small-cap equity index funds	3		—		—		3
U.S. mid-cap equity index funds	4		—		—		4
Non-U.S. equities growth fund	6		—		—		6
U.S. equity funds:
U.S. mid-cap	9		—		—		9
U.S. small-cap	3		—		—		3
Other	4		—		—		4
Fixed income securities:
U.S. government agencies	—		49		—		49
Corporate bonds	—		2		—		2
Fixed income mutual funds:
U.S. investment-grade fixed income securities	11		—		—		11
Total	$	99	$	51	$	—	$	150



(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2017
Asset Class
Cash	$	6	$	—	$	—	$	6
Equity securities:
F.N.B. Corporation	8		—		—		8
Other large-cap U.S. financial services companies	4		—		—		4
Other large-cap U.S. companies	46		—		—		46
International companies	1		—		—		1
Other equity	1		—		—		1
Mutual fund equity investments:
U.S. equity index funds:
U.S. large-cap equity index funds	3		—		—		3
U.S. small-cap equity index funds	4		—		—		4
U.S. mid-cap equity index funds	5		—		—		5
Non-U.S. equities growth fund	14		—		—		14
U.S. equity funds:
U.S. mid-cap	9		—		—		9
U.S. small-cap	3		—		—		3
Other	6		—		—		6
Fixed income securities:
U.S. government agencies	—		37		—		37
Corporate bonds	—		6		—		6
Fixed income mutual funds:
U.S. investment-grade fixed income securities	11		—		—		11
Total	$	121	$	43	$	—	$	164