Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

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 18.1

December 31	2020						2019
	Qualified		Non-Qualified		Total		Qualified		Non-Qualified		Total
(in millions)
Accumulated benefit obligation	$	167	$	20	$	187	$	156	$	19	$	175
Projected benefit obligation at beginning of year	$	156	$	19	$	175	$	145	$	18	$	163
Interest cost	5		1		6		6		1		7
Actuarial loss (gain)	15		2		17		15		2		17
Benefits paid	(9)		(2)		(11)		(10)		(2)		(12)
Projected benefit obligation at end of year	$	167	$	20	$	187	$	156	$	19	$	175
Fair value of plan assets at beginning of year	$	173	$	—	$	173	$	150	$	—	$	150
Actual return on plan assets	20		—		20		28		—		28
Corporation contribution	5		2		7		5		2		7
Benefits paid	(9)		(2)		(11)		(10)		(2)		(12)
Fair value of plan assets at end of year	$	189	$	—	$	189	$	173	$	—	$	173
Funded status of plans	$	22	$	(20)	$	2	$	17	$	(19)	$	(2)

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 18.2

Assumptions at December 31	2020		2019
Weighted average discount rate	2.31	%	3.17	%
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 OCI for the Plans included the following components:

TABLE 18.3

Year Ended December 31	2020		2019		2018
(in millions)
Interest cost	$	6	$	7	$	6
Expected return on plan assets	(13)		(11)		(11)
Actuarial loss amortization	3		2		2
Total pension income	(4)		(2)		(3)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial loss	10		1		6
Amortization of actuarial loss	(3)		(2)		(2)
Total amount recognized in other comprehensive income	7		(1)		4
Total amount recognized in net periodic benefit cost and other comprehensive income	$	3	$	(3)	$	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 18.4

Assumptions for the Year Ended December 31	2020		2019		2018
Weighted average discount rate	3.17	%	4.16	%	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 Estimated Future Cash Flows

The following table provides information regarding estimated future cash flows relating to the Plans at December 31, 2020:

TABLE 18.5

(in millions)
Expected employer contributions:	2021	$	1
Expected benefit payments:	2021	10
	2022	10
	2023	11
	2024	11
	2025	11
	2026 – 2030	52

Schedule of Contribution Expense

Our contribution expense is presented in the following table:

TABLE 18.6

Year Ended December 31	2020		2019		2018
(in millions)
401(k) contribution expense	$	17	$	15	$	15

Schedule of Asset Allocations for Pension Plans

The following table presents asset allocations for our pension plans as of December 31, 2020 and 2019, and the target allocation for 2021, by asset category:

TABLE 18.7

	Target Allocation	Percentage of Plan Assets
December 31	2021	2020		2019
Asset Category
Equity securities	45 - 65	63	%	60	%
Debt securities	30 - 50	36		37
Cash equivalents	0 - 10	1		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 18.8

(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2020
Asset Class
Cash	$	2	$	—	$	—	$	2
Equity securities:
F.N.B. Corporation	4		—		—		4
Other large-cap U.S. financial services companies	3		—		—		3
Other large-cap U.S. companies	60		—		—		60
Other equity	1		—		—		1
Mutual fund equity investments:
U.S. equity index funds:
U.S. large-cap equity index funds	—		—		—		—
U.S. small-cap equity index funds	5		—		—		5
U.S. mid-cap equity index funds	6		—		—		6
Non-U.S. equities growth fund	16		—		—		16
U.S. equity funds:
U.S. mid-cap	13		—		—		13
U.S. small-cap	5		—		—		5
Other	5		—		—		5
Fixed income securities:
U.S. government agencies	—		45		—		45
Corporate bonds	—		—		—		—
Fixed income mutual funds:
U.S. investment-grade fixed income securities	24		—		—		24
Total	$	144	$	45	$	—	$	189

(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2019
Asset Class
Cash	$	5	$	—	$	—	$	5
Equity securities:
F.N.B. Corporation	6		—		—		6
Other large-cap U.S. financial services companies	4		—		—		4
Other large-cap U.S. companies	54		—		—		54
Other equity	1		—		—		1
Mutual fund equity investments:
U.S. equity index funds:
U.S. large-cap equity index funds	1		—		—		1
U.S. small-cap equity index funds	3		—		—		3
U.S. mid-cap equity index funds	5		—		—		5
Non-U.S. equities growth fund	9		—		—		9
U.S. equity funds:
U.S. mid-cap	12		—		—		12
U.S. small-cap	4		—		—		4
Other	5		—		—		5
Fixed income securities:
U.S. government agencies	—		51		—		51
Corporate bonds	—		1		—		1
Fixed income mutual funds:
U.S. investment-grade fixed income securities	12		—		—		12
Total	$	121	$	52	$	—	$	173