18. Defined Contribution and Deferred Compensation Plans

Defined Contribution Plans

We sponsor defined contribution plans, which include 401(k) and money purchase plans, for eligible employees and agents. We make contributions and matching contributions to each of the active plans in accordance with the plan documents and various limitations under Section 401(a) of the Internal Revenue Code of 1986, as amended. For the years ended December 31, 2014, 2013 and 2012, expenses for these plans were $78 million, $72 million and $70 million, respectively.

Deferred Compensation Plans

We sponsor six separate non-qualified, unfunded, deferred compensation plans for employees, agents and non-employee directors.

The results for certain investment options within the plans are hedged by total return swaps. Participants’ account values change due primarily to investment earnings driven by market fluctuations. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants are able to select our stock as an investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. For further discussion of total return swaps related to our deferred compensation plans, see Note 6.

Information (in millions) with respect to these plans was as follows:



	As of December 31,
	2014		2013
Total liabilities (1)	$	495	$	468
Investments held to fund liabilities (2)		160		153

⁽¹⁾

Reported in other liabilities on our Consolidated Balance Sheets.

⁽²⁾

Reported in other assets on our Consolidated Balance Sheets.

Deferred Compensation Plan for Employees

Participants may elect to defer a portion of their compensation as defined by the plan. Participants may select from prescribed “phantom” investment options that are used as measures for calculating the returns that are notionally credited to their accounts. Under the terms of the plan, we agree to pay out amounts based upon the aggregate performance of the investment measures selected by the participants. We make matching contributions based upon amounts placed into the plan by individuals after participants have exceeded applicable limits of the Internal Revenue Code applicable to 401(k) plans. The amount of our contribution is calculated in accordance with the plan document. Expenses (in millions) for this plan were as follows:



	For the Years Ended December 31,
	2014		2013		2012
Employer matching contributions	$	10	$	9	$	7
Increase (decrease) in measurement of
liabilities, net of total return swap		5		14		7
Total	$	15	$	23	$	14

Deferred Compensation Plans for Agents

We sponsor three deferred compensation plans for certain eligible agents. Participants may elect to defer a portion of their compensation as defined by the respective plan. Participants may select from prescribed “phantom” investment options that are used as measures for calculating the returns that are notionally credited to their accounts. Under the terms of these plans, we agree to pay out amounts based upon the aggregate performance of the investment measures selected by the participants. We make matching contributions based upon amounts placed into the plans by individuals after participants have exceeded applicable limits of the Internal Revenue Code applicable to 401(k) plans. The amounts of our contributions are calculated in accordance with the plans’ documents. Expenses (in millions) for these plans were as follows:



	For the Years Ended December 31,
	2014		2013		2012
Employer matching contributions	$	2	$	1	$	1
Increase (decrease) in measurement of
liabilities, net of total return swap		2		4		2
Total	$	4	$	5	$	3

Deferred Compensation Plan for Non-Employee Directors

Non-employee directors may defer a portion of their annual cash retainers as defined by the plan. They also receive a portion of their retainer in the form of deferred stock units, which we credit quarterly in arrears to their accounts. The prescribed “phantom” investment options are identical to those offered in the employees’ deferred compensation plan. For the years ended December 31, 2014, 2013 and 2012, expenses for this plan were $2 million, $8 million and $2 million, respectively.

Deferred Compensation Plan for Former Jefferson-Pilot Corporation Agents

Eligible former agents of Jefferson-Pilot Corporation (“JP”) may defer a portion of their commissions and bonuses as defined by the plan. Participants may select from “phantom” investment options that are used as measures for calculating the returns that are notionally credited to their accounts. For the years ended December 31, 2014, 2013 and 2012, expenses for this plan were $2 million, $2 million and $3 million, respectively.