EMPLOYEE RETIREMENT PLANS (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Compensation and Retirement Disclosure [Abstract] |
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| Schedule of pre-tax expense related to retirement plans |
Pre-tax expense related to our retirement plans was as follows, in millions: | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | Defined-contribution plans | $ | 58 |
| | $ | 52 |
| | $ | 43 |
| Defined-benefit pension plans | 34 |
| | 32 |
| | 25 |
| | $ | 92 |
| | $ | 84 |
| | $ | 68 |
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| Schedule of changes in the projected benefit obligation and fair value of the plan assets, and the funded status of the Company's defined-benefit pension plans |
Changes in the projected benefit obligation and fair value of plan assets, and the funded status of our defined-benefit pension plans were as follows, in millions: | | | | | | | | | | | | | | | | | | 2016 | | 2015 | | Qualified | | Non-Qualified | | Qualified | | Non-Qualified | Changes in projected benefit obligation: | |
| | |
| | |
| | |
| Projected benefit obligation at January 1 | $ | 1,059 |
| | $ | 174 |
| | $ | 1,145 |
| | $ | 190 |
| Service cost | 3 |
| | — |
| | 3 |
| | — |
| Interest cost | 41 |
| | 7 |
| | 41 |
| | 7 |
| Actuarial (gain) loss, net | 50 |
| | 1 |
| | (61 | ) | | (11 | ) | Foreign currency exchange | (29 | ) | | — |
| | (23 | ) | | — |
| Benefit payments | (69 | ) | | (12 | ) | | (46 | ) | | (12 | ) | Projected benefit obligation at December 31 | $ | 1,055 |
| | $ | 170 |
| | $ | 1,059 |
| | $ | 174 |
| Changes in fair value of plan assets: | |
| | |
| | |
| | |
| Fair value of plan assets at January 1 | $ | 658 |
| | $ | — |
| | $ | 691 |
| | $ | — |
| Actual return on plan assets | 58 |
| | — |
| | (12 | ) | | — |
| Foreign currency exchange | (20 | ) | | — |
| | (7 | ) | | — |
| Company contributions | 100 |
| | 12 |
| | 38 |
| | 12 |
| Expenses, other | (10 | ) | | — |
| | (6 | ) | | — |
| Benefit payments | (69 | ) | | (12 | ) | | (46 | ) | | (12 | ) | Fair value of plan assets at December 31 | $ | 717 |
| | $ | — |
| | $ | 658 |
| | $ | — |
| Funded status at December 31: | $ | (338 | ) | | $ | (170 | ) | | $ | (401 | ) | | $ | (174 | ) |
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| Schedule of amounts in the Company's consolidated balance sheets |
Amounts in our consolidated balance sheets were as follows, in millions: | | | | | | | | | | | | | | | | | | At December 31, 2016 | | At December 31, 2015 | | Qualified | | Non-Qualified | | Qualified | | Non-Qualified | Other assets | $ | 2 |
| | $ | — |
| | $ | 1 |
| | $ | — |
| Accrued liabilities | (1 | ) | | (12 | ) | | (3 | ) | | (12 | ) | Other liabilities | (339 | ) | | (158 | ) | | (399 | ) | | (162 | ) | Total net liability | $ | (338 | ) | | $ | (170 | ) | | $ | (401 | ) | | $ | (174 | ) |
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| Schedule of unrealized loss included in accumulated other comprehensive income before income taxes |
Unrealized loss included in accumulated other comprehensive loss before income taxes was as follows, in millions: | | | | | | | | | | | | | | | | | | At December 31, 2016 | | At December 31, 2015 | | Qualified | | Non-Qualified | | Qualified | | Non-Qualified | Net loss | $ | 519 |
| | $ | 54 |
| | $ | 501 |
| | $ | 56 |
| Net transition obligation | 1 |
| | — |
| | 1 |
| | — |
| Net prior service cost | 3 |
| | — |
| | 2 |
| | — |
| Total | $ | 523 |
| | $ | 54 |
| | $ | 504 |
| | $ | 56 |
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| Schedule of information for defined-benefit pension plans with an accumulated benefit obligation in excess of plan assets |
Information for defined-benefit pension plans with an accumulated benefit obligation in excess of plan assets was as follows, in millions: | | | | | | | | | | | | | | | | | | At December 31 | | 2016 | | 2015 | | Qualified | | Non-Qualified | | Qualified | | Non-Qualified | Projected benefit obligation | $ | 1,044 |
| | $ | 170 |
| | $ | 1,045 |
| | $ | 174 |
| Accumulated benefit obligation | $ | 1,044 |
| | $ | 170 |
| | $ | 1,045 |
| | $ | 174 |
| Fair value of plan assets | $ | 704 |
| | $ | — |
| | $ | 643 |
| | $ | — |
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| Schedule of net periodic pension cost for the Company's defined-benefit pension plans |
Net periodic pension cost for our defined-benefit pension plans was as follows, in millions: | | | | | | | | | | | | | | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | | Qualified | | Non-Qualified | | Qualified | | Non-Qualified | | Qualified | | Non-Qualified | Service cost | $ | 3 |
| | $ | — |
| | $ | 3 |
| | $ | — |
| | $ | 3 |
| | $ | — |
| Interest cost | 49 |
| | 7 |
| | 47 |
| | 7 |
| | 47 |
| | 7 |
| Expected return on plan assets | (44 | ) | | — |
| | (46 | ) | | — |
| | (45 | ) | | — |
| Recognized net loss | 17 |
| | 2 |
| | 18 |
| | 3 |
| | 11 |
| | 2 |
| Net periodic pension cost | $ | 25 |
| | $ | 9 |
| | $ | 22 |
| | $ | 10 |
| | $ | 16 |
| | $ | 9 |
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| Schedule of the Company's qualified defined-benefit pension plan weighted average asset allocation |
Our qualified defined-benefit pension plan weighted average asset allocation, which is based upon fair value, was as follows: | | | | | | | | 2016 | | 2015 | Equity securities | 49 | % | | 49 | % | Debt securities | 32 | % | | 32 | % | Other | 19 | % | | 19 | % | Total | 100 | % | | 100 | % |
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| Schedule of qualified defined-benefit pension plan assets at fair value |
The following table sets forth, by level within the fair value hierarchy, the qualified defined-benefit pension plan assets at fair value as of December 31, 2016 and 2015, as well as those valued at NAV, which approximates fair value, in millions.
M. EMPLOYEE RETIREMENT PLANS (Continued) | | | | | | | | | | | | | | | | | | | | | | At December 31, 2016 | | Level 1 | | Level 2 | | Level 3 | | Measured at NAV | | Total | Plan Assets | | | | | | | | | | Common and Preferred Stocks: | | | | | | | | | | United States | $ | 142 |
| | $ | — |
| | $ | — |
| | $ | 118 |
| | $ | 260 |
| International | 74 |
| | — |
| | — |
| | 16 |
| | 90 |
| Private Equity and Hedge Funds: | | | | | | | | | | United States | — |
| | — |
| | 37 |
| | — |
| | 37 |
| International | — |
| | — |
| | 24 |
| | 32 |
| | 56 |
| Corporate Debt Securities: | | | | | | | | | | United States | 27 |
| | 28 |
| | — |
| | 2 |
| | 57 |
| International | — |
| | 26 |
| | — |
| | 17 |
| | 43 |
| Government and Other Debt Securities: | | | | | | | | | | United States | 46 |
| | 4 |
| | — |
| | — |
| | 50 |
| International | 27 |
| | 53 |
| | — |
| | — |
| | 80 |
| Common Collective Trust Fund – United States | — |
| | 4 |
| | — |
| | — |
| | 4 |
| Short-Term and Other Investments: |
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| |
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| | | |
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| United States | 2 |
| | — |
| | — |
| | — |
| | 2 |
| International | 5 |
| | 15 |
| | 18 |
| | — |
| | 38 |
| Total Plan Assets | $ | 323 |
| | $ | 130 |
| | $ | 79 |
| | $ | 185 |
| | $ | 717 |
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| | | | | | | | | | | | | | | | | | | | | | At December 31, 2015 | | Level 1 | | Level 2 | | Level 3 | | Measured at NAV | | Total | Plan Assets | | | | | | | | | | Common and Preferred Stocks: | | | | | | | | | | United States | $ | 127 |
| | $ | 33 |
| | $ | — |
| | $ | 93 |
| | $ | 253 |
| International | 55 |
| | 7 |
| | — |
| | 7 |
| | 69 |
| Private Equity and Hedge Funds: | | | | | | | | | | United States | — |
| | — |
| | 49 |
| | 3 |
| | 52 |
| International | — |
| | — |
| | 20 |
| | 4 |
| | 24 |
| Corporate Debt Securities: | | | | | | | | | | United States | 18 |
| | 26 |
| | — |
| | — |
| | 44 |
| International | — |
| | 32 |
| | — |
| | 16 |
| | 48 |
| Government and Other Debt Securities: | | | | | | | | | | United States | 64 |
| | 3 |
| | — |
| | — |
| | 67 |
| International | 23 |
| | 30 |
| | — |
| | — |
| | 53 |
| Common Collective Trust Fund – United States | — |
| | 4 |
| | — |
| | — |
| | 4 |
| Short-Term and Other Investments: | |
| | |
| | |
| | | | |
| United States | 2 |
| | — |
| | — |
| | — |
| | 2 |
| International | 2 |
| | 21 |
| | 19 |
| | — |
| | 42 |
| Total Plan Assets | $ | 291 |
| | $ | 156 |
| | $ | 88 |
| | $ | 123 |
| | $ | 658 |
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| Schedule of changes in the fair value of the qualified defined-benefit pension plan level 3 assets |
Changes in the fair value of the qualified defined-benefit pension plan Level 3 assets, were as follows, in millions: | | | | | | | | | | 2016 | | 2015 | Fair Value, January 1 | $ | 88 |
| | $ | 97 |
| Purchases | 6 |
| | 4 |
| Sales | (19 | ) | | (11 | ) | Transfers, net | — |
| | — |
| Unrealized gains (losses) | 4 |
| | (2 | ) | Fair Value, December 31 | $ | 79 |
| | $ | 88 |
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| Schedule of weighted-average major assumptions used in accounting for the Company's defined-benefit pension plans |
Weighted-average major assumptions used in accounting for our defined-benefit pension plans were as follows: | | | | | | | | | | | 2016 | | 2015 | | 2014 | Discount rate for obligations | 3.50 | % | | 4.00 | % | | 3.80 | % | Expected return on plan assets | 7.25 | % | | 7.25 | % | | 7.25 | % | Rate of compensation increase | — |
| | — |
| | — |
| Discount rate for net periodic pension cost | 4.00 | % | | 3.80 | % | | 4.40 | % |
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| Schedule of benefits expected to be paid relating to the Company's defined-benefit pension plans |
At December 31, 2016, the benefits expected to be paid in each of the next five years, and in aggregate for the five years thereafter, relating to our defined-benefit pension plans, were as follows, in millions: | | | | | | | | | | Qualified Plans | | Non-Qualified Plans | 2017 | $ | 49 |
| | $ | 12 |
| 2018 | $ | 50 |
| | $ | 12 |
| 2019 | $ | 50 |
| | $ | 12 |
| 2020 | $ | 52 |
| | $ | 12 |
| 2021 | $ | 52 |
| | $ | 12 |
| 2022 - 2026 | $ | 272 |
| | $ | 58 |
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