Pension Settlements

9 Months Ended

Sep. 30, 2017

Pension Settlements

Pension Settlements

Note 4 – Pension Settlements

As of December 31, 2016, the Company sponsored seven defined benefit pension plans. Two of the plans are tax-qualified plans that are funded based on actuarial calculations and applicable federal laws and regulations. The other five plans are unfunded nonqualified supplemental retirement plans. All seven of these plans are closed to new participants. During the three months ended September 30, 2017, the Company settled the pension obligations of its two tax-qualified plans by irrevocably transferring pension liabilities to an insurance company through the purchase of group annuity contracts and through lump sum distributions. These purchases, funded with pension plan assets, resulted in pre-tax settlement losses of $187 million in the three months ended September 30, 2017, related to the recognition of accumulated deferred actuarial losses. The settlement losses are included in other expense in the condensed consolidated statement of income.