Pension Plan And Other Postretirement Benefits

3 Months Ended

Mar. 31, 2017

Pension Plan And Other Postretirement Benefits [Abstract]

Pension Plan And Other Postretirement Benefits

(11) PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

The Company has defined pension and postretirement benefit plans which cover substantially all of the Company’s employees. Net periodic pension costs include the following components for the three months ended March 31, 2017 and 2016:  

	Pension Benefits
	For the three months ended
	March 31,
	2017		2016
	(in millions)
Service cost	$	2	$	4
Interest cost		1		2
Expected return on plan assets		(1)		(2)
Amortization of prior service cost		–		–
Amortization of net loss		1		–
Net periodic benefit cost	$	3	$	4

The Company’s other postretirement benefit plan had a net periodic benefit cost of $1 million for the three months ended March 31, 2017 and 2016.  

As of March 31, 2017, the Company has contributed $5million to the pension and other postretirement benefit plans in 2017.  The Company expects to contribute an additional $9 million to its pension plan during the remainder of 2017.  The Company recognized a liability of $34 million and $13 million related to its pension and other postretirement benefits, respectively, as of March 31, 2017, compared to a liability of $36 million and $13 million as of December 31, 2016.  The Company used an assumption of 4.60%during the first quarter of 2016 for both the pension and other postretirement benefit plans.In January 2016, the Company initiated a reduction in workforce that was substantially completed by the end of the first quarter of 2016.  The impact of the workforce reduction on the Company’s pension and other postretirement benefit costs was not recognized until subsequent quarters in 2016 due to the delayed timing of actuarial data available.  The Company updated the discount rate currently used in the measurement of the benefit obligation of the pension plan and other postretirement benefits plan to 4.20% in the second quarter of 2016. 

The Company maintains a non-qualified deferred compensation supplemental retirement savings plan (“Non-Qualified Plan”) for certain key employees who may elect to defer and contribute a portion of their compensation, as permitted by the plan. Shares of the Company’s common stock purchased under the terms of the Non-Qualified Plan are presented as treasury stock and totaled 11,686 shares at March 31, 2017, compared to 31,269shares at December 31, 2016.