XML 32 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
Employee Benefit Plans
9 Months Ended
Sep. 30, 2017
Defined Contribution Plan Disclosure [Line Items]  
Employee Benefit Plans
NOTE 11 - EMPLOYEE BENEFIT PLANS
The Company sponsors various compensation and benefit programs to attract and retain talent. Aligned with a pay for performance culture, the Company's plans and programs include short-term incentives, AIP, and various LTI plans. See Note 15, “Employee Benefit Plans,” to the Company's 2016 Annual Report on Form 10-K for additional information regarding the Company's employee benefit plans.

Stock-based compensation expense recognized in employee compensation in the Consolidated Statements of Income consisted of the following:
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2017
 
2016
 
2017
 
2016
RSUs

$14

 

$13

 

$64

 

$44

Phantom stock units 1
17

 
16

 
57

 
39

Restricted stock

 

 

 
2

Total stock-based compensation expense

$31

 

$29

 

$121

 

$85

 
 
 
 
 
 
 
 
Stock-based compensation tax benefit 2

$12

 

$11

 

$46

 

$32

1 Phantom stock units are settled in cash.
2 Does not include excess tax benefits or deficiencies recognized in the Provision for income taxes in the Consolidated Statements of Income.

Components of net periodic benefit related to the Company's pension and other postretirement benefits plans are presented in the following table and are recognized in employee benefits in the Consolidated Statements of Income:
 
Pension Benefits 1
 
Other Postretirement Benefits
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Service cost

$1

 

$1

 

$4

 

$4

 

$—

 

$—

 

$—

 

$—

Interest cost
24

 
24

 
71

 
73

 

 

 
1

 
1

Expected return on plan assets
(49
)
 
(46
)
 
(146
)
 
(140
)
 
(1
)
 
(1
)
 
(4
)
 
(3
)
Amortization of prior service credit

 

 

 

 
(1
)
 
(1
)
 
(4
)
 
(4
)
Amortization of actuarial loss
6

 
6

 
18

 
19

 

 

 

 

Net periodic benefit

($18
)
 

($15
)
 

($53
)
 

($44
)
 

($2
)
 

($2
)
 

($7
)
 

($6
)
1 Administrative fees are recognized in service cost for each of the periods presented.

In the second quarter of 2017, the Company amended its NCF Retirement Plan in accordance with its decision to terminate the pension plan effective as of July 31, 2017. The NCF pension plan termination is expected to be completed by the end of 2018 and the Company is in process of evaluating the impact of the termination and expected future settlement accounting on its Consolidated Financial Statements and related disclosures.