EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2018

Employee Benefits and Share-based Compensation, Noncash [Abstract]

Reconciliation of Changes in Plan Assets Benefit Obligations and Funded Status

The following tables show the reconciliation of changes in plan assets, benefit obligations, and the plans’ aggregate funded status for pension benefits and other benefits for PG&E Corporation during 2018 and 2017:

Pension Plan



(in millions)	2018			2017
Change in plan assets:
Fair value of plan assets at beginning of year	$	16,652		$	14,729
Actual return on plan assets	(923		)	2,380
Company contributions	334			335
Benefits and expenses paid	(751		)	(792		)
Fair value of plan assets at end of year	$	15,312		$	16,652

Change in benefit obligation:
Benefit obligation at beginning of year	$	18,757		$	17,305
Service cost for benefits earned	514			472
Interest cost	687			714
Actuarial (gain) loss	(1,800		)	1,048
Plan amendments	—			10
Benefits and expenses paid	(751		)	(792		)
Benefit obligation at end of year⁽¹⁾	$	17,407		$	18,757

Funded Status:
Current liability	$	(8	)	$	(7	)
Noncurrent liability	(2,087		)	(2,098		)
Net liability at end of year	$	(2,095	)	$	(2,105	)

⁽¹⁾ PG&E Corporation’s accumulated benefit obligation was $15.8 billion and $16.8 billion at December 31, 2018 and 2017, respectively.

Postretirement Benefits Other than Pensions



(in millions)	2018			2017
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,420		$	2,173
Actual return on plan assets	(108		)	298
Company contributions	31			33
Plan participant contribution	81			87
Benefits and expenses paid	(166		)	(171		)
Fair value of plan assets at end of year	$	2,258		$	2,420

Change in benefit obligation:
Benefit obligation at beginning of year	$	1,897		$	1,877
Service cost for benefits earned	66			59
Interest cost	69			77
Actuarial (gain) loss	(221		)	(49		)
Benefits and expenses paid	(150		)	(157		)
Federal subsidy on benefits paid	3			3
Plan participant contributions	81			87
Benefit obligation at end of year	$	1,745		$	1,897

Funded Status:⁽¹⁾
Noncurrent asset	$	545		$	553
Noncurrent liability	(32		)	(30		)
Net asset at end of year	$	513		$	523

⁽¹⁾At December 31, 2018 and 2017, the postretirement medical plan was in an overfunded position and the postretirement life insurance plan was in an underfunded position.

Components of Net Periodic Benefit Cost

Net periodic benefit cost as reflected in PG&E Corporation’s Consolidated Statements of Income was as follows:

Pension Plan



(in millions)	2018			2017			2016
Service cost for benefits earned⁽¹⁾	$	514		$	472		$	453
Interest cost	687			714			715
Expected return on plan assets	(1,021		)	(770		)	(828		)
Amortization of prior service cost	(6		)	(7		)	8
Amortization of net actuarial loss	5			22			24
Net periodic benefit cost	179			431			372
Less: transfer to regulatory account⁽²⁾	157			(92		)	(34		)
Total expense recognized	$	336		$	339		$	338

⁽¹⁾ A portion of service costs are capitalized pursuant to ASU 2017-07.

⁽²⁾ The Utility recorded these amounts to a regulatory account as they are probable of recovery from customers in future rates.

Postretirement Benefits Other than Pensions



(in millions)	2018			2017			2016
Service cost for benefits earned⁽¹⁾	$	66		$	59		$	52
Interest cost	69			77			76
Expected return on plan assets	(130		)	(97		)	(107		)
Amortization of prior service cost	14			15			15
Amortization of net actuarial loss	(5		)	4			4
Net periodic benefit cost	$	14		$	58		$	40

⁽¹⁾ A portion of service costs are capitalized pursuant to ASU 2017-07.

Estimated Amortized Net Periodic Benefit

The estimated amounts that will be amortized into net periodic benefit costs for PG&E Corporation in 2019 are as follows:



(in millions)	Pension Plan			PBOP Plans
Unrecognized prior service cost	$	(6	)	$	14
Unrecognized net loss	3			(3		)
Total	$	(3	)	$	11

Schedule of Assumptions Used in Calculating Projected Benefit Cost and Net Periodic Benefit Cost

The following actuarial assumptions were used in determining the projected benefit obligations and the net periodic benefit costs. The following weighted average year-end assumptions were used in determining the plans’ projected benefit obligations and net benefit cost.



	Pension Plan						PBOP Plans
	December 31,						December 31,
	2018		2017		2016		2018	2017	2016
Discount rate	4.35	%	3.64	%	4.11	%	4.29 - 4.37%	3.60 - 3.67 %	4.05 - 4.19 %
Rate of future compensation increases	3.90	%	3.90	%	4.00	%	—	—	—
Expected return on plan assets	6.00	%	6.20	%	5.30	%	3.60 - 6.80%	3.30 - 7.10%	2.80 - 6.00%

Schedule of Assumed Health Care Cost Trend

A one-percentage-point change in assumed health care cost trend rate would have the following effects:



(in millions)	One-Percentage-Point Increase		One-Percentage-Point Decrease
Effect on postretirement benefit obligation	$	112	$	(113	)
Effect on service and interest cost	9		(10		)

Target Asset Allocation Percentages

The target asset allocation percentages for major categories of trust assets for pension and other benefit plans are as follows:



	Pension Plan						PBOP Plans
	2019		2018		2017		2019		2018		2017
Global equity securities	29	%	29	%	27	%	33	%	33	%	32	%
Absolute return	5	%	5	%	5	%	3	%	3	%	3	%
Real assets	8	%	8	%	10	%	6	%	6	%	7	%
Fixed-income securities	58	%	58	%	58	%	58	%	58	%	58	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

Schedule of Changes in Fair Value of Plan Assets

The following tables present the fair value of plan assets for pension and other benefits plans by major asset category at December 31, 2018 and 2017.



	Fair Value Measurements
	At December 31,
	2018								2017
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Pension Plan:
Short-term investments	$	333	$	22	$	—	$	355	$	287	$	424	$	—	$	711
Global equity securities	1,145		—		—		1,145		1,292		—		—		1,292
Real assets	461		—		—		461		499		—		—		499
Fixed-income securities	1,897		5,216		8		7,121		1,916		5,520		4		7,440
Assets measured at NAV	—		—		—		6,202		—		—		—		6,818
Total	$	3,836	$	5,238	$	8	$	15,284	$	3,994	$	5,944	$	4	$	16,760
PBOP Plans:
Short-term investments	$	33	$	—	$	—	$	33	$	31	$	—	$	—	$	31
Global equity securities	115		—		—		115		141		—		—		141
Real assets	50		—		—		50		55		—		—		55
Fixed-income securities	153		857		—		1,010		163		757		—		920
Assets measured at NAV	—		—		—		1,056		—		—		—		1,281
Total	$	351	$	857	$	—	$	2,264	$	390	$	757	$	—	$	2,428
Total plan assets at fair value							$	17,548							$	19,188

Schedule of Level 3 Reconciliation

The following table is a reconciliation of changes in the fair value of instruments for the pension plan that have been classified as Level 3 for the years ended December 31, 2018 and 2017:



(in millions)
For the year ended December 31, 2018	Fixed-Income
Balance at beginning of year	$	4
Actual return on plan assets:
Relating to assets still held at the reporting date	(3		)
Relating to assets sold during the period	—
Purchases, issuances, sales, and settlements:
Purchases	6
Settlements	1
Balance at end of year	$	8

(in millions)
For the year ended December 31, 2017	Fixed-Income
Balance at beginning of year	$	5
Actual return on plan assets:
Relating to assets still held at the reporting date	(1		)
Relating to assets sold during the period	—
Purchases, issuances, sales, and settlements:
Purchases	3
Settlements	(3		)
Balance at end of year	$	4

Schedule of Estimated Benefits Expected to be Paid

As of December 31, 2018, the estimated benefits expected to be paid and the estimated federal subsidies expected to be received in each of the next five fiscal years, and in aggregate for the five fiscal years thereafter, are as follows:



(in millions)	Pension Plan	PBOP Plans	Federal Subsidy
2019	778	88	(8	)
2020	855	91	(9	)
2021	891	94	(9	)
2022	925	99	(3	)
2023	957	102	(3	)
Thereafter in the succeeding five years	5,136	507	(12	)