XML 46 R22.htm IDEA: XBRL DOCUMENT v3.3.1.900
Pension Plans, Retirement Benefits and Savings Plans
 12 Months Ended
Dec. 31, 2015
Pension Plans, Retirement Benefits and Savings Plans disclosure  
Pension Plans, Retirement Benefits and Savings Plans disclosure [Text Block]

14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS

        The Company sponsors a qualified non-contributory defined benefit pension plan (the qualified domestic pension plan), which covers substantially all U.S. domestic employees and provides benefits under a cash balance formula, except that employees satisfying certain age and service requirements remain covered by a prior final average pay formula. In addition, the Company sponsors a nonqualified defined benefit pension plan which covers certain highly-compensated employees, pension plans for employees of its foreign subsidiaries, and a postretirement health and life insurance benefit plan for employees satisfying certain age and service requirements and for certain retirees.

Obligations and Funded Status

        The following tables summarize the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company's benefit plans. The Company uses a December 31 measurement date for its pension and postretirement benefit plans.

 
   Qualified
Domestic Pension
Plan		   Nonqualified
and Foreign
Pension Plans		   Total  
(at and for the year ended December 31, in millions)
  2015   2014   2015   2014   2015   2014  

Change in projected benefit obligation:

                                      

Benefit obligation at beginning of year

   $ 3,385   $ 2,908   $ 227   $ 209   $ 3,612   $ 3,117  

Benefits earned

     124     104     7     6     131     110  

Interest cost on benefit obligation

     135     140     9     10     144     150  

Actuarial loss (gain)

     (203 )   428     2     29     (201 )   457  

Benefits paid

     (191 )   (187 )   (8 )   (11 )   (199 )   (198 )

Plan amendments

     —     (8 )   —     —     —     (8 )

Curtailment

     —     —     —     (3 )   —     (3 )

Settlement

     —     —     —     (6 )   —     (6 )

Foreign currency exchange rate change

     —     —     (9 )   (7 )   (9 )   (7 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Benefit obligation at end of year          

   $ 3,250   $ 3,385   $ 228   $ 227   $ 3,478   $ 3,612  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Change in plan assets:

                                      

Fair value of plan assets at beginning of year

   $ 3,235   $ 3,074   $ 122   $ 129   $ 3,357   $ 3,203  

Actual return on plan assets

     (17 )   148     3     11     (14 )   159  

Company contributions

     100     200     7     7     107     207  

Benefits paid

     (191 )   (187 )   (8 )   (11 )   (199 )   (198 )

Foreign currency exchange rate change

     —     —     (9 )   (8 )   (9 )   (8 )

Settlement

     —     —     —     (6 )   —     (6 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Fair value of plan assets at end of year

     3,127     3,235     115     122     3,242     3,357  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Funded status of plan at end of year

   $ (123 ) $ (150 ) $ (113 ) $ (105 ) $ (236 ) $ (255 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Amounts recognized in the consolidated balance sheet consist of:

                                      

Accrued over-funded benefit plan assets

   $ —   $ —   $ 4   $ 6   $ 4   $ 6  

Accrued under-funded benefit plan liabilities

     (123 )   (150 )   (117 )   (111 )   (240 )   (261 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ (123 ) $ (150 ) $ (113 ) $ (105 ) $ (236 ) $ (255 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Amounts recognized in accumulated other comprehensive income consist of:

                                      

Net actuarial loss

   $ 1,079   $ 1,132   $ 52   $ 53   $ 1,131   $ 1,185  

Prior service benefit

     (8 )   (8 )   —     —     (8 )   (8 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 1,071   $ 1,124   $ 52   $ 53   $ 1,123   $ 1,177  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​


 

 
   Postretirement
Benefit Plans		  
(at and for the year ended December 31, in millions)
  2015   2014  

Change in projected benefit obligation:

              

Benefit obligation at beginning of year

   $ 255   $ 211  

Benefits earned

     —     —  

Interest cost on benefit obligation

     10     10  

Actuarial loss (gain)

     (3 )   51  

Benefits paid

     (13 )   (15 )

Plan amendments

     (11 )   —  

Foreign currency exchange rate change

     (5 )   (2 )
​ ​ ​ ​ ​ ​ ​ ​

Benefit obligation at end of year

   $ 233   $ 255  
​ ​ ​ ​ ​ ​ ​ ​

Change in plan assets:

              

Fair value of plan assets at beginning of year

   $ 16   $ 17  

Actual return on plan assets

     —     —  

Company contributions

     12     14  

Benefits paid

     (13 )   (15 )
​ ​ ​ ​ ​ ​ ​ ​

Fair value of plan assets at end of year

     15     16  
​ ​ ​ ​ ​ ​ ​ ​

Funded status of plan at end of year

   $ (218 ) $ (239 )
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

Amounts recognized in the consolidated balance sheet consist of:

              

Accrued under-funded benefit plan liability

   $ (218 ) $ (239 )
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

Amounts recognized in accumulated other comprehensive income consist of:

              

Net actuarial loss

   $ 4   $ 9  

Prior service benefit

     (35 )   (26 )
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ (31 ) $ (17 )
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

        The total accumulated benefit obligation for the Company's defined benefit pension plans was $3.37 billion and $3.51 billion at December 31, 2015 and 2014, respectively. The qualified domestic pension plan accounted for $3.15 billion and $3.29 billion of the total accumulated benefit obligation at December 31, 2015 and 2014, respectively, whereas the nonqualified and foreign plans accounted for $0.22 billion of the total accumulated benefit obligation at both December 31, 2015 and 2014.

        For pension plans with an accumulated benefit obligation in excess of plan assets, the aggregate projected benefit obligation was $3.47 billion and $3.53 billion at December 31, 2015 and 2014, respectively, and the aggregate accumulated benefit obligation was $3.36 billion and $3.43 billion at December 31, 2015 and 2014, respectively. The fair value of plan assets for the above plans was $3.23 billion and $3.27 billion at December 31, 2015 and 2014, respectively.

        The Company has discretion regarding whether to provide additional funding and when to provide such funding to its qualified domestic pension plan. In 2015, 2014 and 2013, there were no required contributions to the qualified domestic pension plan. In 2015 and 2014, the Company voluntarily made contributions totaling $100 million and $200 million, respectively, to the qualified domestic pension plan. In 2013, the Company made no voluntary contributions to the qualified domestic pension plan. There is no required contribution to the qualified domestic pension plan during 2016, and the Company has not determined whether or not additional funding will be made during 2016. With respect to the Company's foreign pension plans, there are no significant required contributions in 2016.

        The following table summarizes the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to the benefit plans.

 
   Pension Plans   Postretirement
Benefit Plans		  
(for the year ended December 31, in millions)
  2015   2014   2013   2015   2014   2013  

Net Periodic Benefit Cost:

                                      

Service cost

   $ 131   $ 110   $ 118   $ —   $ —   $ —  

Interest cost on benefit obligation

     144     150     132     10     10     9  

Expected return on plan assets

     (230 )   (218 )   (208 )   —     —     (1 )

Curtailment

     —     (1 )   —     —     —     —  

Settlement

     —     2     —     —     —     —  

Amortization of unrecognized:

                                      

Prior service benefit

     (1 )   —     —     (3 )   (2 )   (2 )

Net actuarial loss (gain)

     96     65     107     1     (3 )   —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net periodic benefit cost

   $ 140   $ 108   $ 149   $ 8   $ 5   $ 6  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other Changes in Benefit Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income:

                                      

Prior service benefit

   $ —   $ (8 ) $ —   $ (11 ) $ —   $ —  

Net actuarial loss (gain)

     43     516     (518 )   (3 )   50     (24 )

Plan amendments

     —     —     —     —     —     —  

Curtailment

     —     (2 )   —     —     —     —  

Settlement

     —     (2 )   —     —     —     —  

Amortization of prior service benefit

     1     —     —     3     2     2  

Amortization of net actuarial gain (loss)

     (96 )   (65 )   (107 )   (1 )   3     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total other changes recognized in other comprehensive income

     (52 )   439     (625 )   (12 )   55     (22 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total other changes recognized in net periodic benefit cost and other comprehensive income

   $ 88   $ 547   $ (476 ) $ (4 ) $ 60   $ (16 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

        For the defined benefit pension plans, the estimated net actuarial loss that will be reclassified (amortized) from accumulated other comprehensive income into net income as part of net periodic benefit cost over the next fiscal year is $66 million and the estimated prior service benefit to be amortized over the next fiscal year is $1 million. For the postretirement benefit plans, the estimated net actuarial loss that will be reclassified (amortized) from accumulated other comprehensive income into net income as part of net periodic benefit cost over the next fiscal year is less than $1 million, and the estimated prior service benefit to be amortized over the next fiscal year is $3 million.

Assumptions and Health Care Cost Trend Rate Sensitivity

        The following table summarizes assumptions used with regard to the Company's qualified and nonqualified domestic pension plans and the domestic postretirement benefit plans.

(at and for the year ended December 31,)
  2015   2014  

Assumptions used to determine benefit obligations

              

Discount rate:

              

Qualified domestic pension plan

     4.50 %   4.10 %

Nonqualified domestic pension plan

     4.37 %   4.10 %

Domestic postretirement benefit plan

     4.35 %   4.10 %

Future compensation increase rate

     4.00 %   4.00 %

Assumptions used to determine net periodic benefit cost

    
 		    
 		  

Discount rate

     4.10 %   4.96 %

Expected long-term rate of return on assets:

              

Pension plan

     7.25 %   7.50 %

Postretirement benefit plan

     4.00 %   4.00 %

Assumed health care cost trend rates

    
 		    
 		  

Following year:

              

Medical (before age 65)

     6.75 %   7.00 %

Medical (age 65 and older)

     7.50 %   6.50 %

Rate to which the cost trend rate is assumed to decline (ultimate trend rate)

    
5.00
%		  
5.00
%

Year that the rate reaches the ultimate trend rate:

    
 		    
 		  

Medical (before age 65)

     2022     2022  

Medical (age 65 and older)

     2025     2020  

        The discount rate assumption used to determine the benefit obligation is based on a yield-curve approach. Under this approach, individual spot rates from the yield curve of a hypothetical portfolio of high quality fixed maturity corporate bonds (rated Aa) available at the year-end valuation date, for which the timing and amount of cash outflows correspond with the timing and amount of the estimated benefit payouts of the Company's benefit plan, are applied to expected future benefits payments in measuring the projected benefit obligation. The discount rate assumption used to determine benefit obligations disclosed above represents the weighted average of the individual spot rates. For 2015, separate discount rate assumptions were used for the qualified domestic pension plan, nonqualified domestic plan and the domestic postretirement plan reflecting the different expected duration of cash flows of each plan to provide a better estimate of the benefit obligation for these plans.

        The discount rate assumption used to determine the net periodic benefit cost is the single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the year.

        In choosing the expected long-term rate of return on plan assets, the Company selected the rate that was set as the return objective by the Company's Benefit Plans Investment Committee, which had considered the historical returns of equity and fixed maturity markets in conjunction with prevailing economic and financial market conditions.

        As an indicator of sensitivity, increasing the assumed health care cost trend rate by 1% would have increased the accumulated postretirement benefit obligation by $25 million at December 31, 2015, and the aggregate of the service and interest cost components of net postretirement benefit expense by $1 million for the year ended December 31, 2015. Decreasing the assumed health care cost trend rate by 1% would have decreased the accumulated postretirement benefit obligation at December 31, 2015 by $21 million and the aggregate of the service and interest cost components of net postretirement benefit expense by $1 million for the year ended December 31, 2015.

        The assumptions made for the Company's foreign pension and foreign postretirement benefit plans are not materially different from those of the Company's qualified domestic pension plan and the domestic postretirement benefit plan.

Plan Assets

        The qualified domestic pension plan assets are invested for the exclusive benefit of the plan participants and beneficiaries and are intended, over time, to satisfy the benefit obligations under the plan. Risk tolerance is established through consideration of plan liabilities, plan funded status and corporate financial position. The asset mix guidelines have been established and are reviewed quarterly. These guidelines are intended to serve as tools to facilitate the investment of plan assets to maximize long-term total return and the ongoing oversight of the plan's investment performance. Investment risk is measured and monitored on an ongoing basis through daily and monthly investment portfolio reviews, annual liability measurements and periodic asset/liability studies.

        The Company's overall investment strategy for the qualified domestic pension plan is to achieve a mix of approximately 85% to 90% of investments for long-term growth and 10% to 15% for near-term benefit payments with a diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 55% to 65% equity securities and 20% to 40% fixed income securities, with the remainder allocated to short-term securities. Equity securities primarily include investments in large, medium and small-cap companies primarily located in the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, U.S. Treasury securities and debt securities issued by foreign governments. Other investments include two private equity funds held by the Company's qualified defined benefit pension plan. One private equity fund is focused on financial companies, and the other is focused on real estate-related investments.

        Assets of the Company's foreign pension plans are not significant.

Fair Value Measurement—Pension Plans and Other Postretirement Benefit Assets

        For a discussion of the methods employed by the Company to measure the fair value of invested assets, see note 4. The following discussion of fair value measurements applies exclusively to the Company's pension plans and other postretirement benefit assets.

        Fair value estimates for equity and bond mutual funds held by the pension plans reflect prices received from an external pricing service that are based on observable market transactions. These estimates are included in Level 1.

        Short-term securities are carried at fair value which approximates cost plus accrued interest or amortized discount. The fair value or market value of these is periodically compared to this amortized cost and is based on significant observable inputs as determined by an external pricing service. Accordingly, the estimates of fair value for such short-term securities, other than U.S. Treasury securities and money market mutual funds, provided by an external pricing service are included in the amount disclosed in Level 2 of the hierarchy. The estimated fair value of U.S. Treasury securities and money market mutual funds is included in the amount disclosed in Level 1 as the estimates are based on unadjusted market prices.

Fair Value Hierarchy—Pension Plans

        The following tables present the level within the fair value hierarchy at which the financial assets of the Company's pension plans are measured on a recurring basis.

(at December 31, 2015, in millions)
  Total   Level 1   Level 2   Level 3  

Invested assets:

                          

Fixed maturities

                          

Obligations of states, municipalities and political subdivisions

   $ 17   $ —   $ 17   $ —  

Debt securities issued by foreign governments

     16     —     16     —  

Mortgage-backed securities, collateralized mortgage obligations and pass-through securities

     16     —     16     —  

All other corporate bonds

     491     —     491     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed maturities

     540     —     540     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Mutual funds

                          

Equity mutual funds

     1,237     1,231     6     —  

Bond mutual funds

     649     646     3     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total mutual funds

     1,886     1,877     9     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Equity securities

     625     624     1     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other investments(1)

     2     —     —     2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash and short-term securities

                          

U.S. Treasury securities

     25     25     —     —  

Money market mutual funds

     23     19     4     —  

Other

     141     20     121     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total cash and short-term securities

     189     64     125     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 3,242   $ 2,565   $ 675   $ 2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(1)
The fair value estimates of the two private equity funds comprising these investments are determined by an external fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the total fair value estimates are disclosed in Level 3.

(at December 31, 2014, in millions)
  Total   Level 1   Level 2   Level 3  

Invested assets:

                          

Fixed maturities

                          

Obligations of states, municipalities and political subdivisions

   $ 19   $ —   $ 19   $ —  

Debt securities issued by foreign governments

     17     —     17     —  

Mortgage-backed securities, collateralized mortgage obligations and pass-through securities

     14     —     14     —  

All other corporate bonds

     474     —     474     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed maturities

     524     —     524     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Mutual funds

                          

Equity mutual funds

     1,290     1,283     7     —  

Bond mutual funds

     610     607     3     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total mutual funds

     1,900     1,890     10     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Equity securities

     616     615     1     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other investments(1)

     2     —     —     2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash and short-term securities

                          

Money market mutual funds

     22     18     4     —  

Other

     293     29     264     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total cash and short-term securities

     315     47     268     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 3,357   $ 2,552   $ 803   $ 2  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(1)
The fair value estimates of the two private equity funds comprising these investments are determined by an external fund manager based on recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the total fair value estimates are disclosed in Level 3.

        The balance of Level 3 fair value investments was $2 million at December 31, 2015 and the change in balance from the prior year was insignificant.

Other Postretirement Benefit Plan

        The Company's overall investment strategy is to achieve a mix of approximately 35% to 65% of investments for long-term growth and 35% to 60% for near-term insurance payments with a wide diversification of asset types, fund strategies and fund managers. The current target allocations for plan assets are 25% to 75% fixed income securities, with the remainder allocated to short-term securities. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities and U.S. Treasuries.

Fair Value—Other Postretirement Benefit Plan

        The Company's other postretirement benefit plan had financial assets of $15 million and $16 million at December 31, 2015 and 2014, respectively, which are measured at fair value on a recurring basis. The assets are primarily corporate bonds and short-term securities and categorized as level 2 in the fair value hierarchy.

Estimated Future Benefit Payments

        The following table presents the estimated benefits expected to be paid by the Company's pension and postretirement benefit plans for the next ten years (reflecting estimated future employee service).

 
   Benefits Expected to be Paid  
(in millions)
  Pension Plans   Postretirement
Benefit Plans		  

2016

   $ 215   $ 14  

2017

     218     14  

2018

     224     15  

2019

     231     15  

2020

     237     15  

2021 through 2025

     1,215     76  

Savings Plan

        The Company has a savings plan, The Travelers 401(k) Savings Plan (the Savings Plan), in which substantially all U.S. domestic Company employees are eligible to participate. Under the Savings Plan, the Company matches employee contributions up to 5% of eligible pay, with a maximum annual match of $6,000 which becomes 100% vested after three years of service. The Company's matching contribution is made in cash and invested according to the employee's current investment elections and can be reinvested into other investment options in accordance with the terms of the plan. The Company's non-U.S. employees participate in separate savings plans. The total expense related to all of the savings plans was $109 million, $103 million and $100 million for the years ended December 31, 2015, 2014 and 2013, respectively.

        All common shares held by the Savings Plan are considered outstanding for basic and diluted EPS computations and dividends paid on all shares are charged to retained earnings.