XML 55 R46.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pension Plans, Retirement Benefits and Savings Plans (tables)
 12 Months Ended
Dec. 31, 2016
Pension Plans, Retirement Benefits and Savings Plans disclosure  
Summary of the funded status, obligations and amounts recognized in the consolidated balance sheet for the Company's benefit plans [Table Text Block]

 

(at and for the year ended December 31, 

 

Qualified Domestic
Pension Plan

 

Nonqualified and Foreign
Pension Plans

 

Total

 

in millions)

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

3,250

 

$

3,385

 

$

228

 

$

227

 

$

3,478

 

$

3,612

 

Benefits earned

 

111

 

124

 

7

 

7

 

118

 

131

 

Interest cost on benefit obligation

 

114

 

135

 

8

 

9

 

122

 

144

 

Actuarial loss (gain)

 

54

 

(203

)

15

 

2

 

69

 

(201

)

Benefits paid

 

(162

)

(191

)

(15

)

(8

)

(177

)

(199

)

Settlement

 

—

 

—

 

(3

)

—

 

(3

)

—

 

Foreign currency exchange rate change

 

—

 

—

 

(15

)

(9

)

(15

)

(9

)

Benefit obligation at end of year

 

$

3,367

 

$

3,250

 

$

225

 

$

228

 

$

3,592

 

$

3,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

3,127

 

$

3,235

 

$

115

 

$

122

 

$

3,242

 

$

3,357

 

Actual return on plan assets

 

222

 

(17

)

11

 

3

 

233

 

(14

)

Company contributions

 

200

 

100

 

14

 

7

 

214

 

107

 

Benefits paid

 

(162

)

(191

)

(15

)

(8

)

(177

)

(199

)

Settlement

 

—

 

—

 

(3

)

—

 

(3

)

—

 

Foreign currency exchange rate change

 

—

 

—

 

(16

)

(9

)

(16

)

(9

)

Fair value of plan assets at end of year

 

3,387

 

3,127

 

106

 

115

 

3,493

 

3,242

 

Funded status of plan at end of year

 

$

20

 

$

(123

)

$

(119

)

$

(113

)

$

(99

)

$

(236

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheet consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued over-funded benefit plan assets

 

$

20

 

$

—

 

$

5

 

$

4

 

$

25

 

$

4

 

Accrued under-funded benefit plan liabilities

 

—

 

(123

)

(124

)

(117

)

(124

)

(240

)

Total

 

$

20

 

$

(123

)

$

(119

)

$

(113

)

$

(99

)

$

(236

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in accumulated other comprehensive income consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

1,072

 

$

1,079

 

$

55

 

$

52

 

$

1,127

 

$

1,131

 

Prior service benefit

 

(6

)

(8

)

—

 

—

 

(6

)

(8

)

Total

 

$

1,066

 

$

1,071

 

$

55

 

$

52

 

$

1,121

 

$

1,123

 

 

 

 

Postretirement
Benefit Plans

 

(at and for the year ended December 31, in millions)

 

2016

 

2015

 

Change in projected benefit obligation:

 

 

 

 

 

Benefit obligation at beginning of year

 

$

233

 

$

255

 

Benefits earned

 

—

 

—

 

Interest cost on benefit obligation

 

8

 

10

 

Actuarial gain

 

(17

)

(3

)

Benefits paid

 

(11

)

(13

)

Plan amendments

 

—

 

(11

)

Foreign currency exchange rate change

 

1

 

(5

)

Benefit obligation at end of year

 

$

214

 

$

233

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

15

 

$

16

 

Actual return on plan assets

 

—

 

—

 

Company contributions

 

10

 

12

 

Benefits paid

 

(11

)

(13

)

Fair value of plan assets at end of year

 

14

 

15

 

Funded status of plan at end of year

 

$

(200

)

$

(218

)

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheet consist of:

 

 

 

 

 

Accrued under-funded benefit plan liability

 

$

(200

)

$

(218

)

 

 

 

 

 

 

Amounts recognized in accumulated other comprehensive income consist of:

 

 

 

 

 

Net actuarial (gain) loss

 

$

(13

)

$

4

 

Prior service benefit

 

(31

)

(35

)

Total

 

$

(44

)

$

(31

)

 
Summary of the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to the benefit plans [Table Text Block]

 

 

 

Pension Plans

 

Postretirement Benefit
Plans

 

(for the year ended December 31, in millions)

 

2016

 

2015

 

2014

 

2016

 

2015

 

2014

 

Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

118

 

$

131

 

$

110

 

$

—

 

$

—

 

$

—

 

Interest cost on benefit obligation

 

122

 

144

 

150

 

8

 

10

 

10

 

Expected return on plan assets

 

(230

)

(230

)

(218

)

—

 

—

 

—

 

Curtailment

 

—

 

—

 

(1

)

—

 

—

 

—

 

Settlement

 

1

 

—

 

2

 

—

 

—

 

—

 

Amortization of unrecognized:

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service benefit

 

(1

)

(1

)

—

 

(3

)

(3

)

(2

)

Net actuarial loss (gain)

 

66

 

96

 

65

 

—

 

1

 

(3

)

Net periodic benefit cost

 

$

76

 

$

140

 

$

108

 

$

5

 

$

8

 

$

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service benefit

 

$

—

 

$

—

 

$

(8

)

$

—

 

$

(11

)

$

—

 

Net actuarial loss (gain)

 

66

 

43

 

516

 

(17

)

(3

)

50

 

Foreign currency exchange rate change

 

(2

)

—

 

—

 

1

 

—

 

—

 

Curtailment

 

—

 

—

 

(2

)

—

 

—

 

—

 

Settlement

 

(1

)

—

 

(2

)

—

 

—

 

—

 

Amortization of prior service benefit

 

1

 

1

 

—

 

3

 

3

 

2

 

Amortization of net actuarial gain (loss)

 

(66

)

(96

)

(65

)

—

 

(1

)

3

 

Total other changes recognized in other comprehensive income

 

(2

)

(52

)

439

 

(13

)

(12

)

55

 

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

 

$

74

 

$

88

 

$

547

 

$

(8

)

$

(4

)

$

60

 

 
Benefit obligations assumptions, net periodic benefit cost assumptions and health care cost trend rates [Table Text Block]

 

(at and for the year ended December 31,)

 

2016

 

2015

 

Assumptions used to determine benefit obligations

 

 

 

 

 

Discount rate:

 

 

 

 

 

Qualified domestic pension plan

 

4.23

%

4.50

%

Nonqualified domestic pension plan

 

4.15

%

4.37

%

Domestic postretirement benefit plan

 

4.10

%

4.35

%

Future compensation increase rate

 

4.00

%

4.00

%

 

 

 

 

 

 

Assumptions used to determine net periodic benefit cost

 

 

 

 

 

Discount rate:

 

 

 

 

 

Qualified domestic pension plan:

 

 

 

 

 

Service cost

 

4.77

%

4.10

%

Interest cost

 

3.64

%

4.10

%

Nonqualified domestic pension plan:

 

 

 

 

 

Service cost

 

4.53

%

4.10

%

Interest cost

 

3.47

%

4.10

%

Domestic postretirement benefit plan:

 

 

 

 

 

Interest cost

 

3.53

%

4.10

%

Expected long-term rate of return on assets:

 

 

 

 

 

Pension plan

 

7.00

%

7.25

%

Postretirement benefit plan

 

4.00

%

4.00

%

 

 

 

 

 

 

Assumed health care cost trend rates

 

 

 

 

 

Following year:

 

 

 

 

 

Medical (before age 65)

 

6.50

%

6.75

%

Medical (age 65 and older)

 

7.25

%

7.50

%

 

 

 

 

 

 

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

 

2025

 

 
Level within the fair value hierarchy at which the financial assets of the Company's pension plans are measured [Table Text Block]

 

(at December 31, 2016, in millions)

 

Total

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Invested assets:

 

 

 

 

 

 

 

 

 

Fixed maturities

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities and political subdivisions

 

$

9

 

$

—

 

$

9

 

$

—

 

Debt securities issued by foreign governments

 

14

 

—

 

14

 

—

 

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

 

12

 

—

 

12

 

—

 

All other corporate bonds

 

511

 

—

 

511

 

—

 

Total fixed maturities

 

546

 

—

 

546

 

—

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

 

 

 

 

 

 

 

Equity mutual funds

 

1,285

 

1,278

 

7

 

—

 

Bond mutual funds

 

641

 

638

 

3

 

—

 

Total mutual funds

 

1,926

 

1,916

 

10

 

—

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

747

 

747

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Other investments (1)

 

1

 

—

 

—

 

1

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term securities

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

45

 

45

 

—

 

—

 

Money market mutual funds

 

20

 

19

 

1

 

—

 

Other

 

208

 

28

 

180

 

—

 

Total cash and short-term securities

 

273

 

92

 

181

 

—

 

Total

 

$

3,493

 

$

2,755

 

$

737

 

$

1

 

 

 

(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, 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.

 
Estimated future benefit payments [Table Text Block]

 

 

 

Benefits Expected to be Paid

 

(in millions)

 

Pension Plans

 

Postretirement Benefit
Plans

 

2017

 

$

230

 

$

13

 

2018

 

240

 

14

 

2019

 

247

 

14

 

2020

 

253

 

14

 

2021

 

258

 

14

 

2022 through 2026

 

1,327

 

71