12. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS
The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended June 30, 2017 and 2016.
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|
|
Pension Plans
|
|
Postretirement Benefit Plans
|
|
|
(for the three months ended June 30, in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Periodic Benefit Cost:
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
$
|
30
|
|
$
|
30
|
|
$
|
—
|
|
$
|
—
|
|
|
Non-service cost:
|
|
|
|
|
|
|
|
|
|
|
Interest cost on benefit obligation
|
|
30
|
|
31
|
|
1
|
|
2
|
|
|
Expected return on plan assets
|
|
(60
|
)
|
(58
|
)
|
—
|
|
—
|
|
|
Settlement
|
|
—
|
|
1
|
|
—
|
|
—
|
|
|
Amortization of unrecognized:
|
|
|
|
|
|
|
|
|
|
|
Prior service benefit
|
|
—
|
|
—
|
|
(1
|
)
|
(1
|
)
|
|
Net actuarial loss
|
|
19
|
|
16
|
|
—
|
|
—
|
|
|
Total non-service cost
|
|
(11
|
)
|
(10
|
)
|
—
|
|
1
|
|
|
Net periodic benefit cost
|
|
$
|
19
|
|
$
|
20
|
|
$
|
—
|
|
$
|
1
|
|
The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the three months ended June 30, 2017 and 2016.
|
|
|
Pension Plans
|
|
Postretirement Benefit Plans
|
|
|
(for the three months ended June 30, in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Cost:
|
|
|
|
|
|
|
|
|
|
|
Claims and claim adjustment expenses
|
|
$
|
12
|
|
$
|
12
|
|
$
|
—
|
|
$
|
—
|
|
|
General and administrative expenses
|
|
18
|
|
18
|
|
—
|
|
—
|
|
|
Total service cost
|
|
30
|
|
30
|
|
—
|
|
—
|
|
|
Non-Service Cost:
|
|
|
|
|
|
|
|
|
|
|
Claims and claim adjustment expenses
|
|
(5
|
)
|
(5
|
)
|
—
|
|
1
|
|
|
General and administrative expenses
|
|
(6
|
)
|
(5
|
)
|
—
|
|
—
|
|
|
Total non-service cost
|
|
(11
|
)
|
(10
|
)
|
—
|
|
1
|
|
|
Net periodic benefit cost
|
|
$
|
19
|
|
$
|
20
|
|
$
|
—
|
|
$
|
1
|
|
The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the six months ended June 30, 2017 and 2016.
|
|
|
Pension Plans
|
|
Postretirement Benefit Plans
|
|
|
(for the six months ended June 30, in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Periodic Benefit Cost:
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
$
|
60
|
|
$
|
59
|
|
$
|
—
|
|
$
|
—
|
|
|
Non-service cost:
|
|
|
|
|
|
|
|
|
|
|
Interest cost on benefit obligation
|
|
61
|
|
61
|
|
3
|
|
4
|
|
|
Expected return on plan assets
|
|
(120
|
)
|
(115
|
)
|
—
|
|
—
|
|
|
Settlement
|
|
—
|
|
1
|
|
—
|
|
—
|
|
|
Amortization of unrecognized:
|
|
|
|
|
|
|
|
|
|
|
Prior service benefit
|
|
—
|
|
—
|
|
(2
|
)
|
(2
|
)
|
|
Net actuarial loss
|
|
37
|
|
33
|
|
—
|
|
—
|
|
|
Total non-service cost
|
|
(22
|
)
|
(20
|
)
|
1
|
|
2
|
|
|
Net periodic benefit cost
|
|
$
|
38
|
|
$
|
39
|
|
$
|
1
|
|
$
|
2
|
|
The following table indicates the line items in which the respective service costs and non-service benefit costs are presented in the consolidated statement of income for the six months ended June 30, 2017 and 2016.
|
|
|
Pension Plans
|
|
Postretirement Benefit Plans
|
|
|
(for the six months ended June 30, in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Cost:
|
|
|
|
|
|
|
|
|
|
|
Claims and claim adjustment expenses
|
|
$
|
24
|
|
$
|
24
|
|
$
|
—
|
|
$
|
—
|
|
|
General and administrative expenses
|
|
36
|
|
35
|
|
—
|
|
—
|
|
|
Total service cost
|
|
60
|
|
59
|
|
—
|
|
—
|
|
|
Non-Service Cost:
|
|
|
|
|
|
|
|
|
|
|
Claims and claim adjustment expenses
|
|
(9
|
)
|
(9
|
)
|
—
|
|
1
|
|
|
General and administrative expenses
|
|
(13
|
)
|
(11
|
)
|
1
|
|
1
|
|
|
Total non-service cost
|
|
(22
|
)
|
(20
|
)
|
1
|
|
2
|
|
|
Net periodic benefit cost
|
|
$
|
38
|
|
$
|
39
|
|
$
|
1
|
|
$
|
2
|
|
|