Pension Plans, Retirement Benefits and Savings Plans

6 Months Ended

Jun. 30, 2017

Pension Plans, Retirement Benefits and Savings Plans disclosure

Pension Plans, Retirement Benefits and Savings Plans disclosure [Text Block]

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.

	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