XML 71 R52.htm IDEA: XBRL DOCUMENT v3.19.1
Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Change in pension plan assets
Change in projected benefit obligation, plan assets and funded status
 
 
As of December 31,
 
 
Pension
benefits
 
Postretirement
benefits
($ in millions)
 
2018
 
2017
 
2018
 
2017
Change in projected benefit obligation
 
 
 
 
 
 
 
 
Benefit obligation, beginning of year
 
$
6,815

 
$
6,591

 
$
386

 
$
373

Service cost
 
110

 
111

 
7

 
8

Interest cost
 
255

 
254

 
15

 
15

Participant contributions
 
—

 
—

 
13

 
12

Actuarial (gains) losses
 
(255
)
 
406

 
(4
)
 
8

Benefits paid
 
(646
)
 
(553
)
 
(35
)
 
(35
)
Translation adjustment and other
 
(55
)
 
6

 
(7
)
 
5

Benefit obligation, end of year
 
$
6,224

 
$
6,815

 
$
375

 
$
386

 
 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets, beginning of year
 
$
6,284

 
$
5,650

 

 

Actual return on plan assets
 
(300
)
 
1,051

 

 

Employer contribution
 
16

 
131

 

 

Benefits paid
 
(646
)
 
(553
)
 

 

Translation adjustment and other
 
(55
)
 
5

 

 

Fair value of plan assets, end of year
 
$
5,299

 
$
6,284

 

 

 
 
 
 
 
 
 
 
 
Funded status (1) (2) (3)
 
$
(925
)
 
$
(531
)
 
$
(375
)
 
$
(386
)
 
 
 
 
 
 
 
 
 
Amounts recognized in AOCI
 
 
 
 
 
 
 
 
Unamortized pension and other postretirement prior service credit
 
$
(198
)
 
$
(254
)
 
$
(16
)
 
$
(37
)

(1) 
The primary qualified employee plan represents 78% of the pension benefits’ underfunded status as of December 31, 2018.
(2) 
The funded status is recorded within other liabilities and accrued expenses on the Consolidated Statements of Financial Position.
(3) 
The Company’s other postretirement benefit plans are not funded.
Change during the period in items not yet recognized as a component of net periodic cost
(2) 
The funded status is recorded within other liabilities and accrued expenses on the Consolidated Statements of Financial Position.
(3) 
The Company’s other postretirement benefit plans are not funded.
Changes in items not yet recognized as a component of net cost for pension and other postretirement plans
($ in millions)
 
Pension benefits
 
Postretirement benefits
Items not yet recognized as a component of net cost – December 31, 2017
 
$
(254
)
 
$
(37
)
Prior service credit amortized to net cost
 
56

 
21

Items not yet recognized as a component of net cost – December 31, 2018
 
$
(198
)
 
$
(16
)
Components of net periodic cost
Components of net cost (benefit) for pension and other postretirement plans
 
 
For the years ended December 31,
 
 
Pension benefits
 
Postretirement benefits
($ in millions)
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost
 
$
110

 
$
111

 
$
113

 
$
7

 
$
8

 
$
9

Interest cost
 
255

 
254

 
286

 
15

 
15

 
18

Expected return on plan assets
 
(427
)
 
(419
)
 
(387
)
 
—

 
—

 
—

Amortization of prior service credit
 
(56
)
 
(56
)
 
(56
)
 
(21
)
 
(25
)
 
(21
)
Costs and expenses
 
(118
)
 
(110
)
 
(44
)
 
1

 
(2
)
 
6

Remeasurement of projected benefit obligation
 
(255
)
 
406

 
388

 
(4
)
 
8

 
(14
)
Remeasurement of plan assets
 
727

 
(631
)
 
(104
)
 
—

 
—

 
—

Remeasurement gains and losses
 
472

 
(225
)
 
284

 
(4
)
 
8

 
(14
)
Total net cost (benefit)
 
$
354

 
$
(335
)
 
$
240

 
$
(3
)
 
$
6

 
$
(8
)
Weighted average assumptions used to determine for pension plans and postretirement benefits plans the net benefit cost and benefit obligation
Weighted average assumptions used to determine net pension cost and net postretirement benefit cost
 
 
For the years ended December 31,
 
 
Pension benefits
 
Postretirement benefits
($ in millions)
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rate
 
4.06
%
 
3.96
%
 
4.78
%
 
3.95
%
 
3.91
%
 
4.56
%
Rate of increase in compensation levels
 
3.15

 
3.16

 
3.16

 
n/a

 
n/a

 
n/a

Expected long-term rate of return on plan assets
 
7.33

 
7.32

 
7.30

 
n/a

 
n/a

 
n/a


Weighted average assumptions used to determine benefit obligations
 
 
For the years ended December 31,
 
 
Pension benefits
 
Postretirement benefits
 
 
2018
 
2017
 
2018
 
2017
Discount rate
 
4.31
%
 
3.67
%
 
4.22
%
 
3.63
%
Rate of increase in compensation levels
 
3.16

 
3.15

 
n/a

 
n/a
Pension plans' weighted average target asset allocation and the actual percentage of plan assets
Weighted average target asset allocation and actual percentage of plan assets by asset category
 
 
As of December 31, 2018
 
 
Target asset allocation (1)
 
Actual percentage of plan assets
Pension plan’s asset category
 
2018
 
2018
 
2017
Equity securities (2)
 
36 - 53%
 
47
%
 
58
%
Fixed income securities
 
40 - 53%
 
41

 
34

Limited partnership interests
 
0 - 15%
 
9

 
6

Short-term investments and other
 
—
 
3

 
2

Total without securities lending (3)
 
 
 
100
%
 
100
%
(1) 
The target asset allocation considers risk based exposure while the actual percentage of plan assets utilizes a financial reporting view excluding exposure provided through derivatives.
(2) 
The actual percentage of plan assets for equity securities includes 1% and 2% of private equity investments in 2018 and 2017, respectively, that are subject to the limited partnership interests target allocation and 4% and 3% of fixed income mutual funds in 2018 and 2017, respectively, that are subject to the fixed income securities target allocation.
(3) 
Securities lending collateral reinvestment of $208 million and $202 million is excluded from the table above in 2018 and 2017, respectively.
Fair values of pension plan assets
Fair values of pension plan assets as of December 31, 2018
($ in millions)
 
Quoted prices in active markets for identical assets (Level 1)
 
Significant other observable inputs
(Level 2)
 
Significant unobservable inputs
(Level 3)
 
Balance as of December 31, 2018
Equity securities
 
$
51

 
$
265

 
$
—

 
$
316

Fixed income securities:
 
 
 
 
 
 
 
 
U.S. government and agencies
 
172

 
509

 
—

 
681

Corporate
 
—

 
1,479

 
5

 
1,484

Short-term investments
 
122

 
198

 
—

 
320

Free-standing derivatives:
 
 
 
 
 
 
 
 
Assets
 
—

 
19

 
—

 
19

Liabilities
 
—

 
(11
)
 
—

 
(11
)
Total plan assets at fair value
 
$
345

 
$
2,459

 
$
5

 
2,809

% of total plan assets at fair value
 
12.3
%
 
87.5
%
 
0.2
%
 
100.0
%
 
 
 
 
 
 
 
 
 
Investments measured using the net asset value practical expedient
 
 
 
 
 
 
 
2,687

Securities lending obligation (1)
 
 
 
 
 
 
 
(222
)
Derivatives Counterparty and Cash Collateral Netting
 
 
 
 
 
 
 
(6
)
Other net plan assets (2)
 
 
 
 
 
 
 
31

Total reported plan assets
 
 
 
 
 
 
 
$
5,299

(1) 
The securities lending obligation represents the plan’s obligation to return securities lending collateral received under a securities lending program. The terms of the program allow both the plan and the counterparty the right and ability to redeem/return the securities loaned on short notice. Due to its relatively short-term nature, the outstanding balance of the obligation approximates fair value.
(2) 
Other net plan assets represent cash and cash equivalents, interest and dividends receivable and net receivables related to settlements of investment transactions, such as purchases and sales.
Fair values of pension plan assets as of December 31, 2017
($ in millions)
 
Quoted prices in active markets for identical assets (Level 1)
 
Significant other observable inputs
(Level 2)
 
Significant unobservable inputs
(Level 3)
 
Balance as of December 31, 2017
Equity securities
 
$
126

 
$
264

 
$
29

 
$
419

Fixed income securities:
 
 
 
 
 
 
 
 
U.S. government and agencies
 
174

 
420

 
—

 
594

Corporate
 
—

 
1,543

 
10

 
1,553

Short-term investments
 
97

 
197

 
—

 
294

Cash and cash equivalents
 
21

 
—

 
—

 
21

Free-standing derivatives:
 
 
 
 
 
 
 
 
Assets
 
—

 
1

 
—

 
1

Total plan assets at fair value
 
$
418

 
$
2,425

 
$
39

 
2,882

% of total plan assets at fair value
 
14.5
%
 
84.1
%
 
1.4
%
 
100.0
%
 
 
 
 
 
 
 
 
 
Investments measured using the net asset value practical expedient
 
 
 
 
 
 
 
3,598

Securities lending obligation
 
 
 
 
 
 
 
(216
)
Other net plan assets
 
 
 
 
 
 
 
20

Total reported plan assets
 
 
 
 
 
 
 
$
6,284
Rollforward of Level 3 plan assets
Rollforward of Level 3 plan assets during December 31, 2018
 
 
 
 
Actual return on plan assets:
 
 
 
 
 
 
($ in millions)
 
Balance as of December 31, 2017
 
Relating to assets sold during the period
 
Relating to assets still held at the reporting date
 
Purchases, sales and settlements, net
 
Net transfers in and/or (out) of Level 3
 
Balance as of December 31, 2018
Equity securities
 
$
29

 
$
—

 
$
3

 
$
—

 
$
(32
)
 
$
—

Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
10

 
—

 
—

 
(5
)
 
—

 
5

Total Level 3 plan assets
 
$
39

 
$
—

 
$
3

 
$
(5
)
 
$
(32
)
 
$
5

Rollforward of Level 3 plan assets during December 31, 2017
 
 
 
 
Actual return on plan assets:
 
 
 
 
 
 
($ in millions)
 
Balance as of December 31, 2016
 
Relating to assets sold during the period
 
Relating to assets still held at the reporting date
 
Purchases, sales and settlements, net
 
Net transfers in and/or (out) of Level 3
 
Balance as of December 31, 2017
Equity securities
 
$
—

 
$
—

 
$
—

 
$
29

 
$
—

 
$
29

Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
10

 
—

 
—

 
—

 
—

 
10

Total Level 3 plan assets
 
$
10

 
$
—

 
$
—

 
$
29

 
$
—

 
$
39

Rollforward of Level 3 plan assets during December 31, 2016
 
 
 
 
Actual return on plan assets:
 
 
 
 
 
 
($ in millions)
 
Balance as of December 31, 2015
 
Relating to assets sold during the period
 
Relating to assets still held at the reporting date
 
Purchases, sales and settlements, net
 
Net transfers in and/or (out) of Level 3
 
Balance as of December 31, 2016
Equity securities
 
$
1

 
$
(1
)
 
$
—

 
$
—

 
$
—

 
$
—

Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
Municipal
 
7

 
—

 
—

 
(7
)
 
—

 
—

Corporate
 
10

 
—

 
—

 
(5
)
 
5

 
10

Total Level 3 plan assets
 
$
18

 
$
(1
)
 
$
—

 
$
(12
)
 
$
5

 
$
10
Estimated future benefit payments expected to be paid
Estimated future benefit payments expected to be paid in the next 10 years
 
 
As of December 31, 2018
($ in millions)
 
Pension benefits
 
Postretirement benefits
2019
 
$
448

 
$
24

2020
 
462

 
25

2021
 
495

 
26

2022
 
509

 
27

2023
 
528

 
28

2024-2028
 
2,383

 
142

Total benefit payments
 
$
4,825

 
$
272
Schedule of ESOP benefit
ESOP benefit
 
 
For the years December 31,
($ in millions)
 
2018
 
2017
 
2016
Interest expense recognized by ESOP
 
$
—

 
$
—

 
$
1

Less: dividends accrued on ESOP shares
 
(1
)
 
(1
)
 
(3
)
Cost of shares allocated
 
—

 
3

 
7

Compensation expense
 
(1
)
 
2

 
5

Reduction of defined contribution due to ESOP
 
1

 
38

 
60

ESOP benefit
 
$
(2
)
 
$
(36
)
 
$
(55
)