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Benefit Plans
 6 Months Ended
Jun. 30, 2020
Retirement Benefits [Abstract]  
Benefit Plans
Note 13
Benefit Plans
Components of net cost (benefit) for pension and other postretirement plans
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
 
2020
 
2019
 
2020
 
2019
Pension benefits
 
 
 
 
 
 
 
 
Service cost
 
$
25

 
$
28

 
$
53

 
$
56

Interest cost
 
56

 
62

 
112

 
127

Expected return on plan assets
 
(95
)
 
(101
)
 
(199
)
 
(194
)
Amortization of prior service credit
 
(14
)
 
(14
)
 
(28
)
 
(28
)
Costs and expenses
 
(28
)
 
(25
)
 
(62
)
 
(39
)
Remeasurement of projected benefit obligation
 
672

 
344

 
556

 
731

Remeasurement of plan assets
 
(623
)
 
(225
)
 
(189
)
 
(616
)
Remeasurement (gains) losses
 
49

 
119

 
367

 
115

Pension net cost
 
$
21

 
$
94

 
$
305

 
$
76

 
 
 
 
 
 
 
 
 
Postretirement benefits
 
 
 
 
 
 
 
 
Service cost
 
$
2

 
$
2

 
$
3

 
$
4

Interest cost
 
3

 
3

 
6

 
7

Amortization of prior service credit
 
(1
)
 
(1
)
 
(2
)
 
(2
)
Costs and expenses
 
4

 
4

 
7

 
9

Remeasurement of projected benefit obligation
 
24

 
6

 
24

 
25

Remeasurement of plan assets
 
—

 
—

 
—

 
—

Remeasurement (gains) losses
 
24

 
6

 
24

 
25

Postretirement net cost
 
$
28

 
$
10

 
$
31

 
$
34

 
 
 
 
 
 
 
 
 
Pension and postretirement benefits
 
 
 
 
 
 
 
 
Costs and expenses
 
$
(24
)
 
$
(21
)
 
$
(55
)
 
$
(30
)
Remeasurement (gains) losses
 
73

 
125

 
391

 
140

Total net cost
 
$
49

 
$
104

 
$
336

 
$
110


Differences between expected and actual returns on plan assets and changes in assumptions affect the Company’s pension and other postretirement obligations, plan assets and expenses.
Pension and postretirement benefits remeasurement gains and losses
 
 
 
 
 
 
Three months ended June 30,
 
Six months ended June 30,
($ in millions)
 
2020
 
2019
 
2020
 
2019
Remeasurement of projected benefit obligation (gains) losses:
 
 
 
 
 
 
 
 
Discount rate
 
$
433

 
$
228

 
$
397

 
$
493

Other assumptions
 
263

 
122

 
183

 
263

Remeasurement of plan assets (gains) losses
 
(623
)
 
(225
)
 
(189
)
 
(616
)
Remeasurement (gains) losses
 
$
73

 
$
125

 
$
391

 
$
140


The losses for the second quarter and first six months of 2020 primarily related to a decrease in the discount rate and changes in actuarial assumptions, partially offset by favorable asset performance compared to the expected return on plan assets.
The weighted average discount rate used to measure the benefit obligation decreased to 2.74% at June 30, 2020 compared to 3.37% at March 31, 2020 and 3.31% at December 31, 2019 resulting in losses for the second quarter and first six months of 2020. The decrease in discount rates was primarily driven by a tightening in credit spreads in the second quarter as well as lower projected yields.
The losses for the second quarter and first six months of 2020 due to changes in actuarial assumptions that affect pension and other
postretirement obligations primarily related to a decrease in lump sum interest rates. The second quarter of 2020 also included losses that resulted from recognizing participant experience different from demographic assumptions for mortality, terminations and retirements and the percentage of employees taking lump sum distributions.
For the second quarter of 2020, the actual return on plan assets was higher than the expected return due to stronger equity market performance compared to the first quarter and tightening of credit spreads which increased the fair value of fixed income investments. For the first six months of 2020, the actual return on plan assets was higher than the expected return due to a decline in interest rates, partially offset by weak equity market performance.