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Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Schedule of Changes in Benefit Obligation and Plan Assets
The following table sets forth, on an aggregated basis, changes in the benefit obligation and plan assets, the funded status and how the funded status is recognized on our consolidated balance sheets.
Table 15.1: Changes in Benefit Obligation and Plan Assets
 
 
Defined Pension 
Benefits
 
Other Postretirement
Benefits
(Dollars in millions)
 
2017
 
2016
 
2017
 
2016
Change in benefit obligation:
 
 
 
 
 
 
 
 
Accumulated benefit obligation as of January 1,
 
$
180

 
$
185

 
$
39

 
$
45

Service cost
 
2

 
2

 
0

 
0

Interest cost
 
7

 
7

 
2

 
2

Benefits paid
 
(18
)
 
(14
)
 
(3
)
 
(3
)
Net actuarial loss (gain)
 
7

 
0

 
(3
)
 
(5
)
Accumulated benefit obligation as of December 31,
 
$
178

 
$
180

 
$
35

 
$
39

Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets as of January 1,
 
$
226

 
$
222

 
$
6

 
$
5

Actual return on plan assets
 
37

 
17

 
1

 
1

Employer contributions
 
1

 
1

 
2

 
3

Benefits paid
 
(18
)
 
(14
)
 
(3
)
 
(3
)
Fair value of plan assets as of December 31,
 
$
246

 
$
226

 
$
6

 
$
6

Over (under) funded status as of December 31,
 
$
68

 
$
46

 
$
(29
)
 
$
(33
)
Schedule of Amounts Recognized in Balance Sheet
 
 
Defined Pension 
Benefits
 
Other Postretirement
Benefits
(Dollars in millions)
 
2017
 
2016
 
2017
 
2016
Balance sheet presentation as of December 31,
 
 
 
 
 
 
 
 
Other assets
 
$
80

 
$
57

 
$
0

 
$
0

Other liabilities
 
(12
)
 
(11
)
 
(29
)
 
(33
)
Net amount recognized as of December 31,
 
$
68

 
$
46

 
$
(29
)
 
$
(33
)
Schedule of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income
The following table presents the components of net periodic benefit costs and other amounts recognized in other comprehensive income.
Table 15.2: Components of Net Periodic Benefit Cost
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
(Dollars in millions)
 
Defined Pension 
Benefits
 
Other Postretirement
Benefits
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
2

 
$
2

 
$
1

 
$
0

 
$
0

 
$
0

Interest cost
 
7

 
7

 
8

 
2

 
2

 
2

Expected return on plan assets
 
(14
)
 
(14
)
 
(15
)
 
0

 
0

 
0

Amortization of transition obligation, prior service credit and net actuarial loss (gain)
 
1

 
1

 
1

 
(6
)
 
(6
)
 
(4
)
Net periodic benefit gain
 
$
(4
)
 
$
(4
)
 
$
(5
)
 
$
(4
)
 
$
(4
)
 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes recognized in other comprehensive income, pretax:
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss)
 
$
16

 
$
4

 
$
(5
)
 
$
4

 
$
5

 
$
7

Reclassification adjustments for amounts recognized in net periodic benefit cost
 
1

 
1

 
1

 
(6
)
 
(6
)
 
(4
)
Total gain (loss) recognized in other comprehensive income
 
$
17

 
$
5

 
$
(4
)
 
$
(2
)
 
$
(1
)
 
$
3

Schedule of Pre-Tax Amounts in Accumulated Other Comprehensive Income
Pre-tax amounts recognized in AOCI that have not yet been recognized as a component of net periodic benefit cost consist of the following:
Table 15.3: Amounts Recognized in AOCI
 
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
(Dollars in millions)
 
Defined Pension
Benefits
 
Other Postretirement
Benefits
Prior service cost
 
$
0

 
$
0

 
$
(2
)
 
$
(2
)
Net actuarial gain (loss)
 
(49
)
 
(66
)
 
10

 
12

Accumulated other comprehensive income (loss)
 
$
(49
)
 
$
(66
)
 
$
8

 
$
10

Schedule Of Weighted Average Assumptions Used in Accounting for Plans
The following table presents weighted-average assumptions used in the accounting for the plans:
Table 15.4: Assumptions Used in the Accounting for the Plans
 
 
December 31,
 
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
 
Defined Pension 
Benefits
 
Other Postretirement 
Benefits
Assumptions for benefit obligations at measurement date:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.5
 
4.0
 
4.2
 
3.5
 
4.0
 
4.2
Assumptions for periodic benefit cost for the year ended:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.0
 
4.2
 
3.9
 
4.0
 
4.2
 
3.9
Expected long-term rate of return on plan assets
 
6.5
 
6.5
 
6.5
 
6.5
 
6.5
 
6.5
Assumptions for year-end valuations:
 
 
 
 
 
 
 
 
 
 
 
 
Health care cost trend rate assumed for next year:
 
 
 
 
 
 
 
 
 
 
 
 
Pre-age 65
 
N/A
 
N/A
 
N/A
 
6.5
 
6.7
 
7.0
Post-age 65
 
N/A
 
N/A
 
N/A
 
6.5
 
6.8
 
7.1
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
 
N/A
 
N/A
 
N/A
 
4.5
 
4.5
 
4.5
Year the rate reaches the ultimate trend rate
 
N/A
 
N/A
 
N/A
 
2037
 
2037
 
2037
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates
The following table presents the effect of a one-percent change in the assumed health care cost trend rate on our accumulated postretirement benefit obligation. There were insignificant effects on total service and interest cost for the years ended December 31, 2017, 2016 and 2015.
Table 15.5: Sensitivity Analysis
 
 
Year Ended December 31,
 
 
2017
 
2016
(Dollars in millions)
 
1% Increase
 
1% Decrease
 
1% Increase
 
1% Decrease
Effect on year-end postretirement benefit obligation
 
$
3

 
$
(3
)
 
$
4

 
$
(4
)
Schedule of Allocation of Plan Assets
The following table presents the plan asset allocations as of December 31, 2017 and 2016. Common collective trusts primarily consist of domestic and international equity securities.
Table 15.6: Plan Assets
 
 
December 31,
 
 
2017
 
2016
Common collective trusts
 
60
%
 
62
%
Corporate bonds (Standard & Poor’s (“S&P”) rating of A or higher)
 
6

 
6

Corporate bonds (S&P rating of lower than A)
 
14

 
12

Government securities
 
13

 
13

Mortgage-backed securities
 
5

 
5

Municipal bonds
 
0

 
1

Money market fund
 
2

 
1

Total
 
100
%
 
100
%
Table 15.7: Plan Assets Measured at Fair Value on a Recurring Basis
 
 
December 31, 2017
(Dollars in millions)
 
Fair Value Measurement Using Level 2
 
Assets at Fair Value
Plan assets, at fair value:
 
 
 
 
Corporate bonds (S&P rating of A or higher)
 
$
16

 
$
16

Corporate bonds (S&P rating of lower than A)
 
35

 
35

Government securities
 
33

 
33

Mortgage-backed securities
 
12

 
12

Municipal bonds
 
1

 
1

Money market fund
 
4

 
4

Plan assets in fair value hierarchy
 
101

 
101

Plan assets not classified in fair value hierarchy:
 
 
 
 
Common collective trusts
 
151

Total plan assets, at fair value
 
$
252

 
 
December 31, 2016
(Dollars in millions)
 
Fair Value Measurement Using Level 2
 
Assets at Fair Value
Plan assets, at fair value:
 
 
 
 
Corporate bonds (S&P rating of A or higher)
 
$
15

 
$
15

Corporate bonds (S&P rating of lower than A)
 
29

 
29

Government securities
 
31

 
31

Mortgage-backed securities
 
11

 
11

Municipal bonds
 
1

 
1

Money market fund
 
2

 
2

Plan assets in fair value hierarchy
 
89

 
89

Plan assets not classified in fair value hierarchy:
 
 
 
 
Common collective trusts
 
143

Total plan assets, at fair value
 
$
232

Schedule of Expected Future Benefit Payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Table 15.8: Expected Future Benefits Payments
(Dollars in millions)
 
Pension
Benefits
 
Postretirement
Benefits
2018
 
$
12

 
$
3

2019
 
12

 
3

2020
 
11

 
3

2021
 
12

 
2

2022
 
11

 
2

2023-2027
 
51

 
10