Employee Benefit Plans

3 Months Ended

Mar. 31, 2020

EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Plans

The Company has funded and non-funded non-contributory defined benefit pension plans (“Pension Benefits”), which cover substantially all of its employees. For some employees, benefits are based on final average earnings and length of service, while benefits for other employees are based on an account balance that takes into consideration age, service and earnings during their career.

The Company provides certain health care and life insurance benefits for its retired employees, their beneficiaries and covered dependents (“Other Postretirement Benefits”). The health care plan is contributory; the life insurance plan is non-contributory. Substantially all of the Company’s U.S. employees may become eligible to receive Other Postretirement Benefits if they retire after age 55 with at least 10 years of service or under certain circumstances after age 50 with at least 20 years of continuous service.

Net periodic (benefit) cost included in “General and administrative expenses” includes the following components:



	Three Months Ended March 31,
	Pension Benefits						Other Postretirement Benefits
	2020			2019			2020			2019
	(in millions)
Components of net periodic (benefit) cost:
Service cost	$	80		$	73		$	6		$	6
Interest cost	108			123			16			19
Expected return on plan assets	(201		)	(204		)	(25		)	(24		)
Amortization of prior service cost	(1		)	(1		)	2			1
Amortization of actuarial (gain) loss, net	65			54			4			6
Settlements	0			0			0			0
Special termination benefits(1)	2			0			0			0
Net periodic (benefit) cost	$	53		$	45		$	3		$	8

__________

(1)

For 2020 certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination or participation in the Voluntary Separation Program that was offered to eligible U.S.-based employees in 2019.