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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The following table sets forth reconciliations of plan assets and the projected benefit obligation, the weighted-average assumptions used to determine year-end benefit obligations, and the amounts recognized in accumulated other comprehensive income (loss) for the Corporation’s defined benefit pension plans and postretirement benefit plan at December 31, 2019 and 2018. The Corporation used a measurement date of December 31, 2019 for these plans.
 
Defined Benefit Pension Plans
 
 
 
 
 
Qualified
 
Non-Qualified
 
Postretirement Benefit Plan
(dollar amounts in millions)
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Change in fair value of plan assets:
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
$
2,458

 
$
2,747

 
$
—

 
$
—

 
$
56

 
$
60

Actual return on plan assets
579

 
(167
)
 
—

 
—

 
5

 
(1
)
Employer contributions
—

 
—

 
—

 
—

 
1

 
1

Benefits paid
(104
)
 
(122
)
 
—

 
—

 
(5
)
 
(4
)
Fair value of plan assets at December 31
$
2,933

 
$
2,458

 
$
—

 
$
—

 
$
57

 
$
56

Change in projected benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at January 1
$
1,901

 
$
2,061

 
$
211

 
$
212

 
$
46

 
$
51

Service cost
31

 
29

 
3

 
2

 
—

 
—

Interest cost
80

 
75

 
9

 
8

 
2

 
2

Actuarial loss (gain)
223

 
(142
)
 
25

 
—

 
5

 
(3
)
Benefits paid
(104
)
 
(122
)
 
(13
)
 
(11
)
 
(5
)
 
(4
)
Projected benefit obligation at December 31
$
2,131

 
$
1,901

 
$
235

 
$
211

 
$
48

 
$
46

Accumulated benefit obligation
$
2,121

 
$
1,893

 
$
234

 
$
209

 
$
48

 
$
46

Funded status at December 31 (a) (b)
$
802

 
$
557

 
$
(235
)
 
$
(211
)
 
$
9

 
$
10

Weighted-average assumptions used:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.43
%
 
4.37
%
 
3.43
%
 
4.37
%
 
3.26
%
 
4.26
%
Rate of compensation increase
4.00

 
4.00

 
4.00

 
4.00

 
n/a

 
n/a

Healthcare cost trend rate:
 
 
 
 
 
 
 
 
 
 
 
Cost trend rate assumed for next year
n/a

 
n/a

 
n/a

 
n/a

 
6.25

 
6.50

Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
n/a

 
n/a

 
n/a

 
n/a

 
4.50

 
4.50

Year when rate reaches the ultimate trend rate
n/a

 
n/a

 
n/a

 
n/a

 
2027

 
2027

Amounts recognized in accumulated other comprehensive income (loss) before income taxes:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial loss
$
(463
)
 
$
(687
)
 
$
(94
)
 
$
(76
)
 
$
(20
)
 
$
(19
)
Prior service credit
121

 
140

 
26

 
34

 
1

 
1

Balance at December 31
$
(342
)
 
$
(547
)
 
$
(68
)
 
$
(42
)
 
$
(19
)
 
$
(18
)

(a)
Based on projected benefit obligation for defined benefit pension plans and accumulated benefit obligation for postretirement benefit plan.
(b)
The Corporation recognizes the overfunded and underfunded status of the plans in accrued income and other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets.
n/a - not applicable
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)
The following table details the changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the year ended December 31, 2019.
 
Defined Benefit Pension Plans
 
 
 
 
(in millions)
Qualified
 
Non-Qualified
 
Postretirement Benefit Plan
 
Total
Actuarial gain (loss) arising during the period
$
190

 
$
(25
)
 
$
(2
)
 
$
163

Amortization of net actuarial loss
34

 
7

 
1

 
42

Amortization of prior service credit
(19
)
 
(8
)
 
—

 
(27
)
Total recognized in other comprehensive income (loss)
$
205

 
$
(26
)
 
$
(1
)
 
$
178
Components of Net Periodic Defined Benefit Cost
Components of net periodic defined benefit cost and postretirement benefit cost, the actual return on plan assets and the weighted-average assumptions used were as follows:
 
Defined Benefit Pension Plans
(dollar amounts in millions)
Qualified
 
Non-Qualified
Years Ended December 31
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost (a)
$
31

 
$
29

 
$
29

 
$
3

 
$
2

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
Other components of net benefit (credit) cost:
 
 
 
 
 
 
 
 
 
 
 
Interest cost
80

 
75

 
78

 
9

 
8

 
8

Expected return on plan assets
(166
)
 
(165
)
 
(159
)
 
—

 
—

 
—

Amortization of prior service credit
(19
)
 
(19
)
 
(19
)
 
(8
)
 
(8
)
 
(8
)
Amortization of net loss
34

 
51

 
43

 
7

 
9

 
8

Total other components of net benefit (credit) cost (b)
(71
)
 
(58
)
 
(57
)
 
8

 
9

 
8

Net periodic defined benefit (credit) cost
$
(40
)
 
$
(29
)
 
$
(28
)
 
$
11

 
$
11

 
$
10

Actual return on plan assets
$
579

 
$
(167
)
 
$
396

 
n/a

 
n/a

 
n/a

Actual rate of return on plan assets
24.07
%
 
(6.21
)%
 
16.48
%
 
n/a

 
n/a

 
n/a

Weighted-average assumptions used:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.37
%
 
3.74
 %
 
4.23
%
 
4.37
%
 
3.74
%
 
4.23
%
Expected long-term return on plan assets
6.50

 
6.50

 
6.50

 
n/a

 
n/a

 
n/a

Rate of compensation increase
4.00

 
3.75

 
3.50

 
4.00

 
3.75

 
3.50

(a)
Included in salaries and benefits expense on the Consolidated Statements of Income.
(b)
Included in other noninterest expenses on the Consolidated Statements of Income.
n/a - not applicable
(dollar amounts in millions)
Postretirement Benefit Plan
Years Ended December 31
2019
 
2018
 
2017
Other components of net benefit cost:
 
 
 
 
 
Interest cost
$
2

 
$
2

 
$
2

Expected return on plan assets
(3
)
 
(3
)
 
(3
)
Amortization of net loss
1

 
1

 
1

Net periodic postretirement benefit cost
$
—

 
$
—

 
$
—

Actual return on plan assets
$
5

 
$
(1
)
 
$
2

Actual rate of return on plan assets
9.14
%
 
(2.05
)%
 
3.52
%
Weighted-average assumptions used:
 
 
 
 
 
Discount rate
4.26
%
 
3.55
 %
 
3.92
%
Expected long-term return on plan assets
5.00

 
5.00

 
5.00

Healthcare cost trend rate:
 
 
 
 
 
Cost trend rate assumed
6.50

 
6.50

 
6.50

Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
4.50

 
4.50

 
4.50

Year that the rate reaches the ultimate trend rate
2027

 
2027

 
2027
Balances Remaining in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
The estimated portion of balances remaining in accumulated other comprehensive income (loss) that are expected to be recognized as a component of net periodic benefit cost in the year ended December 31, 2020 are as follows:
 
Defined Benefit Pension Plans
 
 
 
 
(in millions)
Qualified
 
Non-Qualified
 
Postretirement
Benefit Plan
 
Total
Net loss
$
54

 
$
9

 
$
1

 
$
64

Prior service credit
(19
)
 
(8
)
 
—

 
(27
)
Fair Value of Defined Benefit Plan Investments
The fair values of the Corporation’s qualified defined benefit pension plan investments measured at fair value on a recurring basis at December 31, 2019 and 2018, by asset category and level within the fair value hierarchy, are detailed in the table below.
(in millions)
Total
 
Level 1
 
Level 2
 
Level 3
December 31, 2019
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
Mutual funds
$
2

 
$
2

 
$
—

 
$
—

Common stock
1,086

 
1,086

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agency securities
574

 
551

 
23

 
—

Corporate and municipal bonds and notes
734

 
—

 
734

 
—

Mortgage-backed securities
27

 
—

 
27

 
—

Private placements
57

 
—

 
—

 
57

Total investments in the fair value hierarchy
2,480


$
1,639


$
784


$
57

 
 
 
 
 
 
 
 
Investments measured at net asset value:
 
 
 
 
 
 
 
Collective investment funds
469

 


 


 


Total investments at fair value
$
2,949

 


 


 


December 31, 2018
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
     Mutual funds
$
3

 
$
3

 
$
—

 
$
—

Common stock
803

 
803

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agency securities
496

 
482

 
14

 
—

Corporate and municipal bonds and notes
679

 
—

 
679

 
—

Mortgage-backed securities
29

 
—

 
29

 
—

Private placements
60

 
—

 
—

 
60

Total investments in the fair value hierarchy
2,070

 
$
1,288

 
$
722

 
$
60

 
 
 
 
 
 
 
 
Investments measured at net asset value:
 
 
 
 
 
 
 
   Collective investment funds
392

 
 
 
 
 
 
Total investments at fair value
$
2,462

 
 
 
 
 
 
Changes in Level 3 Defined Benefit Plan Investments
The table below provides a summary of changes in the Corporation’s qualified defined benefit pension plan’s Level 3 investments measured at fair value on a recurring basis for the years ended December 31, 2019 and 2018.
 
Balance at
Beginning
of Period
 
 
 
 
 
 
 
 
 
Balance at
End of Period
 
 
Net Gains (Losses)
 
 
 
 
 
(in millions)
 
Realized
 
Unrealized
 
Purchases
 
Sales
 
Year Ended December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Private placements
$
60

 
$
3

 
$
8

 
$
49

 
$
(63
)
 
$
57

Year Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Private placements
$
80

 
$
(1
)
 
$
(7
)
 
$
70

 
$
(82
)
 
$
60
Estimated Future Benefit Payments
The Corporation currently expects to make no employer contributions to the qualified and non-qualified defined benefit pension plans and postretirement benefit plan for the year ended December 31, 2020.
 
Estimated Future Benefit Payments
(in millions)
Years Ended December 31
Qualified
Defined Benefit
Pension Plan
 
Non-Qualified
Defined Benefit
Pension Plan
 
Postretirement
Benefit Plan (a)
2020
$
134

 
$
14

 
$
5

2021
133

 
14

 
5

2022
136

 
14

 
5

2023
137

 
15

 
5

2024
139

 
15

 
4

2025 - 2029
683

 
74

 
16

(a)
Estimated benefit payments in the postretirement benefit plan are net of estimated Medicare subsidies.