Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Weighted-Average Assumptions Used to Determine Benefit Obligations

Weighted average assumptions used to determine benefit obligations:


	Pension Benefits						Other Postretirement Benefits
December 31	2016		2015		2014		2016		2015		2014


Discount rate		3.9%		4.0%		3.7%		3.7%		3.7%		3.4%
Expected long term rate of return on plan assets		7.5%		7.5%		7.5%		5.3%		5.3%		5.3%
Rate of compensation increase		3.9% to 5.5%		3.5% to 5.5%		3.5% to 5.5%

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost

Weighted average assumptions used to determine net periodic benefit cost:


	Pension Benefits						Other Postretirement Benefits
Year Ended December 31	2016		2015		2014		2016		2015		2014

Discount rate		4.0%		3.8%		4.4%		3.7%		3.4%		4.0%
Expected long term rate of return on plan assets		7.5%		7.5%		7.5%		5.3%		5.3%		5.3%
Rate of compensation increase		3.5% to 5.5%		3.5% to 5.5%		3.5% to 5.5%

Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates:

December 31

2016

2015

2014

Health care cost trend rate assumed for next year

4.0% to 7.0%

4.0% to 7.5%

4.0% to 8.0%

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

4.0% to 5.0%

4.0% to 5.0%

Year that the rate reaches the ultimate trend rate

2017-2021

2016-2021

2015-2021

Components of Net Periodic Benefit Cost

Net periodic benefit cost components:


	Pension Benefits									Other Postretirement Benefits

Year Ended December 31	2016			2015			2014			2016			2015			2014

(In millions)

Service cost	$	8		$	12		$	16		$	1		$	1		$	1
Interest cost		128			127			149			3			3			4
Expected return on plan assets		(177	)		(193	)		(209	)		(5	)		(5	)		(4)
Amortization of unrecognized net loss		46			42			30						1			1
Amortization of unrecognized prior service benefit		(1	)		(1	)		(1	)		(3	)		(10	)		(18)
Settlement/Curtailment		3			3			86									(86)

Net periodic benefit cost	$	7		$	(10	)	$	71		$	(4	)	$	(10	)	$	(102)

Reconciliation of Benefit Obligations and Plan Assets

The following provides a reconciliation of benefit obligations and plan assets:


	Pension Benefits						Other Postretirement Benefits

	2016			2015			2016			2015

(In millions)

Change in benefit obligation:

Benefit obligation at January 1	$	3,227		$	3,446		$	82		$	97
Service cost		8			12			1			1
Interest cost		128			127			3			3
Plan participants’ contributions								5			5
Amendments/curtailments		1			(55	)
Actuarial (gain) loss		72			(96	)		(13	)		(11)
Benefits paid from plan assets		(188	)		(187	)		(12	)		(13)
Settlements		(101	)		(12	)
Foreign exchange		(16	)		(8	)

Benefit obligation at December 31		3,131			3,227			66			82


Change in plan assets:

Fair value of plan assets at January 1		2,500			2,713			86			87
Actual return on plan assets		211			(21	)		3			2
Company contributions		19			15			4			5
Plan participants’ contributions								5			5
Benefits paid from plan assets		(188	)		(187	)		(12	)		(13)
Settlements		(103	)		(12	)
Foreign exchange		(16	)		(8	)

Fair value of plan assets at December 31		2,423			2,500			86			86


Funded status	$	(708	)	$	(727	)	$	20		$	4


Amounts recognized in the Consolidated Balance Sheets consist of:

Other assets	$	4		$	11		$	44		$	38
Other liabilities		(712	)		(738	)		(24	)		(34)

Net amount recognized	$	(708	)	$	(727	)	$	20		$	4


Amounts recognized in Accumulated other comprehensive income (loss), not yet recognized in net periodic (benefit) cost:

Prior service credit	$	(3	)	$	(5	)	$	(6	)	$	(9)
Net actuarial loss		1,097			1,106			(2	)		8

Net amount recognized	$	1,094		$	1,101		$	(8	)	$	(1)


Information for plans with projected and accumulated benefit obligations in excess of plan assets:

Projected benefit obligation	$	3,103		$	3,129
Accumulated benefit obligation		3,089			3,114		$	24		$	34
Fair value of plan assets		2,391			2,391

Estimated Amounts to be Recognized from AOCI into Net Periodic Cost (Benefit)

The table below presents the estimated amounts to be recognized from AOCI into net periodic cost (benefit) during 2017.


		Other
	Pension	Postretirement
	Benefits	Benefits

(In millions)

Amortization of net actuarial (gain) loss	$ 43	$ (1)
Amortization of prior service credit		(2)

Total estimated amounts to be recognized	$ 43	$ (3)

Estimated Future Minimum Benefit Payments

The table below presents the estimated future minimum benefit payments at December 31, 2016.


		Other
	Pension	Postretirement
Expected future benefit payments	Benefits	Benefits

(In millions)

2017	$ 217	$ 6
2018	210	6
2019	212	6
2020	214	5
2021	212	5
2022 – 2026	1,041	20

Pension Benefits [Member]

Defined Benefit Plan, Fair Value of Plan Assets Measured on Recurring Basis

Pension plan assets measured at fair value on a recurring basis are summarized below.


December 31, 2016	Level 1			Level 2			Level 3			Total
(In millions)

Fixed maturity securities:
Corporate and other bonds					$	500		$	10		$	510
States, municipalities and political subdivisions						63						63
Asset-backed						186						186
Total fixed maturities		$	-			749			10			759
Equity securities			404			105						509
Short term investments			18			35						53
Fixed income mutual funds			92									92
Other assets			15			37						52
Total limited partnerships measured at net asset value (a)												958
Total		$	529		$	926		$	10		$	2,423


December 31, 2015	Level 1			Level 2			Level 3			Total
(In millions)

Fixed maturity securities:
Corporate and other bonds					$	455		$	10		$	465
States, municipalities and political subdivisions						106						106
Asset-backed						219						219
Total fixed maturities		$	-			780			10			790
Equity securities			373			107						480
Short term investments			30			28						58
Fixed income mutual funds			95									95
Other assets						52						52
Total limited partnerships measured at net asset value (a)												1,025
Total		$	498		$	967		$	10		$	2,500

(a)

In May of 2015, the FASB issued ASU 2015-17, “Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent)” (“ASU 2015-07”), which removes the requirement to present certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient within the fair value hierarchy table. The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The Company adopted ASU 2015-07 as of December 31, 2016, and has applied it retrospectively. Other than the presentation of the investments measured at net asset value, there were no effects to the reported amounts presented as of December 31, 2015.

Plan Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The tables below present reconciliations for all pension plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2016 and 2015:


										Net
				Actual Return on Assets						Purchases,			Net Transfers
	Balance at			Still Held at			Sold During			Sales, and			In (Out) of				Balance at
2016	January 1,			December 31,			the Year			Settlements			Level 3				December 31,
(In millions)

Fixed maturity securities:
Corporate and other bonds		$	10															$	10
Total		$	10		$	-		$	-		$	-		$	-			$	10


2015
(In millions)

Fixed maturity securities:
Corporate and other bonds		$	15											$	(5	)		$	10
Total		$	15		$	-		$	-		$	-		$	(5	)		$	10