XML 59 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Retirement and Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement and Employee Benefit Plans [Abstract]  
Changes in Plans Benefit Obligations, Fair Value of Assets, and Funded Status



 

 

 

 

 

 

 

 

 

 

 



 

 

Other Postretirement



Pension Benefits

 

Benefits

(in millions)

2017

 

2016

 

2017

 

2016

Change in benefit obligations:

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at January 1

$

 117 

 

$

 138 

 

$

 13 

 

$

 20 

Service cost

 

 9 

 

 

 11 

 

 

 2 

 

 

 2 

Interest cost

 

 5 

 

 

 5 

 

 

–  

 

 

 1 

Participant contributions

 

–  

 

 

–  

 

 

–  

 

 

–  

Actuarial loss (gain)

 

 21 

 

 

 14 

 

 

 3 

 

 

 (2)

Benefits paid

 

 (9)

 

 

 (3)

 

 

 (1)

 

 

 (1)

Plan amendments

 

–  

 

 

–  

 

 

–  

 

 

–  

Curtailments

 

–  

 

 

 (8)

 

 

–  

 

 

 (7)

Settlements

 

–  

 

 

 (40)

 

 

–  

 

 

–  

Benefit obligation at December 31

$

 143 

 

$

 117 

 

$

 17 

 

$

 13 







 

 

 

 

 

 

 

 

 

 

 



 

 

Other Postretirement



Pension Benefits

 

Benefits

(in millions)

2017

 

2016

 

2017

 

2016

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at January 1

$

 81 

 

$

 108 

 

$

–  

 

$

–  

Actual return on plan assets

 

 15 

 

 

 3 

 

 

–  

 

 

–  

Employer contributions

 

 14 

 

 

 10 

 

 

 1 

 

 

 1 

Participant contributions

 

–  

 

 

–  

 

 

–  

 

 

–  

Benefits paid

 

 (9)

 

 

 (3)

 

 

 (1)

 

 

 (1)

Settlements

 

–  

 

 

 (37)

 

 

–  

 

 

–  

Fair value of plan assets at December 31

$

 101 

 

$

 81 

 

$

–  

 

$

–  



 

 

 

 

 

 

 

 

 

 

 

Funded status of plans at December 31

$

 (42)

 

$

 (36)

 

$

 (17)

 

$

 (13)



Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets



 

 

 

 

 

(in millions)

2017

 

2016

Projected benefit obligation

$

 143 

 

$

 117 

Accumulated benefit obligation

 

 137 

 

 

 116 

Fair value of plan assets

 

 101 

 

 

 81 



Pension and Other Postretirement Benefit Costs



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Other Postretirement



Pension Benefits

 

Benefits

(in millions)

2017

 

2016

 

2015

 

2017

 

2016

 

2015

Service cost

$

 9 

 

$

 11 

 

$

 16 

 

$

 2 

 

$

 2 

 

$

 3 

Interest cost

 

 5 

 

 

 5 

 

 

 6 

 

 

–  

 

 

 1 

 

 

 1 

Expected return on plan assets

 

 (6)

 

 

 (6)

 

 

 (9)

 

 

–  

 

 

–  

 

 

–  

Amortization of transition obligation

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Amortization of prior service cost

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Amortization of net loss

 

 2 

 

 

 2 

 

 

 2 

 

 

–  

 

 

–  

 

 

–  

Net periodic benefit cost

 

 10 

 

 

 12 

 

 

 15 

 

 

 2 

 

 

 3 

 

 

 4 

Curtailment loss

 

–  

 

 

 1 

 

 

–  

 

 

–  

 

 

 (6)

 

 

–  

Settlement loss

 

–  

 

 

 11 

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Total benefit cost (benefit)

$

 10 

 

$

 24 

 

$

 15 

 

$

 2 

 

$

 (3)

 

$

 4 



Amounts Recognized in Other Comprehensive Income



 

 

 

 

 

 

 

 

 

 

 



 

 

Other Postretirement



Pension Benefits

 

Benefits

(in millions)

2017

 

2016

 

2017

 

2016

Net actuarial (loss) gain arising during the year

$

 (11)

 

$

 (13)

 

$

 (2)

 

$

 2 

Amortization of prior service cost

 

–  

 

 

–  

 

 

–  

 

 

–  

Amortization of net loss

 

 2 

 

 

 20 

 

 

–  

 

 

–  

Settlements

 

–  

 

 

–  

 

 

–  

 

 

 1 

Tax effect (1)

 

 3 

 

 

 (3)

 

 

 1 

 

 

 (1)



$

 (6)

 

$

 4 

 

$

 (1)

 

$

 2 



(1)

Deferred tax activity related to pension and other postretirement benefits was offset by a valuation allowance, resulting in no tax expense recorded for the period.
Schedule of Assumptions Used

The assumptions used in the measurement of the Company’s benefit obligations as of December 31, 2017 and 2016 are as follows:





 

 

 

 

 

 

 

 

 

 

 



Pension Benefits

 

 

Other Postretirement Benefits

 



2017

 

2016

 

2017

 

2016

Discount rate

 3.75 

%

 

 4.20 

%

 

 3.75 

%

 

 4.20 

%

Rate of compensation increase

 3.50 

%

 

 3.50 

%

 

n/a 

 

 

n/a 

%



The assumptions used in the measurement of the Company’s net periodic benefit cost for 2017, 2016 and 2015 are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Pension Benefits

 

Other Postretirement Benefits



2017

 

2016

 

2015

 

2017

 

2016

 

2015

Discount rate

 4.20 

%

 

 4.20 

%

 

 4.25 

%

 

 4.20 

%

 

 4.20 

%

 

 4.25 

%

Expected return on plan assets

 7.00 

%

 

 7.00 

%

 

 7.00 

%

 

n/a 

 

 

n/a 

 

 

n/a 

 

Rate of compensation increase

 3.50 

%

 

 3.50 

%

 

 4.50 

%

 

n/a 

 

 

n/a 

 

 

n/a 

 



Schedule of Health Care Cost Trend Rates



 

 

 



2017

 

2016

Health care cost trend assumed for next year

 7% 

 

 7% 

Rate to which the cost trend is assumed to decline

 5% 

 

 5% 

Year that the rate reaches the ultimate trend rate

 2035 

 

 2034 



One Percentage Point Change in Assumed Health Care Cost Trend Rates



 

 

 

 

 

(in millions)

 

1% Increase

 

 

1% Decrease

Effect on the total service and interest cost components

$

–  

 

$

–  

Effect on postretirement benefit obligations

$

 3 

 

$

 (2)



Schedule of Expected Benefit Payments



 

 

 

 

 

 

Pension Benefits

 

Other Postretirement Benefits

(in millions)

2018

$

 6 

 

2018

$

 1 

2019

 

 6 

 

2019

 

 1 

2020

 

 7 

 

2020

 

 1 

2021

 

 8 

 

2021

 

 1 

2022

 

 8 

 

2022

 

 1 

Years 2023-2027

 

 52 

 

Years 2023-2027

 

 7 



Schedule of Allocation of Plan Assets





 

 

 

 

 



Pension Plan Asset Allocations

Asset category:

Target

 

Actual

Equity securities:

 

 

 

 

 

U.S. Equity (1)

 35 

%

 

 36 

%

Non-U.S. Developed Equity (2)

 30 

%

 

 30 

%

Emerging Markets Equity (3)

 5 

%

 

 5 

%

Opportunistic (4)

– 

%

 

– 

%

Fixed income (5) 

 28 

%

 

 27 

%

Cash (6)

 2 

%

 

 2 

%

Total

 100 

%

 

 100 

%



(1)    Includes the following equity securities in the table below: U.S. large cap growth equity, U.S. large cap value equity, U.S. large cap core equity, and U.S. small cap equity.

(2)    Includes Non-U.S. equity securities in the table below.

(3)    Includes emerging markets equity securities below.

(4)    Includes none of the securities in the table below.

(5)    Includes fixed income pension plan assets in the table below.

(6)    Includes Cash and cash equivalents pension plan assets in the table below.



Fair Value Measurement of Pension Plan Assets



 

 

 

 

 

 

 

 

 

 

 

(in millions)

Total

 

Quoted Prices in Active Markets for Identical Assets
(Level 1)

 

Significant Observable Inputs
(Level 2)

 

Significant Unobservable Inputs
(Level 3)

Measured within fair value hierarchy

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap growth equity (1)

$

 7 

 

$

 7 

 

$

 – 

 

$

– 

U.S. large cap value equity (2)

 

 8 

 

 

 8 

 

 

– 

 

 

– 

U.S. small cap equity (3)

 

 3 

 

 

 3 

 

 

– 

 

 

– 

Non-U.S. equity (4)

 

 30 

 

 

 30 

 

 

– 

 

 

– 

Emerging markets equity (5)

 

 5 

 

 

 5 

 

 

– 

 

 

– 

Fixed income (6)

 

 27 

 

 

 27 

 

 

– 

 

 

– 

Cash and cash equivalents

 

 3 

 

 

 3 

 

 

– 

 

 

– 

Total measured within fair value hierarchy

$

 83 

 

$

 83 

 

$

 – 

 

$

– 

Measured at net asset value (7)

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap core equity (8)

 

 18 

 

 

 

 

 

 

 

 

 

Total measured at net asset value

$

 18 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Total plan assets at fair value

$

 101 

 

 

 

 

 

 

 

 

 



Utilizing the fair value hierarchy described in Note 6 – Fair Value Measurements, the Company’s fair value measurement of pension plan assets at December 31, 2016 was as follows:





 

 

 

 

 

 

 

 

 

 

 

(in millions)

Total

 

Quoted Prices in Active Markets for Identical Assets
(Level 1)

 

Significant Observable Inputs
(Level 2)

 

Significant Unobservable Inputs
(Level 3)

Measured within fair value hierarchy

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap growth equity (1)

$

 6 

 

$

 6 

 

$

 –

 

$

 –

U.S. large cap value equity (2)

 

 6 

 

 

 6 

 

 

 –

 

 

 –

U.S. small cap equity (3)

 

 3 

 

 

 3 

 

 

 –

 

 

 –

Non-U.S. equity (4)

 

 23 

 

 

 23 

 

 

 –

 

 

 –

Emerging markets equity (5)

 

 4 

 

 

 4 

 

 

 –

 

 

 –

Fixed income (6)

 

 21 

 

 

 21 

 

 

 –

 

 

 –

Cash and cash equivalents

 

 4 

 

 

 4 

 

 

 –

 

 

 –

Total measured within fair value hierarchy

$

 67 

 

$

 67 

 

$

 –

 

$

 –

Measured at net asset value (7)

 

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap core equity (8)

 

 14 

 

 

 

 

 

 

 

 

 

Total measured at net asset value

$

 14 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Total plan assets at fair value

$

 81 

 

 

 

 

 

 

 

 

 



(1)

Mutual fund that seeks to invest in a diversified portfolio of stocks with price appreciation growth opportunities.

(2)

Mutual fund that seeks to invest in a diversified portfolio of stocks that will increase in value over the long-term as well as provide current income.

(3)

Mutual fund that seeks to invest in a diversified portfolio of stocks with small market capitalizations.

(4)

Mutual funds that invest primarily in equity securities of companies domiciled outside of the United States, primarily in developed markets.

(5)

An institutional fund that invests primarily in the equity securities of companies domiciled in emerging markets.

(6)

Institutional funds that seek an investment return that approximates, as closely as practicable, before expenses, the performance of the Barclays U.S. Intermediate Credit Bond Index over the long term and the Barclays Long U.S. Corporate Bond Index over the long-term.

(7)

Plan assets for which fair value was measured using net asset value as a practical expedient.

(8)

An institutional fund that seeks to replicate the performance of the S&P 500 Index before fees.