Pension Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Pension Plans and Other Postretirement Benefits

13. Pension Plans and Other Postretirement Benefits

The Company has contributory and non-contributory defined-benefit pension plans, which include both qualified and supplemental plans. The Company also provides certain health care and life insurance benefits for certain retired employees. Retiree health care benefits are funded by contributions from the retiree and, in certain circumstances, contributions from the Company. The Company’s retiree life insurance plan is noncontributory. The following summarizes the Company’s pension and other postretirement benefit cost:

	Pension Benefits						Other Benefits
millions	2016			2015			2016			2015
Three Months Ended June 30
Service cost	$	23		$	29		$	—		$	2
Interest cost	23			26			3			4
Expected return on plan assets	(24		)	(28		)	—			—
Amortization of net actuarial loss (gain)	10			13			—			—
Amortization of net prior service cost (credit)	—			—			(6		)	1
Settlement expense	24			—			—			—
Curtailment expense	—			—			3			—
Net periodic benefit cost	$	56		$	40		$	—		$	7
Six Months Ended June 30
Service cost	$	49		$	59		$	1		$	5
Interest cost	49			51			6			8
Expected return on plan assets	(51		)	(55		)	—			—
Amortization of net actuarial loss (gain)	18			26			—			—
Amortization of net prior service cost (credit)	—			—			(12		)	1
Settlement expense	24			—			—			—
Termination benefits expense	44			—			—			—
Curtailment expense	8			—			—			—
Net periodic benefit cost	$	141		$	81		$	(5	)	$	14

The Company’s workforce reduction program resulted in remeasurements of its pension and other postretirement benefit obligations during 2016. The remeasurements resulted in increases in the benefit obligation of $171 million for the pension benefit plans and $23 million for the other postretirement benefit plans, with a corresponding decrease in other comprehensive income.

At December 31, 2015, total expected contributions related to unfunded pension plans were $25 million for 2016. The Company expects to contribute an additional $82 million in 2016 and $23 million in 2017 to unfunded pension plans primarily related to the workforce reduction program. See Note 12—Restructuring Charges.