Pension Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2017

Compensation and Retirement Disclosure [Abstract]

Pension Plans and Other Postretirement Benefits

12. 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	2017			2016			2017			2016
Three Months Ended June 30
Service cost	$	21		$	23		$	1		$	—
Interest cost	21			23			3			3
Expected (return) loss on plan assets	(21		)	(24		)	—			—
Amortization of net actuarial loss (gain)	7			10			—			—
Amortization of net prior service cost (credit)	—			—			(6		)	(6		)
Settlement expense	55			24			—			—
Curtailment expense	—			—			—			3
Net periodic benefit cost	$	83		$	56		$	(2	)	$	—
Six Months Ended June 30
Service cost	$	42		$	49		$	1		$	1
Interest cost	42			49			6			6
Expected (return) loss on plan assets	(42		)	(51		)	—			—
Amortization of net actuarial loss (gain)	13			18			—			—
Amortization of net prior service cost (credit)	—			—			(12		)	(12		)
Settlement expense	58			24			—			—
Termination benefits expense	4			44			—			—
Curtailment expense	—			8			—			—
Net periodic benefit cost	$	117		$	141		$	(5	)	$	(5	)

During the six months ended June 30, 2017, the Company recognized $58 million of settlement expense. These settlements resulted in remeasurements of its pension plans during 2017. The remeasurements in 2017 resulted in a net liability decrease of $15 million for the pension benefit plans, with a corresponding increase in other comprehensive income. Settlement expense, termination benefits expense, and curtailment expense for 2016 relate to the workforce reduction program. See Note 11—Restructuring Charges.

The Company contributed $85 million during the six months ended June 30, 2017, and expects to contribute an additional $82 million to funded pension plans during 2017.