Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Components of the plans' funded status reflected in the Consolidated Statements of Financial Position

The components of the plans’ funded status that are reflected in the Consolidated Statements of Financial Position as of December 31 are as follows:



($ in millions)	Pension benefits						Postretirement benefits
	2015			2014			2015			2014
Fair value of plan assets	$	5,353		$	5,783		$	—		$	—
Less: Benefit obligation	6,130			6,493			405			575
Funded status	$	(777	)	$	(710	)	$	(405	)	$	(575	)

Items not yet recognized as a component of net periodic cost:
Net actuarial loss (gain)	$	2,710		$	2,707		$	(263	)	$	(111	)
Prior service credit	(365		)	(422		)	(61		)	(83		)
Unrecognized pension and other postretirement benefit cost, pre-tax	2,345			2,285			(324		)	(194		)
Deferred income tax	(821		)	(800		)	115			72
Unrecognized pension and other postretirement benefit cost	$	1,524		$	1,485		$	(209	)	$	(122	)

Change during the period in items not yet recognized as a component of net periodic cost

The change in 2015 in items not yet recognized as a component of net periodic cost, which is recorded in unrecognized pension and other postretirement benefit cost, is shown in the table below.



($ in millions)	Pension benefits			Postretirement benefits
Items not yet recognized as a component of net periodic cost – December 31, 2014	$	2,285		$	(194	)
Net actuarial loss (gain) arising during the period	242			(158		)
Net actuarial (loss) gain amortized to net periodic benefit cost	(221		)	9
Prior service credit arising during the period	—			—
Prior service credit amortized to net periodic benefit cost	56			22
Translation adjustment and other	(17		)	(3		)
Items not yet recognized as a component of net periodic cost – December 31, 2015	$	2,345		$	(324	)

Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost in next fiscal year

The net actuarial loss (gain) is recognized as a component of net periodic cost amortized over the average remaining service period of active employees expected to receive benefits. Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost during 2016 are shown in the table below.



($ in millions)	Pension benefits			Postretirement benefits
Net actuarial loss (gain)	$	174		$	(32	)
Prior service credit	(56		)	(21		)

Changes in benefit obligations for all plans

The changes in benefit obligations for all plans for the years ended December 31 are as follows:



($ in millions)	Pension benefits						Postretirement benefits
	2015			2014			2015			2014
Benefit obligation, beginning of year	$	6,493		$	5,297		$	575		$	482
Service cost	114			96			12			10
Interest cost	258			262			23			23
Participant contributions	—			1			19			19
Actuarial (gain) loss	(225		)	1,243			(158		)	103
Benefits paid ⁽¹⁾	(443		)	(368		)	(54		)	(57		)
Plan amendments	—			—			—			—
Translation adjustment and other	(67		)	(38		)	(12		)	(5		)
Curtailment gain	—			—			—			—
Benefit obligation, end of year	$	6,130		$	6,493		$	405		$	575

Components of net periodic cost

The components of net periodic cost for all plans for the years ended December 31 are as follows:



	Pension benefits									Postretirement benefits
($ in millions)	2015			2014			2013			2015			2014			2013
Service cost	$	114		$	96		$	140		$	12		$	10		$	12
Interest cost	258			262			265			23			23			28
Expected return on plan assets	(424		)	(398		)	(394		)	—			—			—
Amortization of:
Prior service credit	(56		)	(58		)	(28		)	(22		)	(23		)	(23		)
Net actuarial loss (gain)	190			127			235			(9		)	(22		)	(16		)
Settlement loss	31			54			277			—			—			—
Curtailment gain	—			—			—			—			—			(181		)
Net periodic cost (credit)	$	113		$	83		$	495		$	4		$	(12	)	$	(180	)

Weighted average assumptions used to determine for pension plans and postretirement benefits plans the net benefit cost and benefit obligation

Weighted average assumptions used to determine net pension cost and net postretirement benefit cost for the years ended December 31 are:



	Pension benefits						Postretirement benefits
($ in millions)	2015		2014		2013		2015		2014		2013
Discount rate	4.10	%	5.00	%	4.60	%	3.97	%	5.11	%	3.75	%
Rate of increase in compensation levels	3.5		3.5		3.5		n/a		n/a		n/a
Expected long-term rate of return on plan assets	7.33		7.36		7.75		n/a		n/a		n/a

Weighted average assumptions used to determine benefit obligations as of December 31 are listed in the following table.



	Pension benefits				Postretirement benefits
	2015		2014		2015		2014
Discount rate	4.83	%	4.10	%	4.56	%	4.15	%
Rate of increase in compensation levels	3.2		3.5		n/a		n/a

Change in pension plan assets

The change in pension plan assets for the years ended December 31 is as follows:



($ in millions)	2015			2014
Fair value of plan assets, beginning of year	$	5,783		$	5,602
Actual return on plan assets	(43		)	540
Employer contribution	125			49
Benefits paid	(443		)	(368		)
Translation adjustment and other	(69		)	(40		)
Fair value of plan assets, end of year	$	5,353		$	5,783

Pension plans' weighted average target asset allocation and the actual percentage of plan assets

The pension plans’ weighted average target asset allocation and the actual percentage of plan assets, by asset category as of December 31, 2015 are as follows:



	Target asset allocation ⁽¹⁾	Actual percentage of plan assets
Asset category	2015	2015		2014
Equity securities ⁽²⁾	53 - 63%	60	%	41	%
Fixed income securities	28 - 37%	30		50
Limited partnership interests	0 - 12%	7		7
Short-term investments and other	—	3		2
Total without securities lending ⁽³⁾		100	%	100	%

______________________________


⁽¹⁾	The target asset allocation considers risk based exposure while the actual percentage of plan assets utilizes a financial reporting view excluding exposure provided through derivatives.

⁽²⁾

The actual percentage of plan assets for equity securities include private equity investments that are subject to the limited partnership interests target allocation of 2% and 1% in 2015 and 2014, respectively, fixed income mutual funds that are subject to the fixed income securities target allocation of 3% for both 2015 and 2014 as well as 9% of equity exposure created through a derivative which is not included in the actual allocations in 2014.


⁽³⁾	Securities lending collateral reinvestment of $152 million and $217 million is excluded from the table above in 2015 and 2014, respectively.

Fair values of pension plan assets

The following table presents the fair values of pension plan assets as of December 31, 2015.



($ in millions)
	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2015
Equity securities	$	136		$	2,945		$	100		$	3,181
Fixed income securities:
U.S. government and agencies	72			334			—			406
Municipal	—			—			7			7
Corporate	—			1,205			10			1,215
Short-term investments	112			184			—			296
Limited partnership interests:
Real estate funds ⁽¹⁾	—			—			104			104
Private equity funds ⁽²⁾	—			—			237			237
Hedge funds	—			—			33			33
Cash and cash equivalents	22			—			—			22
Total plan assets at fair value	$	342		$	4,668		$	491		5,501
% of total plan assets at fair value	6.2		%	84.9		%	8.9		%	100.0		%

Securities lending obligation ⁽³⁾										(167		)
Other net plan assets ⁽⁴⁾										19
Total reported plan assets										$	5,353

______________________________


⁽¹⁾	Real estate funds held by the pension plans are primarily invested in U.S. commercial real estate.


⁽²⁾	Private equity investments held by the pension plans are primarily comprised of buyout and growth funds in North America and other developed markets.

⁽³⁾

The securities lending obligation represents the plan’s obligation to return securities lending collateral received under a securities lending program. The terms of the program allow both the plan and the counterparty the right and ability to redeem/return the securities loaned on short notice. Due to its relatively short-term nature, the outstanding balance of the obligation approximates fair value.


⁽⁴⁾	Other net plan assets represent interest and dividends receivable and net receivables related to settlements of investment transactions, such as purchases and sales.

The following table presents the fair values of pension plan assets as of December 31, 2014.



($ in millions)
	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2014
Equity securities	$	161		$	2,109		$	75		$	2,345
Fixed income securities:
U.S. government and agencies	870			44			—			914
Foreign government	—			28			—			28
Municipal	—			—			14			14
Corporate	—			1,822			12			1,834
RMBS	—			115			—			115
Short-term investments	55			254			—			309
Limited partnership interests:
Real estate funds	—			—			154			154
Private equity funds	—			—			218			218
Hedge funds	—			—			32			32
Cash and cash equivalents	34			—			—			34
Free-standing derivatives:
Assets	(1		)	—			—			(1		)
Liabilities	(3		)	—			—			(3		)
Total plan assets at fair value	$	1,116		$	4,372		$	505		5,993
% of total plan assets at fair value	18.6		%	73.0		%	8.4		%	100.0		%

Securities lending obligation										(234		)
Other net plan assets										24
Total reported plan assets										$	5,783

Rollforward of Level 3 plan assets

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2015.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2014		Relating to assets sold during the period		Relating to assets still held at the reporting date			Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3			Balance as of December 31, 2015
Equity securities	$	75	$	1	$	(5	)	$	29		$	—		$	100
Fixed income securities:
Municipal	14		—		—			(7		)	—			7
Corporate	12		—		—			—			(2		)	10
Limited partnership interests:
Real estate funds	154		—		(12		)	(38		)	—			104
Private equity funds	218		—		(8		)	27			—			237
Hedge funds	32		—		1			—			—			33
Total Level 3 plan assets	$	505	$	1	$	(24	)	$	11		$	(2	)	$	491

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2014.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2013		Relating to assets sold during the period			Relating to assets still held at the reporting date		Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2014
Equity securities	$	237	$	2		$	2	$	(166	)	$	—	$	75
Fixed income securities:
Municipal	18		—			—		(4		)	—		14
Corporate	18		—			—		(6		)	—		12
Limited partnership interests:
Real estate funds	197		(3		)	6		(46		)	—		154
Private equity funds	211		(4		)	4		7			—		218
Hedge funds	9		—			—		23			—		32
Total Level 3 plan assets	$	690	$	(5	)	$	12	$	(192	)	$	—	$	505

The following table presents the rollforward of Level 3 plan assets for the year ended December 31, 2013.



($ in millions)			Actual return on plan assets:
	Balance as of December 31, 2012		Relating to assets sold during the period		Relating to assets still held at the reporting date			Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2013
Equity securities	$	314	$	3	$	18		$	(98	)	$	—	$	237
Fixed income securities:
Municipal	129		7		1			(119		)	—		18
Corporate	10		5		—			3			—		18
Limited partnership interests:
Real estate funds	214		—		11			(28		)	—		197
Private equity funds	199		—		(2		)	14			—		211
Hedge funds	80		—		—			(71		)	—		9
Total Level 3 plan assets	$	946	$	15	$	28		$	(299	)	$	—	$	690

Estimated future benefit payments expected to be paid

Estimated future benefit payments expected to be paid in the next 10 years, based on the assumptions used to measure the Company’s benefit obligation as of December 31, 2015, are presented in the table below.



($ in millions)	Pension benefits		Postretirement benefits
2016	$	341	$	26
2017	372		26
2018	388		26
2019	436		28
2020	472		29
2021-2025	2,569		155
Total benefit payments	$	4,578	$	290

Schedule of ESOP benefit

These amounts were reduced by the ESOP benefit computed for the years ended December 31 as follows:



($ in millions)	2015			2014			2013
Interest expense recognized by ESOP	$	1		$	1		$	2
Less: dividends accrued on ESOP shares	(3		)	(4		)	(3		)
Cost of shares allocated	10			8			7
Compensation expense	8			5			6
Reduction of defined contribution due to ESOP	73			71			46
ESOP benefit	$	(65	)	$	(66	)	$	(40	)