XML 48 R14.htm IDEA: XBRL DOCUMENT v3.19.3
Employment Benefit Plans
9 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Employment Benefit Plans
Employment Benefit Plans

During the first quarter of 2019, the Company amended its funded, noncontributory qualified pension plan, which covers most non-union employees, and its unfunded, non-tax-qualified pension plan, which covers certain officers and other employees (collectively, the Retirement Plans). Non-union employees hired on or after April 1, 2019 will not be eligible for the Retirement Plans and instead will receive an additional company contribution as part of the qualified 401(k) plan based on the employees age and years of service. Current employees will be transitioned away from the Retirement Plans within the next ten years, beginning October 1, 2019, and upon transition will be eligible for the additional company contribution. As a result of the plan amendments, the Company recognized a curtailment gain of $120 million in the first quarter of 2019 consisting of $117 million for the reduction in projected benefit obligation and $3 million for the recognition of prior service credits.

Components of the net (benefit) cost for the periods presented below for certain employee benefit plans were as follows (in millions):
 
 
Pension Benefits
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Net (Benefit) Cost
 
2019
 
2018
 
2019
 
2018
Service cost
 
$
7

 
$
12

 
$
24

 
$
34

Interest cost
 
20

 
20

 
62

 
62

Expected return on plan assets
 
(41
)
 
(39
)
 
(120
)
 
(118
)
Amortization of net gain
 

 

 
(1
)
 

Amortization of prior service credits
 

 

 
(3
)
 

Curtailment gain
 

 

 
(117
)
 

Net (benefit) cost recognized
 
$
(14
)
 
$
(7
)
 
$
(155
)
 
$
(22
)

 
 
Retiree Health and Welfare Benefits
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Net (Benefit) Cost
 
2019
 
2018
 
2019
 
2018
Service cost
 
$
1

 
$
1

 
$
1

 
$
1

Interest cost
 
2

 
2

 
6

 
6

Amortization of prior service credits
 

 
(2
)
 

 
(2
)
Net (benefit) cost recognized
 
$
3

 
$
1

 
$
7

 
$
5



Service cost is included in compensation and benefits expense and the other components of net periodic benefit costs are included in other (income) expense, net in the Consolidated Statements of Income.