Annual report pursuant to Section 13 and 15(d)

Employee Benefit Plans

v3.6.0.2
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
 Employee Benefit Plans
Pension and Postretirement Plans
The Corporation sponsors a qualified noncontributory trusteed pension plan (Qualified Pension Plan), a number of noncontributory nonqualified pension plans, and postretirement health and life plans that cover eligible employees. Non-U.S. pension plans sponsored by the Corporation vary based on the country and local practices.
The Qualified Pension Plan has a balance guarantee feature for account balances with participant-selected investments, applied at the time a benefit payment is made from the plan that effectively provides principal protection for participant balances transferred and certain compensation credits. The Corporation is responsible for funding any shortfall on the guarantee feature.
The Corporation has an annuity contract that guarantees the payment of benefits vested under a terminated U.S. pension plan (Other Pension Plan). The Corporation, under a supplemental agreement, may be responsible for, or benefit from actual experience and investment performance of the annuity assets. The Corporation made no contribution under this agreement in 2016 or 2015. Contributions may be required in the future under this agreement.
The Corporation’s noncontributory, nonqualified pension plans are unfunded and provide supplemental defined pension benefits to certain eligible employees.
In addition to retirement pension benefits, certain benefits-eligible employees may become eligible to continue participation as retirees in health care and/or life insurance plans sponsored by the Corporation. These plans are referred to as the Postretirement Health and Life Plans.
The Pension and Postretirement Plans table summarizes the changes in the fair value of plan assets, changes in the projected benefit obligation (PBO), the funded status of both the accumulated benefit obligation (ABO) and the PBO, and the weighted-average assumptions used to determine benefit obligations for the pension plans and postretirement plans at December 31, 2016 and 2015. The estimate of the Corporation’s PBO associated with these plans considers various actuarial assumptions, including assumptions for mortality rates and discount rates. The discount rate assumptions are derived from a cash flow matching technique that utilizes rates that are based on Aa-rated corporate bonds with cash flows that match estimated benefit payments of each of the plans. The decrease in the weighted-average discount rates in 2016 resulted in an increase to the PBO of approximately $1.3 billion at December 31, 2016. The increase in the weighted-average discount rates in 2015 resulted in a decrease to the PBO of approximately $930 million at December 31, 2015.

The Corporation’s estimate of its contributions to be made to the Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans in 2017 is $20 million, $96 million and $99 million, respectively. The Corporation does not expect to make a contribution to the Qualified Pension Plan in 2017. It is the policy of the Corporation to fund no less than the minimum funding amount required by the Employee Retirement Income Security Act of 1974 (ERISA).
 
 
 
 
 
 
 
 
Pension and Postretirement Plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Qualified
Pension Plan (1)
 
Non-U.S.
Pension Plans (1)
 
Nonqualified
and Other
Pension Plans (1)
 
Postretirement
Health and Life
Plans (1)
(Dollars in millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Change in fair value of plan assets
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fair value, January 1
$
17,962

 
$
18,614

 
$
2,738

 
$
2,564

 
$
2,805

 
$
2,927

 
$
—

 
$
28

Actual return on plan assets
1,075

 
199

 
541

 
342

 
74

 
14

 
—

 
—

Company contributions
—

 
—

 
48

 
58

 
104

 
97

 
104

 
79

Plan participant contributions
—

 
—

 
1

 
1

 
—

 
—

 
125

 
127

Settlements and curtailments
—

 
—

 
(20
)
 
(7
)
 
(6
)
 
—

 
—

 
—

Benefits paid
(798
)
 
(851
)
 
(118
)
 
(78
)
 
(233
)
 
(233
)
 
(242
)
 
(247
)
Federal subsidy on benefits paid
 n/a

 
n/a

 
 n/a

 
n/a

 
 n/a

 
n/a

 
13

 
13

Foreign currency exchange rate changes
 n/a

 
n/a

 
(401
)
 
(142
)
 
 n/a

 
n/a

 
 n/a

 
n/a

Fair value, December 31
$
18,239

 
$
17,962

 
$
2,789

 
$
2,738

 
$
2,744

 
$
2,805

 
$
—

 
$
—

Change in projected benefit obligation
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Projected benefit obligation, January 1
$
14,461

 
$
15,508

 
$
2,580

 
$
2,688

 
$
3,053

 
$
3,329

 
$
1,152

 
$
1,346

Service cost
—

 
—

 
25

 
27

 
—

 
—

 
7

 
8

Interest cost
634

 
621

 
86

 
93

 
127

 
122

 
47

 
48

Plan participant contributions
—

 
—

 
1

 
1

 
—

 
—

 
125

 
127

Plan amendments
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

Settlements and curtailments
—

 
—

 
(31
)
 
(7
)
 
(6
)
 
—

 
—

 
—

Actuarial loss (gain)
685

 
(817
)
 
535

 
(2
)
 
106

 
(165
)
 
25

 
(141
)
Benefits paid
(798
)
 
(851
)
 
(118
)
 
(78
)
 
(233
)
 
(233
)
 
(242
)
 
(247
)
Federal subsidy on benefits paid
 n/a

 
n/a

 
 n/a

 
n/a

 
 n/a

 
n/a

 
13

 
13

Foreign currency exchange rate changes
 n/a

 
n/a

 
(315
)
 
(141
)
 
 n/a

 
n/a

 
(2
)
 
(2
)
Projected benefit obligation, December 31
$
14,982

 
$
14,461

 
$
2,763

 
$
2,580

 
$
3,047

 
$
3,053

 
$
1,125

 
$
1,152

Amount recognized, December 31
$
3,257

 
$
3,501

 
$
26

 
$
158

 
$
(303
)
 
$
(248
)
 
$
(1,125
)
 
$
(1,152
)
Funded status, December 31
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Accumulated benefit obligation
$
14,982

 
$
14,461

 
$
2,645

 
$
2,479

 
$
3,046

 
$
3,052

 
n/a

 
n/a

Overfunded (unfunded) status of ABO
3,257

 
3,501

 
144

 
259

 
(302
)
 
(247
)
 
n/a

 
n/a

Provision for future salaries
—

 
—

 
118

 
101

 
1

 
1

 
n/a

 
n/a

Projected benefit obligation
14,982

 
14,461

 
2,763

 
2,580

 
3,047

 
3,053

 
$
1,125

 
$
1,152

Weighted-average assumptions, December 31
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
4.16
%
 
4.51
%
 
2.56
%
 
3.59
%
 
4.01
%
 
4.34
%
 
3.99
%
 
4.32
%
Rate of compensation increase
 n/a

 
n/a

 
4.51

 
4.64

 
4.00

 
4.00

 
n/a

 
n/a

(1) 
The measurement date for the Qualified Pension Plan, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans was December 31 of each year reported.
n/a = not applicable
 
 
 
 
 
 
 
 
Amounts Recognized on Consolidated Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Qualified
Pension Plan
 
Non-U.S.
Pension Plans
 
Nonqualified
and Other
Pension Plans
 
Postretirement
Health and Life
Plans
(Dollars in millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Other assets
$
3,257

 
$
3,501

 
$
475

 
$
548

 
$
760

 
$
825

 
$
—

 
$
—

Accrued expenses and other liabilities
—

 
—

 
(449
)
 
(390
)
 
(1,063
)
 
(1,073
)
 
(1,125
)
 
(1,152
)
Net amount recognized at December 31
$
3,257

 
$
3,501

 
$
26

 
$
158

 
$
(303
)
 
$
(248
)
 
$
(1,125
)
 
$
(1,152
)

Pension Plans with ABO and PBO in excess of plan assets as of December 31, 2016 and 2015 are presented in the table below. For these plans, funding strategies vary due to legal requirements and local practices.
 
 
 
 
 
 
 
 
Plans with PBO and ABO in Excess of Plan Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-U.S.
Pension Plans
 
Nonqualified
and Other
Pension Plans
(Dollars in millions)
2016
 
2015
 
2016
 
2015
PBO
$
626

 
$
574

 
$
1,065

 
$
1,075

ABO
594

 
551

 
1,064

 
1,074

Fair value of plan assets
179

 
183

 
1

 
1


 
 
 
 
 
 
 
 
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Qualified Pension Plan
 
Non-U.S. Pension Plans
(Dollars in millions)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Components of net periodic benefit cost (income)
 

 
 

 
 

 
 

 
 

 
 

Service cost
$
—

 
$
—

 
$
—

 
$
25

 
$
27

 
$
29

Interest cost
634

 
621

 
665

 
86

 
93

 
109

Expected return on plan assets
(1,038
)
 
(1,045
)
 
(1,018
)
 
(123
)
 
(133
)
 
(137
)
Amortization of prior service cost
—

 
—

 
—

 
1

 
1

 
1

Amortization of net actuarial loss
139

 
170

 
111

 
6

 
6

 
3

Recognized loss due to settlements and curtailments
—

 
—

 
—

 
1

 
—

 
2

Net periodic benefit cost (income)
$
(265
)
 
$
(254
)
 
$
(242
)
 
$
(4
)
 
$
(6
)
 
$
7

Weighted-average assumptions used to determine net cost for years ended December 31
 

 
 

 
 

 
 

 
 

 
 

Discount rate
4.51
%
 
4.12
%
 
4.85
%
 
3.59
%
 
3.56
%
 
4.30
%
Expected return on plan assets
6.00

 
6.00

 
6.00

 
4.84

 
5.27

 
5.52

Rate of compensation increase
n/a

 
n/a

 
n/a

 
4.67

 
4.70

 
4.91

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonqualified and
Other Pension Plans
 
Postretirement Health
and Life Plans
(Dollars in millions)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Components of net periodic benefit cost (income)
 

 
 

 
 

 
 

 
 

 
 

Service cost
$
—

 
$
—

 
$
1

 
$
7

 
$
8

 
$
8

Interest cost
127

 
122

 
133

 
47

 
48

 
58

Expected return on plan assets
(101
)
 
(92
)
 
(124
)
 
—

 
(1
)
 
(4
)
Amortization of prior service cost
—

 
—

 
—

 
4

 
4

 
4

Amortization of net actuarial loss (gain)
25

 
34

 
25

 
(81
)
 
(46
)
 
(89
)
Recognized loss due to settlements and curtailments
3

 
—

 
—

 
—

 
—

 
—

Net periodic benefit cost (income)
$
54

 
$
64

 
$
35

 
$
(23
)
 
$
13

 
$
(23
)
Weighted-average assumptions used to determine net cost for years ended December 31
 

 
 

 
 

 
 

 
 

 
 

Discount rate
4.34
%
 
3.80
%
 
4.55
%
 
4.32
%
 
3.75
%
 
4.50
%
Expected return on plan assets
3.66

 
3.26

 
4.60

 
 n/a

 
6.00

 
6.00

Rate of compensation increase
4.00

 
4.00

 
4.00

 
 n/a

 
n/a

 
n/a


n/a = not applicable
The asset valuation method used to calculate the expected return on plan assets component of net periodic benefit cost for the Qualified Pension Plan recognizes 60 percent of the prior year’s market gains or losses at the next measurement date with the remaining 40 percent spread equally over the subsequent four years.
Net periodic postretirement health and life expense was determined using the “projected unit credit” actuarial method. Gains and losses for all benefit plans except postretirement health care are recognized in accordance with the standard amortization provisions of the applicable accounting guidance. For the Postretirement Health and Life Plans, 50 percent of the unrecognized gain or loss at the beginning of the fiscal year (or at subsequent remeasurement) is recognized on a level basis during the year.
Assumed health care cost trend rates affect the postretirement benefit obligation and benefit cost reported for the Postretirement Health and Life Plans. The assumed health care cost trend rate used to measure the expected cost of benefits covered by the Postretirement Health and Life Plans is 7.00 percent for 2017, reducing in steps to 5.00 percent in 2023 and later years. A one-percentage-point increase in assumed health care cost trend rates would have increased the service and interest costs, and the benefit obligation by $1 million and $29 million in 2016. A one-percentage-point decrease in assumed health care cost trend rates would have lowered the service and interest costs, and the benefit obligation by $1 million and $25 million in 2016.

The Corporation’s net periodic benefit cost (income) recognized for the plans is sensitive to the discount rate and expected return on plan assets. With all other assumptions held constant, a 25 bp decline in the discount rate and expected return on plan asset assumptions would have resulted in an increase in the net periodic benefit cost for the Qualified Pension Plan recognized in 2016 of approximately $9 million and $43 million, and to be recognized in 2017 of approximately $6 million and $45 million. For the Postretirement Health and Life Plans, a 25 bp decline in the discount rate would have resulted in an increase in the net periodic benefit cost recognized in 2016 of approximately $8 million, and to be recognized in 2017 of approximately $7 million. For the Non-U.S. Pension Plans and the Nonqualified and Other Pension Plans, a 25 bp decline in discount rates would not have a significant impact on the net periodic benefit cost for 2016 and 2017.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pretax Amounts Included in Accumulated OCI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Qualified
Pension Plan
 
Non-U.S.
Pension Plans
 
Nonqualified
and Other
Pension Plans
 
Postretirement
Health and
Life Plans
 
Total
(Dollars in millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Net actuarial loss (gain)
$
4,429

 
$
3,920

 
$
216

 
$
137

 
$
953

 
$
848

 
$
(44
)
 
$
(150
)
 
$
5,554

 
$
4,755

Prior service cost (credits)
—

 
—

 
4

 
(10
)
 
—

 
—

 
12

 
16

 
16

 
6

Amounts recognized in accumulated OCI
$
4,429

 
$
3,920

 
$
220

 
$
127

 
$
953

 
$
848

 
$
(32
)
 
$
(134
)
 
$
5,570

 
$
4,761


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pretax Amounts Recognized in OCI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Qualified
Pension Plan
 
Non-U.S.
Pension Plans
 
Nonqualified
and Other
Pension Plans
 
Postretirement
Health and
Life Plans
 
Total
(Dollars in millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Current year actuarial loss (gain)
$
648

 
$
29

 
$
100

 
$
(211
)
 
$
133

 
$
(86
)
 
$
25

 
$
(140
)
 
$
906

 
$
(408
)
Amortization of actuarial gain (loss)
(139
)
 
(170
)
 
(6
)
 
(6
)
 
(28
)
 
(34
)
 
81

 
46

 
(92
)
 
(164
)
Current year prior service cost (credit)
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
(1
)
Amortization of prior service cost
—

 
—

 
(1
)
 
(1
)
 
—

 
—

 
(4
)
 
(4
)
 
(5
)
 
(5
)
Amounts recognized in OCI
$
509

 
$
(141
)
 
$
93

 
$
(219
)
 
$
105

 
$
(120
)
 
$
102

 
$
(98
)
 
$
809

 
$
(578
)

 
 
 
 
 
 
 
 
 
 
Estimated Pretax Amounts Amortized from Accumulated OCI into Period Cost in 2017
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
Qualified
Pension Plan
 
Non-U.S.
Pension Plans
 
Nonqualified
and Other
Pension Plans
 
Postretirement
Health and
Life Plans
 
Total
Net actuarial loss (gain)
$
152

 
$
10

 
$
34

 
$
(20
)
 
$
176

Prior service cost
—

 
1

 
—

 
4

 
5

Total amounts amortized from accumulated OCI
$
152

 
$
11

 
$
34

 
$
(16
)
 
$
181


Plan Assets
The Qualified Pension Plan has been established as a retirement vehicle for participants, and trusts have been established to secure benefits promised under the Qualified Pension Plan. The Corporation’s policy is to invest the trust assets in a prudent manner for the exclusive purpose of providing benefits to participants and defraying reasonable expenses of administration. The Corporation’s investment strategy is designed to provide a total return that, over the long term, increases the ratio of assets to liabilities. The strategy attempts to maximize the investment return on assets at a level of risk deemed appropriate by the Corporation while complying with ERISA and any applicable regulations and laws. The investment strategy utilizes asset allocation as a principal determinant for establishing the risk/return profile of the assets. Asset allocation ranges are established, periodically reviewed and adjusted as funding levels and liability characteristics change. Active and passive investment managers are employed to help enhance the risk/return profile of the assets. An additional aspect of the investment strategy used to minimize risk (part of the asset allocation plan) includes matching the exposure of participant-selected investment measures. No plan assets are expected to be returned to the Corporation during 2017.
The assets of the Non-U.S. Pension Plans are primarily attributable to a U.K. pension plan. This U.K. pension plan’s assets are invested prudently so that the benefits promised to members are provided with consideration given the nature and the duration of the plan’s liabilities. The selected asset allocation strategy is designed to achieve a higher return than the lowest risk strategy.
The expected rate of return on plan assets assumption was developed through analysis of historical market returns, historical asset class volatility and correlations, current market conditions, anticipated future asset allocations, the funds’ past experience, and expectations on potential future market returns. The expected return on plan assets assumption is determined using the calculated market-related value for the Qualified Pension Plan and the Other Pension Plan and the fair value for the Non-U.S. Pension Plans and Postretirement Health and Life Plans. The expected return on plan assets assumption represents a long-term average view of the performance of the assets in the Qualified Pension Plan, the Non-U.S. Pension Plans, the Other Pension Plan, and Postretirement Health and Life Plans, a return that may or may not be achieved during any one calendar year. The Other Pension Plan is invested solely in an annuity contract which is primarily invested in fixed-income securities structured such that asset maturities match the duration of the plan’s obligations.
The target allocations for 2017 by asset category for the Qualified Pension Plan, Non-U.S. Pension Plans, and Nonqualified and Other Pension Plans are presented in the table below.
 
 
 
 
2017 Target Allocation
 
 
 
 
 
Percentage
Asset Category
Qualified
Pension Plan
Non-U.S.
Pension Plans
Nonqualified
and Other
Pension Plans
Equity securities
30 - 60
10 - 35
0 - 5
Debt securities
40 - 70
40 - 80
95 - 100
Real estate
0 - 10
0 - 15
0 - 5
Other
0 - 5
0 - 25
0 - 5

Equity securities for the Qualified Pension Plan include common stock of the Corporation in the amounts of $203 million (1.11 percent of total plan assets) and $189 million (1.05 percent of total plan assets) at December 31, 2016 and 2015.
Fair Value Measurements
For information on fair value measurements, including descriptions of Level 1, 2 and 3 of the fair value hierarchy and the valuation methods employed by the Corporation, see Note 1 – Summary of Significant Accounting Principles and Note 20 – Fair Value Measurements.
Combined plan investment assets measured at fair value by level and in total at December 31, 2016 and 2015 are summarized in the Fair Value Measurements table.
 
 
 
 
 
 
 
 
Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Total
Cash and short-term investments
 

 
 

 
 

 
 

Money market and interest-bearing cash
$
776

 
$
—

 
$
—

 
$
776

Cash and cash equivalent commingled/mutual funds
—

 
997

 
—

 
997

Fixed income
 

 
 

 
 

 
 

U.S. government and agency securities
3,125

 
816

 
10

 
3,951

Corporate debt securities
—

 
1,892

 
—

 
1,892

Asset-backed securities
—

 
2,246

 
—

 
2,246

Non-U.S. debt securities
789

 
705

 
—

 
1,494

Fixed income commingled/mutual funds
778

 
1,503

 
—

 
2,281

Equity
 

 
 

 
 

 
 

Common and preferred equity securities
6,120

 
—

 
—

 
6,120

Equity commingled/mutual funds
735

 
1,225

 
—

 
1,960

Public real estate investment trusts
145

 
—

 
—

 
145

Real estate
 

 
 

 
 

 
 

Private real estate
—

 
—

 
150

 
150

Real estate commingled/mutual funds
—

 
12

 
748

 
760

Limited partnerships
—

 
132

 
38

 
170

Other investments (1)
15

 
732

 
83

 
830

Total plan investment assets, at fair value
$
12,483

 
$
10,260

 
$
1,029

 
$
23,772

 
 
 
 
 
 
 
 
 
December 31, 2015
Cash and short-term investments
 

 
 

 
 

 
 

Money market and interest-bearing cash
$
3,061

 
$
—

 
$
—

 
$
3,061

Cash and cash equivalent commingled/mutual funds
—

 
4

 
—

 
4

Fixed income
 

 
 

 
 

 
 

U.S. government and agency securities
2,723

 
881

 
11

 
3,615

Corporate debt securities
—

 
1,795

 
—

 
1,795

Asset-backed securities
—

 
1,939

 
—

 
1,939

Non-U.S. debt securities
632

 
662

 
—

 
1,294

Fixed income commingled/mutual funds
551

 
1,421

 
—

 
1,972

Equity
 

 
 

 
 

 
 

Common and preferred equity securities
6,735

 
—

 
—

 
6,735

Equity commingled/mutual funds
3

 
1,503

 
—

 
1,506

Public real estate investment trusts
138

 
—

 
—

 
138

Real estate
 

 
 

 
 

 
 

Private real estate
—

 
—

 
144

 
144

Real estate commingled/mutual funds
—

 
12

 
731

 
743

Limited partnerships
—

 
121

 
49

 
170

Other investments (1)
—

 
287

 
102

 
389

Total plan investment assets, at fair value
$
13,843

 
$
8,625

 
$
1,037

 
$
23,505

(1) 
Other investments include interest rate swaps of $257 million and $114 million, participant loans of $36 million and $58 million, commodity and balanced funds of $369 million and $165 million and other various investments of $168 million and $52 million at December 31, 2016 and 2015.
The Level 3 Fair Value Measurements table presents a reconciliation of all plan investment assets measured at fair value using significant unobservable inputs (Level 3) during 2016, 2015 and 2014.
 
 
 
 
 
 
 
 
 
 
Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
(Dollars in millions)
Balance
January 1
 
Actual Return on
Plan Assets Still
Held at the
Reporting Date
 
Purchases, Sales and Settlements
 
Transfers
out of Level 3
 
Balance
December 31
Fixed income
 

 
 

 
 

 
 

 
 

U.S. government and agency securities
$
11

 
$
—

 
$
(1
)
 
$
—

 
$
10

Real estate
 

 
 

 
 
 
 

 
 

Private real estate
144

 
1

 
5

 
—

 
150

Real estate commingled/mutual funds
731

 
21

 
(4
)
 
—

 
748

Limited partnerships
49

 
(2
)
 
(9
)
 
—

 
38

Other investments
102

 
4

 
(23
)
 
—

 
83

Total
$
1,037

 
$
24

 
$
(32
)
 
$
—

 
$
1,029

 
 
 
 
 
 
 
 
 
 
 
2015
Fixed income
 

 
 

 
 

 
 

 
 

U.S. government and agency securities
$
11

 
$
—

 
$
—

 
$
—

 
$
11

Real estate
 

 
 

 
 
 
 

 
 

Private real estate
127

 
14

 
3

 
—

 
144

Real estate commingled/mutual funds
632

 
37

 
62

 
—

 
731

Limited partnerships
65

 
(1
)
 
(15
)
 
—

 
49

Other investments
127

 
(5
)
 
(20
)
 
—

 
102

Total
$
962

 
$
45

 
$
30

 
$
—

 
$
1,037

 
 
 
 
 
 
 
 
 
 
 
2014
Fixed income
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
$
12

 
$
—

 
$
(1
)
 
$
—

 
$
11

Non-U.S. debt securities
6

 
—

 
(2
)
 
(4
)
 
—

Real estate
 
 
 
 
 
 
 
 
 

Private real estate
119

 
5

 
3

 
—

 
127

Real estate commingled/mutual funds
462

 
20

 
150

 
—

 
632

Limited partnerships
145

 
5

 
(85
)
 
—

 
65

Other investments
135

 
1

 
(9
)
 
—

 
127

Total
$
879

 
$
31

 
$
56

 
$
(4
)
 
$
962


Projected Benefit Payments
Benefit payments projected to be made from the Qualified Pension Plan, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans are presented in the table below.
 
 
 
 
 
 
 
 
 
 
Projected Benefit Payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement Health and Life Plans
(Dollars in millions)
Qualified
Pension Plan (1)
 
Non-U.S.
Pension Plans (2)
 
Nonqualified
and Other
Pension Plans (2)
 
Net Payments (3)
 
Medicare
Subsidy
2017
$
906

 
$
55

 
$
240

 
$
111

 
$
13

2018
906

 
55

 
239

 
108

 
12

2019
898

 
58

 
241

 
102

 
12

2020
909

 
61

 
241

 
99

 
12

2021
905

 
66

 
236

 
96

 
11

2022 - 2026
4,446

 
427

 
1,091

 
425

 
49

(1) 
Benefit payments expected to be made from the plan’s assets.
(2) 
Benefit payments expected to be made from a combination of the plans’ and the Corporation’s assets.
(3) 
Benefit payments (net of retiree contributions) expected to be made from the Corporation’s assets.
Defined Contribution Plans
The Corporation maintains qualified and non-qualified defined contribution retirement plans. The Corporation recorded expense of $1.0 billion in each of 2016, 2015 and 2014, related to the qualified defined contribution plans. At December 31, 2016 and 2015, 224 million and 236 million shares of the Corporation’s common stock were held by these plans. Payments to the plans for dividends on common stock were $60 million, $48 million and $29 million in 2016, 2015 and 2014, respectively.
Certain non-U.S. employees are covered under defined contribution pension plans that are separately administered in accordance with local laws.