Employee Benefit Plans (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
Retirement Benefits [Abstract] |
|
Schedule of Defined Benefit Plans Disclosures |
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, 2017 and 2016. 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 decreases in the weighted-average discount rate in 2017 and 2016 resulted in increases to the PBO of approximately $1.1 billion and $1.3 billion at December 31, 2017 and 2016.
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Pension and Postretirement Plans (1)
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Qualified
Pension Plan
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Non-U.S.
Pension Plans
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Nonqualified and Other
Pension Plans
|
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Postretirement
Health and Life Plans
|
(Dollars in millions) |
2017 |
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2016 |
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2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Change in fair value of plan assets |
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Fair value, January 1 |
$ |
18,239 |
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|
$ |
17,962 |
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$ |
2,789 |
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|
$ |
2,738 |
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$ |
2,744 |
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$ |
2,805 |
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|
$ |
— |
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|
$ |
— |
|
Actual return on plan assets |
2,285 |
|
|
1,075 |
|
|
118 |
|
|
541 |
|
|
128 |
|
|
74 |
|
|
— |
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|
— |
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Company contributions |
— |
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— |
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|
23 |
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|
48 |
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|
98 |
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|
104 |
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|
393 |
|
|
104 |
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Plan participant contributions |
— |
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— |
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|
1 |
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|
1 |
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|
— |
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— |
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|
125 |
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|
125 |
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Settlements and curtailments |
— |
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— |
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(190 |
) |
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(20 |
) |
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— |
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(6 |
) |
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— |
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— |
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Benefits paid |
(816 |
) |
|
(798 |
) |
|
(54 |
) |
|
(118 |
) |
|
(246 |
) |
|
(233 |
) |
|
(230 |
) |
|
(242 |
) |
Federal subsidy on benefits paid |
n/a |
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n/a |
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n/a |
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n/a |
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n/a |
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|
n/a |
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|
12 |
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|
13 |
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Foreign currency exchange rate changes |
n/a |
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|
n/a |
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|
256 |
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(401 |
) |
|
n/a |
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n/a |
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n/a |
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n/a |
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Fair value, December 31 |
$ |
19,708 |
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$ |
18,239 |
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$ |
2,943 |
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$ |
2,789 |
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$ |
2,724 |
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$ |
2,744 |
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$ |
300 |
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$ |
— |
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Change in projected benefit obligation |
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Projected benefit obligation, January 1 |
$ |
14,982 |
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$ |
14,461 |
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$ |
2,763 |
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$ |
2,580 |
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$ |
3,047 |
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$ |
3,053 |
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$ |
1,125 |
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$ |
1,152 |
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Service cost |
— |
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— |
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24 |
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|
25 |
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1 |
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— |
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|
6 |
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|
7 |
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Interest cost |
606 |
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|
634 |
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|
72 |
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|
86 |
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|
117 |
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|
127 |
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|
43 |
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|
47 |
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Plan participant contributions |
— |
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— |
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1 |
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1 |
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— |
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— |
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|
125 |
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|
125 |
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Plan amendments |
— |
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— |
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— |
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— |
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— |
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— |
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(19 |
) |
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— |
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Settlements and curtailments |
— |
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— |
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(200 |
) |
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(31 |
) |
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— |
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(6 |
) |
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— |
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— |
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Actuarial loss (gain) |
934 |
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|
685 |
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(26 |
) |
|
535 |
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|
128 |
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|
106 |
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(7 |
) |
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25 |
|
Benefits paid |
(816 |
) |
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(798 |
) |
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(54 |
) |
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(118 |
) |
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(246 |
) |
|
(233 |
) |
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(230 |
) |
|
(242 |
) |
Federal subsidy on benefits paid |
n/a |
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n/a |
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n/a |
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n/a |
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n/a |
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n/a |
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12 |
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|
13 |
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Foreign currency exchange rate changes |
n/a |
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n/a |
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|
234 |
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(315 |
) |
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n/a |
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n/a |
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|
1 |
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(2 |
) |
Projected benefit obligation, December 31 |
$ |
15,706 |
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$ |
14,982 |
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$ |
2,814 |
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$ |
2,763 |
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$ |
3,047 |
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$ |
3,047 |
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$ |
1,056 |
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$ |
1,125 |
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Amounts recognized on Consolidated Balance Sheet |
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Other assets |
$ |
4,002 |
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$ |
3,257 |
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$ |
610 |
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$ |
475 |
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$ |
730 |
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$ |
760 |
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$ |
— |
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$ |
— |
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Accrued expenses and other liabilities |
— |
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— |
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|
(481 |
) |
|
(449 |
) |
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(1,053 |
) |
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(1,063 |
) |
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(756 |
) |
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(1,125 |
) |
Net amount recognized, December 31 |
$ |
4,002 |
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$ |
3,257 |
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$ |
129 |
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$ |
26 |
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$ |
(323 |
) |
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$ |
(303 |
) |
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$ |
(756 |
) |
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$ |
(1,125 |
) |
Funded status, December 31 |
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Accumulated benefit obligation |
$ |
15,706 |
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$ |
14,982 |
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$ |
2,731 |
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$ |
2,645 |
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$ |
3,046 |
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$ |
3,046 |
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n/a |
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n/a |
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Overfunded (unfunded) status of ABO |
4,002 |
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|
3,257 |
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|
212 |
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|
144 |
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(322 |
) |
|
(302 |
) |
|
n/a |
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|
n/a |
|
Provision for future salaries |
— |
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|
— |
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|
83 |
|
|
118 |
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|
1 |
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|
1 |
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|
n/a |
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|
n/a |
|
Projected benefit obligation |
15,706 |
|
|
14,982 |
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|
2,814 |
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|
2,763 |
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|
3,047 |
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|
3,047 |
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$ |
1,056 |
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$ |
1,125 |
|
Weighted-average assumptions, December 31 |
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Discount rate |
3.68 |
% |
|
4.16 |
% |
|
2.39 |
% |
|
2.56 |
% |
|
3.58 |
% |
|
4.01 |
% |
|
3.58 |
% |
|
3.99 |
% |
Rate of compensation increase |
n/a |
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n/a |
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|
4.31 |
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|
4.51 |
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4.00 |
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4.00 |
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n/a |
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|
n/a |
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(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
|
Schedule of Amounts Recognized in Balance Sheet |
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Pension and Postretirement Plans (1)
|
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|
Qualified
Pension Plan
|
|
Non-U.S.
Pension Plans
|
|
Nonqualified and Other
Pension Plans
|
|
Postretirement
Health and Life Plans
|
(Dollars in millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Change in fair value of plan assets |
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Fair value, January 1 |
$ |
18,239 |
|
|
$ |
17,962 |
|
|
$ |
2,789 |
|
|
$ |
2,738 |
|
|
$ |
2,744 |
|
|
$ |
2,805 |
|
|
$ |
— |
|
|
$ |
— |
|
Actual return on plan assets |
2,285 |
|
|
1,075 |
|
|
118 |
|
|
541 |
|
|
128 |
|
|
74 |
|
|
— |
|
|
— |
|
Company contributions |
— |
|
|
— |
|
|
23 |
|
|
48 |
|
|
98 |
|
|
104 |
|
|
393 |
|
|
104 |
|
Plan participant contributions |
— |
|
|
— |
|
|
1 |
|
|
1 |
|
|
— |
|
|
— |
|
|
125 |
|
|
125 |
|
Settlements and curtailments |
— |
|
|
— |
|
|
(190 |
) |
|
(20 |
) |
|
— |
|
|
(6 |
) |
|
— |
|
|
— |
|
Benefits paid |
(816 |
) |
|
(798 |
) |
|
(54 |
) |
|
(118 |
) |
|
(246 |
) |
|
(233 |
) |
|
(230 |
) |
|
(242 |
) |
Federal subsidy on benefits paid |
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
12 |
|
|
13 |
|
Foreign currency exchange rate changes |
n/a |
|
|
n/a |
|
|
256 |
|
|
(401 |
) |
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
Fair value, December 31 |
$ |
19,708 |
|
|
$ |
18,239 |
|
|
$ |
2,943 |
|
|
$ |
2,789 |
|
|
$ |
2,724 |
|
|
$ |
2,744 |
|
|
$ |
300 |
|
|
$ |
— |
|
Change in projected benefit obligation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected benefit obligation, January 1 |
$ |
14,982 |
|
|
$ |
14,461 |
|
|
$ |
2,763 |
|
|
$ |
2,580 |
|
|
$ |
3,047 |
|
|
$ |
3,053 |
|
|
$ |
1,125 |
|
|
$ |
1,152 |
|
Service cost |
— |
|
|
— |
|
|
24 |
|
|
25 |
|
|
1 |
|
|
— |
|
|
6 |
|
|
7 |
|
Interest cost |
606 |
|
|
634 |
|
|
72 |
|
|
86 |
|
|
117 |
|
|
127 |
|
|
43 |
|
|
47 |
|
Plan participant contributions |
— |
|
|
— |
|
|
1 |
|
|
1 |
|
|
— |
|
|
— |
|
|
125 |
|
|
125 |
|
Plan amendments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(19 |
) |
|
— |
|
Settlements and curtailments |
— |
|
|
— |
|
|
(200 |
) |
|
(31 |
) |
|
— |
|
|
(6 |
) |
|
— |
|
|
— |
|
Actuarial loss (gain) |
934 |
|
|
685 |
|
|
(26 |
) |
|
535 |
|
|
128 |
|
|
106 |
|
|
(7 |
) |
|
25 |
|
Benefits paid |
(816 |
) |
|
(798 |
) |
|
(54 |
) |
|
(118 |
) |
|
(246 |
) |
|
(233 |
) |
|
(230 |
) |
|
(242 |
) |
Federal subsidy on benefits paid |
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
12 |
|
|
13 |
|
Foreign currency exchange rate changes |
n/a |
|
|
n/a |
|
|
234 |
|
|
(315 |
) |
|
n/a |
|
|
n/a |
|
|
1 |
|
|
(2 |
) |
Projected benefit obligation, December 31 |
$ |
15,706 |
|
|
$ |
14,982 |
|
|
$ |
2,814 |
|
|
$ |
2,763 |
|
|
$ |
3,047 |
|
|
$ |
3,047 |
|
|
$ |
1,056 |
|
|
$ |
1,125 |
|
Amounts recognized on Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
$ |
4,002 |
|
|
$ |
3,257 |
|
|
$ |
610 |
|
|
$ |
475 |
|
|
$ |
730 |
|
|
$ |
760 |
|
|
$ |
— |
|
|
$ |
— |
|
Accrued expenses and other liabilities |
— |
|
|
— |
|
|
(481 |
) |
|
(449 |
) |
|
(1,053 |
) |
|
(1,063 |
) |
|
(756 |
) |
|
(1,125 |
) |
Net amount recognized, December 31 |
$ |
4,002 |
|
|
$ |
3,257 |
|
|
$ |
129 |
|
|
$ |
26 |
|
|
$ |
(323 |
) |
|
$ |
(303 |
) |
|
$ |
(756 |
) |
|
$ |
(1,125 |
) |
Funded status, December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated benefit obligation |
$ |
15,706 |
|
|
$ |
14,982 |
|
|
$ |
2,731 |
|
|
$ |
2,645 |
|
|
$ |
3,046 |
|
|
$ |
3,046 |
|
|
n/a |
|
|
n/a |
|
Overfunded (unfunded) status of ABO |
4,002 |
|
|
3,257 |
|
|
212 |
|
|
144 |
|
|
(322 |
) |
|
(302 |
) |
|
n/a |
|
|
n/a |
|
Provision for future salaries |
— |
|
|
— |
|
|
83 |
|
|
118 |
|
|
1 |
|
|
1 |
|
|
n/a |
|
|
n/a |
|
Projected benefit obligation |
15,706 |
|
|
14,982 |
|
|
2,814 |
|
|
2,763 |
|
|
3,047 |
|
|
3,047 |
|
|
$ |
1,056 |
|
|
$ |
1,125 |
|
Weighted-average assumptions, December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
3.68 |
% |
|
4.16 |
% |
|
2.39 |
% |
|
2.56 |
% |
|
3.58 |
% |
|
4.01 |
% |
|
3.58 |
% |
|
3.99 |
% |
Rate of compensation increase |
n/a |
|
|
n/a |
|
|
4.31 |
|
|
4.51 |
|
|
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
|
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets |
Pension Plans with ABO and PBO in excess of plan assets as of December 31, 2017 and 2016 are presented in the table below. For these plans, funding strategies vary due to legal requirements and local practices.
|
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|
Plans with PBO and ABO in Excess of Plan Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-U.S.
Pension Plans
|
|
Nonqualified
and Other
Pension Plans
|
(Dollars in millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
PBO |
$ |
671 |
|
|
$ |
626 |
|
|
$ |
1,054 |
|
|
$ |
1,065 |
|
ABO |
644 |
|
|
594 |
|
|
1,053 |
|
|
1,064 |
|
Fair value of plan assets |
191 |
|
|
179 |
|
|
1 |
|
|
1 |
|
|
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets |
Pension Plans with ABO and PBO in excess of plan assets as of December 31, 2017 and 2016 are presented in the table below. For these plans, funding strategies vary due to legal requirements and local practices.
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Plans with PBO and ABO in Excess of Plan Assets |
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Non-U.S.
Pension Plans
|
|
Nonqualified
and Other
Pension Plans
|
(Dollars in millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
PBO |
$ |
671 |
|
|
$ |
626 |
|
|
$ |
1,054 |
|
|
$ |
1,065 |
|
ABO |
644 |
|
|
594 |
|
|
1,053 |
|
|
1,064 |
|
Fair value of plan assets |
191 |
|
|
179 |
|
|
1 |
|
|
1 |
|
|
Schedule of Net Benefit Costs |
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Components of Net Periodic Benefit Cost |
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|
Qualified Pension Plan |
|
Non-U.S. Pension Plans |
(Dollars in millions) |
2017 |
|
2016 |
|
2015 |
|
2017 |
|
2016 |
|
2015 |
Components of net periodic benefit cost (income) |
|
|
|
|
|
|
|
|
|
|
|
Service cost |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
24 |
|
|
$ |
25 |
|
|
$ |
27 |
|
Interest cost |
606 |
|
|
634 |
|
|
621 |
|
|
72 |
|
|
86 |
|
|
93 |
|
Expected return on plan assets |
(1,068 |
) |
|
(1,038 |
) |
|
(1,045 |
) |
|
(136 |
) |
|
(123 |
) |
|
(133 |
) |
Amortization of net actuarial loss |
154 |
|
|
139 |
|
|
170 |
|
|
8 |
|
|
6 |
|
|
6 |
|
Other |
— |
|
|
— |
|
|
— |
|
|
(7 |
) |
|
2 |
|
|
1 |
|
Net periodic benefit cost (income) |
$ |
(308 |
) |
|
$ |
(265 |
) |
|
$ |
(254 |
) |
|
$ |
(39 |
) |
|
$ |
(4 |
) |
|
$ |
(6 |
) |
Weighted-average assumptions used to determine net cost for years ended December 31 |
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|
|
|
|
|
|
|
|
Discount rate |
4.16 |
% |
|
4.51 |
% |
|
4.12 |
% |
|
2.56 |
% |
|
3.59 |
% |
|
3.56 |
% |
Expected return on plan assets |
6.00 |
|
|
6.00 |
|
|
6.00 |
|
|
4.73 |
|
|
4.84 |
|
|
5.27 |
|
Rate of compensation increase |
n/a |
|
|
n/a |
|
|
n/a |
|
|
4.51 |
|
|
4.67 |
|
|
4.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonqualified and Other Pension Plans |
|
Postretirement Health and Life Plans |
(Dollars in millions) |
2017 |
|
2016 |
|
2015 |
|
2017 |
|
2016 |
|
2015 |
Components of net periodic benefit cost (income) |
|
|
|
|
|
|
|
|
|
|
|
Service cost |
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
8 |
|
Interest cost |
117 |
|
|
127 |
|
|
122 |
|
|
43 |
|
|
47 |
|
|
48 |
|
Expected return on plan assets |
(95 |
) |
|
(101 |
) |
|
(92 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
Amortization of net actuarial loss (gain) |
34 |
|
|
25 |
|
|
34 |
|
|
(21 |
) |
|
(81 |
) |
|
(46 |
) |
Other |
— |
|
|
3 |
|
|
— |
|
|
4 |
|
|
4 |
|
|
4 |
|
Net periodic benefit cost (income) |
$ |
57 |
|
|
$ |
54 |
|
|
$ |
64 |
|
|
$ |
32 |
|
|
$ |
(23 |
) |
|
$ |
13 |
|
Weighted-average assumptions used to determine net cost for years ended December 31 |
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|
|
Discount rate |
4.01 |
% |
|
4.34 |
% |
|
3.80 |
% |
|
3.99 |
% |
|
4.32 |
% |
|
3.75 |
% |
Expected return on plan assets |
3.50 |
|
|
3.66 |
|
|
3.26 |
|
|
n/a |
|
|
n/a |
|
|
6.00 |
|
Rate of compensation increase |
4.00 |
|
|
4.00 |
|
|
4.00 |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
n/a = not applicable
|
Schedule of Pretax Amounts Included in Accumulated OCI |
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|
Pretax Amounts Included in Accumulated OCI |
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|
Qualified
Pension Plan
|
|
Non-U.S.
Pension Plans
|
|
Nonqualified
and Other
Pension Plans
|
|
Postretirement
Health and
Life Plans
|
|
Total |
(Dollars in millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net actuarial loss (gain) |
$ |
3,992 |
|
|
$ |
4,429 |
|
|
$ |
196 |
|
|
$ |
216 |
|
|
$ |
1,014 |
|
|
$ |
953 |
|
|
$ |
(30 |
) |
|
$ |
(44 |
) |
|
$ |
5,172 |
|
|
$ |
5,554 |
|
Prior service cost (credits) |
— |
|
|
— |
|
|
4 |
|
|
4 |
|
|
— |
|
|
— |
|
|
(11 |
) |
|
12 |
|
|
(7 |
) |
|
16 |
|
Amounts recognized in accumulated OCI |
$ |
3,992 |
|
|
$ |
4,429 |
|
|
$ |
200 |
|
|
$ |
220 |
|
|
$ |
1,014 |
|
|
$ |
953 |
|
|
$ |
(41 |
) |
|
$ |
(32 |
) |
|
$ |
5,165 |
|
|
$ |
5,570 |
|
|
Schedule of Pretax Amounts Recognized in OCI |
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|
Pretax Amounts Recognized in OCI |
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|
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|
Qualified
Pension Plan
|
|
Non-U.S.
Pension Plans
|
|
Nonqualified and Other
Pension Plans
|
|
Postretirement Health and
Life Plans
|
|
Total (1)
|
(Dollars in millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Current year actuarial loss (gain) |
$ |
(283 |
) |
|
$ |
648 |
|
|
$ |
(12 |
) |
|
$ |
100 |
|
|
$ |
95 |
|
|
$ |
133 |
|
|
$ |
(7 |
) |
|
$ |
25 |
|
|
$ |
(207 |
) |
|
$ |
906 |
|
Amortization of actuarial gain (loss) |
(154 |
) |
|
(139 |
) |
|
(8 |
) |
|
(6 |
) |
|
(34 |
) |
|
(28 |
) |
|
21 |
|
|
81 |
|
|
(175 |
) |
|
(92 |
) |
Current year prior service cost (credit) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(19 |
) |
|
— |
|
|
(19 |
) |
|
— |
|
Amortization of prior service cost |
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
(4 |
) |
|
(4 |
) |
|
(4 |
) |
|
(5 |
) |
Amounts recognized in OCI |
$ |
(437 |
) |
|
$ |
509 |
|
|
$ |
(20 |
) |
|
$ |
93 |
|
|
$ |
61 |
|
|
$ |
105 |
|
|
$ |
(9 |
) |
|
$ |
102 |
|
|
$ |
(405 |
) |
|
$ |
809 |
|
(1) Pretax amounts to be amortized from accumulated OCI as period cost during 2018 are estimated to be $176 million.
|
Schedule of Allocation of Plan Assets |
The target allocations for 2018 by asset category for the Qualified Pension Plan, Non-U.S. Pension Plans, and Nonqualified and Other Pension Plans are presented in the following table. Equity securities for the Qualified Pension Plan include common stock of the Corporation in the amounts of $261 million (1.33 percent of total plan assets) and $203 million (1.11 percent of total plan assets) at December 31, 2017 and 2016.
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|
2018 Target Allocation |
|
|
|
|
|
Percentage |
Asset Category |
Qualified
Pension Plan
|
Non-U.S.
Pension Plans
|
Nonqualified
and Other
Pension Plans
|
Equity securities |
30-60 |
5-35 |
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 |
|
Schedule of Changes in Fair Value of Plan Assets |
Combined plan investment assets measured at fair value by level and in total at December 31, 2017 and 2016 are summarized in the Fair Value Measurements table.
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|
Fair Value Measurements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
(Dollars in millions) |
December 31, 2017 |
Cash and short-term investments |
|
|
|
|
|
|
|
|
|
|
|
Money market and interest-bearing cash |
$ |
2,190 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,190 |
|
Cash and cash equivalent commingled/mutual funds |
— |
|
|
1,004 |
|
|
— |
|
|
1,004 |
|
Fixed income |
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
3,331 |
|
|
854 |
|
|
9 |
|
|
4,194 |
|
Corporate debt securities |
— |
|
|
2,417 |
|
|
— |
|
|
2,417 |
|
Asset-backed securities |
— |
|
|
1,832 |
|
|
— |
|
|
1,832 |
|
Non-U.S. debt securities |
693 |
|
|
898 |
|
|
— |
|
|
1,591 |
|
Fixed income commingled/mutual funds |
775 |
|
|
1,676 |
|
|
— |
|
|
2,451 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
Common and preferred equity securities |
5,833 |
|
|
— |
|
|
— |
|
|
5,833 |
|
Equity commingled/mutual funds |
271 |
|
|
1,753 |
|
|
— |
|
|
2,024 |
|
Public real estate investment trusts |
138 |
|
|
— |
|
|
— |
|
|
138 |
|
Real estate |
|
|
|
|
|
|
|
|
|
|
|
Private real estate |
— |
|
|
— |
|
|
93 |
|
|
93 |
|
Real estate commingled/mutual funds |
— |
|
|
13 |
|
|
831 |
|
|
844 |
|
Limited partnerships |
— |
|
|
155 |
|
|
85 |
|
|
240 |
|
Other investments (1)
|
101 |
|
|
649 |
|
|
74 |
|
|
824 |
|
Total plan investment assets, at fair value |
$ |
13,332 |
|
|
$ |
11,251 |
|
|
$ |
1,092 |
|
|
$ |
25,675 |
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
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 |
|
|
|
(1) |
Other investments include interest rate swaps of $156 million and $257 million, participant loans of $20 million and $36 million, commodity and balanced funds of $451 million and $369 million and other various investments of $197 million and $168 million at December 31, 2017 and 2016.
|
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 2017, 2016 and 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Fair Value Measurements |
|
|
|
|
|
|
|
|
|
|
|
Balance
January 1
|
|
Actual Return on Plan Assets Still Held at the
Reporting Date
|
|
Purchases, Sales and Settlements |
|
Balance
December 31
|
(Dollars in millions) |
2017 |
Fixed income |
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities |
$ |
10 |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
9 |
|
Real estate |
|
|
|
|
|
|
|
|
|
Private real estate |
150 |
|
|
8 |
|
|
(65 |
) |
|
93 |
|
Real estate commingled/mutual funds |
748 |
|
|
63 |
|
|
20 |
|
|
831 |
|
Limited partnerships |
38 |
|
|
14 |
|
|
33 |
|
|
85 |
|
Other investments |
83 |
|
|
5 |
|
|
(14 |
) |
|
74 |
|
Total |
$ |
1,029 |
|
|
$ |
90 |
|
|
$ |
(27 |
) |
|
$ |
1,092 |
|
|
|
|
|
|
|
|
|
|
2016 |
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 | |