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Employee Benefit Plans | 3 Months Ended
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Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract] |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel. For employees hired prior to January 1, 2003, the plans provide eligible employees with retirement benefits based predominantly on years of service and compensation rates near retirement. For employees hired in 2003 or thereafter, benefits are determined based on a cash balance formula, which provides benefits by utilizing interest and pay credits based upon age, service and compensation. In addition to these plans, the Company sponsors a post-retirement medical plan and a life insurance plan that provide certain benefits to full-time, salaried, management employees, hired prior to January 1, 2003, upon their retirement if certain eligibility requirements are met. Eligible retirees who are age 65 years or older (Medicare-eligible) are covered by a health reimbursement arrangement, which is an employer-funded account that can be used for reimbursement of eligible medical expenses. Eligible retirees younger than 65 years (non-Medicare eligible) are covered by a self-insured program partially funded by participating retirees. The life insurance plan is non-contributory. As a result of the management streamlining and realignment program initiated in the first quarter 2017, the Company remeasured other post-retirement benefits as of March 1, 2017 (the remeasurement date) and recorded a curtailment loss of $13 million included in restructuring charge on the income statement. In connection with this remeasurement, the Company updated the effective discount rate assumption from 3.71% to 3.59%. The Company engages independent actuaries to compute the amounts of liabilities and expenses relating to these plans subject to the assumptions that the Company determines are appropriate based on historical trends, current market rates and future projections. These amounts are reviewed by management. The following table describes the components of expense / (income) related to net benefit expense recorded in labor and fringe on the income statement.
| Pension Benefits
(Dollars in millions) | First Quarters
| 2017 | 2016
Service Cost | $ | 11 |  | $ | 12 |
Interest Cost | 23 |  | 30 |
Expected Return on Plan Assets | (42 | ) | (39 | )
Amortization of Net Loss | 11 |  | 12 |
Net Periodic Benefit Cost | 3 |  | 15 |
Special Termination Benefits - Management Workforce Reduction(a) | 50 |  | — |
Total Expense | $ | 53 |  | $ | 15 |
| Other Post-retirement Benefits
(Dollars in millions) | First Quarters
| 2017 | 2016
Interest Cost | $ | 2 |  | 3 |
Amortization of Net Loss | — |  | 1 |
Net Periodic Benefit Cost | 2 |  | 4 |
Special Termination Benefits - Management Workforce Reduction Curtailment(a) | 13 |  | — |
Total Expense | $ | 15 |  | $ | 4 |
(a) Special termination benefits were charges in the first quarter 2017 that resulted from the management workforce reduction. For further information regarding the plan, see Note 1. Nature of Operations and Significant Accounting Policies. NOTE 6. Employee Benefit Plans, continued Qualified pension plan obligations are funded in accordance with regulatory requirements and with an objective of meeting or exceeding minimum funding requirements necessary to avoid restrictions on flexibility of plan operation and benefit payments. No contributions to the Company's qualified pension plans are expected in 2017.

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