XML 39 R23.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Retirement and Deferred Compensation Plans | 12 Months Ended
--- | ---
Dec. 31, 2017
Retirement and Deferred Compensation Plans [Abstract] |
Retirement and Deferred Compensation Plans | 17. Retirement and Deferred Compensation Plans ﻿ Defined Benefit Pension and Other Postretirement Benefit Plans ﻿ We maintain U.S. defined benefit pension plans in which certain U.S. employees and agents are participants, and a U.K. plan we retained after the sale of the Lincoln UK business. Our defined benefit pension plans are closed to new entrants and existing participants do not accrue any additional benefits. We comply with the minimum funding requirements in both the U.S. and the U.K. In accordance with such practice, we were not required to make contributions but elected to contribute $10 million and $4 million for the years ended December 31, 2017 and 2016, respectively. We do not expect to be required to make any contributions to these pension plans in 2018. We sponsor other postretirement benefit plans that provide health care and life insurance to certain retired employees and agents. Total net periodic cost (recovery) for these plans was $(3) million, $5 million and $(6) million during 2017, 2016 and 2015, respectively. In 2018, we expect to make benefit payments of approximately $112 million for these plans. Information (in millions) with respect to these plans was as follows: ﻿ ﻿ ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | As of or For the Years Ended December 31, |  |
﻿ | 2017 |  | 2016 |  | 2017 |  | 2016 |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  | Other Postretirement |  |
﻿ | Pension Plans |  | Benefit Plans |  |
﻿Fair value of plan assets | $ | 1,566 |  | $ | 1,433 |  | $ | 60 |  | $ | 56 |  |
﻿Projected benefit obligation |  | 1,674 |  |  | 1,593 |  |  | 87 |  |  | 84 |  |
﻿Funded status | $ | (108 | ) | $ | (160 | ) | $ | (27 | ) | $ | (28 | ) |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Amounts Recognized on the |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Consolidated Balance Sheets |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Other assets | $ | 45 |  | $ | 26 |  | $ | - |  | $ | - |  |
﻿Other liabilities |  | (153 | ) |  | (186 | ) |  | (27 | ) |  | (28 | ) |
﻿Net amount recognized | $ | (108 | ) | $ | (160 | ) | $ | (27 | ) | $ | (28 | ) |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Weighted-Average Assumptions |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Benefit obligations: |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Weighted-average discount rate |  | 3.62% |  |  | 4.03% |  |  | 4.00% |  |  | 4.50% |  |
﻿Net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Weighted-average discount rate |  | 4.01% |  |  | 4.29% |  |  | 4.50% |  |  | 4.50% |  |
﻿Expected return on plan assets |  | 6.71% |  |  | 6.99% |  |  | 6.50% |  |  | 6.50% |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
The weighted average discount rate was determined based on a corporate yield curve as of December 31, 2017, and projected benefit obligation cash flows. The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate these assumptions each plan year. ﻿ The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category: ﻿ ﻿ ﻿
﻿ |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |
﻿ | As of December 31, |  |
﻿ | 2017 |  | 2016 |  |
﻿ |  |  |  |  |  |  |
﻿Fixed maturity securities: |  |  |  |  |  |  |
﻿Corporate bonds | $ | 292 |  | $ | 322 |  |
﻿U.S. government bonds |  | 291 |  |  | 235 |  |
﻿Foreign government bonds |  | 231 |  |  | 167 |  |
﻿State and municipal bonds |  | 32 |  |  | 31 |  |
﻿Common and preferred stock |  | 615 |  |  | 556 |  |
﻿Cash and invested cash |  | 103 |  |  | 120 |  |
﻿Other investments |  | 62 |  |  | 58 |  |
﻿Total | $ | 1,626 |  | $ | 1,489 |  |
﻿ |  |  |  |  |  |  |
See “Fair Value Measurement” in Note 1 for discussion on how we categorize our pension plans’ assets into the three-level fair value hierarchy. See “Financial Instruments Carried at Fair Value” in Note 20 for a summary of our fair value measurement of our pension plans’ assets by the three-level fair value hierarchy. ﻿ Defined Contribution Plans ﻿ We sponsor tax-qualified defined contribution plans for eligible employees and agents. We administer these plans in accordance with the plan documents and various limitations under section 401(a) of the Internal Revenue Code of 1986. For the years ended December 31, 2017, 2016 and 2015, expenses for these plans were $88 million, $86 million and $82 million, respectively. ﻿ Deferred Compensation Plans ﻿ We sponsor non-qualified, unfunded, deferred compensation plans for certain current and former employees, agents and non-employee directors. The results of certain notional investment options within some of the plans are hedged by total return swaps. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants of certain plans are able to select our stock as a notional investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. For the years ended December 31, 2017, 2016 and 2015, expenses for these plans were $35 million, $33 million and $10 million, respectively. For further discussion of total return swaps related to our deferred compensation plans, see Note 6. Information (in millions) with respect to these plans was as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ | As of December 31, |  |  |  |
﻿ | 2017 |  | 2016 |  |  |  |
﻿Total liabilities (1) | $ | 588 |  | $ | 514 |  |  |  |
﻿Investments dedicated to fund liabilities (2) |  | 182 |  |  | 159 |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
| (1) |  | Reported in other liabilities on our Consolidated Balance Sheets.
| (2) |  | Reported in other assets on our Consolidated Balance Sheets.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration