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Pension Plans and Other Post Employment Benefit Plans | 9 Months Ended
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Sep. 30, 2017
General Discussion of Pension and Other Postretirement Benefits [Abstract] |
Pension Plans and Other Post Employment Benefits | As a result of the Merger, the company re-measured its pension and other post employment benefit (OPEB) plans. The remeasurement of the company’s pension and OPEB plans are included in the fair value measurement of DuPont’s assets and liabilities as a result of the application of push down accounting in connection with the Merger. In addition, net losses and prior service benefits recognized in accumulated other comprehensive loss were eliminated. Dow and DuPont did not merge their pension plans and other post employment benefit plans as a result of the Merger. See Note 3 for details on the Merger. Pension Plans The company’s remeasurement of its pension plans upon the effective date of the Merger resulted in an increase in the underfunded status of $596 million. In connection with the remeasurement, the company updated the weighted average discount rate from 3.80 percent at December 31, 2016 to 3.42 percent as of August 31, 2017. During the period January 1 through August 31, 2017, the company made total contributions of $2,900 million to its principal U.S. pension plan funded through the May 2017 Debt Offering; short-term borrowings, including commercial paper issuance; and cash. See Note 12 for further discussion related to the May 2017 Debt Offering. Additionally, the company made total contributions of $19 million during the period September 1 through September 30, 2017 for plans other than the principal U.S. pension plan. DuPont expects to contribute approximately $50 million to its pension plans in the remainder of 2017. The workforce reductions in 2016 related to the 2016 global cost savings and restructuring plan triggered curtailments for certain of the company's pension plans, including the principal U.S. pension plan. For the principal U.S. pension plan, the company recorded curtailment losses of $63 million during the nine months ended September 30, 2016 and re-measured the principal U.S. pension plan as of March 31, 2016 and June 30, 2016. The curtailment losses were driven by the changes in the benefit obligation based on the demographics of the terminated positions partially offset by accelerated recognition of a portion of the prior service benefit. In connection with the remeasurements, the company recognized a pre-tax net loss of $2,352 million within other comprehensive income (loss) for the nine months ended September 30, 2016. The loss was driven by the decrease in the discount rate from 4.47 percent at December 31, 2015 to 3.74 percent as of June 30, 2016. In addition, the company recorded $15 million and $51 million settlement charges during the three and nine months ended September 30, 2016 related to the company's Pension Restoration Plan which provides for lump sum payments to certain eligible retirees. The following sets forth the components of the company’s net periodic benefit cost for pensions:
| Successor | Predecessor
(In millions) | For the Period September 1 - September 30, 2017 | For the Period July 1 - August 31, 2017 | Three Months Ended September 30, 2016 | For the Period Jan. 1 - August 31, 2017 | Nine Months Ended September 30, 2016
Service cost | $ | 12 |  | $ | 25 |  | $ | 44 |  | $ | 92 |  | $ | 133 |
Interest cost | 62 |  | 132 |  | 189 |  | 524 |  | 612 |
Expected return on plan assets | (102 | ) | (207 | ) | (327 | ) | (824 | ) | (996 | )
Amortization of loss | — |  | 127 |  | 229 |  | 506 |  | 605 |
Amortization of prior service benefit | — |  | (1 | ) | (2 | ) | (3 | ) | (5 | )
Curtailment (gain) loss | — |  | — |  | (1 | ) | — |  | 65 |
Settlement loss | — |  | — |  | 22 |  | — |  | 60 |
Net periodic benefit (credit) cost - Total | $ | (28 | ) | $ | 76 |  | $ | 154 |  | $ | 295 |  | $ | 474 |
Less: Discontinued operations | — |  | 1 |  | 1 |  | 3 |  | — |
Net periodic benefit (credit) cost - Continuing operations | $ | (28 | ) | $ | 75 |  | $ | 153 |  | $ | 292 |  | $ | 474 |
In determining the U.S. pension plan net periodic benefit costs for the Successor period, the company updated the expected return on plan assets assumption from 8.00 percent for the period July 1 through August 31, 2017 to 6.25 percent for the period September 1 through September 30, 2017. The lower return assumption reflects the company's updated strategic asset allocation for the U.S. pension trust. Other Post Employment Benefits The company’s remeasurement of its OPEB plans upon the effective date of the Merger resulted in an increase in the benefit obligation of $41 million. In connection with the remeasurement, the company lowered the weighted average discount rate to 3.62 percent as of August 31, 2017 from 4.03 percent as of December 31, 2016. As a result of the workforce reductions noted above, a curtailment was triggered for the company's other post employment benefit plans. The company recorded curtailment gains of $33 million for the nine months ended September 30, 2016 and re-measured the associated plans as of March 31, 2016 and June 30, 2016. The curtailment gain was driven by accelerated recognition of a portion of the prior service benefit partially offset by the change in the benefit obligation based on the demographics of the terminated positions. In connection with the remeasurement, the company updated the associated plans’ weighted average discount rate assumed at December 31, 2015 from 4.30 percent to 3.55 percent as of June 30, 2016. The remeasurement resulted in a net increase of $265 million to the company’s other post employment benefit obligation with a corresponding increase to net loss within other comprehensive loss for the nine months ended September 30, 2016. The following sets forth the components of the company’s net periodic benefit cost (credit) for other post employment benefits:
| Successor | Predecessor
(In millions) | For the Period September 1 - September 30, 2017 | For the Period July 1 - August 31, 2017 | Three Months Ended September 30, 2016 | For the Period Jan. 1 - August 31, 2017 | Nine Months Ended September 30, 2016
Service cost | $ | 1 |  | $ | 2 |  | $ | 2 |  | $ | 6 |  | $ | 9 |
Interest cost | 6 |  | 15 |  | 20 |  | 60 |  | 64 |
Amortization of loss | — |  | 15 |  | 21 |  | 61 |  | 56 |
Amortization of prior service benefit | — |  | (11 | ) | (36 | ) | (46 | ) | (111 | )
Curtailment gain | — |  | — |  | — |  | — |  | (33 | )
Net periodic benefit cost (credit) - Continuing operations | $ | 7 |  | $ | 21 |  | $ | 7 |  | $ | 81 |  | $ | (15 | )

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