Employee Benefit Plans
|
12 Months Ended |
Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] |
|
Employee Benefit Plans |
Employee Benefit Plans We sponsor defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of our defined benefit pension plans were frozen and we began providing enhanced benefits under our defined contribution pension plans for certain employee groups. We use a December 31 measurement date for all of our defined benefit pension plans. We also provide certain retiree medical and other postretirement benefits, including health care and life insurance benefits, to retired employees. Effective November 1, 2012, we modified our retiree medical and other postretirement benefits plans to eliminate the company subsidy for employees who retire on or after November 1, 2012. As a result of modifications to our retiree medical and other postretirement benefits plans in 2012, we recognized a negative plan amendment of $1.9 billion, which is included as a component of prior service benefit in OCI and will be amortized over the future service life of the active plan participants for whom the benefit was eliminated, or approximately eight years. As of December 31, 2017, $631 million of prior service benefit remains to be amortized. Benefit Obligations, Fair Value of Plan Assets and Funded Status The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2017 and 2016: | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Benefit obligation at beginning of period | $ | 17,238 |
| | $ | 16,395 |
| | $ | 991 |
| | $ | 1,131 |
| Service cost | 2 |
| | 2 |
| | 4 |
| | 3 |
| Interest cost | 721 |
| | 749 |
| | 39 |
| | 47 |
| Actuarial (gain) loss (1) (2) | 1,016 |
| | 729 |
| | 49 |
| | (105 | ) | Plan amendments | — |
| | — |
| | — |
| | 7 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (726 | ) | | (635 | ) | | (80 | ) | | (92 | ) | Other | 28 |
| | — |
| | 8 |
| | — |
| Benefit obligation at end of period | $ | 18,275 |
| | $ | 17,238 |
| | $ | 1,011 |
| | $ | 991 |
|
| | | | | | | | | | | | | | | | | Fair value of plan assets at beginning of period | $ | 10,017 |
| | $ | 9,707 |
| | $ | 266 |
| | $ | 253 |
| Actual return on plan assets | 1,797 |
| | 915 |
| | 37 |
| | 22 |
| Employer contributions (3) | 286 |
| | 32 |
| | 72 |
| | 83 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (726 | ) | | (635 | ) | | (80 | ) | | (92 | ) | Other | 25 |
| | — |
| | — |
| | — |
| Fair value of plan assets at end of period | $ | 11,395 |
| | $ | 10,017 |
| | $ | 295 |
| | $ | 266 |
| Funded status at end of period | $ | (6,880 | ) | | $ | (7,221 | ) | | $ | (716 | ) | | $ | (725 | ) |
| | (1) | The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to our mortality assumptions. |
| | (2) | The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to our mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes. |
| | (3) | During 2017, we contributed $286 million to our defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution. |
Balance Sheet Position | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | As of December 31, | | | | | | | | Current liability | $ | 10 |
| | $ | 7 |
| | $ | 89 |
| | $ | 97 |
| Noncurrent liability | 6,870 |
| | 7,214 |
| | 627 |
| | 628 |
| Total liabilities | $ | 6,880 |
| | $ | 7,221 |
| | $ | 716 |
| | $ | 725 |
|
| | | | | | | | | | | | | | | | | Net actuarial loss (gain) | $ | 5,351 |
| | $ | 5,484 |
| | $ | (388 | ) | | $ | (430 | ) | Prior service cost (benefit) | 160 |
| | 188 |
| | (600 | ) | | (837 | ) | Total accumulated other comprehensive loss (income), pre-tax | $ | 5,511 |
| | $ | 5,672 |
| | $ | (988 | ) | | $ | (1,267 | ) |
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Projected benefit obligation | $ | 18,245 |
| | $ | 17,209 |
| | $ | — |
| | $ | — |
| Accumulated benefit obligation (ABO) | 18,235 |
| | 17,197 |
| | — |
| | — |
| Accumulated postretirement benefit obligation | — |
| | — |
| | 1,011 |
| | 990 |
| Fair value of plan assets | 11,364 |
| | 9,986 |
| | 295 |
| | 266 |
| ABO less fair value of plan assets | 6,871 |
| | 7,211 |
| | — |
| | — |
|
Net Periodic Benefit Cost (Income) | | | | | | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | | (In millions) | Defined benefit plans: | | | | | | | | | | | | Service cost | $ | 2 |
| | $ | 2 |
| | $ | 2 |
| | $ | 4 |
| | $ | 3 |
| | $ | 3 |
| Interest cost | 721 |
| | 749 |
| | 737 |
| | 39 |
| | 47 |
| | 50 |
| Expected return on assets | (790 | ) | | (750 | ) | | (851 | ) | | (21 | ) | | (20 | ) | | (19 | ) | Settlements | 1 |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| Amortization of: | | | | | | | | | | | | Prior service cost (benefit) | 28 |
| | 28 |
| | 28 |
| | (237 | ) | | (240 | ) | | (243 | ) | Unrecognized net loss (gain) | 144 |
| | 126 |
| | 112 |
| | (23 | ) | | (17 | ) | | (9 | ) | Net periodic benefit cost (income) | 106 |
| | 155 |
| | 29 |
| | (238 | ) | | (227 | ) | | (218 | ) | Defined contribution plan cost | 851 |
| | 766 |
| | 662 |
| | N/A |
| | N/A |
| | N/A |
| Total cost (income) | $ | 957 |
| | $ | 921 |
| | $ | 691 |
| | $ | (238 | ) | | $ | (227 | ) | | $ | (218 | ) |
The estimated amount of unrecognized actuarial net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $172 million. The estimated amount of unrecognized actuarial net gain and prior service benefit for the retiree medical and other postretirement benefits plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $258 million. Assumptions The following actuarial assumptions were used to determine our benefit obligations and net periodic benefit cost for the periods presented: | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | Benefit obligations: | | | | | | | | Weighted average discount rate | 3.80% | | 4.30% | | 3.60% | | 4.10% |
| | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | Net periodic benefit cost: | | | | | | | | | | | | Weighted average discount rate | 4.30% | | 4.70% | | 4.30% | | 4.10% | | 4.42% | | 4.00% | Weighted average expected rate of return on plan assets | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | Weighted average health care cost trend rate assumed for next year (1) | N/A | | N/A | | N/A | | 4.19% | | 4.25% | | 5.21% |
| | (1) | The weighted average health care cost trend rate at December 31, 2017 is assumed to decline gradually to 3.76% by 2025 and remain level thereafter. |
As of December 31, 2017, our estimate of the long-term rate of return on plan assets was 8% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last ten years, current and expected market conditions, and expected value to be generated through active management, currency overlay and securities lending programs. A one percentage point change in the assumed health care cost trend rates would have the following effects on our retiree medical and other postretirement benefits plans (in millions): | | | | | | | | | | 1% Increase | | 1% Decrease | Increase (decrease) on 2017 service and interest cost | $ | 2 |
| | $ | (2 | ) | Increase (decrease) on benefit obligation as of December 31, 2017 | 54 |
| | (51 | ) |
Minimum Contributions We are required to make minimum contributions to our defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as under funding rules specific to countries where we maintain defined benefit plans. Based on current funding assumptions, we have minimum required contributions of $42 million for 2018 including contributions to defined benefit plans for our wholly-owned regional subsidiaries. We expect to make supplemental contributions of $425 million to our U.S. based defined benefit pension plans in 2018. The minimum funding obligation for our U.S. based defined benefit pension plans was subject to temporary favorable rules that expired at the end of 2017. Our pension funding obligations are likely to increase materially beginning in 2019, when we will be required to make contributions relating to the 2018 fiscal year. The amount of these obligations will depend on the performance of our investments held in trust by the pension plans, interest rates for determining liabilities, the amount of and timing of any supplemental contributions and our actuarial experience. Benefit Payments The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023-2027 | Pension benefits | $ | 715 |
| | $ | 754 |
| | $ | 799 |
| | $ | 843 |
| | $ | 884 |
| | $ | 4,976 |
| Retiree medical and other postretirement benefits | 96 |
| | 92 |
| | 80 |
| | 75 |
| | 70 |
| | 315 |
|
Plan Assets The objectives of our investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers. Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving funded position with the potential risk that the funded position would decline. The current strategic target asset allocation is as follows: | | | Asset Class/Sub-Class | Allowed Range | Equity | 65% - 90% | Public: | | U.S. Large | 20% - 50% | U.S. Small/Mid | 0% - 10% | International | 17% - 27% | Emerging Markets | 5% - 11% | Alternative Investments | 5% - 20% | Fixed Income | 15% - 40% | Public: | | U.S. Long Duration | 15% - 30% | High Yield and Emerging Markets | 0% - 10% | Private Income | 0% - 10% | Other | 0% - 5% | Cash Equivalents | 0% - 5% |
Public equity and emerging market fixed income securities are used to provide diversification and are expected to generate higher returns over the long-term than U.S. long duration bonds. Public stocks are managed using a value investment approach in order to participate in the returns generated by stocks in the long-term, while reducing year-over-year volatility. U.S. long duration bonds are used to partially hedge the assets from declines in interest rates. Alternative (private) investments are used to provide expected returns in excess of the public markets over the long-term. Additionally, the pension plan’s master trust engages currency overlay managers in an attempt to increase returns by protecting non-U.S. dollar denominated assets from a rise in the relative value of the U.S. dollar. The pension plan’s master trust also participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. These programs are subject to market risk. Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. The money market fund is valued at fair value which represents the net asset value of the shares of such fund as of the close of business at the end of the period. Investments in limited partnerships are carried at estimated net asset value as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Common/collective trusts are valued at net asset value based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. The pension plan’s master trust also invests in a 103-12 investment entity (the 103-12 Investment Trust) which is designed to invest plan assets of more than one unrelated employer. The 103-12 Investment Trust is valued at net asset value which is determined by the issuer at the end of each month and is based on the aggregate fair value of trust assets less liabilities, divided by the number of units outstanding. No changes in valuation techniques or inputs occurred during the year. Benefit Plan Assets Measured at Fair Value on a Recurring Basis The fair value of our pension plan assets at December 31, 2017 and 2016, by asset category, are as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 28 |
| | $ | — |
| | $ | — |
| | $ | 28 |
| Equity securities: | | | | | | |
|
| International markets (a) (b) | 3,837 |
| | — |
| | — |
| | 3,837 |
| Large-cap companies (b) | 2,451 |
| | — |
| | — |
| | 2,451 |
| Mid-cap companies (b) | 744 |
| | — |
| | — |
| | 744 |
| Small-cap companies (b) | 125 |
| | — |
| | — |
| | 125 |
| Mutual funds (c) | 55 |
| | — |
| | — |
| | 55 |
| Fixed income: | | | | | | |
|
| Corporate bonds (d) | — |
| | 2,344 |
| | — |
| | 2,344 |
| Government securities (e) | — |
| | 238 |
| | — |
| | 238 |
| U.S. municipal securities | — |
| | 39 |
| | — |
| | 39 |
| Alternative instruments: | | | | | | |
|
| Private equity partnerships (f) | — |
| | — |
| | 14 |
| | 14 |
| Private equity partnerships measured at net asset value (f) (h) | — |
| | — |
| | — |
| | 879 |
| Common/collective trusts (g) | — |
| | 315 |
| | — |
| | 315 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (g) (h) | — |
| | — |
| | — |
| | 283 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 44 |
| | — |
| | — |
| | 44 |
| Due to/from brokers for sale of securities – net | 3 |
| | — |
| | — |
| | 3 |
| Other liabilities – net | (6 | ) | | — |
| | — |
| | (6 | ) | Total | $ | 7,281 |
| | $ | 2,936 |
| | $ | 16 |
| | $ | 11,395 |
|
| | a) | Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% with no concentration greater than 5% in any one country. |
| | b) | There are no significant concentrations of holdings by company or industry. |
| | c) | Investment includes mutual funds invested 39% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 34% in U.S. treasuries and corporate bonds and 27% in equity securities of international companies. |
| | d) | Includes approximately 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies. |
| | e) | Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification. |
| | f) | Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $903 million over the next ten years. |
| | g) | Investment includes 42% in a collective interest trust investing primarily in short-term securities, 40% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 10% in Canadian segregated balanced value, income growth and diversified pooled funds and 8% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
| | h) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
| | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 573 |
| | $ | — |
| | $ | — |
| | $ | 573 |
| Equity securities: | | | | | | | | International markets (a) (b) | 3,232 |
| | — |
| | — |
| | 3,232 |
| Large-cap companies (b) | 2,253 |
| | — |
| | — |
| | 2,253 |
| Mid-cap companies (b) | 371 |
| | — |
| | — |
| | 371 |
| Small-cap companies (b) | 6 |
| | — |
| | — |
| | 6 |
| Mutual funds (c) | 49 |
| | — |
| | — |
| | 49 |
| Fixed income: | | | | | | | | Corporate bonds (d) | — |
| | 2,337 |
| | — |
| | 2,337 |
| Government securities (e) | — |
| | 150 |
| | — |
| | 150 |
| U.S. municipal securities | — |
| | 37 |
| | — |
| | 37 |
| Alternative instruments: | | | | | | | | Private equity partnerships (f) | — |
| | — |
| | 21 |
| | 21 |
| Private equity partnerships measured at net asset value (f) (h) | — |
| | — |
| | — |
| | 703 |
| Common/collective trusts (g) | — |
| | 32 |
| | — |
| | 32 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (g) (h) | — |
| | — |
| | — |
| | 227 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 40 |
| | — |
| | — |
| | 40 |
| Due to/from brokers for sale of securities – net | (9 | ) | | — |
| | — |
| | (9 | ) | Other liabilities – net | (7 | ) | | — |
| | — |
| | (7 | ) | Total | $ | 6,508 |
| | $ | 2,556 |
| | $ | 23 |
| | $ | 10,017 |
|
| | a) | Holdings are diversified as follows: 15% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 6% Netherlands, 17% other emerging markets and the remaining 33% with no concentration greater than 5% in any one country. |
| | b) | There are no significant concentrations of holdings by company or industry. |
| | c) | Investment includes mutual funds invested 42% in equity securities of large-cap, mid-cap and small-cap U.S. companies, 33% in U.S. treasuries and corporate bonds and 25% in equity securities of international companies. |
| | d) | Includes approximately 74% investments in corporate debt with a S&P rating lower than A and 26% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. |
| | e) | Includes approximately 61% investments in U.S. domestic government securities and 39% in emerging market government securities. There are no significant foreign currency risks within this classification. |
| | f) | Includes limited partnerships that invest primarily in U.S. (95%) and European (5%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $456 million over the next ten years. |
| | g) | Investment includes 73% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 12% in Canadian segregated balanced value, income growth and diversified pooled funds and 15% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. Requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
| | h) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2017, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
| Actual loss on plan assets: | | | | Relating to assets still held at the reporting date | (4 | ) | | — |
| Purchases | 1 |
| | — |
| Sales | (1 | ) | | — |
| Transfers out | (3 | ) | | — |
| Ending balance at December 31, 2017 | $ | 14 |
| | $ | 2 |
|
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2016, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2015 | $ | 16 |
| | $ | 2 |
| Actual return on plan assets: | | | | Relating to assets sold during the period | 7 |
| | — |
| Purchases | 7 |
| | — |
| Sales | (9 | ) | | — |
| Ending balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
|
The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – AAL Class | — |
| | 290 |
| | — |
| | 290 |
| Total | $ | 5 |
| | $ | 290 |
| | $ | — |
| | $ | 295 |
|
The fair value of our retiree medical and other postretirement benefits plans assets at December 31, 2016 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – Institutional Class | 261 |
| | — |
| | — |
| | 261 |
| Total | $ | 266 |
| | $ | — |
| | $ | — |
| | $ | 266 |
|
Investments in the retiree medical and other postretirement benefits plans’ mutual funds are valued by quoted prices on the active market, which is fair value and represents the net asset value of the shares of such funds as of the close of business at the end of the period. At December 31, 2017, these funds were invested in an AAL Class mutual fund, in which trading is restricted only to American, resulting in a fair value classification of Level 2. At December 31, 2016, these investments were part of an Institutional Class of mutual funds and were actively traded on the open market resulting in a fair value classification of Level 1. Investments include approximately 30% and 27% of investments in non-U.S. common stocks in 2017 and 2016, respectively. Net asset value is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination. Profit Sharing Program We accrue 5% of our pre-tax income excluding special items for our profit sharing program. For the year ended December 31, 2017, we accrued $241 million for this program, which will be distributed to employees in the first quarter of 2018.
|
American Airlines, Inc. [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Employee Benefit Plans |
Employee Benefit Plans American sponsors defined benefit and defined contribution pension plans for eligible employees. The defined benefit pension plans provide benefits for participating employees based on years of service and average compensation for a specified period of time before retirement. Effective November 1, 2012, substantially all of American’s defined benefit pension plans were frozen and American began providing enhanced benefits under its defined contribution pension plans for certain employee groups. American uses a December 31 measurement date for all of its defined benefit pension plans. American also provides certain retiree medical and other postretirement benefits, including health care and life insurance benefits, to retired employees. Effective November 1, 2012, American modified its retiree medical and other postretirement benefits plans to eliminate the company subsidy for employees who retire on or after November 1, 2012. As a result of modifications to its retiree medical and other postretirement benefits plans in 2012, American recognized a negative plan amendment of $1.9 billion, which is included as a component of prior service benefit in OCI and will be amortized over the future service life of the active plan participants for whom the benefit was eliminated, or approximately eight years. As of December 31, 2017, $631 million of prior service benefit remains to be amortized. Benefit Obligations, Fair Value of Plan Assets and Funded Status The following tables provide a reconciliation of the changes in the pension and retiree medical and other postretirement benefits obligations, fair value of plan assets and a statement of funded status as of December 31, 2017 and 2016: | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Benefit obligation at beginning of period | $ | 17,148 |
| | $ | 16,310 |
| | $ | 990 |
| | $ | 1,129 |
| Service cost | 2 |
| | 2 |
| | 4 |
| | 3 |
| Interest cost | 717 |
| | 746 |
| | 39 |
| | 47 |
| Actuarial (gain) loss (1) (2) | 1,007 |
| | 725 |
| | 49 |
| | (104 | ) | Plan amendments | — |
| | — |
| | — |
| | 7 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (723 | ) | | (633 | ) | | (80 | ) | | (92 | ) | Other | 28 |
| | — |
| | 8 |
| | — |
| Benefit obligation at end of period | $ | 18,175 |
| | $ | 17,148 |
| | $ | 1,010 |
| | $ | 990 |
|
| | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Fair value of plan assets at beginning of period | $ | 9,968 |
| | $ | 9,660 |
| | $ | 266 |
| | $ | 253 |
| Actual return on plan assets | 1,788 |
| | 911 |
| | 37 |
| | 22 |
| Employer contributions (3) | 286 |
| | 32 |
| | 72 |
| | 83 |
| Settlements | (4 | ) | | (2 | ) | | — |
| | — |
| Benefit payments | (723 | ) | | (633 | ) | | (80 | ) | | (92 | ) | Other | 25 |
| | — |
| | — |
| | — |
| Fair value of plan assets at end of period | $ | 11,340 |
| | $ | 9,968 |
| | $ | 295 |
| | $ | 266 |
| Funded status at end of period | $ | (6,835 | ) | | $ | (7,180 | ) | | $ | (715 | ) | | $ | (724 | ) |
| | (1) | The December 31, 2017 and 2016 pension actuarial loss primarily relates to weighted average discount rate assumption changes and changes to American’s mortality assumptions. |
| | (2) | The December 31, 2017 retiree medical and other postretirement benefits actuarial (gain) loss primarily relates to plan experience adjustments, weighted average discount rate assumption changes and changes to American’s mortality assumptions and as of December 31, 2016, also includes medical trend and cost assumption changes. |
| | (3) | During 2017, American contributed $286 million to its defined benefit pension plans, including supplemental contributions of $261 million in addition to a $25 million minimum required cash contribution. |
Balance Sheet Position | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | As of December 31, | | Current liability | $ | 10 |
| | $ | 7 |
| | $ | 88 |
| | $ | 97 |
| Noncurrent liability | 6,825 |
| | 7,173 |
| | 627 |
| | 627 |
| Total liabilities | $ | 6,835 |
| | $ | 7,180 |
| | $ | 715 |
| | $ | 724 |
|
| | | | | | | | | | | | | | | | | Net actuarial loss (gain) | $ | 5,337 |
| | $ | 5,472 |
| | $ | (388 | ) | | $ | (429 | ) | Prior service cost (benefit) | 159 |
| | 188 |
| | (600 | ) | | (837 | ) | Total accumulated other comprehensive loss (income), pre-tax | $ | 5,496 |
| | $ | 5,660 |
| | $ | (988 | ) | | $ | (1,266 | ) |
Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | | (In millions) | Projected benefit obligation | $ | 18,144 |
| | $ | 17,119 |
| | $ | — |
| | $ | — |
| Accumulated benefit obligation (ABO) | 18,135 |
| | 17,108 |
| | — |
| | — |
| Accumulated postretirement benefit obligation | — |
| | — |
| | 1,010 |
| | 990 |
| Fair value of plan assets | 11,307 |
| | 9,936 |
| | 295 |
| | 266 |
| ABO less fair value of plan assets | 6,828 |
| | 7,172 |
| | — |
| | — |
|
Net Periodic Benefit Cost (Income) | | | | | | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | | (In millions) | Defined benefit plans: | | | | | | | | | | | | Service cost | $ | 2 |
| | $ | 2 |
| | $ | 1 |
| | $ | 4 |
| | $ | 3 |
| | $ | 3 |
| Interest cost | 717 |
| | 746 |
| | 733 |
| | 39 |
| | 47 |
| | 50 |
| Expected return on assets | (786 | ) | | (747 | ) | | (848 | ) | | (21 | ) | | (20 | ) | | (19 | ) | Settlements | 1 |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| Amortization of: | | | | | | | | | | | | Prior service cost (benefit) | 28 |
| | 28 |
| | 28 |
| | (237 | ) | | (240 | ) | | (243 | ) | Unrecognized net loss (gain) | 144 |
| | 125 |
| | 111 |
| | (23 | ) | | (16 | ) | | (9 | ) | Net periodic benefit cost (income) | 106 |
| | 154 |
| | 26 |
| | (238 | ) | | (226 | ) | | (218 | ) | Defined contribution plan cost | 844 |
| | 761 |
| | 657 |
| | N/A |
| | N/A |
| | N/A |
| Total cost (income) | $ | 950 |
| | $ | 915 |
| | $ | 683 |
| | $ | (238 | ) | | $ | (226 | ) | | $ | (218 | ) |
The estimated amount of unrecognized actuarial net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $171 million. The estimated amount of unrecognized actuarial net gain and prior service benefit for the retiree medical and other postretirement benefits plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $258 million. Assumptions The following actuarial assumptions were used to determine American’s benefit obligations and net periodic benefit cost for the periods presented: | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2017 | | 2016 | Benefit obligations: | | | | | | | | Weighted average discount rate | 3.80% | | 4.30% | | 3.60% | | 4.10% |
| | | | | | | | | | | | | | Pension Benefits | | Retiree Medical and Other Postretirement Benefits | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | Net periodic benefit cost: | | | | | | | | | | | | Weighted average discount rate | 4.30% | | 4.70% | | 4.30% | | 4.10% | | 4.42% | | 4.00% | Weighted average expected rate of return on plan assets | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | | 8.00% | Weighted average health care cost trend rate assumed for next year (1) | N/A | | N/A | | N/A | | 4.19% | | 4.25% | | 5.21% |
| | (1) | The weighted average health care cost trend rate at December 31, 2017 is assumed to decline gradually to 3.76% by 2025 and remain level thereafter. |
As of December 31, 2017, American’s estimate of the long-term rate of return on plan assets was 8% based on the target asset allocation. Expected returns on long duration bonds are based on yields to maturity of the bonds held at year-end. Expected returns on other assets are based on a combination of long-term historical returns, actual returns on plan assets achieved over the last ten years, current and expected market conditions, and expected value to be generated through active management, currency overlay and securities lending programs. A one percentage point change in the assumed health care cost trend rates would have the following effects on American’s retiree medical and other postretirement benefits plans (in millions): | | | | | | | | | | 1% Increase | | 1% Decrease | Increase (decrease) on 2017 service and interest cost | $ | 2 |
| | $ | (2 | ) | Increase (decrease) on benefit obligation as of December 31, 2017 | 54 |
| | (51 | ) |
Minimum Contributions American is required to make minimum contributions to its defined benefit pension plans under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and various other laws for U.S. based plans as well as under funding rules specific to countries where American maintains defined benefit plans. Based on current funding assumptions, American has minimum required contributions of $39 million for 2018. American expects to make supplemental contributions of $425 million to its U.S. based defined benefit pension plans in 2018. The minimum funding obligation for American’s U.S. based defined benefit pension plans was subject to temporary favorable rules that expired at the end of 2017. American’s pension funding obligations are likely to increase materially beginning in 2019, when American will be required to make contributions relating to the 2018 fiscal year. The amount of these obligations will depend on the performance of American’s investments held in trust by the pension plans, interest rates for determining liabilities, the amount of and timing of any supplemental contributions and American’s actuarial experience. Benefit Payments The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (approximately, in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023-2027 | Pension benefits | $ | 712 |
| | $ | 750 |
| | $ | 795 |
| | $ | 839 |
| | $ | 879 |
| | $ | 4,951 |
| Retiree medical and other postretirement benefits | 96 |
| | 92 |
| | 80 |
| | 75 |
| | 70 |
| | 314 |
|
Plan Assets The objectives of American’s investment policies are to: maintain sufficient income and liquidity to pay retirement benefits; produce a long-term rate of return that meets or exceeds the assumed rate of return for plan assets; limit the volatility of asset performance and funded status; and diversify assets among asset classes and investment managers. Based on these investment objectives, a long-term strategic asset allocation has been established. This strategic allocation seeks to balance the potential benefit of improving funded position with the potential risk that the funded position would decline. The current strategic target asset allocation is as follows: | | | Asset Class/Sub-Class | Allowed Range | Equity | 65% - 90% | Public: | | U.S. Large | 20% - 50% | U.S. Small/Mid | 0% - 10% | International | 17% - 27% | Emerging Markets | 5% - 11% | Alternative Investments | 5% - 20% | Fixed Income | 15% - 40% | Public: | | U.S. Long Duration | 15% - 30% | High Yield and Emerging Markets | 0% - 10% | Private Income | 0% - 10% | Other | 0% - 5% | Cash Equivalents | 0% - 5% |
Public equity and emerging market fixed income securities are used to provide diversification and are expected to generate higher returns over the long-term than U.S. long duration bonds. Public stocks are managed using a value investment approach in order to participate in the returns generated by stocks in the long-term, while reducing year-over-year volatility. U.S. long duration bonds are used to partially hedge the assets from declines in interest rates. Alternative (private) investments are used to provide expected returns in excess of the public markets over the long-term. Additionally, the pension plan’s master trust engages currency overlay managers in an attempt to increase returns by protecting non-U.S. dollar denominated assets from a rise in the relative value of the U.S. dollar. The pension plan’s master trust also participates in securities lending programs to generate additional income by loaning plan assets to borrowers on a fully collateralized basis. These programs are subject to market risk. Investments in securities traded on recognized securities exchanges are valued at the last reported sales price on the last business day of the year. Securities traded in the over-the-counter market are valued at the last bid price. The money market fund is valued at fair value which represents the net asset value of the shares of such fund as of the close of business at the end of the period. Investments in limited partnerships are carried at estimated net asset value as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. Common/collective trusts are valued at net asset value based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. The pension plan’s master trust also invests in a 103-12 investment entity (the 103-12 Investment Trust) which is designed to invest plan assets of more than one unrelated employer. The 103-12 Investment Trust is valued at net asset value which is determined by the issuer at the end of each month and is based on the aggregate fair value of trust assets less liabilities, divided by the number of units outstanding. No changes in valuation techniques or inputs occurred during the year. Benefit Plan Assets Measured at Fair Value on a Recurring Basis The fair value of American’s pension plan assets at December 31, 2017 and 2016, by asset category, are as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 28 |
| | $ | — |
| | $ | — |
| | $ | 28 |
| Equity securities: | | | | | | | | International markets (a) (b) | 3,837 |
| | — |
| | — |
| | 3,837 |
| Large-cap companies (b) | 2,451 |
| | — |
| | — |
| | 2,451 |
| Mid-cap companies (b) | 744 |
| | — |
| | — |
| | 744 |
| Small-cap companies (b) | 125 |
| | — |
| | — |
| | 125 |
| Fixed income: | | | | | | | | Corporate bonds (c) | — |
| | 2,344 |
| | — |
| | 2,344 |
| Government securities (d) | — |
| | 238 |
| | — |
| | 238 |
| U.S. municipal securities | — |
| | 39 |
| | — |
| | 39 |
| Alternative instruments: | | | | | | | | Private equity partnerships (e) | — |
| | — |
| | 14 |
| | 14 |
| Private equity partnerships measured at net asset value (e) (g) | — |
| | — |
| | — |
| | 879 |
| Common/collective trusts (f) | — |
| | 315 |
| | — |
| | 315 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (f) (g) | — |
| | — |
| | — |
| | 283 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 44 |
| | — |
| | — |
| | 44 |
| Due to/from brokers for sale of securities – net | 3 |
| | — |
| | — |
| | 3 |
| Other liabilities – net | (6 | ) | | — |
| | — |
| | (6 | ) | Total | $ | 7,226 |
| | $ | 2,936 |
| | $ | 16 |
| | $ | 11,340 |
|
| | a) | Holdings are diversified as follows: 17% United Kingdom, 11% Japan, 9% France, 6% Switzerland, 16% emerging markets and the remaining 41% with no concentration greater than 5% in any one country. |
| | b) | There are no significant concentrations of holdings by company or industry. |
| | c) | Includes approximately 76% investments in corporate debt with a S&P rating lower than A and 24% investments in corporate debt with a S&P rating A or higher. Holdings include 85% U.S. companies, 12% international companies and 3% emerging market companies. |
| | d) | Includes approximately 27% investments in U.S. domestic government securities, 43% in emerging market government securities and 30% in international government securities. There are no significant foreign currency risks within this classification. |
| | e) | Includes limited partnerships that invest primarily in U.S. (94%) and European (6%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $903 million over the next ten years. |
| | f) | Investment includes 42% in a collective interest trust investing primarily in short-term securities, 40% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 10% in Canadian segregated balanced value, income growth and diversified pooled funds and 8% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. For some trusts, requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
| | g) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
| | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Cash and cash equivalents | $ | 573 |
| | $ | — |
| | $ | — |
| | $ | 573 |
| Equity securities: | | | | | | | | International markets (a) (b) | 3,232 |
| | — |
| | — |
| | 3,232 |
| Large-cap companies (b) | 2,253 |
| | — |
| | — |
| | 2,253 |
| Mid-cap companies (b) | 371 |
| | — |
| | — |
| | 371 |
| Small-cap companies (b) | 6 |
| | — |
| | — |
| | 6 |
| Fixed income: | | | | | | | | Corporate bonds (c) | — |
| | 2,337 |
| | — |
| | 2,337 |
| Government securities (d) | — |
| | 150 |
| | — |
| | 150 |
| U.S. municipal securities | — |
| | 37 |
| | — |
| | 37 |
| Alternative instruments: | | | | | | | | Private equity partnerships (e) | — |
| | — |
| | 21 |
| | 21 |
| Private equity partnerships measured at net asset value (e) (g) | — |
| | — |
| | — |
| | 703 |
| Common/collective trusts (f) | — |
| | 32 |
| | — |
| | 32 |
| Common/collective trusts and 103-12 Investment Trust measured at net asset value (f) (g) | — |
| | — |
| | — |
| | 227 |
| Insurance group annuity contracts | — |
| | — |
| | 2 |
| | 2 |
| Dividend and interest receivable | 40 |
| | — |
| | — |
| | 40 |
| Due to/from brokers for sale of securities – net | (9 | ) | | — |
| | — |
| | (9 | ) | Other liabilities – net | (7 | ) | | — |
| | — |
| | (7 | ) | Total | $ | 6,459 |
| | $ | 2,556 |
| | $ | 23 |
| | $ | 9,968 |
|
| | a) | Holdings are diversified as follows: 15% United Kingdom, 12% Japan, 10% France, 7% Switzerland, 6% Netherlands, 17% other emerging markets and the remaining 33% with no concentration greater than 5% in any one country. |
| | b) | There are no significant concentrations of holdings by company or industry. |
| | c) | Includes approximately 74% investments in corporate debt with a S&P rating lower than A and 26% investments in corporate debt with a S&P rating A or higher. Holdings include 86% U.S. companies, 12% international companies and 2% emerging market companies. |
| | d) | Includes approximately 61% investments in U.S. domestic government securities and 39% in emerging market government securities. There are no significant foreign currency risks within this classification. |
| | e) | Includes limited partnerships that invest primarily in U.S. (95%) and European (5%) buyout opportunities of a range of privately held companies. The pension plan’s master trust does not have the right to redeem its limited partnership investment at its net asset value, but rather receives distributions as the underlying assets are liquidated. It is estimated that the underlying assets of these funds will be gradually liquidated over the next one to ten years. Additionally, the pension plan’s master trust has future funding commitments of approximately $456 million over the next ten years. |
| | f) | Investment includes 73% in an emerging market 103-12 Investment Trust with investments in emerging country equity securities, 12% in Canadian segregated balanced value, income growth and diversified pooled funds and 15% in a common/collective trust investing in securities of smaller companies located outside the U.S., including developing markets. Requests for withdrawals must meet specific requirements with advance notice of redemption preferred. |
| | g) | Certain investments that are measured using net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the notes to the consolidated financial statements. |
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2017, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
| Actual loss on plan assets: | | | | Relating to assets still held at the reporting date | (4 | ) | | — |
| Purchases | 1 |
| | — |
| Sales | (1 | ) | | — |
| Transfers out | (3 | ) | | — |
| Ending balance at December 31, 2017 | $ | 14 |
| | $ | 2 |
|
Changes in fair value measurements of Level 3 investments during the year ended December 31, 2016, were as follows (in millions): | | | | | | | | | | Private Equity Partnerships | | Insurance Group Annuity Contracts | Beginning balance at December 31, 2015 | $ | 16 |
| | $ | 2 |
| Actual return on plan assets: | | | | Relating to assets sold during the period | 7 |
| | — |
| Purchases | 7 |
| | — |
| Sales | (9 | ) | | — |
| Ending balance at December 31, 2016 | $ | 21 |
| | $ | 2 |
|
The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2017 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2017 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – AAL Class | — |
| | 290 |
| | — |
| | 290 |
| Total | $ | 5 |
| | $ | 290 |
| | $ | — |
| | $ | 295 |
|
The fair value of American’s retiree medical and other postretirement benefits plans assets at December 31, 2016 by asset category, were as follows (in millions): | | | | | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2016 | Asset Category | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | Money market fund | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 5 |
| Mutual funds – Institutional Class | 261 |
| | — |
| | — |
| | 261 |
| Total | $ | 266 |
| | $ | — |
| | $ | — |
| | $ | 266 |
|
Investments in the retiree medical and other postretirement benefits plans’ mutual funds are valued by quoted prices on the active market, which is fair value and represents the net asset value of the shares of such funds as of the close of business at the end of the period. At December 31, 2017, these funds were invested in an AAL Class mutual fund, in which trading is restricted only to American, resulting in a fair value classification of Level 2. At December 31, 2016, these investments were part of an Institutional Class of mutual funds and were actively traded on the open market resulting in a fair value classification of Level 1. Investments include approximately 30% and 27% of investments in non-U.S. common stocks in 2017 and 2016, respectively. Net asset value is based on the fair market value of the funds’ underlying assets and liabilities at the date of determination. Profit Sharing Program American accrues 5% of its pre-tax income excluding special items for its profit sharing program. For the year ended December 31, 2017, American accrued $241 million for this program, which will be distributed to employees in the first quarter of 2018.
|