Annual report pursuant to Section 13 and 15(d)

BENEFIT PLANS (Tables)

v3.19.3.a.u2
BENEFIT PLANS (Tables)
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of weighted-average assumptions used
The following table shows the weighted-average assumptions used to determine the benefit obligation at December 31, 2019 and 2018, and the net periodic benefit cost for the years then ended:
 
Pension Benefits
 
2019
 
2018
Weighted-average assumptions used to determine benefit obligations
 
 
 
Discount rate
3.40
%
 
4.41
%
Weighted-average assumptions used to determine net periodic benefit cost
 
 
 
Discount rate
4.41

 
3.73

Expected return on plan assets
5.25

 
5.75


Schedule of changes in projected benefit obligation
The following table reconciles the beginning and ending balances of the benefit obligation of the Plan with the amounts recognized in the consolidated balance sheets at December 31:
 
Pension Benefits
(dollar amounts in millions)
2019
 
2018
Projected benefit obligation at beginning of measurement year
$
821

 
$
900

Changes due to:
 
 
 
Service cost
2

 
3

Interest cost
32

 
29

Benefits paid
(29
)
 
(26
)
Settlements
(14
)
 
(18
)
Actuarial assumptions and gains (losses)
111

 
(67
)
Total changes
102

 
(79
)
Projected benefit obligation at end of measurement year
$
923

 
$
821


Schedule of changes in fair value of plan assets
The following table reconciles the beginning and ending balances of the fair value of Plan assets at the December 31, 2019 and 2018 measurement dates:
 
Pension Benefits
(dollar amounts in millions)
2019
 
2018
Fair value of plan assets at beginning of measurement year
$
828

 
$
903

Changes due to:
 
 
 
Actual return on plan assets
145

 
(30
)
Settlements
(13
)
 
(19
)
Benefits paid
(29
)
 
(26
)
Total changes
103

 
(75
)
Fair value of plan assets at end of measurement year
$
931

 
$
828


Schedule of net periodic benefit costs
The following table shows the components of net periodic benefit costs recognized in the three years ended December 31, 2019, 2018 and 2017:
 
Pension Benefits (1)
(dollar amounts in millions)
2019
 
2018
 
2017
Service cost
$
2

 
$
3

 
$
3

Interest cost
32

 
29

 
30

Expected return on plan assets
(44
)
 
(49
)
 
(55
)
Amortization of loss
6

 
9

 
7

Settlements
5

 
7

 
11

Benefit costs
$
1

 
$
(1
)
 
$
(4
)

Schedule of allocation of plan assets
At December 31, 2019 and 2018, The Huntington National Bank, as trustee, held all Plan assets. The Plan assets consisted of investments in a variety of corporate and government fixed income investments, money market funds, and mutual funds as follows:
 
Fair Value
(dollar amounts in millions)
2019
 
2018
Cash equivalents:
 
 
 
 
 
 
 
Mutual funds-money market
$
7

 
1
%
 
$
4

 
%
U.S. Treasury bills

 

 
4

 
1

Fixed income:
 
 
 
 
 
 


Corporate obligations
460

 
49

 
272

 
33

U.S. Government obligations
199

 
21

 
298

 
36

Municipal obligations
5

 
1

 

 

U.S. Government agencies

 

 
22

 
3

Collective trust funds
105

 
11

 

 

Equities:
 
 


 
 
 


Mutual funds-equities
78

 
8

 
64

 
8

Common stock
53

 
6

 
98

 
12

Preferred stock
5

 
1

 
5

 
1

Exchange traded funds

 

 
45

 
5

Limited Partnerships
19

 
2

 
16

 
1

Fair value of plan assets
$
931

 
100
%
 
$
828

 
100
%

Schedule of expected benefit payments
At December 31, 2019, the following table shows when benefit payments were expected to be paid:
(dollar amounts in millions)
Pension Benefits
2020
$
54

2021
52

2022
50

2023
49

2024
49

2025 through 2029
240


Schedule of amounts recognized in balance sheet
The following table presents the amounts recognized in the Consolidated Balance Sheets at December 31, 2019 and 2018, for all defined benefit and nonqualified retirement plans:
(dollar amounts in millions)
2019
 
2018
Other liabilities
$
67

 
$
63

Schedule of amounts recognized in OCI
The following tables present the amounts recognized in OCI as of December 31, 2019, 2018, and 2017, and the changes in accumulated OCI for the years ended December 31, 2019, 2018, and 2017
(dollar amounts in millions)
2019
 
2018
 
2017
Net actuarial loss
$
(261
)
 
$
(257
)
 
$
(264
)
Prior service cost
10

 
11

 
14

Defined benefit pension plans
$
(251
)
 
$
(246
)
 
$
(250
)
 
2019
(dollar amounts in millions)
Pretax
 
Tax (expense) Benefit
 
After-tax
Net actuarial (loss) gain:
 
 
 
 
 
Amounts arising during the year
$
(17
)
 
$
5

 
$
(12
)
Amortization included in net periodic benefit costs
12

 
(3
)
 
9

Prior service cost:
 
 
 
 
 
Amounts arising during the year

 

 

Amortization included in net periodic benefit costs
(2
)
 

 
(2
)
Total recognized in OCI
$
(7
)
 
$
2

 
$
(5
)
 
2018
(dollar amounts in millions)
Pretax
 
Tax (expense) Benefit
 
After-tax
Net actuarial (loss) gain:
 
 
 
 
 
Amounts arising during the year
$
(5
)
 
$
2

 
$
(3
)
Amortization included in net periodic benefit costs
13

 
(3
)
 
10

Prior service cost:
 
 
 
 
 
Amortization included in net periodic benefit costs
(4
)
 
1

 
(3
)
Total recognized in OCI
$
4

 
$

 
$
4

 
2017
(dollar amounts in millions)
Pretax
 
Tax (expense) Benefit
 
After-tax (1)
Net actuarial (loss) gain:
 
 
 
 
 
Amounts arising during the year
$
(16
)
 
$
6

 
$
(10
)
Amortization included in net periodic benefit costs
18

 
(7
)
 
11

Prior service cost:
 
 
 
 
 
Amortization included in net periodic benefit costs
(2
)
 
1

 
(1
)
Total recognized in OCI
$

 
$

 
$


(1)
TCJA reclassification from AOCI to retained earnings recorded during 2017 was $45 million.
Schedule of Huntington stock statistics for defined contribution plan
The following table shows the number of shares, market value, and dividends received on shares of Huntington stock held by the defined contribution plan:
 
December 31,
(dollar amounts in millions, share amounts in thousands)
2019
 
2018
Shares in Huntington common stock
10,334

 
11,635

Market value of Huntington common stock
$
156

 
$
139

Dividends received on shares of Huntington stock
6

 
6