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:
|
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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:
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|
|
|
|
|
|
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:
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|
|
|
|
|
|
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:
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|
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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:
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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:
|
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|
|
|
|
|
|
|
|
|
|
|
(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 |
) |
|
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|
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|
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 |
|
|