Rendering

Component: (Network and Table)
Network
2313301 - Disclosure - Employee Benefit Plans (Tables)
(http://www.discovercard.com/role/EmployeeBenefitPlansTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0001393612 (http://www.sec.gov/CIK)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Schedule of Net Periodic Benefit Cost
Net periodic benefit cost expensed by the Company included the following components (dollars in millions):
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
Service cost, benefits earned during the period
$
—

 
$
—

 
$
—

Interest cost on projected benefit obligation
23

 
23

 
22

Expected return on plan assets
(25
)
 
(24
)
 
(23
)
Net amortization
4

 
5

 
3

Net periodic benefit cost
$
2

 
$
4

 
$
2

 
 
 
 
 
 
  
Schedule of Pretax Amounts Recognized in AOCI Not Recognized as Components of Net Periodic Benefit Cost
Pretax amounts recognized in AOCI that have not yet been recognized as components of net periodic benefit cost consist of (dollars in millions):
 
December 31, 2016
Prior service credit
$
4

Net loss
(254
)
Total
$
(250
)
 
 
  
Schedule of Funded Status and Changes in Benefit Obligations and Fair Value of Plan Assets
The following table provides a reconciliation of the changes in the benefit obligation and fair value of plan assets as well as a summary of the Discover Pension Plan's funded status (dollars in millions):
 
For the Years Ended December 31,
 
2016
 
2015
Reconciliation of benefit obligation
 
 
 
Benefit obligation at beginning of year
$
528

 
$
570

Service cost
—

 
—

Interest cost
23

 
23

Employee contributions
—

 
—

Actuarial loss (gain)
13

 
(48
)
Plan amendments
—

 
—

Benefits paid
(18
)
 
(17
)
Benefit obligation at end of year
546

 
528

 
 
 
 
Reconciliation of fair value of plan assets
 
 
 
Fair value of plan assets at beginning of year
378

 
401

Actual return on plan assets
21

 
(6
)
Employer contributions
—

 
—

Employee contributions
—

 
—

Benefits paid
(18
)
 
(17
)
Fair value of plan assets at end of year
381

 
378

 
 
 
 
Unfunded status (recorded in accrued expenses and other liabilities)
$
(165
)
 
$
(150
)
 
 
 
 
  
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost
 The following table presents the assumptions used to determine the benefit obligation:
 
December 31,
 
2016
 
2015
Discount rate
4.29
%
 
4.50
%
 
 
 
 

The following table presents the assumptions used to determine net periodic benefit cost:
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
Discount rate
4.50
%
 
4.08
%
 
4.93
%
Expected long-term rate of return on plan assets
6.50
%
 
6.50
%
 
6.50
%
 
 
 
 
 
 
  
Schedule of Pension Plan Assets by Level Within the Fair Value Hierarchy
The Discover Pension Plan’s assets are stated at fair value. Quoted market prices in active markets are the best evidence of fair value and are used as the basis for the measurement, if available. If a quoted market price is not available, the estimate of the fair value is based on the best information available in the circumstances. The table below presents information about the Discover Pension Plan assets. All of the Company's pension plan assets were categorized as Level 2 assets within the fair value hierarchy, as defined by ASC 820, as of the end of the current period. For a description of the fair value hierarchy, see Note 21: Fair Value Measurements and Disclosures. (dollars in millions):
 
December 31,
 
2016
 
2015
 
Amount
 
Net Asset Allocation
 
Amount
 
Net Asset Allocation
Assets
 
 
 
 
 
 
 
Domestic small/mid cap equity fund
$
33

 
9
%
 
$
31

 
8
%
Emerging markets equity fund
32

 
9

 
26

 
7

Global low volatility equity fund
20

 
5

 
21

 
6

International core equity fund
47

 
12

 
45

 
12

Domestic large cap equity fund
49

 
13

 
50

 
13

Long duration fixed income fund
195

 
51

 
201

 
53

Stable value fund
1

 
—

 
1

 
—

Temporary investment fund
4

 
1

 
3

 
1

Total assets
$
381

 
100
%
 
$
378

 
100
%
 
 
 
 
 
 
 
 
  
Schedule of Expected Benefit Payments for Next Five Years and Thereafter
Expected benefit payments associated with the Discover Pension Plan for the next five years and in aggregate for the years thereafter are as follows (dollars in millions):
 
December 31, 2016
2017
$
16

2018
$
17

2019
$
17

2020
$
18

2021
$
19

Following five years thereafter
$
117