Table of Contents The postretirement benefit plan provides contributory health care and life insurance benefits. Employees become eligible for these benefits if they meet age and service requirements. Generally, the benefits paid are a stated percentage of medical expenses reduced by deductibles and other coverages. Index to Financial Statements Substantially all of the Company’s employees are covered by the defined benefit pension and postretirement benefit plans. The Company accounts for its defined benefit pension and other postretirement plans by recognizing the funded status of each defined pension benefit plan and other postretirement benefit plan on the Company’s balance sheet. In the event a plan is overfunded, the Company recognizes an asset. Conversely, if a plan is underfunded, the Company recognizes a liability. In June 2018, the Company notified affected employees of a workforce reduction plan, which resulted primarily from a previously announced study of structural, process and organizational changes to enhance shareholder value and continues with respect to other aspects of the Company’s business activities. In December 2018, the Company closed on the sale of the equity in certain of its subsidiaries that owned and operated its Fayetteville Shale E&P and related midstream gathering assets in Arkansas. As part of this transaction, many employees associated with those assets were either transferred to the buyer or their employment was terminated. As a result of the restructurings, the Company recognized a curtailment on its pension and other postretirement benefit plans and recognized a non-cash gain of $4 million on its consolidated statements of operations. During the first half of 2019, the Company will recognize settlements related to these restructuring events, and the amounts may be material. In January 2016, the Company initiated a reduction in workforce that was effectively completed by the end of the first quarter. As a result of the workforce reduction, the Company recognized a $1 million non-cash curtailment loss related to its pension plan for both the curtailment-related decrease to the benefit obligation and the recognition of the proportionate share of unrecognized prior service cost and net loss from other comprehensive income (loss) in the second quarter of 2016. For the year ended December 31, 2016, the Company recognized a non-cash settlement loss of $11 million related to a total of $37 million of lump sum payments from the pension plan. Additionally, the Company recognized a non-cash curtailment gain of $6 million related to its other postretirement benefit plan in the first quarter of 2016. The following provides a reconciliation of the changes in the plans’ benefit obligations, fair value of assets and funded status as of December 31, 2018 and 2017: The Company uses a December 31 measurement date for all of its plans and had liabilities recorded for the underfunded status for each period as presented above. Other Postretirement Pension Benefits Benefits (in millions) 2018 2017 2018 2017 Change in plan assets: Fair value of plan assets at January 1 $ 101  $ 81  $ – $  – Actual return on plan assets (8) 15  – – Employer contributions 12  14  1  1  Participant contributions – – – – Benefits paid (14) (9) (1) (1) Fair value of plan assets at December 31 $ 91  $ 101  $ – $ – Funded status of plans at December 31 $ (34) $ (42) $ (13) $ (17) Other Postretirement Pension Benefits Benefits (in millions) 2018 2017 2018 2017 Change in benefit obligations: Benefit obligation at January 1 $ 143  $ 117  $ 17  $ 13  Service cost 10  9  2  2  Interest cost 5  5  1   – Participant contributions – – – – Actuarial loss (gain) (14) 21  − 3  Benefits paid (14) (9) (1) (1) Plan amendments – – – – Curtailments (5) – (6) – Benefit obligation at December 31 $ 125  $ 143  $ 13  $ 17  109