Defined Benefit Postretirement Plans and Defined Contribution Plan (Tables)

12 Months Ended

Dec. 31, 2018

Summary Of Defined Benefit Pension Plans With Accumulated Benefit Obligations

Obligations and funded status – The following summarizes the obligations and funded status for our defined benefit pension and other postretirement plans.



	Pension Benefits												Other Benefits
	2018						2017						2018			2017
(In millions)	U.S.			Int’l			U.S.			Int’l			U.S.			U.S.
Accumulated benefit obligation	$	320		$	511		$	378		$	599		$	96		$	221
Change in benefit obligations:
Beginning balance	$	384		$	599		$	397		$	583		$	221		$	227
Service cost	18			—			22			—			2			2
Interest cost	12			14			13			17			7			8
Plan amendment	—			3			—			—			(99		)	—
Actuarial loss (gain)	(20		)	(38		)	42			(7		)	(15		)	5
Foreign currency exchange rate changes	—			(29		)	—			52			—			—
Settlements paid	(62		)	(23		)	(84		)	(31		)	—			—
Benefits paid	(6		)	(15		)	(6		)	(15		)	(20		)	(21		)
Ending balance	$	326		$	511		$	384		$	599		$	96		$	221
Change in fair value of plan assets:
Beginning balance	$	216		$	670		$	227		$	595		$	—		$	—
Actual return on plan assets	(6		)	(21		)	27			47			—			—
Employer contributions	61			17			52			17			20			21
Foreign currency exchange rate changes	—			(34		)	—			57			—			—
Settlements paid	(62		)	(23		)	(84		)	(31		)	—			—
Benefits paid	(6		)	(15		)	(6		)	(15		)	(20		)	(21		)
Ending balance	$	203		$	594		$	216		$	670		$	—		$	—
Funded status of plans at December 31	$	(123	)	$	83		$	(168	)	$	71		$	(96	)	$	(221	)
Amounts recognized in the consolidated balance sheets:
Noncurrent assets	$	—		$	83		$	—		$	71		$	—		$	—
Current liabilities	(5		)	—			(6		)	—			(19		)	(21		)
Noncurrent liabilities	(118		)	—			(162		)	—			(77		)	(200		)
Accrued benefit cost	$	(123	)	$	83		$	(168	)	$	71		$	(96	)	$	(221	)
Pretax amounts in accumulated other comprehensive loss:
Net loss (gain)	$	90		$	59		$	122		$	58		$	14		$	30
Prior service cost (credit)	(36		)	5			(45		)	3			(147		)	(56		)

Schedule Of Net Periodic Benefit Cost And Other Comprehensive Income

Components of net periodic benefit cost from continuing operations and other comprehensive (income) loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive (income) loss for our defined benefit pension and other postretirement plans.



	Pension Benefits																		Other Benefits
	Year Ended December 31,																		Year Ended December 31,
	2018						2017						2016						2018			2017			2016
(In millions)	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l			U.S.			U.S.			U.S.
Components of net periodic benefit cost:
Service cost	$	18		$	—		$	22		$	—		$	25		$	—		$	2		$	2		$	2
Interest cost	12			14			13			17			16			23			7			8			11
Expected return on plan assets	(11		)	(24		)	(13		)	(30		)	(18		)	(35		)	—			—			—
Amortization:
- prior service cost (credit)	(10		)	—			(10		)	—			(10		)	1			(8		)	(7		)	(3		)
- actuarial loss	11			—			8			1			14			—			1			—			—
Net settlement loss^(a)	18			3			28			4			97			6			—			—			—
Net periodic benefit cost^(b)	$	38		$	(7	)	$	48		$	(8	)	$	124		$	(5	)	$	2		$	3		$	10
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax):
Actuarial loss (gain)	$	(4	)	$	8		$	28		$	(26	)	$	70		$	41		$	(15	)	$	5		$	11
Amortization of actuarial gain (loss)	(29		)	(3		)	(36		)	(4		)	(111		)	(6		)	(1		)	—			—
Prior service cost (credit)	—			3			—			—			—			1			(99		)	—			(38		)
Amortization of prior service credit (cost)	10			—			10			—			10			(1		)	8			7			3
Total recognized in other comprehensive (income) loss	$	(23	)	$	8		$	2		$	(30	)	$	(31	)	$	35		$	(107	)	$	12		$	(24	)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	15		$	1		$	50		$	(38	)	$	93		$	30		$	(105	)	$	15		$	(14	)


^(a)	Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest costs for that year.


^(b)	Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.

Schedule of Assumptions Used

Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2018, 2017 and 2016.



	Pension Benefits												Other Benefits
	2018				2017				2016				2018		2017		2016
(In millions)	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l		U.S.		U.S.		U.S.
Weighted average assumptions used to determine benefit obligation:
Discount rate	4.26	%	2.90	%	3.55	%	2.50	%	4.02	%	2.70	%	4.09	%	3.54	%	3.98	%
Rate of compensation increase^(a)	4.00	%	—	%	4.00	%	—	%	4.00	%	—	%	4.00	%	4.00	%	4.00	%
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate	3.88	%	2.50	%	3.86	%	2.70	%	3.66	%	3.90	%	3.54	%	3.98	%	4.36	%
Expected long-term return on plan assets	6.50	%	3.70	%	6.50	%	4.50	%	6.75	%	5.50	%	—	%	—	%	—	%
Rate of compensation increase^(a)	4.00	%	—	%	4.00	%	—	%	4.00	%	—	%	4.00	%	4.00	%	4.00	%


^(a)	No future benefits will be incurred for the U.K. plan after December 31, 2015. Therefore, rate of compensation increase is no longer applicable to this plan.

Schedule of Health Care Cost Trend Rates

Assumed weighted average health care cost trend rates



	2018	2017		2016
Initial health care trend rate	N/A	8.00	%	8.25	%
Ultimate trend rate	N/A	4.70	%	4.50	%
Year ultimate trend rate is reached	N/A	2025		2025

Fair Value of Defined Benefit Pension Plans Assets

The following tables present the fair values of our defined benefit pension plan's assets, by level within the fair value hierarchy, as of December 31, 2018 and 2017.



	December 31, 2018
(In millions)	Level 1					Level 2				Level 3				Total
	U.S.			Int’l		U.S.		Int’l		U.S.		Int’l		U.S.			Int’l
Cash and cash equivalents^(a)	$	(1	)	$	5	$	—	$	—	$	—	$	—	$	(1	)	$	5
Equity securities:
Common stock	75			—		—		—		—		—		75			—
Private equity	—			—		—		—		14		—		14			—
Pooled funds	—			—		—		191		—		—		—			191
Fixed income securities:
Corporate	—			—		4		—		—		—		4			—
Government	22			—		9		—		3		—		34			—
Pooled funds	—			—		—		398		—		—		—			398
Other	—			—		—		—		17		—		17			—
Total investments, at fair value	96			5		13		589		34		—		143			594
Commingled funds^(b)	—			—		—		—		—		—		60			—
Total investments	$	96		$	5	$	13	$	589	$	34	$	—	$	203		$	594



	December 31, 2017
(In millions)	Level 1				Level 2				Level 3				Total
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Cash and cash equivalents	$	6	$	1	$	—	$	—	$	—	$	—	$	6	$	1
Equity securities:
Common stock	81		—		—		—		—		—		81		—
Private equity	—		—		—		—		16		—		16		—
Pooled funds	—		—		—		266		—		—		—		266
Fixed income securities:
Corporate	—		—		6		—		—		—		6		—
Exchange traded funds	5		—		—		—		—		—		5		—
Government	19		—		2		—		3		—		24		—
Pooled funds	—		—		—		403		—		—		—		403
Other	—		—		—		—		19		—		19		—
Total investments, at fair value	111		1		8		669		38		—		157		670
Commingled funds^(b)	—		—		—		—		—		—		59		—
Total investments	$	111	$	1	$	8	$	669	$	38	$	—	$	216	$	670


^(a)	The negative cash balance was due to the timing of when investment trades occur and when they settle.


^(b)	After the adoption of the FASB update for the fair value hierarchy, we separately report the investments for which fair value was measured using the net asset value per share as a practical expedient. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets. See Note 2 for further information on the FASB update.

Schedule of Expected Benefit Payments

Estimated future benefit payments – The following gross benefit payments, which were estimated based on actuarial assumptions applied at December 31, 2018 and reflect expected future services, as appropriate, are to be paid in the years indicated.



	Pension Benefits				Other Benefits
(In millions)	U.S.		Int’l		U.S.
2019	$	38	$	18	$	18
2020	34		18		18
2021	31		20		9
2022	29		21		8
2023	27		23		7
2024 through 2028	114		127		27