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Pension, Retiree Medical and Retiree Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Funded status of pension plans The following chart summarizes the balance sheet impact, as well as benefit obligations, assets, and funded status associated with our two significant U.S. pension plans.  The actuarial valuations for all plans reflect measurement dates coinciding with our fiscal year end.

 
 
2018
 
2017
Change in benefit obligation:
 
 
 
 
Benefit obligation at beginning of year
 
$
1,007

 
$
993

Service cost
 
8

 
10

Interest cost
 
38

 
41

Plan amendments
 
1

 
2

Curtailments
 
—

 
(2
)
Special termination benefits
 
1

 
2

Benefits paid
 
(73
)
 
(76
)
Settlement payments
 
—

 
(73
)
Actuarial (gain) loss
 
(109
)
 
115

Administrative expense
 
—

 
(5
)
Benefit obligation at end of year
 
$
873

 
$
1,007

 
 
 
 
 

A significant component of the overall decrease in the Company's benefit obligation for the year ended December 31, 2018 was due to the change in discount rates used to measure our benefit obligation, which increased from 3.90% at December 31, 2017 to 4.60% at December 31, 2018. A significant component of the overall increase in the Company's benefit obligation for the year ended December 31, 2017 was also due to the change in discount rates used to measure our benefit obligation, which decreased from 4.60% at December 31, 2016 to 3.90% at December 31, 2017.

Change in plan assets:
 
 
 
 
Fair value of plan assets at beginning of year
 
$
864

 
$
837

Actual return on plan assets
 
(49
)
 
129

Employer contributions
 
13

 
52

Settlement payments
 
—

 
(73
)
Benefits paid
 
(73
)
 
(76
)
Administrative expenses
 
—

 
(5
)
Fair value of plan assets at end of year
 
$
755

 
$
864

 Funded status at end of year
 
$
(118
)
 
$
(143
)
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 
 
2018
 
2017
Accrued benefit liability - current
 
$
(5
)
 
$
(8
)
Accrued benefit liability - non-current
 
(113
)
 
(135
)
 
 
$
(118
)
 
$
(143
)
Pension plans with an accumulated benefit obligation in excess of pan assets
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
2018
 
2017
Projected benefit obligation
 
$
873

 
$
1,007

Accumulated benefit obligation
 
849

 
976

Fair value of plan assets
 
755

 
864
Pension plans with a projected benefit obligation in excess of plan assets
Information for pension plans with a projected benefit obligation in excess of plan assets:
 
 
2018
 
2017
Projected benefit obligation
 
$
873

 
$
1,007

Accumulated benefit obligation
 
849

 
976

Fair value of plan assets
 
755

 
864
Components of net periodic benefit cost Components of net periodic benefit cost:
 
 
2018
 
2017
 
2016
Service cost
 
$
8

 
$
10

 
$
17

Interest cost
 
38

 
41

 
54

Amortization of prior service cost(a)
 
5


6


6

Expected return on plan assets
 
(44
)
 
(45
)
 
(65
)
Amortization of net loss
 
16

 
5

 
6

Net periodic benefit cost
 
$
23

 
$
17

 
$
18


Additional (gain) loss recognized due to:

Settlement charges(b)
 
$
—

 
$
19

 
$
32

Special termination benefits
 
$
1

 
$
2

 
$
3

Pension data adjustment(c)
 
$
—

 
$
22

 
$
—


(a)
Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)
Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.

(c)
Reflects a non-cash, out-of-year charge related to the adjustment of certain historical deferred vested liability balances in the Plan during the first quarter of 2017 recorded in Other pension (income) expense. See Note 5.
Pension losses in accumulated other comprehensive income (loss)
Pension gains (losses) in AOCI:
 
 
2018
 
2017
Beginning of year
 
$
(160
)
 
$
(180
)
Net actuarial gain (loss)
 
17

 
(10
)
Curtailments
 
—

 
2

Amortization of net loss
 
16

 
5

Amortization of prior service cost
 
5

 
6

Prior service cost
 
(1
)
 
(2
)
Settlement charges
 
—

 
19

End of year
 
$
(123
)
 
$
(160
)
Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income
Accumulated pre-tax losses recognized within AOCI:
 
 
2018
 
2017
Actuarial net loss
 
$
(101
)
 
$
(134
)
Prior service cost
 
(22
)
 
(26
)
 
 
$
(123
)
 
$
(160
)
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost
Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 
 
2018
 
2017
Discount rate
 
4.60
%
 
3.90
%
Rate of compensation increase
 
3.00
%
 
3.75
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
2018
 
2017(a)
 
2016
Discount rate
 
3.90
%
 
4.53
%
 
4.90
%
Long-term rate of return on plan assets
 
5.65
%
 
6.06
%
 
6.75
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%


(a)    Reflects a weighted average due to interim re-measurements in 2017.
Fair values of pension plan assets The fair values of our pension plan assets at December 31, 2018 and December 31, 2017 by asset category and level within the fair value hierarchy are as follows:

 
 
2018
 
2017
Level 1:
 
 
 
 
Cash
 
$
3

 
$
3

Cash Equivalents(a)
 
10

 
12

Fixed Income Securities - U.S. Corporate(b)
 
140

 
177

Equity Securities – U.S. Large cap(b)
 
215

 
257

Equity Securities – U.S. Mid cap(b)
 
35

 
43

Equity Securities – U.S. Small cap(b)
 
34

 
43

Equity Securities – Non-U.S.(b)
 
74

 
87

Level 2:
 
 
 
 
Fixed Income Securities – U.S. Corporate(c)
 
106

 
86

Fixed Income Securities – U.S. Government and Government Agencies(d)
 
161

 
177

Fixed Income Securities – Other(d)
 
18

 
35

Total fair value of plan assets(e)
 
$
796

 
$
920



(a)
Short-term investments in money market funds.

(b)
Securities held in common trusts.

(c)
Investments held directly by the Plan.

(d)
Includes securities held in common trusts and investments held directly by the Plan.

(e)
2018 and 2017 exclude net unsettled trade payables of $41 million and $56 million, respectively.
Expected benefit payments The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:

Year ended:
 
 
2019
 
$
39

2020
 
40

2021
 
43

2022
 
45

2023
 
48

2024 - 2028
 
269