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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Benefit Obligation, Fair Value of Plans, the Funded Status and the Accumulated Benefit Obligation of Defined Benefit Pension and Postretirement Benefit Plans
The following tables show changes in plan assets and accumulated benefit obligations and the funded status of our defined benefit pension and other postretirement benefit plans at year-end 2018 and 2017:
 
Domestic Pension Benefits
 
Foreign Pension Benefits
 
Other Postretirement Benefits
($ in millions)
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Plan Assets
 
 
 
 
 
 
 
 
 
 
 
Beginning fair value of plan assets
$
—

 
$
—

 
$
294

 
$
262

 
$
—

 
$
—

Actual return on plan assets, net of expenses
—

 
—

 
(16
)
 
29

 
—

 
—

Employer contribution
2

 
2

 
—

 
2

 
1

 
1

Participant contributions
—

 
—

 
—

 
—

 
1

 
—

Plan settlement (1)
—

 
—

 
(62
)
 
—

 
—

 
—

Effect of foreign exchange rates
—

 
—

 
(6
)
 
10

 
—

 
—

Benefits paid
(2
)
 
(2
)
 
(8
)
 
(9
)
 
(2
)
 
(1
)
Ending fair value of plan assets
$
—

 
$
—

 
$
202

 
$
294

 
$
—

 
$
—

Accumulated Benefit Obligations
 
 
 
 
 
 
 
 
 
 
 
Beginning benefit obligations
$
21

 
$
21

 
$
246

 
$
229

 
$
14

 
$
15

Interest cost
1

 
1

 
8

 
8

 
1

 
—

Actuarial (gain) loss
(1
)
 
1

 
2

 
10

 
(2
)
 
—

Participant contributions
—

 
—

 
—

 
—

 
1

 
—

Plan settlement (1)
—

 
—

 
(55
)
 
—

 
—

 
—

Effect of foreign exchange rates
—

 
—

 
(4
)
 
8

 
—

 
—

Benefits paid
(2
)
 
(2
)
 
(9
)
 
(9
)
 
(2
)
 
(1
)
Ending accumulated benefit obligations
$
19

 
$
21

 
$
188

 
$
246

 
$
12

 
$
14

Funded Status
 
 
 
 
 
 
 
 
 
 
 
Overfunded (underfunded) at year-end
$
(19
)
 
$
(21
)
 
$
14

 
$
48

 
$
(12
)
 
$
(14
)

(1) 
In 2018, we transferred the benefit obligations of one of our international pension plans located in the U.K. to Legal & General Assurance Society Limited (“LGAS”). The transaction met the criteria for settlement accounting, and accordingly, we removed the plan asset and liability from our Balance Sheet at year-end 2018. We reported the loss of $20 million in the “Merger-related costs and charges” caption of our Income Statement because we had assumed the plan in “Buy-In” status as a result of the Starwood Combination.
Schedule of Amounts Recognized in Balance Sheet
The following table shows the classification of overfunded and (underfunded) amounts in our Balance Sheets at year-end 2018 and 2017:
($ in millions)
At Year-End 2018
 
At Year-End 2017
Other noncurrent assets
$
21

 
$
56

Accrued expenses and other
(3
)
 
(3
)
Other noncurrent liabilities
(35
)
 
(40
)
 
$
(17
)
 
$
13
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
The following table shows the benefit obligations for pension plans with accumulated benefit obligations that exceed the fair value of plan assets:
 
Domestic Pension Benefits
 
Foreign Pension Benefits
($ in millions)
2018
 
2017
 
2018
 
2017
Projected benefit obligation
$
19

 
$
21

 
$
8

 
$
8

Accumulated benefit obligation
19

 
21

 
7

 
7

Fair value of plan assets
—

 
—

 
—

 
—
Assumptions Used
The weighted average assumptions used to determine benefit obligations at year-end 2018 and 2017 were as follows:
 
Domestic Pension Benefits
 
Foreign Pension Benefits
 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Discount rate
4.25
%
 
3.50
%
 
3.88
%
 
3.30
%
 
4.24
%
 
3.50
%
Rate of compensation increase (1)
n/a

 
n/a

 
3.02
%
 
3.02
%
 
n/a

 
n/a


(1) 
Rate of compensation increase is not applicable to domestic pension benefits as all domestic plans are frozen and do not accrue additional benefits, or to other postretirement benefits as it is not an input in the benefit obligation determination.
Fair Value Hierarchy of the Plan Assets Measured at Fair Value on a Recurring Basis
The following tables present our fair value hierarchy of plan assets at year-end 2018 and 2017:
 
At Year-End 2018
 
At Year-End 2017
($ in millions)
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds
$
76

 
$
—

 
$
—

 
$
76

 
$
86

 
$
—

 
$
—

 
$
86

Collective trusts
—

 
1

 
36

 
37

 
—

 
1

 
101

 
102

Equity index trusts
86

 
—

 
—

 
86

 
94

 
—

 
—

 
94

Money markets
—

 
2

 
—

 
2

 
1

 
9

 
—

 
10

Bond index funds
—

 
1

 
—

 
1

 
—

 
2

 
—

 
2

 
$
162

 
$
4

 
$
36

 
$
202

 
$
181

 
$
12

 
$
101

 
$
294
Anticipated Pension and Postretirement Benefit Plan Payments
The following table shows our expected future pension and other postretirement benefit plan payments for the next ten years:
($ in millions)
Domestic
Pension Benefits
 
Foreign
Pension Benefits
 
Other Postretirement
Benefits
 
Total
2019
$
2

 
$
17

 
$
1

 
$
20

2020
2

 
9

 
1

 
12

2021
2

 
10

 
1

 
13

2022
2

 
10

 
1

 
13

2023
1

 
11

 
1

 
13

2024-2028
7

 
55

 
5

 
67