Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

We sponsor numerous defined benefit and defined contribution pension and other post-retirement benefit plans, primarily retiree health care, in our domestic and international operations. December 31 is the measurement date for all of our post-retirement benefit plans.

Over the past several years, where legally possible, we have amended our major defined benefit pension plans to freeze current benefits and eliminate benefits accruals for future service, including our primary U.S. defined benefit plan for salaried employees, the Canadian Salary Pension Plan and the U.K. Final Salary Pension Plan. The freeze of current benefits is the primary driver of the reduction in pension service costs since 2012. In certain Non-U.S. plans we are required to continue to consider salary increases and inflation in determining the benefit obligation related to prior service. The Netherlands defined benefit pension plan has also been amended to reflect the Company's ability to reduce the indexation of future pension benefits within the plan in scenarios when the returns on plan assets are insufficient to cover that indexation.

Prior to the freeze of current benefits, most of our defined benefit pension plans generally provided employees a benefit, depending on eligibility, calculated under a highest average pay and years of service formula. Our primary domestic defined benefit pension plans provided a benefit at the greater of (i) the highest average pay and years of service formula, (ii) the benefit calculated under a formula that provides for the accumulation of salary and interest credits during an employee's work life or (iii) the individual account balance from the Company's prior defined contribution plan (Transitional Retirement Account or TRA).

Pension plan assets consist of both defined benefit plan assets and assets legally restricted to the TRA accounts. The combined investment results for these plans, along with the results for our other defined benefit plans, are shown below in the “actual return on plan assets” caption. To the extent that investment results relate to TRA, such results are charged directly to these accounts as a component of interest cost.



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2016			2015			2016			2015			2016			2015
Change in Benefit Obligation:
Benefit obligation, January 1	$	4,126		$	4,642		$	6,308		$	6,962		$	855		$	937
Service cost	4			4			31			32			6			7
Interest cost	184			80			195			203			32			34
Plan participants' contributions	—			—			4			4			1			14
Actuarial loss (gain)	114			(223		)	636			(94		)	(75		)	(4		)
Currency exchange rate changes	—			—			(774		)	(524		)	4			(25		)
Plan Amendments/Curtailments	—			—			—			(17		)	—			(31		)
Benefits paid/settlements	(275		)	(377		)	(234		)	(255		)	(62		)	(77		)
Other	8			—			(6		)	(3		)	—			—
Benefit Obligation, December 31	$	4,161		$	4,126		$	6,160		$	6,308		$	761		$	855

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,806		$	3,081		$	5,353		$	5,930		$	—		$	—
Actual return on plan assets	220			(70		)	804			(20		)	—			—
Employer contributions	24			173			154			128			61			63
Plan participants' contributions	—			—			4			4			1			14
Currency exchange rate changes	—			—			(694		)	(428		)	—			—
Benefits paid/settlements	(275		)	(377		)	(234		)	(255		)	(62		)	(77		)
Other	(1		)	(1		)	(3		)	(6		)	—			—
Fair Value of Plan Assets, December 31	$	2,774		$	2,806		$	5,384		$	5,353		$	—		$	—

Net Funded Status at December 31⁽¹⁾	$	(1,387	)	$	(1,320	)	$	(776	)	$	(955	)	$	(761	)	$	(855	)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—		$	—		$	17		$	22		$	—		$	—
Accrued compensation and benefit costs	(24		)	(23		)	(22		)	(26		)	(63		)	(68		)
Pension and other benefit liabilities	(1,363		)	(1,297		)	(771		)	(951		)	—			—
Post-retirement medical benefits	—			—			—			—			(698		)	(787		)
Net Amounts Recognized	$	(1,387	)	$	(1,320	)	$	(776	)	$	(955	)	$	(761	)	$	(855	)

_____________


(1)	Includes under-funded and un-funded plans.

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

Benefit plans pre-tax amounts recognized in AOCL at December 31:



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2016			2015			2016			2015			2016			2015
Net actuarial loss	$	1,094		$	1,101		$	1,741		$	1,966		$	37		$	112
Prior service credit	(9		)	(11		)	(28		)	(33		)	(29		)	(34		)
Total Pre-tax Loss	$	1,085		$	1,090		$	1,713		$	1,933		$	8		$	78

Accumulated Benefit Obligation	$	4,161		$	4,126		$	5,931		$	6,068

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below:



	December 31, 2016						December 31, 2015
	Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets		Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets
Underfunded Plans:
U.S.	$	3,820	$	3,820	$	2,774	$	3,781	$	3,781	$	2,806
Non U.S.	4,535		4,368		4,194		4,803		4,644		4,300

Unfunded Plans:
U.S.	$	341	$	341	$	—	$	345	$	345	$	—
Non U.S.	445		436		—		421		413		—

Total Underfunded and Unfunded Plans:
U.S.	$	4,161	$	4,161	$	2,774	$	4,126	$	4,126	$	2,806
Non U.S.	4,980		4,804		4,194		5,224		5,057		4,300
Total	$	9,141	$	8,965	$	6,968	$	9,350	$	9,183	$	7,106

Schedule of Defined Benefit Pension Assets and Obligations by Geography

Our pension plan assets and benefit obligations at December 31, 2016 were as follows:



	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	2,774	$	3,820	$	(1,046	)
U.S. unfunded	—		341		(341		)
Total U.S.	$	2,774	$	4,161	$	(1,387	)
U.K.	3,445		3,679		(234		)
Canada	661		700		(39		)
Other	1,278		1,781		(503		)
Total	$	8,158	$	10,321	$	(2,163	)

Schedule of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:



	Year Ended December 31,
	Pension Benefits
	U.S. Plans									Non-U.S. Plans									Retiree Health
	2016			2015			2014			2016			2015			2014			2016			2015			2014
Components of Net Periodic Benefit Costs:
Service cost	$	4		$	4		$	4		$	31		$	32		$	31		$	6		$	7		$	9
Interest cost⁽¹⁾	184			80			278			195			203			262			32			34			36
Expected return on plan assets⁽²⁾	(190		)	(79		)	(287		)	(249		)	(284		)	(332		)	—			—			—
Recognized net actuarial loss	26			24			17			65			70			54			2			1			1
Amortization of prior service credit	(2		)	(2		)	(2		)	(3		)	4			(1		)	(5		)	(18		)	(43		)
Recognized settlement loss	65			88			51			1			1			—			—			—			—
Recognized curtailment gain	—			—			—			—			—			(1		)	—			(22		)	—
Defined Benefit Plans	87			115			61			40			26			13			35			2			3
Defined contribution plans	30			33			31			31			33			40			n/a			n/a			n/a
Net Periodic Benefit Cost	117			148			92			71			59			53			35			2			3

Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial (gain) loss	84			(74		)	688			76			204			447			(75		)	(4		)	119
Prior service credit	—			—			—			—			(16		)	(6		)	—			(32		)	—
Amortization of net actuarial loss	(92		)	(112		)	(68		)	(66		)	(71		)	(54		)	(2		)	(1		)	(1		)
Amortization of net prior service credit	2			2			2			3			(4		)	1			5			18			43
Curtailment gain	—			—			—			—			—			2			—			22			—
Total Recognized in Other Comprehensive Income	(6		)	(184		)	622			13			113			390			(72		)	3			161
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	111		$	(36	)	$	714		$	84		$	172		$	443		$	(37	)	$	5		$	164

_____________


(1)	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $296, $311 and $361 and interest expense (income) directly allocated to TRA participant accounts of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.


(2)	Expected return on plan assets includes expected investment income on non-TRA assets of $356, $388 and $437 and actual investment income (loss) on TRA assets of $83, $(25) and $182 for the years ended December 31, 2016, 2015 and 2014, respectively.

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present the defined benefit plans assets measured at fair value and the basis for that measurement.



	December 31, 2016
	U.S. Plans												Non-U.S. Plans
Asset Class	Level 1		Level 2			Level 3		Assets measured at NAV⁽¹⁾		Total			Level 1		Level 2		Level 3		Assets measured at NAV⁽¹⁾		Total
Cash and cash equivalents	$	—	$	—		$	—	$	—	$	—		$	544	$	—	$	—	$	—	$	544
Equity Securities:
U.S.	320		—			—		68		388			266		42		—		—		308
International	258		—			—		160		418			358		722		—		127		1,207
Fixed Income Securities:
U.S. treasury securities	—		233			—		—		233			—		44		—		—		44
Debt security issued by government agency	—		65			—		—		65			—		1,654		—		—		1,654
Corporate bonds	—		1,052			—		—		1,052			—		618		—		—		618
Asset backed securities	—		2			—		—		2			—		1		—		—		1
Derivatives	—		(38		)	—		—		(38		)	—		64		—		—		64
Real estate	36		—			12		34		82			—		—		121		168		289
Private equity/venture capital	—		—			—		490		490			—		60		6		425		491
Guaranteed insurance contracts	—		—			—		—		—			—		—		104		—		104
Other⁽²⁾	15		—			—		67		82			6		54		—		—		60
Total Fair Value of Plan Assets	$	629	$	1,314		$	12	$	819	$	2,774		$	1,174	$	3,259	$	231	$	720	$	5,384

_____________


(1)	Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient, have not been classified in the fair value hierarchy.


(2)	Other Level 1 includes net non-financial assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.



	December 31, 2015
	U.S. Plans													Non-U.S. Plans
Asset Class	Level 1			Level 2			Level 3		Assets measured at NAV⁽¹⁾		Total			Level 1		Level 2		Level 3		Assets measured at NAV⁽¹⁾		Total
Cash and cash equivalents	$	171		$	—		$	—	$	—	$	171		$	577	$	—	$	—	$	—	$	577
Equity Securities:
U.S.	380			—			—		20		400			200		38		—		—		238
International	287			1			—		157		445			1,011		40		—		112		1,163
Fixed Income Securities:																						—
U.S. treasury securities	—			216			—		—		216			—		48		—		—		48
Debt security issued by government agency	—			156			—		—		156			3		1,599		—		—		1,602
Corporate bonds	—			913			—		—		913			3		692		—		—		695
Asset backed securities	—			2			—		—		2			—		1		—		—		1
Derivatives	—			(8		)	—		—		(8		)	—		5		—		—		5
Real estate	42			—			17		39		98			—		—		145		154		299
Private equity/venture capital	—			—			—		499		499			—		66		4		480		550
Guaranteed insurance contracts	—			—			—		—		—			—		—		120		—		120
Other⁽²⁾	(103		)	(1		)	—		18		(86		)	5		50		—		—		55
Total Fair Value of Plan Assets	$	777		$	1,279		$	17	$	733	$	2,806		$	1,799	$	2,539	$	269	$	746	$	5,353

_____________


(1)	Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.


(2)	Other Level 1 includes net non-financial (liabilities) assets of $(103) U.S. and $5 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses. In 2015, the US Plans' Other included plan liabilities of $116 related to unsettled transactions such as purchases or sales of US Treasury securities with settlement dates beyond fiscal year-end.

The following tables represents a roll-forward of the defined benefit plans assets measured at fair value using significant unobservable inputs (Level 3 assets):



	U.S.			Non-U.S.
	Real Estate			Real Estate			Private Equity/Venture Capital			Guaranteed Insurance Contracts			Total
Balance at December 31, 2014⁽¹⁾	$	22		$	147		$	4		$	128		$	279
Purchases	—			—			—			19			19
Sales	(15		)	—			—			(21		)	(21		)
Realized (losses) gains	1			—			—			6			6
Unrealized gains (losses)	9			9			1			1			11
Currency translation	—			(11		)	(1		)	(13		)	(25		)
Balance at December 31, 2015	$	17		$	145		$	4		$	120		$	269
Purchases	—			1			2			2			5
Sales	(3		)	(13		)	(1		)	(12		)	(26		)
Realized gains (losses)	—			6			—			1			7
Unrealized gains (losses)	(2		)	(5		)	(4		)	(3		)	(12		)
Currency translation	—			(13		)	5			(4		)	(12		)
Balance at December 31, 2016	$	12		$	121		$	6		$	104		$	231

_____________


(1)	Adjusted to exclude assets of $500 U.S. and $545 Non-U.S. that are measured at fair value using the NAV per share (or its equivalent) practical expedient.

Schedule of Allocation of Plan Assets

The target asset allocations for our worldwide defined benefit pension plans were:



	2016		2015
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	30%	28%	34%	28%
Fixed income investments	48%	45%	43%	48%
Real estate	6%	5%	6%	6%
Private equity	8%	9%	9%	10%
Other	8%	13%	8%	8%
Total Investment Strategy	100%	100%	100%	100%

Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year

The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans.



	Year Ended December 31,
	2016		Estimated 2017
U.S. Plans	$	24	$	169
Non-U.S. Plans	154		181
Total	$	178	$	350

Retiree Health	$	61	$	63

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years:



	Pension Benefits
	U.S.		Non-U.S.		Total		Retiree Health
2017	$	852	$	210	$	1,062	$	63
2018	227		216		443		64
2019	223		222		445		62
2020	225		228		453		61
2021	296		237		533		59
Years 2022-2026	1,433		1,281		2,714		261

Schedule of Assumptions Used

Weighted-average assumptions used to determine benefit obligations at the plan measurement dates:



	Pension Benefits
	2016				2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%



	Retiree Health
	2016		2015		2014
Discount rate	3.9	%	4.1	%	3.8	%

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:



	Pension Benefits
	2017				2016				2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%	4.8	%	4.2	%
Expected return on plan assets	7.0	%	4.1	%	7.5	%	4.8	%	7.5	%	5.2	%	7.8	%	6.1	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%	0.2	%	2.6	%



	Retiree Health
	2017		2016		2015		2014
Discount rate	3.9	%	4.1	%	3.8	%	4.5	%

_____________

Note: Expected return on plan assets is not applicable to retiree health benefits as these plans are not funded. Rate of compensation increase is not applicable to retiree health benefits as compensation levels do not impact earned benefits.

Schedule of Health Care Cost Trend Rates

Assumed health care cost trend rates were as follows:



	December 31,
	2016		2015
Health care cost trend rate assumed for next year	7.2	%	7.5	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.9	%
Year that the rate reaches the ultimate trend rate	2026		2026

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:



	1% increase		1% decrease
Effect on total service and interest cost components	$	2	$	(2	)
Effect on post-retirement benefit obligation	53		(46		)