Benefit Obligations

12 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Benefit Obligations

Benefit Obligations

Pension, Post-retirement and Postemployment Benefits

The Company sponsors non-contributory defined benefit pension plans covering a portion of its U.S. employees and retirees, and post-retirement benefit plans covering a portion of its U.S. employees and retirees that include healthcare benefits and life insurance coverage. Certain non-U.S. operations have various retirement benefit programs covering substantially all of their employees. Some of these programs are considered to be defined benefit pension plans for accounting purposes. The Company froze benefit accruals and additional participation in the pension and post-retirement benefit plans for its U.S. management employees effective December 31, 2003.

In June 2019, the Company announced a change in medical benefits under the post-retirement medical plan for represented retirees effective January 1, 2020, to replace medical coverage through the Company's group plan for represented retirees who are retired as of April 30, 2019 and their eligible dependents, with medical coverage through the private and public insurance marketplace. As a result of the plan amendment, the Company recognized a $7 million reduction in the accumulated benefit obligation with an offset to Accumulated other comprehensive loss in the Consolidated Balance Sheet during fiscal 2019.

On December 15, 2017, the Avaya Inc. Pension Plan for Salaried Employees ("APPSE"), a qualified pension plan, was settled with the Pension Benefit Guaranty Corporation ("PBGC"). At that time, the Company and the PBGC executed a termination and trusteeship agreement to terminate the APPSE and to appoint the PBGC as the statutory trustee of the plan. The Company paid settlement consideration to the PBGC consisting of $340 million in cash and 6.1 million shares of Successor Company common stock (fair value of $92 million). With this payment, any accrued but unpaid minimum funding contributions due were deemed to have been paid in full. As a result of the plan termination on December 15, 2017, the Company's projected benefit obligation and pension trust assets were reduced by $2,192 million and $1,573 million, respectively. Including the settlement consideration and $703 million of Accumulated other comprehensive loss recorded in the Consolidated Balance Sheets, a settlement loss of $516 million was recorded in Reorganization items, net in the Consolidated Statements of Operations for the period from October 1, 2017 through December 15, 2017 (Predecessor).

On December 15, 2017, the unfunded Avaya Supplemental Pension Plan ("ASPP"), a non-qualified excess benefit plan, was also terminated and settled. Benefit liabilities for ASPP participants were included as allowed claims in the general unsecured recovery pool. Settlement consideration of $17 million in the form of allowed claims payable to ASPP participants was estimated based upon claims data as of the Emergence Date as amounts due to individual general unsecured creditors had not been finalized and paid. As a result of the termination, the Company's projected benefit obligation was reduced by $88 million. Including the settlement consideration and $18 million of Accumulated other comprehensive loss recorded in the Consolidated Balance Sheet, a settlement gain of $53 million was recorded in Reorganization items, net in the Consolidated Statements of Operations for the period from October 1, 2017 through December 15, 2017 (Predecessor).

Remeasurement as a result of fresh start accounting increased the Avaya Pension Plan ("APP") and other post-retirement benefit plan obligations by $3 million on December 15, 2017.

Effective September 9, 2019, the Company and the Communications Workers of America ("CWA") and the International Brotherhood of Electrical Workers ("IBEW"), agreed to extend the 2009 Collective Bargaining Agreement ("CBA") until June 19, 2021. The contract extensions did not affect the Company’s obligation for pension and post-retirement benefits available to U.S. employees of the Company who are represented by the CWA or IBEW ("represented employees").

Most post-retirement medical benefits are not pre-funded. Consequently, the Company makes payments directly to the claims administrator as retiree medical benefit claims are disbursed. These payments are funded by the Company up to the maximum contribution amounts specified in the plan documents and contract with the CWA and IBEW, and contributions from the participants, if required. Payments for retiree medical and dental benefits were $10 million, $12 million, $7 million and $2 million for fiscal 2020 and 2019 (Successor), the period from December 16, 2017 through September 30, 2018 (Successor) and the period from October 1, 2017 through December 15, 2017 (Predecessor), respectively, which were net of reimbursements received of $3 million in both fiscal 2020 and 2019 related to payments in prior periods. The Company estimates it will make payments for retiree medical and dental benefits totaling $11 million during fiscal 2021.

A reconciliation of the changes in the benefit obligations and fair value of assets of the defined benefit pension and post-retirement plans, the funded status of the plans and the amounts recognized in the Consolidated Balance Sheets are provided in the tables below:

	Fiscal years ended September 30,
(In millions)	2020			2019
Pension Benefits - U.S.
Change in benefit obligation
Projected benefit obligation at beginning of period	$	1,134		$	1,050
Service cost	4			3
Interest cost	29			40
Actuarial loss	55			131
Benefits paid	(77)			(90)
Projected benefit obligation at end of period	$	1,145		$	1,134
Change in plan assets
Fair value of plan assets at beginning of period	$	915		$	881
Actual return on plan assets	79			97
Employer contributions	10			27
Benefits paid	(77)			(90)
Fair value of plan assets at end of period	$	927		$	915
Underfunded status at end of period	$	(218)		$	(219)
Amount recognized in the Consolidated Balance Sheets consists of:
Accrued benefit liability, noncurrent	$	(218)		$	(219)
Net amount recognized	$	(218)		$	(219)
Amount recognized in Accumulated other comprehensive loss (pre-tax) consists of:
Net actuarial loss	110			79
Net amount recognized	$	110		$	79
Weighted average assumptions used to determine benefit obligations
Discount rate	2.50		%	3.09		%
Rate of compensation increase	3.00		%	3.00		%

	Fiscal years ended September 30,
(In millions)	2020			2019
Pension Benefits - Non-U.S.
Change in benefit obligation
Projected benefit obligation at beginning of period	$	573		$	536
Service cost	7			6
Interest cost	5			10
Actuarial (gain) loss	(34)			76
Benefits paid	(21)			(22)
Foreign currency exchange rate changes	42			(32)
Curtailments, settlements and other	1			(1)
Projected benefit obligation at end of period	$	573		$	573
Change in plan assets
Fair value of plan assets at beginning of period	$	15		$	15
Actual return on plan assets	—			1
Employer contributions	22			23
Benefits paid	(21)			(22)
Foreign currency exchange rate changes	2			(1)
Settlements	—			(1)
Fair value of plan assets at end of period	$	18		$	15
Underfunded status at end of period	$	(555)		$	(558)
Amount recognized in the Consolidated Balance Sheets consists of:
Noncurrent assets	$	1		$	1
Accrued benefit liability, current	(25)			(19)
Accrued benefit liability, noncurrent	(531)			(540)
Net amount recognized	$	(555)		$	(558)
Amount recognized in Accumulated other comprehensive loss (pre-tax) consists of:
Net actuarial loss	$	22		$	55
Net amount recognized	$	22		$	55
Weighted average assumptions used to determine benefit obligations
Discount rate	0.86		%	0.87		%
Rate of compensation increase	2.60		%	2.59		%

	Fiscal years ended September 30,
(In millions)	2020			2019
Post-retirement Benefits - U.S.
Change in benefit obligation
Benefit obligation at beginning of period	$	404		$	368
Service cost	1			1
Interest cost	11			14
Actuarial loss	30			44
Benefits paid	(15)			(16)
Plan amendments	—			(7)
Projected benefit obligation at end of period	$	431		$	404
Change in plan assets
Fair value of plan assets at beginning of period	$	191		$	178
Actual return on plan assets	20			17
Employer contributions	10			12
Benefits paid	(15)			(16)
Fair value of plan assets at end of period	$	206		$	191
Underfunded status at end of period	$	(225)		$	(213)
Amount recognized in the Consolidated Balance Sheets consists of:
Accrued benefit liability, current	$	(10)		$	(13)
Accrued benefit liability, noncurrent	(215)			(200)
Net amount recognized	$	(225)		$	(213)
Amount recognized in Accumulated other comprehensive loss (pre-tax) consists of:
Net prior service credit	$	(6)		$	(7)
Net actuarial loss	$	23		$	3
Net amount recognized	$	17		$	(4)
Weighted average assumptions used to determine benefit obligations
Discount rate	2.69		%	3.17		%
Rate of compensation increase	3.00		%	3.00		%

Effective September 30, 2020, to reflect its best estimate of future mortality for its salaried post-retirement benefit plans, the Company started using the White-Collar PRI-2012 Private Retirement Plans Mortality Tables. For the U.S. pension and represented post-retirement benefit plans, the Company continued to use the PRI-2012 Private Retirement Plans Mortality Tables. The Company also updated its mortality rate assumptions to use the projected mortality improvement scale, Mortality Projection-2020, as published by the Society of Actuaries. As of September 30, 2020, the changes in mortality rate assumptions had the effect of decreasing the projected U.S. pension and post-retirement obligations by $10 million and $5 million, respectively.

The following table provides the accumulated benefit obligation for all defined benefit pension plans and information for pension plans with an accumulated benefit obligation in excess of plan assets:

	Pension Benefits - U.S.				Pension Benefits - Non-U.S.
(In millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Accumulated benefit obligation for all plans	$	1,145	$	1,134	$	555	$	555
Plans with accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$	1,145	$	1,134	$	567	$	568
Accumulated benefit obligation	$	1,145	$	1,134	$	549	$	550
Fair value of plan assets	$	927	$	915	$	12	$	9

Estimated future benefits expected to be paid in each of the next five fiscal years, and in aggregate for the five fiscal years thereafter, are presented below:

	Pension Benefits				Post-retirement Benefits
(In millions)	U.S.		Non-U.S.
2021	$	74	$	24	$	17
2022	73		24		18
2023	73		23		19
2024	72		23		19
2025	71		24		20
2026 - 2030	338		136		107
Total	$	701	$	254	$	200

The components of the pension and post-retirement net periodic benefit (credit) cost for the periods indicated are provided in the table below:

	Successor									Predecessor
	Fiscal years ended September 30,						Period from December 16, 2017 through September 30, 2018			Period from October 1, 2017 through December 15, 2017
(In millions)	2020			2019
Pension Benefits - U.S.
Components of net periodic benefit (credit) cost
Service cost	$	4		$	3		$	3		$	1
Interest cost	29			40			28			22
Expected return on plan assets	(55)			(60)			(51)			(38)
Amortization of actuarial loss	—			—			—			20
Net periodic benefit (credit) cost	$	(22)		$	(17)		$	(20)		$	5
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	2.84		%	3.94		%	3.29		%	3.19		%
Expected return on plan assets	6.40		%	7.00		%	7.65		%	7.75		%
Rate of compensation increase	3.00		%	4.00		%	4.00		%	4.00		%
Pension Benefits - Non-U.S.
Components of net periodic benefit cost
Service cost	$	7		$	6		$	5		$	2
Interest cost	5			10			7			3
Expected return on plan assets	(1)			(1)			—			(1)
Amortization of actuarial loss	—			—			—			2
Net periodic benefit cost	$	11		$	15		$	12		$	6
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	0.87		%	1.92		%	1.92		%	1.22		%
Expected return on plan assets	3.72		%	3.67		%	3.68		%	1.82		%
Rate of compensation increase	2.59		%	2.58		%	3.62		%	3.45		%
Post-retirement Benefits - U.S.
Components of net periodic benefit cost
Service cost	$	1		$	1		$	1		$	—
Interest cost	11			14			11			3
Expected return on plan assets	(10)			(9)			(8)			(2)
Amortization of prior service credit	(1)			—			—			(3)
Amortization of actuarial (gain) loss	—			(1)			—			2
Net periodic benefit cost	$	1		$	5		$	4		$	—
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	2.18		%	4.02		%	3.39		%	3.37		%
Expected return on plan assets	5.50		%	5.50		%	5.50		%	5.90		%
Rate of compensation increase	3.00		%	4.00		%	4.00		%	4.00		%

The service components of net periodic benefit (credit) cost were recorded similar to compensation expense, while all other components were recorded in Other income (expense), net.

The Company's general funding policy with respect to its U.S. qualified pension plans is to contribute amounts at least sufficient to satisfy the minimum amount required by applicable law and regulations, or to directly pay benefits where appropriate. As part of the Plan of Reorganization, on December 15, 2017, the Company paid the aggregate unpaid required minimum funding for the APP of $49 million. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act

("CARES Act") was signed into law, providing limited relief for pension funding and retirement plan distributions. Under the CARES Act, employers may delay contributions for single employer defined benefit pension plans until January 1, 2021. Contributions to U.S. pension plans were $10 million, $27 million, $43 million and $49 million for fiscal 2020 and 2019 (Successor), the period from December 16, 2017 through September 30, 2018 (Successor) and the period from October 1, 2017 through December 15, 2017 (Predecessor), respectively. Contributions to the non-U.S. pension plans were $22 million, $23 million, $22 million and $3 million for fiscal 2020 and 2019 (Successor), the period from December 16, 2017 through September 30, 2018 (Successor) and the period from October 1, 2017 through December 15, 2017 (Predecessor), respectively. In fiscal 2021, the Company estimates that it will make contributions totaling $18 million to satisfy the minimum statutory funding requirements in the U.S. and contributions totaling $24 million for non-U.S. plans.

Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income are provided in the tables below:

	Successor						Predecessor
	Fiscal years ended September 30,				Period from December 16, 2017 through September 30, 2018		Period from October 1, 2017 through December 15, 2017
(In millions)	2020		2019
Pension Benefits - U.S.
Net loss (gain)	$	31	$	94	$	(15)	$	—
Amortization of actuarial loss	—		—		—		(20)
Reorganization adjustments	—		—		—		(1,147)
Total recognized in Other comprehensive (loss) income	$	31	$	94	$	(15)	$	(1,167)
Total recognized in net periodic benefit cost and Other comprehensive (loss) income(1)	$	9	$	77	$	(35)	$	(722)
Pension Benefits - Non-U.S.
Net (gain) loss	$	(33)	$	76	$	(19)	$	22
Foreign exchange rate loss	—		(2)		—		—
Amortization of actuarial loss	—		—		—		(2)
Reorganization adjustments	—		—		—		(163)
Total recognized in Other comprehensive (loss) income	$	(33)	$	74	$	(19)	$	(143)
Total recognized in net periodic benefit cost and Other comprehensive (loss) income(1)	$	(22)	$	89	$	(7)	$	(137)
Post-retirement Benefits - U.S.
Net loss (gain)	$	20	$	36	$	(34)	$	—
Prior service credit	—		(7)		—		—
Amortization of prior service credit	1		—		—		3
Amortization of actuarial gain (loss)	—		1		—		(2)
Reorganization adjustments	—		—		—		(40)
Total recognized in Other comprehensive (loss) income	$	21	$	30	$	(34)	$	(39)
Total recognized in net periodic benefit cost and Other comprehensive (loss) income(1)	$	22	$	35	$	(30)	$	2

(1) For the period from October 1, 2017 through December 15, 2017, the U.S.; non-U.S.; and other Post-retirement benefits include Plan of Reorganization settlements that were recorded in Reorganization items, net in the Consolidated Statements of Operations of $(440) million, $0 million and $(43) million, respectively.

The estimated amount to be amortized from Accumulated other comprehensive loss as a net periodic cost during fiscal 2021 is $3 million, consisting of the recognition of net actuarial expense for the Company's U.S. pension plan and post-retirement benefit plan of $2 million and $2 million, respectively, partially offset by the recognition of a prior service credit for the Company's post-retirement benefit plan of $1 million.

The discount rate is subject to change each year, consistent with changes in rates of return on high-quality fixed-income investments currently available and expected to be available during the expected benefit payment period. The Company selects

the assumed discount rate for its U.S. pension and post-retirement benefit plans by applying the rates from the Aon AA Above Median and Aon AA Only Bond Universe yield curves to the expected benefit payment streams and develops a rate at which it is believed the benefit obligations could be effectively settled. The Company follows a similar process for its non-U.S. pension plans by applying the Aon Euro AA corporate bond yield curve for the plans based in Europe and relevant country-specific bond indices for other locations.

Based on the published rates as of September 30, 2020, the Company used a weighted average discount rate of 2.50% for the U.S. pension plans, 0.86% for the non-U.S. pension plans and 2.69% for the post-retirement plans, a decrease of 59 basis points, 1 basis points and 48 basis points from the prior year for the U.S. pension plans, the non-U.S. pension plans and the post-retirement benefit plans, respectively. As of September 30, 2020, this had the effect of increasing the projected U.S. pension, non-U.S. pension and post-retirement benefit obligations by $66 million, $2 million and $25 million, respectively. For fiscal 2021, this will have a minimal effect on the U.S. pension and post-retirement service cost.

The expected long-term rate of return on U.S. pension and post-retirement benefit plan assets is selected by applying forward-looking capital market assumptions to the strategic asset allocation approved by the governing body for each plan. The forward-looking capital market assumptions are developed by an investment adviser and reviewed by the Company for reasonableness. The return and risk assumptions consider such factors as anticipated long-term performance of individual asset classes, risk premium for active management based on qualitative and quantitative analysis, and correlations of the asset classes that comprise the asset portfolio.

The Company’s cost for post-retirement healthcare claims is capped and the projected post-retirement healthcare claims exceed the cap. Therefore, a one-percentage-point increase or decrease in the Company’s healthcare cost trend rates will not impact the post-retirement benefit obligation and the service and interest cost components of net periodic benefit cost.

The weighted average asset allocation of the pension and post-retirement plans by asset category and target allocation is as follows:

	As of September 30,
Asset Category	2020		2019		Long-term Target
Pension Benefits - U.S.
Debt Securities	52	%	52	%	52	%
Equity Securities	29	%	29	%	34	%
Hedge Funds	6	%	7	%	6	%
Real Estate	5	%	6	%	6	%
Commodities	2	%	2	%	2	%
Other(1)	6	%	4	%	—	%
Total	100	%	100	%	100	%
Pension Benefits - Non-U.S.
Debt Securities	22	%	27	%
Asset Allocation Fund	11	%	13	%
Insurance Contracts	67	%	60	%
Total	100	%	100	%
Post-retirement Benefits - U.S.
Equity Securities	34	%	40	%	35	%
Debt Securities	66	%	60	%	65	%
Total	100	%	100	%	100	%

(1)Other includes cash/cash equivalents, derivative financial instruments and payables/receivables for pending transactions.

The Company’s asset management strategy focuses on the dual objectives of improving the funded status of the pension plans and reducing the impact of changes in interest rates on the funded status. To improve the funded status of the pension plans, assets are invested in a diversified mix of asset classes designed to generate higher returns over time, than the pension benefit obligation discount rate assumption. To reduce the impact of interest rate changes on the funded status of the pension plans, assets are invested in a mix of fixed income investments (including long-term debt) that are selected based on the characteristics of the benefit obligation of the pension plans. Strategic asset allocation is the principal method for achieving the Company’s

investment objectives, which are determined in the course of periodic asset-liability studies. The most recent asset-liability study was completed in 2019 for the pension plans.

As part of the Company’s asset management strategy, investments are professionally managed and diversified across multiple asset classes and investment styles to minimize exposure to any one specific investment. Derivative instruments (such as forwards, futures, swaptions and swaps) may be held as part of the Company’s asset management strategy. However, the use of derivative financial instruments for speculative purposes is prohibited by the Company’s investment policy. Also, as part of the Company’s investment strategy, the U.S. pension plans invest in hedge funds, real estate funds, private equity and commodities to provide additional uncorrelated returns.

The fair value of plan assets is determined by the trustee and reviewed by the Company, in accordance with the accounting guidance for fair value measurements and the fair value hierarchy discussed in Note 13, "Fair Value Measurements." Because of the inherent uncertainty of valuation, estimated fair values may differ significantly from the fair values that would have been used had quoted prices in an active market existed.

The following table summarizes the fair value measurements of the U.S. pension plan assets by asset class:

	As of September 30, 2020								As of September 30, 2019
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
U.S. Government debt securities (a)	$	—	$	132	$	—	$	132	$	—	$	125	$	—	$	125
Derivative instruments (b)	—		—		—		—		(2)		—		—		(2)
Total assets in the fair value hierarchy	—		132		—		132		(2)		125		—		123
Investments measured at net asset value: (c)
Real estate (d)							50								55
Private equity (e)							2								4
Multi-strategy hedge funds (f)							56								65
Investment funds: (g)
Cash equivalents							46								37
Long duration fixed income							327								328
High-yield debt							19								19
U.S. equity							154								144
Non-U.S. equity							83								92
Emerging market equity							33								29
Commodities							20								14
Total investments measured at net asset value							790								787
Other plan assets, net							5								5
Total plan assets at fair value	$	—	$	132	$	—	$	927	$	(2)	$	125	$	—	$	915

(a)Includes U.S. Treasury STRIPS, which are generally valued using institutional bid evaluations from various contracted pricing vendors. Institutional bid evaluations are estimated prices that represent the price a dealer would pay for a security. Pricing inputs to the institutional bid evaluation vary by security and include benchmark yields, reported trades, unadjusted broker/dealer quotes, issuer spreads, bids, offers or other observable market data.

(b)Includes future contracts that are generally valued using the last trade price at which a specific contract/security was last traded on the primary exchange, which is provided by a contracted vendor. If pricing is not available from the contracted vendor, then pricing is obtained from other sources such as Bloomberg, broker bid, ask/offer quotes or the investment manager.

(c)These investments are measured at fair value using the net asset value per share or its equivalent ("NAV") and have therefore not been classified in the fair value hierarchy.

(d)Includes open ended real estate commingled funds, close ended real estate limited partnerships, and insurance company separate accounts that invest primarily in U.S. office, lodging, retail and residential real estate. The insurance company separate accounts and the commingled funds account for their portfolio of assets at fair value and calculate the NAV on either a monthly or quarterly basis. Shares can be redeemed at the NAV on a quarterly basis, provided a written redemption request is received in advance (generally 45-91 days) of the redemption date. Therefore, the undiscounted NAV is used as the fair value measurement. For limited partnerships, the fair value of the underlying assets and the capital account for each

investor is determined by the General Partner ("GP"). The valuation techniques used by the GP generally consist of unobservable inputs such as discounted cash flow analysis, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties. The partnerships are typically funded over time as capital is needed to fund asset purchases, and distributions from the partnerships are received as the partnerships liquidate their underlying asset holdings. Therefore, the life cycle for a typical investment in a real estate limited partnership is expected to be approximately 10 years from initial funding.

(e)Includes limited partner interests in various limited partnerships ("LPs") that invest primarily in U.S. and non-U.S. investments either directly, or through other partnerships or funds with a focus on venture capital, buyouts, expansion capital, or companies undergoing financial distress or significant restructuring. The NAV of the LPs and of the capital account of each investor is determined by the GP of each LP. Marketable securities held by the LPs are valued based on the closing price on the valuation date on the exchange where they are principally traded and may be adjusted for legal restrictions, if any. Investments without a public market are valued based on assumptions made and valuation techniques used by the GP, which consist of unobservable inputs. Such valuation techniques may include discounted cash flow analysis, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties. The LPs are typically funded over time as capital is needed to fund purchases and distributions are received as the partnerships liquidate their underlying asset holdings.

(f)Includes hedge funds and funds of funds that pursue multiple strategies to diversify risks and reduce volatility. The funds account for their portfolio of assets at fair value and calculate the NAV of their fund on a monthly basis. The funds limit the frequency of redemptions to manage liquidity and protect the interests of the funds and its shareholders.

(g)Includes open-end funds and unit investment trusts that invest in various asset classes including: U.S. and non-U.S. corporate debt, U.S. government debt, municipal bonds, U.S. equity, non-U.S. developed and emerging markets equity, and commodities. The funds account for their portfolio of assets at fair value and calculate the NAV of the funds on a daily basis, and shares can be redeemed at the NAV. Therefore, the undiscounted NAV as reported by the funds is used as the fair value measurement.

The following table summarizes the fair value of the non-U.S. pension plan assets by asset class:

	As of September 30,
(In millions)	2020		2019
Investments measured at net asset value: (a)
Investment funds: (b)
Debt securities	$	4	$	4
Asset allocation	2		2
Insurance contracts (c)	12		9
Total plan assets at fair value	$	18	$	15

(a)    These investments are measured at fair value using the NAV and have therefore not been classified in the fair value hierarchy.

(b)    Includes collective investment funds that invest in various asset classes including U.S. and non-U.S. corporate debt and equity, and derivatives. The funds account for their portfolio of assets at fair value and calculate the NAV of the funds on a daily basis, and shares can be redeemed at the NAV. Therefore, the undiscounted NAV as reported by the funds is used as the fair value measurement.

(c)    Most non-U.S. pension plans are funded through insurance contracts, which provide for a guaranteed interest credit and a profit-sharing adjustment based on the actual performance of the underlying investment assets of the insurer. The fair value of the contract is determined by the insurer based on the premiums paid by the Company plus interest credits plus the profit-sharing adjustment less benefit payments. The underlying assets of the insurer are invested in compliance with local rules or law, which tend to require a high allocation to fixed income securities.

The following table summarizes the fair value of the post-retirement plan assets by asset class:

	As of September 30,
(In millions)	2020		2019
Investments measured at net asset value: (a)
Group life insurance contract measured at net asset value (b)	$	206	$	191
Total plan assets at fair value	$	206	$	191

(a)    These investments are measured at fair value using the NAV and have therefore not been classified in the fair value hierarchy.

(b)    The group life insurance contracts are held in a reserve of an insurance company that provides for investment of pre-funding amounts in a family of pooled separate accounts. The fair value of each group life insurance contract is primarily determined by the value of the units it owns in the pooled separate accounts that back the policy. Each of the pooled separate accounts provides a unit NAV on a daily basis, which is based on the fair value of the underlying assets owned by the account. The post-retirement benefit plans can transact daily at the unit NAV without restriction. As of September 30, 2020, the asset allocation of the pooled separate accounts in which the contracts invest was approximately 66% fixed income securities, 24% U.S. equity securities and 10% non-U.S. equity securities.

Savings Plans

Substantially all of the Company’s U.S. employees are eligible to participate in savings plans sponsored by the Company. The plans allow employees to contribute a portion of their compensation on a pre-tax and after-tax basis in accordance with specified guidelines. The Company matches a percentage of employee contributions up to certain limits. The Company's expense related to these savings plans was $8 million, $8 million, $7 million and $0 million for fiscal 2020 and 2019 (Successor), the period from December 16, 2017 through September 30, 2018 (Successor) and the period from October 1, 2017 through December 15, 2017 (Predecessor).