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Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2014
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block  
Schedule of Net Benefit Costs
The components of net periodic benefit cost for other postretirement employee benefit plans are as follows:
 
Year Ended December 31,
(in millions)
2014
 
2013
 
2012
Service cost
$
1

 
$
1

 
$
1

Interest cost
3

 
3

 
3

Amortization of prior service credit
(1
)
 
—

 
—

Amortization of net actuarial loss
2

 
2

 
1

Net periodic benefit cost
$
5

 
$
6

 
$
5
Schedule of Changes in Accumulated Postemployment Benefit Obligations
Other changes in benefit obligations recognized in other comprehensive (loss) income, as they pertain to other postretirement employee benefit plans are as follows:

 
Year Ended December 31,
(in millions)
2014
 
2013
 
2012
Net loss (gain)
$
12

 
$
(2
)
 
$
14

Prior service credit
(18
)
 
—

 
—

Amortization of prior service credit
1

 
—

 
—

Amortization of net actuarial loss
(2
)
 
(2
)
 
(1
)
(Gains) losses recognized in other comprehensive (loss) income
$
(7
)
 
$
(4
)
 
$
13

Total (gains) losses recognized in comprehensive income
$
(2
)
 
$
2

 
$
18
Defined benefit contributions by employer
Matching obligations, the majority of which were funded in cash in connection with the plans, along with transition credits and other company contributions are as follows:
(in millions)
Defined Contribution
2014
$
36

2013
35

2012
30
Summary of amounts recorded within accumulated other comprehensive income
The following table provides a summary of the funded status of our postretirement plans, the presentation of such balances and a summary of amounts recorded within accumulated other comprehensive income.
(in millions)
December 31, 2014
 
December 31, 2013
 
Pension
 
Other
 
Total
 
Pension
 
Other
 
Total
Fair value of plan assets
$
584

 
$
—

 
$
584

 
$
524

 
$
—

 
$
524

Projected benefit obligation
(872
)
 
(58
)
 
(930
)
 
(777
)
 
(63
)
 
(840
)
Funded status
$
(288
)
 
$
(58
)
 
$
(346
)
 
$
(253
)
 
$
(63
)
 
$
(316
)
Amounts recognized in the balance sheet
 
 
 
 
 
 
 
 
 
 
 
Other non-current assets
$
55

 
$
—

 
$
55

 
$
46

 
$
—

 
$
46

Accrued and other current liabilities
(10
)
 
(3
)
 
(13
)
 
(11
)
 
(3
)
 
(14
)
Accrued postretirement benefits
(333
)
 
(55
)
 
(388
)
 
(288
)
 
(60
)
 
(348
)
Net amount recognized
$
(288
)
 
$
(58
)
 
$
(346
)
 
$
(253
)
 
$
(63
)
 
$
(316
)
Accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Net actuarial losses
$
(297
)
 
$
(30
)
 
$
(327
)
 
$
(228
)
 
$
(20
)
 
$
(248
)
Prior service cost
—

 
17

 
17

 
—

 
—

 
—

Total
$
(297
)
 
$
(13
)
 
$
(310
)
 
$
(228
)
 
$
(20
)
 
$
(248
)
Summary of the funded status of postretirement plans
The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit domestic and international pension plans were:
 
Domestic Plans
 
International Plans
 
December 31,
 
December 31,
(in millions)
2014
 
2013
 
2014
 
2013
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
74

 
$
83

 
$
703

 
$
707

Service cost
2

 
3

 
12

 
14

Interest cost
3

 
3

 
27

 
28

Benefits paid
(3
)
 
(3
)
 
(30
)
 
(32
)
Actuarial (gain) loss
13

 
(8
)
 
144

 
(9
)
Plan amendments, settlements and curtailments
—

 
(4
)
 
(2
)
 
(2
)
Foreign currency translation/other
(1
)
 
—

 
(70
)
 
(3
)
Benefit obligation at end of year
$
88

 
$
74

 
$
784

 
$
703

Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
58

 
51

 
$
466

 
$
426

Employer contributions
4

 
4

 
28

 
36

Actual return on plan assets
3

 
6

 
92

 
42

Benefits paid
(3
)
 
(3
)
 
(30
)
 
(32
)
Plan amendments, settlements and curtailments
—

 
—

 
(2
)
 
(1
)
Foreign currency translation/other
(2
)
 
—

 
(30
)
 
(5
)
Fair value of plan assets at end of year
$
60

 
$
58

 
$
524

 
$
466

Funded (unfunded) status of the plans
$
(28
)
 
$
(16
)
 
$
(260
)
 
$
(237
)
Accumulated benefit obligation and fair value of the plans' assets
For defined benefit pension plans in which the ABO was in excess of the fair value of the plans’ assets, the projected benefit obligation, ABO and fair value of the plans’ assets were as follows:
 
December 31,
(in millions)
2014
 
2013
Projected benefit obligation
$
453

 
$
404

Accumulated benefit obligation
419

 
375

Fair value of plan assets
110

 
106
Weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost
The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our pension plans.
 
2014
 
2013
 
2012
 
U.S.
 
Int’l
 
U.S.
 
Int’l
 
U.S.
 
Int’l
Benefit Obligation Assumptions
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.01
%
 
3.14
%
 
4.79
%
 
4.23
%
 
4.13
%
 
4.04
%
Rate of future compensation increase
NM

 
3.34
%
 
NM

 
3.48
%
 
4.50
%
 
3.50
%
Net Periodic Benefit Cost Assumptions
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.79
%
 
4.23
%
 
4.13
%
 
4.04
%
 
4.87
%
 
4.76
%
Expected long-term return on plan assets
8.00
%
 
7.30
%
 
8.00
%
 
7.33
%
 
8.00
%
 
7.35
%
Rate of future compensation increase
NM

 
3.48
%
 
4.50
%
 
3.50
%
 
4.50
%
 
3.58
%

NM
Not meaningful. During 2013, an amendment to one of the Company's U.S. business unit's pension plans modified the benefit formula. Similar to all other U.S. pension plans, pension benefits for future service will be based on years of service and not impacted by future compensation increases.
Actual plan returns
The table below provides the weighted average actual rate of return generated on all of our plan assets during each of the years presented as compared to the weighted average expected long-term rates of return utilized in calculating the net periodic benefit costs.
 
2014
 
2013
 
2012
Expected long-term rate of return on plan assets
7.38
%
 
7.40
%
 
7.42
%
Actual rate of return on plan assets
18.13
%
 
10.17
%
 
10.09
%
Allocation of plan assets
The following table provides the actual asset allocations of plan assets as of December 31, 2014 and 2013, and the related asset target allocation ranges by asset category.
 
2014
 
2013
 
Target
Allocation
Ranges
Equity securities
28.8
%
 
31.7
%
 
20-40%
Fixed income
37.3
%
 
24.7
%
 
20-60%
Hedge funds
25.0
%
 
23.5
%
 
20-60%
Private equity
3.2
%
 
4.2
%
 
0-15%
Insurance contracts and other
5.7
%
 
15.9
%
 
0-30%
The following table provides the fair value of plan assets held by our pension benefit plans by asset class.
 
December 31,
 
2014
 
2013
(in millions)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Asset Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global stock funds/securities
$
123

 
$
112

 
$
11

 
$
—

 
$
123

 
$
108

 
$
11

 
$
4

Index funds
42

 
4

 
38

 
—

 
40

 
3

 
37

 
—

Emerging markets funds
3

 
3

 
—

 
—

 
3

 
3

 
—

 
—

Fixed income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
79

 
53

 
22

 
4

 
95

 
40

 
48

 
7

Government bonds
139

 
87

 
52

 
—

 
35

 
35

 
—

 
—

Hedge funds
146

 
11

 
85

 
50

 
123

 
9

 
95

 
19

Private equity
19

 
—

 
—

 
19

 
22

 
—

 
—

 
22

Insurance contracts and other
33

 
16

 
—

 
17

 
83

 
62

 
4

 
17

Total
$
584

 
$
286

 
$
208

 
$
90

 
$
524

 
$
260

 
$
195

 
$
69
Reconciliation of the beginning and ending balances of fair value measurements with pension plans using significant unobservable inputs (level 3)
The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our pension plans using significant unobservable inputs (Level 3).
(in millions)
Equity
Securities
 
Fixed Income
 
Hedge funds
 
Private Equity
 
Other
 
Total
Balance, December 31, 2012
$
3

 
$
9

 
$
20

 
$
24

 
$
4

 
$
60

Purchases, sales, settlements
—

 
(3
)
 
10

 
(4
)
 
12

 
15

Unrealized loss
—

 
1

 
1

 
1

 
1

 
4

Realized gains
1

 
—

 
—

 
—

 
—

 
1

Net transfers
—

 
—

 
(12
)
 
—

 
—

 
(12
)
Currency impact
—

 
—

 
—

 
1

 
—

 
1

Balance, December 31, 2013
4

 
7

 
19

 
22

 
17

 
69

Purchases, sales, settlements
(3
)
 
(3
)
 
27

 
(6
)
 
—

 
15

Unrealized gains
—

 
1

 
5

 
4

 
—

 
10

Currency impact
(1
)
 
(1
)
 
(1
)
 
(1
)
 
—

 
(4
)
Balance, December 31, 2014
$
—

 
$
4

 
$
50

 
$
19

 
$
17

 
$
90
Expected benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:
(in millions)
Pension
 
Other Benefits
2015
$
33

 
$
3

2016
33

 
3

2017
35

 
3

2018
35

 
3

2019
36

 
4

Years 2020 - 2024
184

 
19
Other postretirement benefit plans  
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block  
Projected benefit obligations
The following table provides a rollforward of the projected benefit obligation for the other postretirement employee benefit plans:
(in millions)
2014
 
2013
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
63

 
$
65

Service cost
1

 
1

Interest cost
3

 
3

Benefits paid
(3
)
 
(3
)
Actuarial loss (gain)
12

 
(2
)
Plan amendment
(18
)
 
—

Other
—

 
(1
)
Benefit obligation at the end of year
$
58

 
$
63
Pension  
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block  
Schedule of Net Benefit Costs
The components of net periodic benefit cost for our defined benefit pension plans are as follows:
 
Year Ended December 31,
(in millions)
2014
 
2013
 
2012
Domestic defined benefit pension plans:
 
 
 
 
 
Service cost
$
2

 
$
3

 
$
3

Interest cost
3

 
3

 
3

Expected return on plan assets
(4
)
 
(4
)
 
(4
)
Amortization of prior service cost
—

 
1

 
1

Amortization of net actuarial loss
2

 
2

 
2

Net periodic benefit cost
$
3

 
$
5

 
$
5

International defined benefit pension plans:
 
 
 
 
 
Service cost
$
12

 
$
14

 
$
11

Interest cost
27

 
28

 
29

Expected return on plan assets
(32
)
 
(31
)
 
(30
)
Amortization of net actuarial loss
7

 
13

 
8

Settlement
1

 
—

 
2

Net periodic benefit cost
$
15

 
$
24

 
$
20

Total net periodic benefit cost
$
18

 
$
29

 
$
25
Components of net periodic benefit cost and other amounts recognized in other comprehensive income
Other changes in assets and benefit obligations recognized in other comprehensive (loss) income, as they pertain to our defined benefit pension plans are as follows:
 
Year Ended December 31,
(in millions)
2014
 
2013
 
2012
Domestic defined benefit pension plans:
 
 
 
 
 
Net loss (gain)
$
14

 
$
(11
)
 
$
8

Prior service cost (credit)
1

 
(4
)
 
1

Amortization of prior service cost
—

 
(1
)
 
(1
)
Amortization of net actuarial loss
(2
)
 
(2
)
 
(2
)
Losses (gains) recognized in other comprehensive (loss) income
$
13

 
$
(18
)
 
$
6

International defined benefit pension plans:
 
 
 
 
 
Net loss (gain)
$
84

 
$
(21
)
 
$
62

Amortization of net actuarial loss
(7
)
 
(13
)
 
(8
)
Settlement
(1
)
 
—

 
(2
)
Foreign currency translation/other
(20
)
 
(2
)
 
8

Losses (gains) recognized in other comprehensive (loss) income
$
56

 
$
(36
)
 
$
60

Total losses (gains) recognized in other comprehensive (loss) income
$
69

 
$
(54
)
 
$
66

Total losses (gains) recognized in comprehensive income
$
87

 
$
(25
)
 
$
91