Postretirement Benefit Plans (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block |
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| 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) | 2017 | | 2016 | | 2015 | Service cost | $ | 1 |
| | $ | 1 |
| | $ | 1 |
| Interest cost | 2 |
| | 3 |
| | 2 |
| Amortization of prior service credit | (3 | ) | | (3 | ) | | (3 | ) | Amortization of net actuarial loss | 2 |
| | 3 |
| | 3 |
| Net periodic benefit cost | $ | 2 |
| | $ | 4 |
| | $ | 3 |
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| Schedule of Changes in Accumulated Postemployment Benefit Obligations |
Other changes in benefit obligations recognized in other comprehensive loss, as they pertain to other postretirement employee benefit plans are as follows: | | | | | | | | | | | | | | Year Ended December 31, | (in millions) | 2017 | | 2016 | | 2015 | Net loss (gain) | $ | (5 | ) | | $ | 3 |
| | $ | 4 |
| Prior service credit | (3 | ) | | — |
| | (1 | ) | Amortization of prior service credit | 3 |
| | 3 |
| | 3 |
| Amortization of net actuarial loss | (2 | ) | | (3 | ) | | (3 | ) | Foreign Exchange/Other | (1 | ) | | 1 |
| | — |
| Losses (gains) recognized in other comprehensive loss | $ | (8 | ) | | $ | 4 |
| | $ | 3 |
| Total losses (gains) recognized in comprehensive income | $ | (6 | ) | | $ | 8 |
| | $ | 6 |
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| 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 | 2017 | 38 |
| 2016 | 35 |
| 2015 | 32 |
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| 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, 2017 | | December 31, 2016 | | Pension | | Other | | Total | | Pension | | Other | | Total | Fair value of plan assets | $ | 628 |
| | $ | — |
| | $ | 628 |
| | $ | 562 |
| | $ | — |
| | $ | 562 |
| Projected benefit obligation | (950 | ) | | (55 | ) | | (1,005 | ) | | (854 | ) | | (64 | ) | | (918 | ) | Funded status | $ | (322 | ) | | $ | (55 | ) | | $ | (377 | ) | | $ | (292 | ) | | $ | (64 | ) | | $ | (356 | ) | Amounts recognized in the balance sheet | | | | | | | | | | | | Other non-current assets | $ | 81 |
| | $ | — |
| | $ | 81 |
| | $ | 67 |
| | $ | — |
| | $ | 67 |
| Accrued and other current liabilities | (13 | ) | | (3 | ) | | (16 | ) | | (11 | ) | | (4 | ) | | (15 | ) | Accrued postretirement benefits | (390 | ) | | (52 | ) | | (442 | ) | | (348 | ) | | (60 | ) | | (408 | ) | Net amount recognized | $ | (322 | ) | | $ | (55 | ) | | $ | (377 | ) | | $ | (292 | ) | | $ | (64 | ) | | $ | (356 | ) | Accumulated other comprehensive income (loss): | | | | | | | | | | | | Net actuarial losses | $ | (251 | ) | | $ | (24 | ) | | $ | (275 | ) | | $ | (220 | ) | | $ | (32 | ) | | $ | (252 | ) | Prior service credit | (1 | ) | | 12 |
| | 11 |
| | 1 |
| | 12 |
| | 13 |
| Total | $ | (252 | ) | | $ | (12 | ) | | $ | (264 | ) | | $ | (219 | ) | | $ | (20 | ) | | $ | (239 | ) |
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| 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) | 2017 | | 2016 | | 2017 | | 2016 | Change in benefit obligation: | | | | | | | | Benefit obligation at beginning of year | $ | 100 |
| | $ | 86 |
| | $ | 754 |
| | $ | 693 |
| Service cost | 3 |
| | 3 |
| | 12 |
| | 10 |
| Interest cost | 4 |
| | 4 |
| | 21 |
| | 21 |
| Benefits paid | (5 | ) | | (4 | ) | | (30 | ) | | (26 | ) | Actuarial loss (gain) | 5 |
| | (2 | ) | | 10 |
| | 52 |
| Plan amendments, settlements and curtailments | 1 |
| | (1 | ) | | (2 | ) | | (1 | ) | Acquisitions | — |
| | 13 |
| | — |
| | 83 |
| Foreign currency translation/Other | (1 | ) | | 1 |
| | 78 |
| | (78 | ) | Benefit obligation at end of year | $ | 107 |
| | $ | 100 |
| | $ | 843 |
| | $ | 754 |
| Change in plan assets: | | | | | | | | Fair value of plan assets at beginning of year | $ | 69 |
| | 57 |
| | $ | 493 |
| | $ | 502 |
| Employer contributions | 10 |
| | 4 |
| | 20 |
| | 20 |
| Actual return on plan assets | 10 |
| | 4 |
| | 21 |
| | 64 |
| Benefits paid | (5 | ) | | (4 | ) | | (30 | ) | | (26 | ) | Plan amendments, settlements and curtailments | — |
| | — |
| | (3 | ) | | — |
| Acquisitions | — |
| | 9 |
| | — |
| | — |
| Foreign currency translation/Other | — |
| | (1 | ) | | 43 |
| | (67 | ) | Fair value of plan assets at end of year | $ | 84 |
| | $ | 69 |
| | $ | 544 |
| | $ | 493 |
| Unfunded status of the plans | $ | (23 | ) | | $ | (31 | ) | | $ | (299 | ) | | $ | (261 | ) |
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| 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) | 2017 | | 2016 | Projected benefit obligation | $ | 528 |
| | $ | 474 |
| Accumulated benefit obligation | 499 |
| | 453 |
| Fair value of plan assets | 126 |
| | 116 |
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| 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. | | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | 2015 | | U.S. | | Int’l | | U.S. | | Int’l | | U.S. | | Int’l | Benefit Obligation Assumptions | | | | | | | | | | | | Discount rate | 3.75 | % | | 2.43 | % | | 4.25 | % | | 2.63 | % | | 4.27 | % | | 3.44 | % | Rate of future compensation increase | NM |
| | 2.93 | % | | NM |
| | 2.76 | % | | NM |
| | 3.29 | % | Net Periodic Benefit Cost Assumptions | | | | | | | | | | | | Discount rate | 4.25 | % | | 2.63 | % | | 4.27 | % | | 3.44 | % | | 4.01 | % | | 3.14 | % | Expected long-term return on plan assets | 8.00 | % | | 7.20 | % | | 8.00 | % | | 7.25 | % | | 8.00 | % | | 7.31 | % | Rate of future compensation increase | NM |
| | 2.76 | % | | NM |
| | 3.29 | % | | NM |
| | 3.34 | % |
NM Not meaningful
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| 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 utilize
d in calculating the net periodic benefit costs. | | | | | | | | | | | 2017 | | 2016 | | 2015 | Expected long-term rate of return on plan assets | 7.30 | % | | 7.32 | % | | 7.38 | % | Actual rate of return on plan assets | 5.70 | % | | 12.20 | % | | 3.51 | % |
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| Allocation of plan assets |
The following table provides the fair value of plan assets held by our pension benefit plans by asset class. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | (in millions) | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total | | Level 1 | Level 2 | Level 3 | NAV Practical Expedient | Total | Equity securities | | | | | | | | | | | | Global stock funds/securities | $ | 101 |
| $ | — |
| $ | — |
| $ | 29 |
| $ | 130 |
| | $ | 87 |
| $ | — |
| $ | — |
| $ | 6 |
| $ | 93 |
| Index funds | — |
| — |
| — |
| 3 |
| 3 |
| | 4 |
| — |
| — |
| 36 |
| 40 |
| Emerging market funds | — |
| — |
| — |
| — |
| — |
| | 4 |
| — |
| — |
| — |
| 4 |
| Diversified Growth and Income Funds | — |
| — |
| — |
| 92 |
| 92 |
| | — |
| — |
| — |
| — |
| — |
| Fixed income | | | | | | | | | | | | Corporate bonds | 24 |
| — |
| — |
| 8 |
| 32 |
| | 22 |
| — |
| — |
| 18 |
| 40 |
| Government bonds | 48 |
| — |
| — |
| 5 |
| 53 |
| | 88 |
| — |
| — |
| 11 |
| 99 |
| Hedging Instruments | 5 |
| 36 |
| — |
| — |
| 41 |
| | — |
| 45 |
| — |
| — |
| 45 |
| Diversified Growth and Income Funds | — |
| — |
| — |
| 20 |
| 20 |
| | — |
| — |
| — |
| — |
| — |
| Hedge funds | — |
| — |
| — |
| 107 |
| 107 |
| | — |
| — |
| — |
| 178 |
| 178 |
| Private equity | — |
| — |
| — |
| 10 |
| 10 |
| | — |
| — |
| — |
| 13 |
| 13 |
| Insurance contracts and other | 90 |
| — |
| 17 |
| 33 |
| 140 |
| | 26 |
| — |
| 24 |
| — |
| 50 |
| Total plan assets subject to leveling | $ | 268 |
| $ | 36 |
| $ | 17 |
| $ | 307 |
| $ | 628 |
| | $ | 231 |
| $ | 45 |
| $ | 24 |
| $ | 262 |
| $ | 562 |
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| | | | | | | | | | 2017 | | 2016 | | Target Allocation Ranges | Equity securities | 35.6 | % | | 24.2 | % | | 20-50% | Fixed income | 23.4 | % | | 32.7 | % | | 10-40% | Hedge funds | 17.0 | % | | 31.7 | % | | 0-40% | Private equity | 1.6 | % | | 2.4 | % | | 0-30% | Insurance contracts and other | 22.4 | % | | 9.0 | % | | 0-30% |
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| 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) | | Insurance Contracts and Other | Balance, December 31, 2015 | | $ | 25 |
| Purchases, sales, settlements | | 1 |
| Currency impact | | (2 | ) | Balance, December 31, 2016 | | $ | 24 |
| Purchases, sales, settlements | | (8 | ) | Currency impact | | 1 |
| Balance, December 31, 2017 | | $ | 17 |
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| 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 | 2018 | $ | 36 |
| | $ | 3 |
| 2019 | 36 |
| | 3 |
| 2020 | 38 |
| | 4 |
| 2021 | 38 |
| | 4 |
| 2022 | 39 |
| | 4 |
| Years 2023 - 2027 | 212 |
| | 19 |
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| Other postretirement benefit plans |
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| Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block |
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| Projected benefit obligations |
The following table provides a rollforward of the projected benefit obligation for the other postretirement employee benefit plans: | | | | | | | | | (in millions) | 2017 | | 2016 | Change in benefit obligation: | | | | Benefit obligation at beginning of year | $ | 64 |
| | $ | 61 |
| Service cost | 1 |
| | 1 |
| Interest cost | 2 |
| | 3 |
| Benefits paid | (3 | ) | | (4 | ) | Actuarial gain/(loss) | (5 | ) | | 3 |
| Plan Amendment and other | (4 | ) | | — |
| Benefit obligation at the end of year | $ | 55 |
| | $ | 64 |
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| Pension |
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| Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block |
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| 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) | 2017 | | 2016 | | 2015 | Domestic defined benefit pension plans: | | | | | | Service cost | $ | 3 |
| | $ | 3 |
| | $ | 3 |
| Interest cost | 4 |
| | 4 |
| | 4 |
| Expected return on plan assets | (6 | ) | | (5 | ) | | (5 | ) | Amortization of net actuarial loss | 2 |
| | 2 |
| | 2 |
| Net periodic benefit cost | $ | 3 |
| | $ | 4 |
| | $ | 4 |
| International defined benefit pension plans: | | | | | | Service cost | $ | 12 |
| | $ | 10 |
| | $ | 12 |
| Interest cost | 21 |
| | 21 |
| | 22 |
| Expected return on plan assets | (34 | ) | | (30 | ) | | (32 | ) | Amortization of net actuarial loss | 9 |
| | 8 |
| | 13 |
| Settlement | 1 |
| | — |
| | — |
| Net periodic benefit cost | $ | 9 |
| | $ | 9 |
| | $ | 15 |
| Total net periodic benefit cost | $ | 12 |
| | $ | 13 |
| | $ | 19 |
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| 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, as they pertain to our defined benefit pension plans are as follows: | | | | | | | | | | | | | | Year Ended December 31, | (in millions) | 2017 | | 2016 | | 2015 | Domestic defined benefit pension plans: | | | | | | Net (gain) loss | $ | 1 |
| | $ | (1 | ) | | $ | 2 |
| Prior service cost | 1 |
| | — |
| | — |
| Amortization of net actuarial loss | (2 | ) | | (2 | ) | | (2 | ) | (Gains) losses recognized in other comprehensive loss | $ | — |
| | $ | (3 | ) | | $ | — |
| International defined benefit pension plans: | | | | | | Net (gain) loss | $ | 23 |
| | $ | 18 |
| | $ | (29 | ) | Prior service credit | 1 |
| | (1 | ) | | — |
| Amortization of net actuarial loss | (9 | ) | | (8 | ) | | (13 | ) | Settlement | (1 | ) | | — |
| | — |
| Foreign Exchange | 19 |
| | (20 | ) | | (21 | ) | (Gains) losses recognized in other comprehensive loss | $ | 33 |
| | $ | (11 | ) | | $ | (63 | ) | Total (gains) losses recognized in other comprehensive loss | $ | 33 |
| | $ | (14 | ) | | $ | (63 | ) | Total (gains) losses recognized in comprehensive income | $ | 45 |
| | $ | (1 | ) | | $ | (44 | ) |
|