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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Defined benefit plan funded status of plan
Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded status of our plans.
 
Pension Benefits
Other Postretirement
Benefits
  
2018
2017
2018
2017
Change in benefit obligation:
 
 
 
 
Benefit obligation at beginning of year
$
2,418

$
820

$
187

$
117

Service cost
21

37

2

2

Interest cost
71

51

5

6

Plan amendment
20

—

1

(23
)
Actuarial loss (gain)
(93
)
41

(23
)
—

Benefits paid
(67
)
(65
)
(21
)
(13
)
Curtailments
(7
)
(45
)
(5
)
5

Settlements
(59
)
(10
)
—

—

Business acquisition (1)
—

1,546

—

93

Other
16

(2
)
(39
)
—

Foreign currency translation adjustments
(59
)
45

—

—

Benefit obligation at end of year
2,261

2,418

107

187

 
 
 
 
 
Change in plan assets:
 
 
 
 
Fair value of plan assets at beginning of year
2,059

567

—

—

Actual return on plan assets
(60
)
152

—

—

Employer contributions
51

50

21

13

Benefits paid
(67
)
(65
)
(21
)
(13
)
Settlements
(59
)
(10
)
—

—

Business acquisition (1)
—

1,342

—

—

Other
(9
)
(2
)
—

—

Foreign currency translation adjustments
(49
)
25

—

—

Fair value of plan assets at end of year
1,866

2,059

—

—

 
 
 
 
 
Funded status - underfunded at end of year
$
(395
)
$
(359
)
$
(107
)
$
(187
)
 
 
 
 
 
Accumulated benefit obligation
$
2,225

$
2,373

$
107

$
187

(1) 
Relates to the acquisition of Baker Hughes on July 3, 2017.
Amounts recognized in the consolidated balance sheets
The amounts recognized in the consolidated and combined statements of financial position consist of the following at December 31:
 
Pension Benefits
Other Postretirement
Benefits
  
2018
2017
2018
2017
Noncurrent assets
$
47

$
46

$
—

$
—

Current liabilities
(13
)
(10
)
(19
)
(24
)
Noncurrent liabilities
(429
)
(395
)
(88
)
(163
)
Net amount recognized
$
(395
)
$
(359
)
$
(107
)
$
(187
)
Accumulated benefit obligations in excess of plan assets
Information for the plans with ABOs in excess of plan assets is as follows at December 31:
 
Pension Benefits
Other Postretirement
Benefits
  
2018
2017
2018
2017
Projected benefit obligation
$
1,621

$
1,692

n/a

n/a

Accumulated benefit obligation
$
1,585

$
1,647

$
107

$
187

Fair value of plan assets
$
1,179

$
1,286

n/a

n/a
Schedule of net period costs (income)
The components of net periodic cost (income) are as follows for the years ended December 31:
 
Pension Benefits
Other Postretirement
Benefits
 
2018
 
2017
 
2016
 
2018
2017
2016
Service cost
$
21

 
$
37

 
$
18

 
$
2

$
2

$
2

Interest cost
71

 
51

 
34

 
5

6

5

Expected return on plan assets
(121
)
 
(81
)
 
(46
)
 
—

—

—

Amortization of prior service credit
—

 
—

 
—

 
(5
)
(3
)
(2
)
Amortization of net actuarial loss (gain)
10

 
12

 
14

 
(2
)
(2
)
—

Curtailment / settlement loss (gain)
2

 
(45
)
(2) 
(26
)
(1) 
(5
)
2

(2
)
Net periodic cost (income)
$
(17
)
 
$
(26
)
 
$
(6
)
 
$
(5
)
$
5

$
3

(1) 
Primarily associated with two UK plans merging into the GE UK Pension Plan.
(2) 
As a result of the acquisition of Baker Hughes, we obtained a non-contributory pension plan (the Baker Hughes Incorporated Pension Plan or BHIPP). In 2017, the Compensation Committee of the Board of Directors approved amendments to the BHIPP to close the plan to new participants and freeze accruals of future service-related benefits effective as of December 31, 2017. As a result of these actions, the Company recorded a curtailment gain of $45 million. The curtailment was recorded by the Company during the fourth quarter of 2017 and included in the “Other non-operating income (loss), net” caption of the consolidated and combined statements of income (loss).
Weighted average assumptions used to determine benefit obligations
Weighted average assumptions used to determine benefit obligations for these plans are as follows for the years ended December 31:
 
Pension Benefits
Other Postretirement
Benefits
  
2018
2017
2018
2017
Discount rate
3.43
%
2.99
%
3.92
%
3.32
%
Rate of compensation increase
3.78
%
3.82
%
n/a

n/a
Weighted average assumptions used to determine net periodic cost
Weighted average assumptions used to determine net periodic cost for these plans are as follows for the years ended December 31:
 
Pension Benefits
Other Postretirement 
Benefits
 
2018
2017
2016
2018
2017
2016
Discount rate
2.99
%
3.24
%
3.83
%
3.32
%
3.72
%
4.25
%
Expected long-term return on plan assets
5.94
%
6.26
%
6.86
%
n/a

n/a

n/a
Accumulated other comprehensive loss
The amount recorded before-tax in accumulated other comprehensive loss related to employee benefit plans consists of the following at December 31:
 
Pension Benefits
Other Postretirement
Benefits
  
2018
2017
2018
2017
Net actuarial loss (gain)
$
177

$
117

$
(29
)
$
(16
)
Net prior service cost (credit)
20

—

(18
)
(25
)
Total
$
197

$
117

$
(47
)
$
(41
)
Fair values of the assets in U.S. Plan
The table below presents the fair value of the pension assets at December 31:
 
2018
2017
Equity securities


U.S. equity securities (1)
$
215

$
207

Global equity securities (1)
338

551

Debt securities


Fixed income and cash investment funds
937

658

U.S. corporate
—

70

Other debt securities
4

55

Private equities
60

107

Real estate
35

44

Other investments (2)
277

367

Total plan assets
$
1,866

$
2,059


(1) 
Include direct investments and investment funds.
(2) 
Substantially all represented hedge fund and asset allocation fund investments.
Expected future benefit payments
The following table presents the expected benefit payments over the next 10 years. The U.S. and non-U.S. pension benefit payments are made by the respective pension trust funds.
Year
Pension
Benefits
Other Postretirement
Benefits
2019
 
$
113

 
 
$
19

 
2020
 
109

 
 
17

 
2021
 
112

 
 
12

 
2022
 
113

 
 
9

 
2023
 
113

 
 
8

 
2024-2028
 
594

 
 
31