Pension Plans and Other Post Employment Benefit Plans

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

PENSION PLANS AND OTHER POST EMPLOYMENT BENEFITS

The company offers various long-term benefits to its employees. Where permitted by applicable law, the company reserves the right to change, modify or discontinue the plans.

As a result of the Merger, the company re-measured its pension and OPEB plans. The remeasurement of the company’s pension and OPEB plans is included in the fair value measurement of Historical DuPont’s assets and liabilities as a result of the application of purchase accounting in connection with the Merger. In addition, net losses and prior service benefits recognized in accumulated other comprehensive loss were eliminated. Historical Dow and Historical DuPont did not merge their pension plans and OPEB plans as a result of the Merger. See Note 3 for details on the Merger.

Defined Benefit Pension Plans

The company has both funded and unfunded noncontributory defined benefit pension plans covering a majority of the U.S. employees and a number of other countries. The principal U.S. pension plan is the largest pension plan held by Historical DuPont. Most employees hired on or after January 1, 2007 are not eligible to participate in the U.S. defined benefit pension plans. The benefits under these plans are based primarily on years of service and employees' pay near retirement. In November 2016, the company announced that it will freeze the pay and service amounts used to calculate pension benefits for active employees who participate in the U.S. pension plans on November 30, 2018. Therefore, as of November 30, 2018, employees participating in the U.S. pension plans no longer accrue additional benefits for future service and eligible compensation received. These changes resulted in a $527 million decline in the projected benefit obligation, which is reflected in actuarial loss (gain) in the change in projected benefit obligations and recognition of a $25 million pre-tax curtailment gain during the fourth quarter of 2016. The decline in the projected benefit obligation is primarily due to the decrease in expected future compensation.

The company's funding policy is consistent with the funding requirements of federal laws and regulations. Pension coverage for employees of the company's non-U.S. consolidated subsidiaries is provided, to the extent deemed appropriate, through separate plans. Obligations under such plans are funded by depositing funds with trustees, covered by insurance contracts, or remain unfunded. The company made a discretionary contribution of $1,100 million in the third quarter of 2018 to its principal U.S. pension plan. During the period January 1 through August 31, 2017, the company made total contributions of $2,900 million to its principal U.S. pension plan funded through the May 2017 Debt Offering; short-term borrowings, including commercial paper issuance; and cash flow from operations. See Note 15 for further discussion related to the May 2017 Debt Offering. The company contributed $230 million to the principal U.S. pension plan in 2016. The company does not expect to make cash contributions to this plan in 2019.

The company made total contributions of $103 million, $34 million, $67 million and $121 million to its funded pension plans other than the principal U.S. pension plan for the year ended December 31, 2018, for periods September 1 through December 31, 2017 and January 1 through August 31, 2017, and the year ended December 31, 2016, respectively. Additionally, the company made total contributions of $105 million, $34 million, $57 million and $184 million to its remaining plans with no plan assets for the year ended December 31, 2018, for periods September 1 through December 31, 2017 and January 1 through August 31, 2017, and the year ended December 31, 2016, respectively. Historical DuPont expects to contribute approximately $190 million to its funded pension plans other than the principal U.S. pension plan and its remaining plans with no plan assets in 2019.

The company’s remeasurement of its pension plans at the Merger Effectiveness Time resulted in an increase in the underfunded status of $560 million. In connection with the remeasurement, the company updated the weighted average discount rate to 3.42 percent at August 31, 2017 from 3.80 percent as of December 31, 2016.

The workforce reductions in 2016 related to a 2016 global cost savings and restructuring plan triggered curtailments for certain of the company's pension plans, including the principal U.S. pension plan. For the principal U.S. pension plan, the company recorded curtailment losses of $63 million during the year ended December 31, 2016. The curtailment losses were driven by the changes in the benefit obligation based on the demographics of the terminated positions partially offset by accelerated recognition of a portion of the prior service benefit.

In the fourth quarter 2016, about $550 million of lump-sum payments were made from the principal U.S. pension plan trust fund to a group of separated, vested plan participants who were extended a limited-time opportunity and voluntarily elected to receive their pension benefits in a single lump-sum payment. In the fourth quarter 2017, about $140 million of lump-sum payments were made from the principal U.S. pension plan trust fund under a similar program. Since the company recognizes pension settlements only when the lump-sum payments exceed the sum of the plan's service and interest cost components of net periodic pension cost for the year, these lump-sum payments did not result in the recognition of a pension settlement charge.

The weighted-average assumptions used to determine pension plan obligations for all pension plans are summarized in the table below:

Weighted-Average Assumptions used to Determine Benefit Obligations	December 31, 2018		December 31, 2017
Discount rate	3.94	%	3.37	%
Rate of increase in future compensation levels 1	2.90	%	4.04	%

1. The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant's entire career at the company. The December 31, 2018 rate is only applicable for non-U.S. pension plans since employees who participate in the U.S. pension plans no longer accrue additional benefits for future service and eligible compensation as of November 30, 2018.

The weighted-average assumptions used to determine net periodic benefit costs for all pension plans are summarized in the two tables below:

Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost	Successor				Predecessor
	For the Year Ended December 31, 2018		For the Period September 1 through December 31, 2017		For the Period January 1 through August 31, 2017		For the Year Ended December 31, 2016
Discount rate	3.38	%	3.42	%	3.80	%	3.77	%
Rate of increase in future compensation levels	4.04	%	3.80	%	3.80	%	3.96	%
Expected long-term rate of return on plan assets	6.19	%	6.24	%	7.66	%	7.74	%

The weighted-average assumptions used to determine net periodic benefit costs for U.S. plans are summarized in the table below:

Weighted- Average Assumptions used to Determine Net Periodic Benefit Cost	Successor				Predecessor
	For the Year Ended December 31, 2018		For the Period September 1 through December 31, 2017		For the Period January 1 through August 31, 2017		For the Year Ended December 31, 2016
Discount rate	3.65	%	3.73	%	4.16	%	4.04	%
Rate of increase in future compensation levels	4.25	%	3.95	%	3.95	%	4.15	%
Expected long-term rate of return on plan assets	6.25	%	6.25	%	8.00	%	8.00	%

Other Post Employment Benefits

The company provides medical, dental and life insurance benefits to certain pensioners and survivors. The associated plans for retiree benefits are unfunded and the cost of the approved claims is paid from company funds. Essentially all of the cost and liabilities for these retiree benefit plans are attributable to the U.S. benefit plans. The non-Medicare eligible retiree medical plan is contributory with pensioners and survivors' contributions adjusted annually to achieve a 50/50 target for sharing of cost increases between the company and pensioners and survivors. In addition, limits are applied to Historical DuPont's portion of the retiree medical cost coverage. For Medicare eligible pensioners and survivors, Historical DuPont provides a company-funded Health Reimbursement Arrangement ("HRA"). In November 2016, the company announced that eligible employees who will be under the age of 50 as of November 30, 2018 will not receive post-retirement medical, dental and life insurance benefits. As a result of these changes, the company recognized a pre-tax curtailment gain of $357 million during the fourth quarter of 2016. Beginning January 1, 2015, eligible employees who retire on and after that date will receive the same life insurance benefit payment, regardless of employee's age or pay. The majority of U.S. employees hired on or after January 1, 2007 are not eligible to participate in the post-retirement medical, dental and life insurance plans.

The company also provides disability benefits to employees. Employee disability benefit plans are insured in many countries. However, primarily in the U.S., such plans are generally self-insured. Obligations and expenses for self-insured plans are reflected in the change in projected benefit obligations table on page F-64.

The company’s remeasurement of its OPEB plans at the Merger Effectiveness Time resulted in an increase in the benefit obligation of $41 million. In connection with the remeasurement, the company lowered the weighted average discount rate to 3.62 percent as of August 31, 2017 from 4.03 percent as of December 31, 2016.

As a result of the workforce reductions related to a 2016 global cost savings and restructuring plan, a curtailment was triggered for the company's OPEB plans. The company recorded curtailment gains of $35 million during the year ended December 31, 2016. The curtailment gains were driven by accelerated recognition of a portion of the prior service benefit partially offset by the change in the benefit obligation based on the demographics of the terminated positions.

The company's OPEB plans are unfunded and the cost of the approved claims is paid from operating cash flows. Pre-tax cash requirements to cover actual net claims costs and related administrative expenses were $216 million, $59 million, $166 million, and $218 million for the year ended December 31, 2018, for periods September 1 through December 31, 2017 and January 1 through August 31, 2017, and the year ended December 31, 2016, respectively. Changes in cash requirements reflect the net impact of higher per capita health care costs, demographic changes, plan amendments and changes in participant premiums, co-pays and deductibles. In 2019, the company expects to contribute approximately $240 million for its OPEB plans.

The weighted-average assumptions used to determine benefit obligations for OPEB plans are summarized in the table below:

Weighted-Average Assumptions used to Determine Benefit Obligations	December 31, 2018		December 31, 2017
Discount rate	4.23	%	3.56	%

The weighted-average assumptions used to determine net periodic benefit costs for the OPEB plans are summarized in the two tables below:

Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost	Successor				Predecessor
	For the Year Ended December 31, 2018		For the Period September 1 through December 31, 2017		For the Period January 1 through August 31, 2017		For the Year Ended December 31, 2016
Discount rate	3.56	%	3.62	%	4.03	%	3.87	%

Assumed Health Care Cost Trend Rates	December 31, 2018		December 31, 2017
Health care cost trend rate assumed for next year	7.50	%	6.40	%
Rate to which the cost trend rate is assumed to decline (the ultimate health care trend rate)	5.00	%	5.00	%
Year that the rate reached the ultimate health care cost trend rate	2028		2023

Assumptions

Within the U.S., the company determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The company's historical experience with the pension fund asset performance is also considered. For non-U.S. plans, assumptions reflect economic assumptions applicable to each country.

Historical DuPont calculates service costs and interest costs by applying individual spot rates from a yield curve (based on high-quality corporate bond yields) to the separate expected cash flows components of service cost and interest cost. Service cost and interest cost for all other plans are determined on the basis of the single equivalent discount rates derived in determining those plan obligations.

The discount rates utilized to measure the pension and other post employment obligations are based on the yield on high-quality corporate fixed income investments at the measurement date. Future expected actuarially determined cash flows are individually discounted at the spot rates under the Aon AA_Above Median yield curve (based on high-quality corporate bond yields) to arrive at the plan’s obligations as of the measurement date. For non-U.S. benefit plans, historically the company utilized prevailing long-term high quality corporate bond indices to determine the discount rate, applicable to each country, at the measurement date. For the 2018 measurement date, the company adopted Aon AA corporate bond rates to determine the discount rate, applicable to each country, at the 2018 measurement date.

In October 2014, the U.S. Society of Actuaries ("SOA") released final reports of new mortality tables and a mortality improvement scale for measurement of retirement program obligations in the U.S. The SOA publishes updated mortality improvement scales on an annual basis. The company adopts the most recent available mortality improvement scale from the SOA in measuring its U.S. pension and other postretirement benefit obligations. The effect of these adoptions is amortized into net periodic benefit cost for the years following the adoption.

Summarized information on the company's pension and other post employment benefit plans is as follows:

Change in Projected Benefit Obligations, Plan Assets and Funded Status
	Defined Benefit Pension Plans									Other Post Employment Benefits
	Successor						Predecessor			Successor						Predecessor
(In millions)	For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017 1			For the Period January 1 through August 31, 2017			For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017 1			For the Period January 1 through August 31, 2017
Change in benefit obligations:
Benefit obligation at beginning of the period	$	25,550		$	26,036		$	24,831		$	2,810		$	2,772		$	2,829
Service cost	131			49			92			9			3			6
Interest cost	752			247			524			85			26			60
Plan participants' contributions	10			6			8			38			12			26
Actuarial (gain) loss	(1,078		)	(23		)	—			(172		)	68			—
Benefits paid2	(1,747		)	(730		)	(1,118		)	(254		)	(71		)	(192		)
Plan amendments	17			—			—			—			—			—
Net effects of acquisitions / divestitures / other	(12		)	22			—			—			—			—
Effect of foreign exchange rates	(209		)	(57		)	429			(2		)	—			2
Benefit obligations at end of the period	$	23,414		$	25,550		$	24,766		$	2,514		$	2,810		$	2,731
Change in plan assets:
Fair value of plan assets at beginning of the period	$	20,284		$	20,395		$	16,656		$	—		$	—		$	—
Actual return on plan assets	(782		)	549			846			—			—			—
Employer contributions	1,308			68			3,024			216			59			166
Plan participants' contributions	10			6			8			38			12			26
Benefits paid2	(1,747		)	(730		)	(1,118		)	(254		)	(71		)	(192		)
Net effects of acquisitions / divestitures / other	(7		)	29			—			—			—			—
Effect of foreign exchange rates	(148		)	(33		)	269			—			—			—
Fair value of plan assets at end of the period	$	18,918		$	20,284		$	19,685		$	—		$	—		$	—
Funded status
U.S. plan with plan assets	$	(2,890	)	$	(3,628	)	$	(3,277	)	$	—		$	—		$	—
Non-U.S. plans with plan assets	(488		)	(447		)	(609		)	—			—			—
All other plans 3, 4	(1,118		)	(1,191		)	(1,187		)	(2,514		)	(2,810		)	(2,731		)
Plans of discontinued operations	—			—			(8		)	—			—			—
Funded status at end of the period	$	(4,496	)	$	(5,266	)	$	(5,081	)	$	(2,514	)	$	(2,810	)	$	(2,731	)

1. The benefit obligation and the fair value of plan assets at the beginning of the period September 1 through December 31, 2017, reflects the remeasurement of the plans at the Merger Effectiveness Time.

2. In the fourth quarter of 2017, about $140 million of lump-sum payments were made from the principal U.S. pension plan trust fund to a group of separated, vested plan participants who were extended a limited-time opportunity and voluntarily elected to receive their pension benefits in a single lump-sum payment.

3. As of December 31, 2018, and December 31, 2017, $349 million and $389 million respectively of the benefit obligations are supported by funding under the Trust agreement, defined in the "Trust Assets" section below.

4. Includes pension plans maintained around the world where funding is not customary.

	Defined Benefit Pension Plans						Other Post Employment Benefits
(In millions)	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Amounts recognized in the Consolidated Balance Sheets:
Other Assets	$	11		$	47		$	—		$	—
Accrued and other current liabilities	(95		)	(86		)	(243		)	(250		)
Pension and other post employment benefits - noncurrent	(4,412		)	(5,227		)	(2,271		)	(2,560		)
Net amount recognized	$	(4,496	)	$	(5,266	)	$	(2,514	)	$	(2,810	)
Pretax amounts recognized in accumulated other comprehensive loss (income):
Net loss (gain)	$	737		$	(165	)	$	(104	)	$	68
Prior service cost	17			—			—			—
Pretax balance in accumulated other comprehensive loss (income) at end of year	$	754		$	(165	)	$	(104	)	$	68

The significant gain related to the change in benefit obligations for the period ended December 31, 2018 is mainly due to the increasing interest rate environment. The weighted-average discount rates used in developing the December 31, 2018 benefit obligations are higher than the rates used in valuing the December 31, 2017 benefit obligations. The 2017 actuarial loss in the predecessor period was eliminated at Merger Effective Date.

The accumulated benefit obligation for all pensions plans was $23.1 billion and $25.1 billion at December 31, 2018 and 2017, respectively.

Pension Plans with Projected Benefit Obligations in Excess of Plan Assets	December 31, 2018		December 31, 2017
(In millions)
Projected benefit obligations	$	23,143	$	25,254
Fair value of plan assets	18,636		19,941

Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets	December 31, 2018		December 31, 2017
(In millions)
Accumulated benefit obligations	$	22,185	$	24,315
Fair value of plan assets	17,901		19,335

	Defined Benefit Pension Plans												Other Post Employment Benefits
(In millions)	Successor						Predecessor						Successor					Predecessor
Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive loss	For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017			For the Period January 1 through August 31, 2017			For the Year Ended December 31, 2016			For the Year Ended December 31, 2018			For the Period September 1 through December 31, 2017		For the Period January 1 through August 31, 2017			For the Year Ended December 31, 2016
Net Periodic Benefit Cost:
Service cost	$	131		$	49		$	92		$	174		$	9		$	3	$	6		$	11
Interest cost	752			247			524			800			85			26		60			87
Expected return on plan assets	(1,202		)	(407		)	(824		)	(1,320		)	—			—		—			—
Amortization of unrecognized loss	7			—			506			822			—			—		61			78
Amortization of prior service benefit	—			—			(3		)	(6		)	—			—		(46		)	(134		)
Curtailment (gain) loss	(11		)	—			—			40			—			—		—			(392		)
Settlement loss	1			—			—			62			—			—		—			—
Net periodic (credit) benefit cost - Total	$	(322	)	$	(111	)	$	295		$	572		$	94		$	29	$	81		$	(350	)
Less: Discontinued operations	—			1			3			—			—			—		—			—
Net periodic (credit) benefit cost - Continuing operations	$	(322	)	$	(112	)	$	292		$	572		$	94		$	29	$	81		$	(350	)
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net loss (gain)	$	906		$	(165	)	$	(22	)	$	570		$	(172	)	$	68	$	—		$	153
Amortization of unrecognized loss	(7		)	—			(506		)	(822		)	—			—		(61		)	(78		)
Prior service cost (benefit)	17			—			—			—			—			—		—			(28		)
Amortization of prior service benefit	—			—			3			6			—			—		46			134
Curtailment (loss) gain	—			—			—			(40		)	—			—		—			392
Settlement gain (loss)	2			—			—			(62		)	—			—		—			—
Effect of foreign exchange rates	1			—			133			(138		)	—			—		—			—
Total loss (benefit) recognized in other comprehensive loss, attributable to Historical DuPont	$	919		$	(165	)	$	(392	)	$	(486	)	$	(172	)	$	68	$	(15	)	$	573
Total recognized in net periodic benefit cost and other comprehensive loss (income)	$	597		$	(276	)	$	(97	)	$	86		$	(78	)	$	97	$	66		$	223

In accordance with adopted ASU No. 2017-07, service costs are included in cost of goods sold, research and development expense and selling, general and administrative expenses in the Consolidated Statements of Operations. Non-service related components of net periodic benefit (credit) cost are included in sundry income (expense) - net in the Consolidated Statements of Operations. See Notes 1, 2 and 8 for additional information.

Estimated Future Benefit Payments

The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:

Estimated Future Benefit Payments at December 31, 2018	Defined Benefit Pension Plans		Other Post Employment Benefits
(In millions)
2019	$	1,648	$	240
2020	1,613		235
2021	1,597		226
2022	1,574		219
2023	1,556		210
Years 2024-2028	7,437		861
Total	$	15,425	$	1,991

Plan Assets

All pension plan assets in the U.S. are invested through a single master trust fund. The strategic asset allocation for this trust fund is approved by management. The general principles guiding U.S. pension asset investment policies are those embodied in the Employee Retirement Income Security Act of 1974 ("ERISA"). These principles include discharging Historical DuPont's investment responsibilities for the exclusive benefit of plan participants and in accordance with the "prudent expert" standard and other ERISA rules and regulations. Historical DuPont establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. Strategic asset allocations in other countries are selected in accordance with the laws and practices of those countries. Where appropriate, asset liability studies are utilized in this process. U.S. plan assets and a portion of non-U.S. plan assets are managed by investment professionals employed by Historical DuPont. The remaining assets are managed by professional investment firms unrelated to the company. Historical DuPont's pension investment professionals have discretion to manage the assets within established asset allocation ranges approved by management of the company. Additionally, pension trust funds are permitted to enter into certain contractual arrangements generally described as "derivatives". Derivatives are primarily used to reduce specific market risks, hedge currency and adjust portfolio duration and asset allocation in a cost-effective manner.

In connection with pension contributions of $2,900 million to its principal U.S. pension plan during the period of January 1, 2017 through August 31, 2017, an investment policy study was completed for the principal U.S. pension plan. The study resulted in new target asset allocations being approved for the U.S. pension plan with resulting changes to the expected return on plan assets. The long-term rate of return on assets decreased from 8 percent to 6.25 percent.

The weighted-average target allocation for plan assets of the company's pension plans is summarized as follows:

Target Allocation for Plan Assets	December 31, 2018		December 31, 2017
Asset Category
U.S. equity securities	19	%	17	%
Non-U.S. equity securities	16		18
Fixed income securities	50		50
Hedge funds	2		2
Private market securities	8		8
Real estate	3		3
Cash and cash equivalents	2		2
Total	100	%	100	%

Global equity securities include varying market capitalization levels. U.S. equity investments are primarily large-cap companies. Global fixed income investments include corporate-issued, government-issued and asset-backed securities. Corporate debt investments include a range of credit risk and industry diversification. U.S. fixed income investments are weighted heavier than non-U.S. fixed income securities. Other investments include cash and cash equivalents, hedge funds, real estate and private market securities such as interests in private equity and venture capital partnerships.

Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

For pension plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs.

For pension plan assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatilities obtained from various market sources.

For pension plan assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Investment managers, fund managers, or investment contract issuers provide valuations of the investment on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate. Where available, audited financial statements are obtained and reviewed for the investments as support for the manager’s investment valuation.

The tables below present the fair values of the company's pension assets by level within the fair value hierarchy, as described in Note 1:

Basis of Fair Value Measurements
For the year ended December 31, 2018
(In millions)	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	1,824		$	1,824	$	—		$	—
U.S. equity securities 1	3,537			3,521		2			14
Non-U.S. equity securities	2,582			2,565		15			2
Debt – government-issued	3,659			211		3,448			—
Debt – corporate-issued	3,037			253		2,770			14
Debt – asset-backed	721			39		682			—
Hedge funds	162			162		—			—
Private market securities	1			—		—			1
Real estate	336			243		—			93
Derivatives – asset position	10			1		9			—
Derivatives – liability position	(18		)	—		(18		)	—
Other	206			—		—			206
Subtotal	$	16,057		$	8,819	$	6,908		$	330
Investments measured at net asset value
Debt - government issued	208
Hedge funds	678
Private market securities	1,861
Real estate funds	112
Total investments measured at net asset value	$	2,859
Other items to reconcile to fair value of plan assets
Pension trust receivables 2	210
Pension trust payables 3	(208		)
Total	$	18,918

1. The Historical DuPont pension plans directly held $684 million (4 percent of total plan assets) of DowDuPont common stock at December 31, 2018.

2. Primarily receivables for investments securities sold.

3. Primarily payables for investment securities purchased

Basis of Fair Value Measurements
For the year ended December 31, 2017
(In millions)	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	3,057		$	3,057	$	—		$	—
U.S. equity securities1	4,043			4,012		14			17
Non-U.S. equity securities	3,064			2,866		195			3
Debt – government-issued	3,263			497		2,766			—
Debt – corporate-issued	3,181			270		2,884			27
Debt – asset-backed	706			17		687			2
Hedge funds	85			—		83			2
Private market securities	14			—		—			14
Real estate	342			239		7			96
Derivatives – asset position	24			3		21			—
Derivatives – liability position	(16		)	—		(16		)	—
Other	2			—		2			—
Subtotal	$	17,765		$	10,961	$	6,643		$	161
Investments measured at net asset value
Hedge funds	747
Private market securities	1,383
Real estate funds	437
Total investments measured at net asset value	$	2,567
Other items to reconcile to fair value of plan assets
Pension trust receivables2	127
Pension trust payables3	(175		)
Total	$	20,284

1. The Historical DuPont pension plans directly held $910 million (4 percent of total plan assets) of DowDuPont common stock at December 31, 2017.

2. Primarily receivables for investments securities sold.

3. Primarily payables for investment securities purchased

The following table summarizes the changes in fair value of Level 3 pension plan assets for the periods January 1 through August 31, 2017 and September 1 through December 31, 2017, and the year ended December 31, 2018:

Fair Value Measurement of Level 3 Pension Plan Assets	U.S. equity securities			Non-U.S. equity securities			Debt – corporate-issued			Debt- asset- backed			Hedge funds			Private market securities			Real estate			Other			Total
(In millions)
Predecessor
Balance at January 1, 2017	$	18		$	1		$	39		$	—		$	—		$	42		$	98		$	—		$	198
Actual return on assets:
Relating to assets sold during the period January 1 through August 31, 2017	(1		)	2			(20		)	—			—			—			—			—			(19		)
Relating to assets held at August 31, 2017	(7		)	(2		)	22			—			—			(5		)	7			—			15
Purchases, sales and settlements, net	6			1			(1		)	—			—			1			(7		)	—			—
Transfers in (out) of Level 3, net	—			—			6			2			—			(21		)	—			—			(13		)
Balance at August 31, 2017	$	16		$	2		$	46		$	2		$	—		$	17		$	98		$	—		$	181
Successor
Balance at September 1, 2017	$	16		$	2		$	46		$	2		$	—		$	17		$	98		$	—		$	181
Actual return on assets:
Relating to assets sold during the period September 1 through December 31, 2017	—			—			(3		)	—			—			—			—			—			(3		)
Relating to assets held at December 31, 2017	1			(1		)	5			—			—			(3		)	4			—			6
Purchases, sales and settlements, net	—			2			(21		)	—			2			—			(6		)	—			(23		)
Balance at December 31, 2017	$	17		$	3		$	27		$	2		$	2		$	14		$	96		$	—		$	161
Actual return on assets:
Relating to assets sold during the year ended December 31, 2018	(1		)	(4		)	(80		)	—			—			—			2			—			(83		)
Relating to assets held at December 31, 2018	(4		)	3			87			—			—			(3		)	—			(11		)	72
Purchases, sales and settlements, net	3			—			(15		)	—			—			—			(3		)	217			202
Transfers out of Level 3, net	(1		)	—			(5		)	(2		)	(2		)	(10		)	(2		)	—			(22		)
Balance at December 31, 2018	$	14		$	2		$	14		$	—		$	—		$	1		$	93		$	206		$	330

Trust Assets

Historical DuPont entered into a trust agreement in 2013 (as amended and restated in 2017) that established and requires Historical DuPont to fund the Trust for cash obligations under certain non-qualified benefit and deferred compensation plans upon a change in control event as defined in the Trust agreement. Under the Trust agreement, the consummation of the Merger was a change in control event. As a result, in November 2017, Historical DuPont contributed $571 million to the Trust. In the fourth quarter of 2017, $13 million was distributed to Historical DuPont according to the Trust agreement and at December 31, 2017, the balance in the Trust was $558 million. During the year ended December 31, 2018, $68 million was distributed to Historical DuPont according to the Trust agreement and at December 31, 2018, the balance in the Trust was $500 million.

Defined Contribution Plans

Historical DuPont provides defined contribution benefits to its employees. The most significant is the U.S. Retirement Savings Plan ("the Plan"), which covers all U.S. full-service employees. This Plan includes a non-leveraged Employee Stock Ownership Plan ("ESOP"). Employees are not required to participate in the ESOP and those who do are free to diversify out of the ESOP. The purpose of the Plan is to provide retirement savings benefits for employees and to provide employees an opportunity to become stockholders of the company. The Plan is a tax qualified contributory profit sharing plan, with cash or deferred arrangement and any eligible employee of Historical DuPont may participate. Currently, Historical DuPont contributes 100 percent of the first 6 percent of the employee's contribution election and also contributes 3 percent of each eligible employee's eligible compensation regardless of the employee's contribution.

Historical DuPont's contributions to the Plan were $183 million, $53 million, $129 million and $187 million for the year ended December 31, 2018, for periods September 1 through December 31, 2017 and January 1 through August 31, 2017, and the year ended December 31, 2016, respectively. Historical DuPont's matching contributions vest immediately upon contribution. The 3 percent nonmatching company contribution vests after employees complete three years of service. In addition, Historical DuPont made contributions to other defined contribution plans of $51 million, $17 million, $33 million and $33 million for the year ended December 31, 2018, for periods September 1 through December 31, 2017 and January 1 through August 31, 2017, and the year ended December 31, 2016, respectively. Included in Historical DuPont's contributions are amounts related to discontinued operations of $1 million, $5 million and $6 million for periods September 1 through December 31, 2017 and January 1 through August 31, 2017, and the year ended December 31, 2016, respectively.