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Employee Retirement Plans (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Compensation and Retirement Disclosure [Abstract] |
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| Components of net pension and postretirement benefits costs |
The components of net pension and postretirement benefit costs are summarized in the following table: | | | | | | | | | | | | | (millions) | 2014 | | 2013 | | 2012 | Pension Benefits: | | | | | | Service cost of benefits earned | $ | 37 |
| | $ | 38 |
| | $ | 32 |
| Interest cost on projected benefit obligation | 65 |
| | 63 |
| | 64 |
| Expected return on plan assets | (79 | ) | | (76 | ) | | (70 | ) | Settlement (a) | 13 |
| | 16 |
| | — |
| Net amortization | 24 |
| | 43 |
| | 34 |
| Net pension cost | $ | 60 |
| | $ | 84 |
| | $ | 60 |
| Postretirement Benefits: | | | | | | Service cost of benefits earned | $ | 3 |
| | $ | 3 |
| | $ | 3 |
| Interest cost on projected benefit obligation | 7 |
| | 7 |
| | 8 |
| Net amortization | (35 | ) | | (34 | ) | | (35 | ) | Net postretirement benefit | $ | (25 | ) | | $ | (24 | ) | | $ | (24 | ) |
| | (a) | In 2014, the settlement charge related to the elimination of the PBO of the UK pension plan due to the purchase of annuities. In 2013, the settlement charge primarily related to lump sum payments made to certain terminated vested participants in our U.S. Plan. |
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| Schedule of accumulated benefit obligation, or ABO, for the defined benefit pension plans |
The accumulated benefit obligation, or ABO, for the defined benefit pension plans was $1.429 billion as of December 31, 2014 and $1.186 billion as of December 31, 2013. | | | | | | | | | | As of December 31, | (millions) | 2014 | | 2013 | Selected information for pension plans with accumulated benefit obligations in excess of plan assets: | | | | Accumulated benefit obligation | $ | (1,230 | ) | | $ | (32 | ) | Fair value of plan assets | 1,113 |
| | 3 |
| Selected information for pension plans with benefit obligations in excess of plan assets: | | | | Benefit obligation | $ | (1,686 | ) | | $ | (1,146 | ) | Fair value of plan assets | 1,340 |
| | 1,021 |
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| Summary of projected benefit obligations, plan assets and funded status |
The following table summarizes projected benefit obligations, plan assets and funded status as of December 31: | | | | | | | | | | | | | | | | | | Pension | | Postretirement | (millions) | 2014 | | 2013 | | 2014 | | 2013 | Change in Benefit Obligation: | | | | | | | | Benefit obligation as of January 1 | $ | 1,376 |
| | $ | 1,536 |
| | $ | 166 |
| | $ | 186 |
| Service cost | 37 |
| | 38 |
| | 3 |
| | 3 |
| Interest cost | 65 |
| | 63 |
| | 7 |
| | 7 |
| Curtailment/settlements | (24 | ) | | (103 | ) | | — |
| | — |
| Participant contributions | 10 |
| | 10 |
| | 8 |
| | 8 |
| Benefits paid | (81 | ) | | (38 | ) | | (20 | ) | | (21 | ) | Plan amendment | — |
| | 1 |
| | 4 |
| | — |
| Actuarial (gain) loss | 327 |
| | (115 | ) | | 4 |
| | (13 | ) | Foreign currency translation | (24 | ) | | (16 | ) | | (5 | ) | | (4 | ) | Benefit obligation as of December 31 | $ | 1,686 |
| | $ | 1,376 |
| | $ | 167 |
| | $ | 166 |
| Change in Plan Assets: | | | | | | | | Fair value as of January 1 | $ | 1,262 |
| | $ | 1,133 |
| | $ | — |
| | $ | — |
| Actual return on plan assets | 132 |
| | 203 |
| | — |
| | — |
| Employer contributions | 64 |
| | 71 |
| | 12 |
| | 13 |
| Participant contributions | 10 |
| | 10 |
| | 8 |
| | 8 |
| Benefits paid | (81 | ) | | (38 | ) | | (20 | ) | | (21 | ) | Curtailment/settlements | (24 | ) | | (103 | ) | | — |
| | — |
| Foreign currency translation | (23 | ) | | (14 | ) | | — |
| | — |
| Fair value as of December 31 | $ | 1,340 |
| | $ | 1,262 |
| | $ | — |
| | $ | — |
| Funded status | $ | (346 | ) | | $ | (114 | ) | | $ | (167 | ) | | $ | (166 | ) | Components on the Consolidated Balance Sheets: | | | | | | | | Noncurrent assets | $ | — |
| | $ | 11 |
| | $ | — |
| | $ | — |
| Current liabilities | (9 | ) | | (1 | ) | | (13 | ) | | (13 | ) | Noncurrent liabilities | (337 | ) | | (124 | ) | | (154 | ) | | (153 | ) | Net liability as of December 31 | $ | (346 | ) | | $ | (114 | ) | | $ | (167 | ) | | $ | (166 | ) | Pretax Components in AOCI: | | | | | | | | Net actuarial loss | $ | 490 |
| | $ | 259 |
| | $ | 24 |
| | $ | 21 |
| Prior service credit | (1 | ) | | — |
| | (140 | ) | | (179 | ) | Total as of December 31 | $ | 489 |
| | $ | 259 |
| | $ | (116 | ) | | $ | (158 | ) | | | | | | | | |
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| Schedule of assumptions used in the accounting for the plans |
The following tables reflect the assumptions used in the accounting for our plans: | | | | | | | | | | | | | | Pension | | Postretirement | | 2014 | | 2013 | | 2014 | | 2013 | Weighted average assumptions used to determine benefit obligations as of December 31: | | | | | | | | Discount rate | 4.10 | % | | 4.90 | % | | 3.70 | % | | 4.60 | % | Compensation increase rate | 3.60 | % | | 3.50 | % | | N/A | | N/A | Weighted average assumptions used to determine net cost for years ended December 31: | | | | | | | | Discount rate | 4.90 | % | | 4.20 | % | | 4.60 | % | | 3.95 | % | Expected return on plan assets | 7.00 | % | | 7.00 | % | | N/A | | N/A | Compensation increase rate | 3.50 | % | | 3.40 | % | | N/A | | N/A |
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| Schedule of effect of one percentage point change in the assumed health care cost trend rates |
A one percentage point change in the assumed health care cost trend rates would have the following effects on our U.S. and Canadian plans: | | | | | | | | | (millions) | One-Percentage- Point Increase | | One-Percentage- Point Decrease | Effect on total service and interest cost | $ | 1 |
| | $ | (1 | ) | Effect on postretirement benefit obligation | 13 |
| | (10 | ) |
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| Schedule of aggregate target asset allocation on a weighted average basis for all the plans and the acceptable ranges around the targets |
The following table shows the aggregate target asset allocation on a weighted average basis for all the plans and the acceptable ranges around the targets as of December 31, 2014. | | | | | | | Investment Policy | | Target | | Range | Asset Categories: | | | | Equity | 39 | % | | 35% - 43% | Fixed income | 49 | % | | 38% - 61% | Limited partnerships | 6 | % | | 2% - 8% | Other real assets | 6 | % | | 3% - 10% | Cash equivalents and short-term investments | — | % | | 0% - 5% | Total | 100 | % | | |
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| Schedule of fair values by hierarchy of inputs |
The fair values by hierarchy of inputs as of December 31 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total | (millions) | 2014 | | 2013 | | 2014 | | 2013 | | 2014 | | 2013 | | 2014 | | 2013 | Asset Categories: | | | | | | | | | | | | | | | | Equity: (a) | | | | | | | | | | | | | | | | Common and preferred stock | $ | 74 |
| | $ | 293 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 74 |
| | $ | 293 |
| Commingled/pooled/mutual funds | 53 |
| | 131 |
| | 470 |
| | 396 |
| | — |
| | — |
| | 523 |
| | 527 |
| Total equity | 127 |
| | 424 |
| | 470 |
| | 396 |
| | — |
| | — |
| | 597 |
| | 820 |
| Fixed income: (b) | | | | | | | | | | | | | | | | U.S. government and agency debt securities | — |
| | — |
| | 195 |
| | 23 |
| | — |
| | — |
| | 195 |
| | 23 |
| Non-U.S. government and agency debt securities | — |
| | — |
| | 30 |
| | 15 |
| | — |
| | — |
| | 30 |
| | 15 |
| Investment-grade debt securities | — |
| | — |
| | 184 |
| | 25 |
| | — |
| | — |
| | 184 |
| | 25 |
| High-yield debt securities | — |
| | — |
| | 39 |
| | — |
| | — |
| | — |
| | 39 |
| | — |
| Commingled/pooled funds | — |
| | — |
| | 114 |
| | 279 |
| | — |
| | — |
| | 114 |
| | 279 |
| Other | — |
| | — |
| | 8 |
| | 1 |
| | 1 |
| | 1 |
| | 9 |
| | 2 |
| Total fixed income | — |
| | — |
| | 570 |
| | 343 |
| | 1 |
| | 1 |
| | 571 |
| | 344 |
| Limited partnerships (c) | — |
| | — |
| | — |
| | — |
| | 103 |
| | 39 |
| | 103 |
| | 39 |
| Other real estate assets (d) | — |
| | — |
| | 20 |
| | — |
| | 35 |
| | 35 |
| | 55 |
| | 35 |
| Cash equivalents and short-term investments (e) | — |
| | — |
| | 17 |
| | 22 |
| | — |
| | — |
| | 17 |
| | 22 |
| Total | $ | 127 |
| | $ | 424 |
| | $ | 1,077 |
| | $ | 761 |
| | $ | 139 |
| | $ | 75 |
| | $ | 1,343 |
| | $ | 1,260 |
| Cash on hand | | | | | | | | | | | | | — |
| | 3 |
| Receivables | | | | | | | | | | | | | 1 |
| | — |
| Accounts payable | | | | | | | | | | | | | (4 | ) | | (1 | ) | Total | | | | | | | | | | | | | $ | 1,340 |
| | $ | 1,262 |
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| | (a) | The majority of these funds are invested with investment managers that invest in common stocks of large capitalization U.S. companies. Certain investments in commingled/pooled equity funds have been classified as Level 2 in 2014 and 2013 because observable quoted prices for these institutional funds are not available. |
| | (b) | Includes investments in individual fixed income securities and in institutional funds that invest in fixed income securities. For 2014 and 2013, these fixed income assets were classified as Level 2. |
| | (c) | Limited partnerships include investments in funds that follow several different strategies, including investing in distressed debt, energy development, infrastructure, and hedge funds. These investments use strategies with returns normally expected to have a low correlation to the return of equities and often provide a current income component that is a meaningful portion of the investment’s total return. |
| | (d) | Includes investments in private real estate funds that invest primarily in a variety of property types in geographically diverse markets across the U.S. It also includes commingled funds investing in equities of real-estate and infrastructure companies. |
| | (e) | Cash equivalents and short-term investments are primarily held in short-term investment funds or registered money market funds with daily liquidity. |
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| Reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets |
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) between December 31, 2012 and December 31, 2014 is as follows: | | | | | | | | | | | | | | | | | (millions) | Fixed Income | | Other Real Estate Assets | | Limited Partnerships | | Total | Balance as of January 1, 2013 | $ | 1 |
| | $ | 36 |
| | $ | 45 |
| | $ | 82 |
| Realized gains (losses) | — |
| | 1 |
| | 5 |
| | 6 |
| Unrealized gains (losses) | — |
| | 2 |
| | (1 | ) | | 1 |
| Purchases, sales and settlements: | | | | | | | | Purchases | — |
| | — |
| | — |
| | — |
| Sales | — |
| | (4 | ) | | (10 | ) | | (14 | ) | Settlements | — |
| | — |
| | — |
| | — |
| Net transfers into (out of) Level 3 | — |
| | — |
| | — |
| | — |
| Balance as of December 31, 2013 | $ | 1 |
| | $ | 35 |
| | $ | 39 |
| | $ | 75 |
| Realized gains (losses) | — |
| | 1 |
| | — |
| | 1 |
| Unrealized gains (losses) | — |
| | 1 |
| | (2 | ) | | (1 | ) | Purchases, sales and settlements: | | | | | | | | Purchases | — |
| | — |
| | 67 |
| | 67 |
| Sales | — |
| | (2 | ) | | (1 | ) | | (3 | ) | Settlements | — |
| | — |
| | — |
| | — |
| Net transfers into (out of) Level 3 | — |
| | — |
| | — |
| | — |
| Balance as of December 31, 2014 | $ | 1 |
| | $ | 35 |
| | $ | 103 |
| | $ | 139 |
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| Schedule of expected benefit payments |
Total benefit payments we expect to make to participants, which include payments funded from USG’s assets as well as payments from our pension plans' assets, are as follows (in millions): | | | | | | | | | Years ended December 31 | Pension Benefits | | Postretirement Benefits | 2015 | $ | 86 |
| | $ | 13 |
| 2016 | 84 |
| | 10 |
| 2017 | 88 |
| | 10 |
| 2018 | 101 |
| | 10 |
| 2019 | 107 |
| | 11 |
| 2020 - 2024 | 622 |
| | 45 |
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