Retirement Plans and Profit Sharing Arrangements (Tables)

12 Months Ended

Dec. 31, 2015

The following table provides a reconciliation of changes in the benefit obligation:



	Pension Plans						Other Postretirement Plans
	2015			2014			2015			2014
	(in millions)
Benefit obligation, January 1	$	776		$	676		$	18		$	18
Service cost	46			43			—			—
Interest cost	27			28			1			1
Benefits paid	(6		)	(7		)	(3		)	(4		)
Actuarial (gain) loss	(3		)	30			—			—
Participant contributions	—			—			2			3
Settlements	(20		)	(20		)	—			—
Foreign currency rate changes	(8		)	(8		)	—			—
Additional voluntary contribution ("AVC") obligation	—			34			—			—
Benefit obligation, December 31	$	812		$	776		$	18		$	18

The following table provides the amounts recognized in the Consolidated Balance Sheets at December 31, which equal the funded status of the plans:

The following table provides information for pension plans with benefit obligations in excess of plan assets:



	December 31,
	2015		2014
	(in millions)
Pension plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	620	$	582
Fair value of plan assets	446		449
Pension plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	668	$	628
Fair value of plan assets	446		449

The weighted average assumptions used to determine benefit obligations were as follows:



	Pension Plans				Other Postretirement Plans
	2015		2014		2015		2014
Discount rates	3.66	%	3.44	%	3.90	%	3.60	%
Rates of increase in compensation levels	4.36		4.35		N/A		N/A
Healthcare cost increase rates:
Next year trend rate	N/A		N/A		5.75		6.00
Ultimate trend rate	N/A		N/A		5.00		5.00
Years to ultimate trend rate	N/A		N/A		3		4

The weighted average assumptions used to determine net periodic benefit cost of pension plans were as follows:



	2015		2014		2013
Discount rates	3.43	%	4.06	%	3.45	%
Rates of increase in compensation levels	4.41		4.38		4.36
Expected long-term rates of return on assets	7.10		7.58		7.62

The following tables present the Company’s pension plan assets measured at fair value on a recurring basis:



	December 31, 2015
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	74	$	83	$	—	$	157
U.S. small cap stocks	55		3		—		58
Non-U.S. large cap stocks	21		34		—		55
Non-U.S. small cap stocks	21		—		—		21
Emerging markets	14		21		—		35
Debt securities:
U.S. investment grade bonds	19		14		—		33
U.S. high yield bonds	—		26		—		26
Non-U.S. investment grade bonds	—		14		—		14
Real estate investment trusts	—		—		16		16
Hedge funds	—		—		21		21
Pooled pension funds	—		143		—		143
AVC assets (pooled pension funds)	—		19		—		19
Cash equivalents	10		—		—		10
Total	$	214	$	357	$	37	$	608



	December 31, 2014
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	74	$	84	$	—	$	158
U.S. small cap stocks	59		1		—		60
Non-U.S. large cap stocks	21		33		—		54
Non-U.S. small cap stocks	18		—		—		18
Emerging markets	15		24		—		39
Debt securities:
U.S. investment grade bonds	19		15		—		34
U.S. high yield bonds	—		27		—		27
Non-U.S. investment grade bonds	—		15		—		15
Real estate investment trusts	—		—		14		14
Hedge funds	—		—		21		21
Pooled pension funds	—		144		—		144
AVC assets (pooled pension funds)	—		19		—		19
Cash equivalents	9		—		—		9
Total	$	215	$	362	$	35	$	612

The following table provides a summary of changes in Level 3 assets measured at fair value on a recurring basis:



Asset Category	Real Estate Investment Trusts			Hedge Funds
	(in millions)
Balance at January 1, 2013	$	12		$	18
Actual return on plan assets:
Relating to assets still held at the reporting date	—			2
Purchases	2			—
Sales	(12		)	—
Balance at December 31, 2013	2			20
Actual return on plan assets:
Relating to assets still held at the reporting date	1			1
Purchases	11			—
Balance at December 31, 2014	14			21
Actual return on plan assets:
Relating to assets still held at the reporting date	2			—
Balance at December 31, 2015	$	16		$	21

The Company’s pension plans expect to make benefit payments to retirees as follows:

The components of the net periodic benefit cost for pension plans were as follows:



	Years Ended December 31,
	2015			2014			2013
	(in millions)
Service cost	$	46		$	43		$	46
Interest cost	27			28			23
Expected return on plan assets	(40		)	(38		)	(33		)
Amortization of prior service costs	(1		)	(1		)	(1		)
Amortization of net loss	9			7			11
Other	4			3			2
Net periodic benefit cost	$	45		$	42		$	48

The following table provides a reconciliation of changes in the fair value of assets:



	Pension Plans
	2015			2014
	(in millions)
Fair value of plan assets, January 1	$	612		$	544
Actual return on plan assets	(9		)	37
Employer contributions	40			47
Benefits paid	(6		)	(7		)
Settlements	(20		)	(20		)
Foreign currency rate changes	(9		)	(8		)
AVC asset	—			19
Fair value of plan assets, December 31	$	608		$	612