Post-Employment and Other Long-Term Employees Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Changes in Benefit Obligation and Plan Assets

The changes in benefit obligation and plan assets were as follows:


	Pension Benefits						Other Long-Term Benefits
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Change in benefit obligation:

Benefit obligation at beginning of year		936			825			65			52
Service cost		27			27			4			3
Interest cost		24			23			1			2
Employee contributions		3			4			—			—
Plan amendments		1			—			—			—
Benefits paid		(20	)		(16	)		(3	)		(2	)
Effect of curtailment		(1	)		—			—			—
Effect of settlement		(4	)		(10	)		—			—
Actuarial (gain) loss		(29	)		25			1			3
Foreign currency translation adjustment		(26	)		58			(4	)		7

Benefit obligation at end of year		911			936			64			65


Change in plan assets:

Plan assets at fair value at beginning of year		552			477			—			—
Actual return on plan assets		(28	)		40			—			—
Employer contributions		26			27			—			—
Employee contributions		3			4			—			—
Benefits paid		(10	)		(7	)		—			—
Effect of settlement		(4	)		(10	)		—			—
Foreign currency translation adjustments		(12	)		21			—			—

Plan assets at fair value at end of year		527			552			—			—

Funded status		(384	)		(384	)		(64	)		(65	)

Net amount recognized in the balance sheet consisted of the following:


	Pension Benefits						Other Long-Term Benefits
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Non-current assets		4			1			—			—
Current liabilities		(12	)		(9	)		(5	)		(4	)
Long-term liabilities		(376	)		(376	)		(59	)		(61	)

Net amount recognized		(384	)		(384	)		(64	)		(65	)

Accumulated Other Comprehensive Income (Loss) Before Tax Effects

The components of accumulated other comprehensive loss (income) before tax effects were as follows:


	Actuarial (gains)/losses			Prior service cost			Total
Accumulated other comprehensive loss as at December 31, 2016		139			2			141
Net amount generated/arising in current year		6			—			6
Amortization		(10	)		—			(10	)
Foreign currency translation adjustment		9			—			9

Accumulated other comprehensive loss as at December 31, 2017		144			2			146

Net amount generated/arising in current year		22			2			24
Amortization		(10	)		(1	)		(11	)
Foreign currency translation adjustment		(4	)		—			(4	)

Accumulated other comprehensive loss as at December 31, 2018		152			3			155

Schedule of Accumulated Benefit Obligations

The accumulated benefit obligations were as follows:

Pension Benefits

Other Long-Term Benefits

December 31,
2018

December 31,
2017

December 31,
2018

December 31,
2017

Accumulated benefit obligations

804

828

Components of Net Periodic Benefit Cost

The components of the net periodic benefit cost included the following:


	Pension Benefits									Other Long-term Benefits
	Year ended December 31, 2018			Year ended December 31, 2017			Year ended December 31, 2016			Year ended December 31, 2018		Year ended December 31, 2017		Year ended December 31, 2016
Service cost		27			27			27			4		3		3
Interest cost		24			23			25			1		2		2
Expected return on plan assets		(23	)		(21	)		(20	)		—		—		—
Amortization of actuarial net loss (gain)		8			9			8			1		3		—
Amortization of prior service cost		1			—			1			—		—		—
Effect of settlement		—			1			—			—		—		—
Effect of curtailment		1			—			—			—		—		(1	)

Net periodic benefit cost		38			39			41			6		8		4

Weighted Average Assumptions Used in Determination of Benefit Obligation and Plan Assets

The weighted average assumptions used in the determination of the benefit obligation and the plan assets for the pension plans and the other long-term benefits were as follows:


Assumptions	2018			2017
Discount rate		2.75	%		2.54	%
Salary increase rate		2.32	%		2.37	%
Expected long-term rate of return on funds for the pension expense of the following year		4.16	%		4.23	%

The weighted average assumptions used in the determination of the net periodic benefit cost for the pension plans and the other long-term benefits were as follows:


Assumptions	2018			2017			2016
Discount rate		2.54	%		2.57	%		3.19	%
Salary increase rate		2.37	%		2.74	%		3.07	%
Expected long-term rate of return on funds for the pension expense of the year		4.23	%		4.24	%		4.44	%

Pension Plan Asset Allocation

The Company’s pension plan asset allocation at December 31, 2018 and at December 31, 2017 is as follows:


	Percentage of Plan Assets at December
Asset Category	2018			2017
Cash and cash equivalents		2	%		3	%
Equity securities		27	%		30	%
Government debt securities		3	%		3	%
Corporate debt securities		26	%		26	%
Investments in funds^(a)		17	%		17	%
Real estate		3	%		2	%
Other (mainly insurance assets — contracts and reserves)		22	%		19	%

Total		100	%		100	%

(a)

Investment in funds are composed approximately for two thirds of commingled funds mainly invested in corporate bonds (55%) and treasury bonds and notes (45%) and for one third of multi-strategy funds invested in broadly diversified portfolios of corporate and government bonds, equity and derivative instruments.

Pension Plan Asset Allocation Including Fair-Value Measurements

The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2018 is as follows:


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents		11		11		—		—
Equity securities		145		1		144		—
Government debt securities		16		15		1		—
Corporate debt securities		134		1		133		—
Investment funds		90		4		86		—
Real estate		14		—		14		—
Other (mainly insurance assets — contracts and reserves)		117		—		—		117

TOTAL		527		32		378		117

The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as at December 31, 2017 is as follows:


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents		14		14		—		—
Equity securities		167		8		159		—
Government debt securities		18		17		1		—
Corporate debt securities		141		5		136		—
Investment funds		93		2		91		—
Real estate		12		—		12		—
Other (mainly insurance assets — contracts and reserves)		107		—		—		107

TOTAL		552		46		399		107

Reconciliation for Plan Assets Measured at Fair Value Using Unobservable Inputs (Level 3)

For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2018 and December 31, 2018 is presented as follows:


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2018		107
Contributions (employer and employee)		12
Actual return on plan assets		(1	)
Net benefit payments ^(b)		5
Settlements		(4	)
Foreign currency translation adjustment		(2	)

December 31, 2018		117

(b)	Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees.

For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2017 and December 31, 2017 is presented as follows:


	Fair Value Measurements using Significant Unobservable Inputs (Level 3)
January 1, 2017		96
Contributions (employer and employee)		12
Actual return on plan assets		(2	)
Net benefit payments ^(b)		4
Settlements		(8	)
Foreign currency translation adjustment		5

December 31, 2017		107

(b)	Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees.

Estimated Future Benefit Payments

The Company’s estimated future benefit payments as of December 31, 2018 are as follows:


Years	Pension Benefits		Other Long-term Benefits
2019		47		5
2020		25		8
2021		37		3
2022		34		4
2023		45		5
From 2024 to 2026		260		29