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Pensions and Other Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Pensions and Other Employee Benefits [Abstract]  
Changes in Benefit Obligations, Plan Assets and Funded Status and Aggregate Balance Sheet Impact
The following table summarizes changes in the benefit obligations, the plan assets and funded status for all of the Company’s pension and postretirement benefit plans, as well as the aggregate balance sheet impact.
 
Pension Plans
Postretirement
Benefit Plans
2016
2015
2016
2015
(in millions)
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at the beginning of the year
$
3,448
 
$
3,663
 
$
184
 
$
199
 
Service cost
 
108
 
 
123
 
 
2
 
 
3
 
Interest cost
 
135
 
 
149
 
 
6
 
 
7
 
Plan participants’ contributions
 
2
 
 
2
 
 
4
 
 
4
 
Amendments
 
15
 
 
—
 
 
(3
)
 
—
 
Actuarial loss (gain)
 
167
 
 
(261
)
 
(3
)
 
(12
)
Foreign currency exchange rate changes
 
9
 
 
(53
)
 
—
 
 
(4
)
Curtailments, settlements and special termination benefits
 
2
 
 
3
 
 
—
 
 
—
 
Business divestiture
 
—
 
 
(59
)
 
—
 
 
—
 
Benefits paid
 
(128
)
 
(119
)
 
(13
)
 
(13
)
Benefit obligation at the end of the year
$
3,758
 
$
3,448
 
$
177
 
$
184
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at the beginning of the year
$
2,552
 
$
2,570
 
$
57
 
$
60
 
Actual return on plan assets
 
189
 
 
54
 
 
5
 
 
—
 
Employer contributions
 
97
 
 
97
 
 
7
 
 
6
 
Plan participants’ contributions
 
2
 
 
2
 
 
4
 
 
4
 
Foreign currency exchange rate changes
 
9
 
 
(52
)
 
—
 
 
—
 
Benefits paid
 
(128
)
 
(119
)
 
(13
)
 
(13
)
Fair value of plan assets at the end of the year
$
2,721
 
$
2,552
 
$
60
 
$
57
 
Unfunded status at the end of the year
$
(1,037
)
$
(896
)
$
(117
)
$
(127
)
 
 
 
 
 
 
 
 
 
 
 
 
Assets and (liabilities) recognized on the consolidated balance sheets consist of:
 
 
 
 
 
 
 
 
 
 
 
 
Non-current assets
$
37
 
$
37
 
$
—
 
$
—
 
Current liabilities
 
(6
)
 
(5
)
 
(8
)
 
(8
)
Non-current liabilities
 
(1,068
)
 
(928
)
 
(109
)
 
(119
)
$
(1,037
)
$
(896
)
$
(117
)
$
(127
)
Net Loss and Prior Service Cost Balances in Accumulated Other Comprehensive Loss Account
The table below summarizes the net loss and prior service cost balances at December 31, in the accumulated other comprehensive loss account, before related tax effects, for all of the Company’s pension and postretirement benefit plans.
 
Pension Plans
Postretirement
Benefit Plans
2016
2015
2016
2015
(in millions)
Net loss (gain)
$
896
 
$
768
 
$
(12
)
$
(10
)
Prior service cost (credit)
 
14
 
 
—
 
 
(4
)
 
(3
)
Total amount recognized
$
910
 
$
768
 
$
(16
)
$
(13
)
Pension Plans with an Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets
The aggregate accumulated benefit obligation (ABO) for all of the Company’s pension plans was $3,413 million at December 31, 2016 and $3,120 million at December 31, 2015. The table below presents information for the pension plans with an ABO in excess of the fair value of plan assets at December 31, 2016 and 2015.
 
Pension Plans
2016
2015
(in millions)
Projected benefit obligation
$
3,528
 
$
3,232
 
Accumulated benefit obligation
$
3,192
 
$
2,913
 
Fair value of plan assets
$
2,456
 
$
2,302
 
Weighted Average Assumptions Used to Determine Benefit Obligations
The table below summarizes the weighted average assumptions used to determine the benefit obligations for the Company’s pension and postretirement plans disclosed at December 31, 2016 and 2015.
 
Pension Plans
Postretirement
Benefit Plans
2016
2015
2016
2015
Benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.41
%(1)
 
4.67
%(1)
 
4.05
%(2)
 
4.22
%(2)
Rate of compensation increase
 
3.50
%(3)
 
3.50
%(3)
 
 
 
 
 
 
 
 
 
(1)
The weighted average discount rate assumptions used at December 31, 2016 and 2015 were comprised of separate assumptions determined by country of 4.46% and 4.73% for the U.S. based plans, respectively, and 3.80% and 3.93% for the Canadian based plans, respectively.
 
(2)
The weighted average discount rate assumptions used at December 31, 2016 and 2015 were comprised of separate assumptions determined by country of 4.11% and 4.28% for the U.S. based plans, respectively, and 3.64% and 3.74% for the Canadian based plans, respectively.
 
(3)
The weighted average rate of compensation increase assumptions were comprised of separate assumptions determined by country of 3.5% for both the U.S. based plans and Canadian based plans at December 31, 2016 and 2015.
Components of Net Periodic Benefit Cost
The following table summarizes the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans for the years ended December 31, 2016, 2015 and 2014.
 
Pension Plans
Postretirement
Benefit Plans
2016
2015
2014
2016
2015
2014
(in millions)
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
108
 
$
123
 
$
106
 
$
2
 
$
3
 
$
3
 
Interest cost
 
135
 
 
149
 
 
147
 
 
6
 
 
7
 
 
8
 
Expected return on plan assets
 
(200
)
 
(205
)
 
(193
)
 
(4
)
 
(5
)
 
(4
)
Amortization of prior service cost (credits)
 
—
 
 
1
 
 
2
 
 
(2
)
 
(2
)
 
(2
)
Amortization of net loss (gain)
 
52
 
 
68
 
 
17
 
 
(2
)
 
—
 
 
(2
)
Curtailment or settlement loss (gain)
 
2
 
 
3
 
 
1
 
 
—
 
 
—
 
 
(1
)
Net periodic benefit cost
$
97
 
$
139
 
$
80
 
$
—
 
$
3
 
$
2
 
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
The following table summarizes the other changes in plan assets and benefit obligations recognized in other comprehensive income for the Company’s pension and postretirement benefit plans for the years ended December 31, 2016, 2015 and 2014.
 
Pension Plans
Postretirement
Benefit Plans
2016
2015
2014
2016
2015
2014
(in millions)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss (gain)
$
179
 
$
(132
)
$
560
 
$
(4
)
$
(7
)
$
5
 
Prior service cost (credit)
 
15
 
 
—
 
 
1
 
 
(2
)
 
—
 
 
(1
)
Amortization of net (loss) gain
 
(52
)
 
(68
)
 
(17
)
 
2
 
 
—
 
 
2
 
Amortization of prior service (cost) credit
 
—
 
 
(1
)
 
(2
)
 
2
 
 
2
 
 
2
 
Total recognized in other comprehensive income
 
142
 
 
(201
)
 
542
 
 
(2
)
 
(5
)
 
8
 
Total recognized in net periodic benefit cost and other comprehensive income
$
239
 
$
(62
)
$
622
 
$
(2
)
$
(2
)
$
10
 
Amounts Expected to be Amortized from Accumulated OCI and Recognized as Components of Net Periodic Benefit Costs
The following table summarizes the amounts expected to be amortized from accumulated OCI and recognized as components of net periodic benefit costs during 2017.
 
Pension Plans
Postretirement
Benefit Plans
Total
(in millions)
Net loss (gain)
$
62
 
$
(2
)
$
60
 
Prior service cost (credit)
 
1
 
 
(1
)
 
—
 
$
63
 
$
(3
)
$
60
 
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost
The table below summarizes the weighted average assumptions used to determine the net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014.
 
Pension Plans
Postretirement
Benefit Plans
2016
2015
2014
2016
2015
2014
Discount rates:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation
 
4.67
%(1)
 
4.14
%(1)
 
5.03
%(1)
 
4.22
%(4)
 
3.70
%(4)
 
4.43
%(4)
Service cost
 
4.83
%
 
—
(5)
 
—
(5)
 
4.37
%
 
—
(5)
 
—
(5)
Interest cost
 
3.95
%
 
—
(5)
 
—
(5)
 
3.26
%
 
—
(5)
 
—
(5)
Expected long-term return on plan assets
 
7.92
%(2)
 
8.14
%(2)
 
8.13
%(2)
 
7.42
%
 
7.65
%
 
7.64
%
Rate of compensation increase
 
3.50
%(3)
 
3.50
%(3)
 
3.50
%(3)
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The weighted average discount rate assumptions used for the years ended December 31, 2016, 2015, and 2014 were comprised of separate assumptions determined by country of 4.73%, 4.20% and 5.10% for the U.S. based plans and 3.93%, 3.90% and 4.70% for the Canadian based plans, respectively.
 
(2)
The weighted average expected long-term return on plan assets assumptions used were comprised of separate assumptions determined by country of 8.00% and 8.25% for the U.S. based plans for the years ended December 31, 2016 and 2015, respectively, and 7.25% for the Canadian based plans for the years ended December 31, 2016, and 2015.
 
(3)
The weighted average rate of compensation increase assumptions used for the years ended December 31, 2016, 2015 and 2014 were comprised of separate assumptions determined by country of 3.50% for both the U.S and Canadian based plans.
 
(4)
The weighted average discount rate assumptions used for the years ended December 31, 2016, 2015 and 2014 were comprised of separate assumptions determined by country of 4.28%, 3.70% and 4.40% for the U.S. based plans and 3.74%, 3.70% and 4.60% for the Canadian based plans, respectively.
 
(5)
Not applicable as the Company changed to the spot rate approach beginning in 2016 as described above.
Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates
A one percentage point change in the assumed health care cost trend rates would have the following effects:
 
1 percentage point
Increase
Decrease
(in millions)
Effect on total service and interest cost
$
—
 
$
—
 
Effect on postretirement benefit obligations
$
5
 
$
(4
)
Allowable Range for Each Major Category of the Plans' Assets and Weighted-Average Asset Allocations by Asset Category
The table below presents the allowable range for each major category of the plans’ assets at December 31, 2016 as well as the Company’s pension plan and postretirement benefit plan weighted-average asset allocations at December 31, 2016 and 2015, by asset category.
 
U.S.
Canada
Asset Category
Range
2016
2015
Range
2016
2015
Domestic equity(1)
30%-60%
 
55
%
 
52
%
—
 
15
%
 
13
%
International equity(2)
10%-20%
 
10
 
 
11
 
—
 
62
 
 
62
 
Total equities
45%-75%
 
65
 
 
63
 
40%-80%
 
77
 
 
75
 
Fixed income securities
20%-40%
 
22
 
 
22
 
—
 
13
 
 
16
 
Other, primarily cash and cash equivalents
0%-15%
 
5
 
 
8
 
—
 
10
 
 
9
 
Total fixed income securities and cash and cash equivalents
—
 
27
 
 
30
 
20%-60%
 
23
 
 
25
 
Real estate securities
0%-15%
 
8
 
 
7
 
—
 
—
 
 
—
 
Total
 
100
%
 
100
%
 
100
%
 
100
%
 
 
 
(1)
Domestic equities for Canadian plans refers to equities of Canadian companies.
 
(2)
International equities for Canadian plans includes equities of U.S. companies.
Fair Value of the Company's Pension Plans' and Postretirement Benefit Plans' Assets
The table below presents the fair value of the Company’s pension plans’ assets by asset category segregated by level within the fair value hierarchy, as described below.
 
U.S. Pension Plans’ Assets
Canadian Pension Plans’ Assets
Fair Value Measured at
December 31, 2016
Fair Value Measured at
December 31, 2016
Asset Category
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
(in millions)
Equity securities(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Equity
$
1,331
 
$
—
 
$
—
 
$
1,331
 
$
79
 
$
—
 
$
—
 
$
79
 
International Equity
 
85
 
 
—
 
 
—
 
 
85
 
 
104
 
 
—
 
 
—
 
 
104
 
Fixed Income — Investment Grade(2)
 
255
 
 
159
 
 
—
 
 
414
 
 
—
 
 
—
 
 
—
 
 
—
 
Fixed Income — High Yield(3)
 
—
 
 
136
 
 
—
 
 
136
 
 
—
 
 
—
 
 
—
 
 
—
 
Real Estate Investment Trusts(4)
 
193
 
 
—
 
 
—
 
 
193
 
 
—
 
 
—
 
 
—
 
 
—
 
Other(5)
 
—
 
 
114
 
 
—
 
 
114
 
 
5
 
 
27
 
 
—
 
 
32
 
Total assets at fair value
$
1,864
 
$
409
 
$
—
 
$
2,273
 
$
188
 
$
27
 
$
—
 
$
215
 
Liabilities for unsettled trades, net
 
 
 
 
 
 
 
 
 
 
(23
)
 
 
 
 
 
 
 
 
 
 
—
 
Other investments measured at net asset value(6)(7)
 
 
 
 
 
 
 
 
 
 
171
 
 
 
 
 
 
 
 
 
 
 
85
 
Total
 
 
 
 
 
 
 
 
 
$
2,421
 
 
 
 
 
 
 
 
 
 
$
300
 
 
U.S. Pension Plans’ Assets
Canadian Pension Plans’ Assets
Fair Value Measured at
December 31, 2015
Fair Value Measured at
December 31, 2015
Asset Category
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
(in millions)
Equity securities(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Equity
$
1,200
 
$
—
 
$
—
 
$
1,200
 
$
73
 
$
—
 
$
—
 
$
73
 
International Equity
 
79
 
 
—
 
 
—
 
 
79
 
 
91
 
 
—
 
 
—
 
 
91
 
Fixed Income — Investment Grade(2)
 
237
 
 
163
 
 
—
 
 
400
 
 
—
 
 
—
 
 
—
 
 
—
 
Fixed Income — High Yield(3)
 
—
 
 
114
 
 
—
 
 
114
 
 
—
 
 
—
 
 
—
 
 
—
 
Real Estate Investment Trusts(4)
 
170
 
 
—
 
 
—
 
 
170
 
 
—
 
 
—
 
 
—
 
 
—
 
Other(5)
 
—
 
 
166
 
 
—
 
 
166
 
 
6
 
 
21
 
 
—
 
 
27
 
Total assets at fair value
$
1,686
 
$
443
 
$
—
 
$
2,129
 
$
170
 
$
21
 
$
—
 
$
191
 
Liabilities for unsettled trades, net
 
 
 
 
 
 
 
 
 
 
(30
)
 
 
 
 
 
 
 
 
 
 
—
 
Other investments measured at net asset value(6)(7)
 
 
 
 
 
 
 
 
 
 
170
 
 
 
 
 
 
 
 
 
 
 
92
 
Total
 
 
 
 
 
 
 
 
 
$
2,269
 
 
 
 
 
 
 
 
 
 
$
283
 
 
 
 
(1)
Equity securities consist of investments in common stock of U.S. and international companies. The fair value of equity securities is based on quoted market prices available in active markets at the close of a trading day, primarily the New York Stock Exchange (NYSE), National Association of Securities Dealers Automated Quotations (NASDAQ), and various international exchanges.
 
(2)
Approximately 62% and 59% at December 31, 2016 and 2015, respectively, of U.S. plan assets that are invested in the Fixed Income — Investment Grade asset category consist of a mutual fund offered by a registered investment company (the Fund) and fixed income securities. The Fund invests in investment grade fixed income securities, mortgaged-backed securities, U.S. treasury and agency bonds and corporate bonds. These investments are classified by the Company as a Level 1 measurement within the fair value hierarchy, as the mutual fund trades on an active market and daily, quoted prices are available. The remaining 38% and 41% at December 31, 2016 and 2015, respectively, of U.S. plan assets are fixed income securities, primarily investment grade corporate bonds from various industries held directly by the plan. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs and are classified as Level 2.
 
(3)
Fixed Income — High Yield consists of investments in corporate high-yield bonds from various industries. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.
 
(4)
Real Estate Investment Trusts (REITs) consist of securities that trade on the major exchanges and invest directly in real estate, either through properties or mortgages.
 
(5)
Other consists primarily of: (1) money market accounts, which invest primarily in short-term, high quality money market securities such as government obligations, commercial paper, time deposits and certificates of deposit, and are classified as Level 2, and (2) cash, which is classified as Level 1.
 
(6)
In accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position.
 
(7)
All of the U.S. plans other investments measured using NAV at December 31, 2016 and 2015 and approximately 55% and 52% at December 31, 2016 and 2015, respectively, of the Canadian plans other investments measured using NAV consist of a regulated commingled equity trust fund, for which fair value is based on the NAV at the end of each month. The NAV is calculated by the fund manager based on the fair value of the fund’s holdings, primarily equity securities traded in active markets, determined as of the end of each month as a practical expedient to estimating fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Withdrawals are permitted, with notice by the 20th day of each month, based on NAV. Approximately 45% and 48% at December 31, 2016 and 2015, respectively, of the Canadian plans other investments measured using NAV are invested in regulated commingled bond funds (the “Bond Funds”). As these Bond Funds do not trade in an active market, the fair value is based on NAVs calculated by fund managers based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs as a practical expedient to estimating fair value and classified as Level 2. Withdrawals are permitted monthly, with notice between 0 and 3 days of the transaction date, based on NAV.
 
The table below presents the fair value of the Company’s postretirement benefit plans’ assets by asset category segregated by level within the fair value hierarchy, as described below.
 
Postretirement Benefit Plans’ Assets
Fair Value Measured at
December 31, 2016
Fair Value Measured at
December 31, 2015
Asset Category
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
(in millions)
Equity securities(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Equity
$
37
 
$
—
 
$
—
 
$
37
 
$
35
 
$
—
 
$
—
 
$
35
 
International Equity
 
1
 
 
—
 
 
—
 
 
1
 
 
1
 
 
—
 
 
—
 
 
1
 
Fixed Income — Investment Grade(2)
 
8
 
 
3
 
 
—
 
 
11
 
 
8
 
 
3
 
 
—
 
 
11
 
Fixed Income — High Yield(3)
 
—
 
 
2
 
 
—
 
 
2
 
 
—
 
 
2
 
 
—
 
 
2
 
Real Estate Investment Trusts(4)
 
3
 
 
—
 
 
—
 
 
3
 
 
3
 
 
—
 
 
—
 
 
3
 
Other(5)
 
—
 
 
3
 
 
—
 
 
3
 
 
—
 
 
2
 
 
—
 
 
2
 
Total assets at fair value
$
49
 
$
8
 
$
—
 
$
57
 
$
47
 
$
7
 
$
—
 
$
54
 
Other investments measured at net asset value(6)(7)
 
 
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
 
 
 
3
 
Total
 
 
 
 
 
 
 
 
 
$
60
 
 
 
 
 
 
 
 
 
 
$
57
 
 
 
 
(1)
Equity securities consist of investments in common stock of U.S. and international companies. The fair value of equity securities is based on quoted market prices available in active markets at the close of a trading day, primarily the NYSE, NASDAQ, and various international exchanges.
 
(2)
Approximately 73% at December 31, 2016 and 2015 of the postretirement benefit plan assets that are invested in the Fixed Income — Investment Grade asset category consist of the Fund and fixed income securities. The Fund invests in investment grade fixed income securities, mortgaged-backed securities, U.S. treasury and agency bonds and corporate bonds. These investments are classified by the Company as a Level 1 measurement within the fair value hierarchy as the mutual fund trades on an active market and daily, quoted prices are available. The remaining 27% at December 31, 2016 and 2015 of the postretirement benefit plan assets are fixed income securities, primarily investment grade corporate bonds from various industries held directly by the plan. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs and are classified as Level 2.
 
(3)
Fixed Income — High Yield consists of investments in corporate high-yield bonds from various industries. The fair values of these investments are based on yields currently available on comparable bonds of issuers with similar credit ratings, quoted prices of similar bonds in an active market, or cash flows based on observable inputs.
 
(4)
REITs consist of securities that trade on the major exchanges and invest directly, either through properties or mortgages.
 
(5)
Other consists primarily of money market accounts, which invest primarily in short-term, high quality money market securities such as government obligations, commercial paper, time deposits and certificates of deposit.
 
(6)
In accordance with ASU 2015-07, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position.
 
(7)
All of the postretirement benefit plans other investments measured using NAV at December 31, 2016 and 2015 consist of a regulated commingled equity trust fund, which fair value is based on NAV at the end of each month. The NAV is calculated by the fund manager based on the fair value of the fund’s holdings, primarily equity securities traded in active markets, determined as of the end of each month as a practical expedient to estimating fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Withdrawals are permitted, with notice by the 20th day of each month, based on NAV.
Estimated Future Benefit Payments
Estimated Future Benefit Payments. The following table presents expected pension and postretirement benefit payments and expected postretirement subsidies due to the Medicare Prescription Drug Improvement and Modernization Act of 2003, which reflect expected future service, as appropriate.
 
Postretirement
Benefits
Pension
Benefits
Benefit
Payments
Subsidy
Receipts
(in millions)
2017
$
162
 
$
13
 
$
—
 
2018
 
156
 
 
13
 
 
—
 
2019
 
162
 
 
14
 
 
—
 
2020
 
171
 
 
14
 
 
—
 
2021
 
175
 
 
14
 
 
—
 
Years 2022-2026
 
1,001
 
 
65
 
 
1
 
Cash Contributions and Expenses under Multi-Employer Benefit Plans
Under these plans, the Company contributed cash and recorded expenses for each of its individually significant plans and all of its other plans in aggregate as noted in the table below.
 
EIN/Pension
Plan Number
Pension
Protection
Act Zone
Status(1)
FIP/RP(2)
Status Pending/
Implemented
Contributions by L3
Surcharge
Imposed
Expiration
Date of
Collective-
Bargaining
Agreement
Pension Fund
2016
2015
2016
2015
2014
(in millions)
IAM National Pension Fund
51-6031295/002
Green
Green
No
$
26
(3)
$
23
(4)
$
19
(4)
No
4/9/2017 to
6/28/2019(5)
Other Pension Funds(6)
 
 
 
 
 
 
 
 
 
 
 
 
 
—
 
 
—
 
 
—
 
 
 
 
 
 
 
Total contributions
 
 
 
 
 
 
 
 
 
 
 
 
$
26
 
$
23
 
$
19
 
 
 
 
 
 
 
 
 
 
(1)
A zone status rating of green indicates the plan is at least 80% funded.
 
(2)
Funding improvement plan or rehabilitation plan.
 
(3)
At the date the audited financial statements for the Company were issued, the Form 5500 for the plan year ended December 31, 2016 was not available.
 
(4)
Represents 5% of total plan contributions for the years ended December 31, 2015 and 2014 based on Form 5500.
 
(5)
The Company is a party to multiple bargaining agreements for multiple projects that require contributions into the IAM National Pension Fund. The most significant of these agreements, expiring April 28, 2019, covers multiple programs in the Company’s Aerospace Systems reportable segment and represents 63% of 2016 contributions.
 
(6)
Consists of three pension funds in which the Company’s contributions are individually, and in the aggregate, insignificant.