Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Schedule of Reconciliation of the Changes in the Plans' Projected Benefit Obligations

The reconciliation of the changes in the plans’ projected benefit obligations as of December 31 was as follows:

	U.S. Plans						U.K. Plan
(In millions)	2019			2018			2019			2018
Projected benefit obligation at beginning of year	$	1,659		$	1,821		$	1,164		$	1,305
Interest cost	66			59			29			28
Plan amendment	—			—			—			19
Actuarial loss (gain)	214			(147		)	136			(62		)
Benefits paid	(77		)	(74		)	(56		)	(56		)
Foreign currency exchange rate changes	—			—			50			(70		)
Projected benefit obligation at end of year (1)	$	1,862		$	1,659		$	1,323		$	1,164

(1)

As of December 31, 2019, the accumulated benefit obligations for the U.K. Plan was equal to the projected benefit obligations. As of December 31, 2018, the accumulated benefit obligations for the U.S. and U.K. plans were equal to the projected benefit obligations.

The reconciliation of the changes in the plan’s benefit obligation and the determination of the amounts recognized on our Consolidated Balance Sheets were as follows:

	As of December 31,
(In millions)	2019			2018
Projected benefit obligation at beginning of year	$	34		$	40
Interest cost on projected benefit obligation	1			1
Actuarial loss (gain)	9			(5		)
Participant contributions	1			2
Benefits paid	(4		)	(4		)
Projected and accumulated benefit obligation at end of year	$	41		$	34
Funded status of the plan	$	(41	)	$	(34	)
Amounts recognized in the balance sheet consist of:
Current liabilities	$	(3	)	$	(3	)
Long-term liabilities	(38		)	(31		)
Net amount recognized	$	(41	)	$	(34	)
Discount rate assumption as of December 31	3.09		%	4.21		%

Schedule of Reconciliation of the Changes in the Plans' Fair Value of Plan Assets

The reconciliation of the changes in the fair value of plan assets as of December 31 was as follows:

	U.S. Plans						U.K. Plan
(In millions)	2019			2018			2019			2018
Fair value of plan assets at beginning of year	$	1,582		$	1,764		$	1,227		$	1,390
Actual return on plan assets	353			(113		)	138			(35		)
Employer contributions	5			5			2			3
Benefits paid	(77		)	(74		)	(56		)	(56		)
Foreign currency exchange rate changes	—			—			51			(75		)
Fair value of plan assets at end of year	$	1,863		$	1,582		$	1,362		$	1,227

Schedule of the Funded Status of the Plans

The funded status of the plans as of December 31 was as follows:

	U.S. Plans						U.K. Plan
(In millions)	2019			2018			2019		2018
Funded status at end of year	$	1		$	(77	)	$	39	$	63
Amount recognized in balance sheet:
Long-term assets	$	76		$	—		$	39	$	63
Current liabilities	(6		)	(5		)	—		—
Long-term liabilities	(69		)	(72		)	—		—
Net amount recognized	$	1		$	(77	)	$	39	$	63
Plans with projected and accumulated benefit obligation in excess of plan assets:
Projected and accumulated benefit obligation	$	75		$	1,659		$	—	$	—
Fair value of plan assets	—			1,582			—		—

Schedule of Accumulated Other Comprehensive Loss Not Yet Recognized in Net Periodic Benefit Expense

The amounts included in AOCI that have not yet been recognized in net periodic benefit expense as of December 31 were as follows:

	U.S. Plans						U.K. Plan
(In millions)	2019			2018			2019			2018
Actuarial (loss) gain	$	(5	)	$	(53	)	$	(54	)	$	5
Prior-service credit	—			—			18			19
AOCI	$	(5	)	$	(53	)	$	(36	)	$	24

The amounts included in AOCI that have not yet been recognized in net periodic benefit expense as of December 31 were as follows:

(In millions)	2019		2018
Actuarial gain (loss)	$	2	$	12
AOCI	$	2	$	12

Schedule of Net Periodic Benefit Costs

The net periodic benefit cost and amounts recognized in Other comprehensive income (loss) for the years ended December 31 was as follows:

	U.S. Plans									U.K. Plan
(In millions)	2019			2018			2017			2019			2018			2017
Net periodic benefit (income) expense:
Interest cost	$	66		$	59		$	77		$	29		$	28		$	34
Expected return on plan assets	(90		)	(92		)	(93		)	(58		)	(67		)	(60		)
Amortization of prior-service credit	—			—			—			(1		)	(2		)	(1		)
Recognized AOCI loss due to settlements	—			—			(1		)	—			—			—
Net periodic benefit income	$	(24	)	$	(33	)	$	(17	)	$	(30	)	$	(41	)	$	(27	)
Amounts recognized in Other comprehensive income (loss)
Actuarial (gain) loss	$	(49	)	$	58		$	(41	)	$	57		$	40		$	(72	)
Prior-service cost	—			—			—			—			19			—
Reclassification of recognized AOCI gain due to settlements	—			—			1			—			—			—
Reclassification of prior-service credit to net periodic benefit income	—			—			—			1			2			1
(Gain) loss recognized in Other comprehensive income (loss)	$	(49	)	$	58		$	(40	)	$	58		$	61		$	(71	)

	Years Ended December 31,
(In millions, except discount rate)	2019			2018			2017
Service cost - benefits earned during the year	$	—		$	1		$	—
Interest cost on projected benefit obligation	1			1			2
Amortization of actuarial gain	(2		)	(1		)	—
Net periodic benefit (gain) expense	$	(1	)	$	1		$	2
Discount rate assumption used to calculate interest cost	3.87% - 4.36%			3.11% - 3.67%			3.90		%

Schedule of Assumptions Used to Determine the Projected Benefit Obligation and Net Periodic Benefit Cost

The weighted-average assumptions used to determine the net periodic benefit costs and benefit obligations for the year ended December 31 were as follows:

	U.S. Qualified Plans				U.S. Non-Qualified Plans				U.K. Plan
	2019		2018	2017	2019	2018	2017		2019		2018		2017
Discount rate - net periodic benefit costs	4.08	%	3.14% - 3.38%	3.83% - 4.35%	3.65% - 3.95%	2.84% - 3.21%	4.35	%	2.56	%	2.21	%	2.70	%
Discount rate - benefit obligations	3.35	%	4.18% - 4.39%	3.55% - 3.71%	2.72% - 3.20%	3.93% - 4.28%	3.21% - 3.60%		2.04	%	2.85	%	2.53	%
Expected long-term rate of return on plan assets	5.80	%	3.00% - 5.40%	2.35% - 5.65%	N/A	N/A	N/A		4.85	%	4.95	%	5.00	%

Schedule of Expected Benefit Payments

Expected benefit payments for the defined benefit pension plans are summarized below. These estimates are based on assumptions about future events. Actual benefit payments may vary from these estimates.

(In millions)	U.S. Plans		U.K. Plan
Year ending December 31:
2020	$	90	$	42
2021	93		44
2022	95		46
2023	98		46
2024	100		49
2025-2029	524		268

Expected benefit payments, which reflect expected future service, as appropriate, are summarized below. These estimates are based on assumptions about future events. Actual benefit payments may vary from these estimates.

(In millions)	Benefit Payments
Year ending December 31:
2020	$	3
2021	3
2022	3
2023	4
2024	4
2025-2029	15

Schedule of Fair Values of Investments Held in Pension Plans by Major Asset Category

The fair values of investments held in the pension plans by major asset category as of December 31, 2019 and 2018, and the percentage that each asset category comprises of total plan assets were as follows:

(Dollars in millions)	December 31, 2019
Asset category (U.S. Qualified Plans)	Level 1		Level 2			Not Subject to Leveling (1)		Total		Percentage of Plan Assets
Cash and cash equivalents
Short-term investment fund	$	—	$	—		$	24	$	24	1.3	%
Equity:
U.S. large companies	—		—			140		140		7.5	%
U.S. small companies	30		—			—		30		1.6	%
International	72		—			75		147		7.9	%
Fixed income securities:
Global long-term debt instruments	405		1,108			5		1,518		81.5	%
Derivatives	—		4			—		4		0.2	%
Total U.S. Plan assets	$	507	$	1,112		$	244	$	1,863	100.0	%
Asset category (U.K. Plan)
Cash and cash equivalents	$	34	$	—		$	—	$	34	2.5	%
Fixed income securities	—		773			474		1,247		91.6	%
Derivatives	—		(8		)	89		81		5.9	%
Total U.K. Plan assets	$	34	$	765		$	563	$	1,362	100.0	%

(1) Investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient are not 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 for the total defined benefit pension plan assets.

(Dollars in millions)	December 31, 2018
Asset category (U.S. Qualified Plans)	Level 1		Level 2			Not Subject to Leveling (1)		Total		Percentage of Plan Assets
Cash and cash equivalents
Short-term investment fund	$	—	$	—		$	37	$	37	2.3	%
Equity:
U.S. large companies	—		—			107		107		6.8	%
U.S. small companies	25		—			—		25		1.6	%
International	59		—			60		119		7.5	%
Fixed income securities:
Global long-term debt instruments	223		1,063			8		1,294		81.8	%
Derivatives	1		(1		)	—		—		—	%
Total U.S. Plan assets	$	308	$	1,062		$	212	$	1,582	100.0	%
Asset category (U.K. Plan)
Cash and cash equivalents	$	57	$	—		$	—	$	57	4.6	%
Fixed income securities	—		615			363		978		79.7	%
Derivatives	—		5			26		31		2.6	%
Hedge funds (2)	—		—			38		38		3.1	%
Diversified multi-asset funds:
Dynamic asset allocation	—		—			123		123		10.0	%
Total U.K. Plan assets	$	57	$	620		$	550	$	1,227	100.0	%

(1) Investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient are not 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 for the total defined benefit pension plan assets.

(2)

The fair value of the fund is based on the fair value of the underlying assets, substantially all of which is invested in the York Credit Opportunities Master Fund, L.P., an exempted limited partnership formed under the laws of the Cayman Islands. The fund offers very limited liquidity with redemption only allowed on the anniversary of investment with 60 days