XML 78 R50.htm IDEA: XBRL DOCUMENT

Benefit Obligations (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Contributions to Multiemployer Defined Benefit Pension Plans

Contributions made by the Company to the German multiemployer plan are as follows:



	Year Ended December 31,
	2017	2016	2015
	(In $ millions)
Multiemployer defined benefit plan	7	7	6

Schedule of Postemployment Obligations

Postemployment obligations are as follows:



	As of December 31,
	2017	2016
	(In $ millions)
Postemployment benefits	8	9

Schedule of Contributions to Defined Contribution Plans

The amount of costs recognized for the Company's defined contribution plans are as follows:



	Year Ended December 31,
	2017	2016	2015
	(In $ millions)
Defined contribution plans	40	43	44

Schedule of Company's Pension and Post Retirement Benefit Plans

Summarized information on the Company's pension and postretirement benefit plans is as follows:



	Pension Benefits As of December 31,				Postretirement Benefits As of December 31,
	2017		2016		2017		2016
	(In $ millions)
Change in Projected Benefit Obligation
Projected benefit obligation as of beginning of period	3,610		3,635		67		66
Service cost	9		8		1		—
Interest cost	107		113		1		2
Participant contributions	—		—		—		—
Plan amendments	—		—		—		—
Net actuarial (gain) loss⁽¹⁾	151		102		(2	)	3
Divestitures	—		—		—		—
Settlements	(1	)	(1	)	—		—
Benefits paid	(233	)	(232	)	(4	)	(4	)
Federal subsidy on Medicare Part D	—		—		—		—
Curtailments	—		—		—		—
Special termination benefits	1		3		—		—
Exchange rate changes	69		(18	)	3		—
Other⁽²⁾	15		—		—		—
Projected benefit obligation as of end of period	3,728		3,610		66		67
Change in Plan Assets
Fair value of plan assets as of beginning of period	2,784		2,508		—		—
Actual return on plan assets	302		177		—		—
Employer contributions	359		346		4		4
Participant contributions	—		—		—		—
Settlements	(1	)	(1	)	—		—
Benefits paid⁽³⁾	(233	)	(232	)	(4	)	(4	)
Exchange rate changes	40		(14	)	—		—
Fair value of plan assets as of end of period	3,251		2,784		—		—
Funded status as of end of period	(477	)	(826	)	(66	)	(67	)
Amounts Recognized in the Consolidated Balance Sheets Consist of:
Noncurrent Other assets	64		22		—		—
Current Other liabilities	(24	)	(25	)	(5	)	(5	)
Benefit obligations	(517	)	(823	)	(61	)	(62	)
Net amount recognized	(477	)	(826	)	(66	)	(67	)
Amounts Recognized in Accumulated Other Comprehensive Income Consist of:
Net actuarial (gain) loss⁽⁴⁾	9		18		—		—
Prior service (benefit) cost	(1	)	(1	)	1		(1	)
Net amount recognized⁽⁵⁾	8		17		1		(1	)

______________________________


⁽¹⁾	Primarily relates to change in discount rates.


⁽²⁾	Primarily relates to the acquisition of Nilit (Note 4).


⁽³⁾	Includes benefit payments to nonqualified pension plans of $22 million and $22 million as of December 31, 2017 and 2016, respectively.


⁽⁴⁾	Relates to the pension plans of the Company's equity method investments.


⁽⁵⁾	Amount shown net of an income tax benefit of $6 million and $4 million as of December 31, 2017 and 2016, respectively, in the consolidated statements of equity (Note 17).

Schedule of Percentage of US and International Projected Benefit Obligation

The percentage of US and international projected benefit obligation at the end of the period is as follows:



	Pension Benefits As of December 31,		Postretirement Benefits As of December 31,
	2017	2016	2017	2016
	(In percentages)
US plans	83	85	54	57
International plans	17	15	46	43
Total	100	100	100	100

Schedule of Percentage of US and International Fair Value of Plan Assets

The percentage of US and international fair value of plan assets at the end of the period is as follows:



	Pension Benefits As of December 31,
	2017	2016
	(In percentages)
US plans	88	88
International plans	12	12
Total	100	100

Schedule of Pension Plans with Projected Benefit Obligations in Excess of Plan Assets

Pension plans with projected benefit obligations in excess of plan assets are as follows:



	As of December 31,
	2017	2016
	(In $ millions)
Projected benefit obligation	882	3,559
Fair value of plan assets	341	2,711

Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets

ension plans with accumulated benefit obligations in excess of plan assets are as follows:



	As of December 31,
	2017	2016
	(In $ millions)
Accumulated benefit obligation	861	3,538
Fair value of plan assets	338	2,708

Schedule of Accumulated Benefit Obligation for All Defined Benefit Pension Plans

The accumulated benefit obligation for all defined benefit pension plans is as follows:



	As of December 31,
	2017	2016
	(In $ millions)
Accumulated benefit obligation	3,710	3,591

Schedule of Net Periodic Benefit Costs

The components of net periodic benefit cost are as follows:



	Pension Benefits Year Ended December 31,						Postretirement Benefits Year Ended December 31,
	2017		2016		2015		2017		2016		2015
	(In $ millions)
Service cost	9		8		12		1		—		1
Interest cost	107		113		139		1		2		3
Expected return on plan assets	(198	)	(177	)	(209	)	—		—		—
Amortization of prior service cost / (credit)	—		—		—		(1	)	(3	)	—
Recognized actuarial (gain) loss	48		101		134		(2	)	2		(7	)
Curtailment (gain) loss	—		—		(3	)	—		—		—
Settlement (gain) loss	—		—		—		—		—		—
Special termination benefit	1		3		2		—		—		—
Total	(33	)	48		75		(1	)	1		(3	)

Schedule of Amortization of Accumulated Other Comprehensive Income (Loss), Net Into Net Periodic Benefit Cost

Amortization of Accumulated other comprehensive income (loss), net into net periodic benefit cost in 2018 is expected to be as follows:



	Pension Benefits	Postretirement Benefits
	(In $ millions)
Prior service cost	—	—

Schedule of Nonqualified Pension Plans Funded with Nonqualified Trusts

The Company maintains nonqualified pension plans funded with nonqualified trusts for certain US employees as follows:



	As of December 31,
	2017	2016
	(In $ millions)
Nonqualified Trust Assets
Marketable securities, at fair value	32	30
Noncurrent Other assets, consisting of insurance contracts	42	49
Nonqualified Pension Obligations
Current Other liabilities	22	22
Benefit obligations	237	241

Schedule of Expense Related to Nonqualified Pension Plans Included in Net Periodic Benefit Cost, Excluding Returns on Assets

Expense relating to the nonqualified pension plans included in net periodic benefit cost, excluding returns on the assets held by the nonqualified trusts, is as follows:



	Year Ended December 31,
	2017	2016	2015
	(In $ millions)
Total	18	18	—	⁽¹⁾

______________________________


⁽¹⁾	Actuarial gain offset interest cost.

Schedule of Principle Weighted Average Assumptions Used to Determine Benefit Obligations and Benefit Cost

The principal weighted average assumptions used to determine benefit obligation are as follows:



	Pension Benefits As of December 31,		Postretirement Benefits As of December 31,
	2017	2016	2017	2016
	(In percentages)
Discount Rate Obligations
US plans	3.5	3.9	3.4	3.8
International plans	2.1	2.1	3.2	3.3
Combined	3.3	3.7	3.2	3.4
Rate of Compensation Increase
US plans	N/A	N/A
International plans	2.8	2.8
Combined	2.8	2.8

The principal weighted average assumptions used to determine net periodic benefit cost are as follows:



	Pension Benefits Year Ended December 31,			Postretirement Benefits Year Ended December 31,
	2017	2016	2015	2017	2016	2015
	(In percentages)
Discount Rate Obligations
US plans	3.9	4.2	3.9	3.8	4.0	3.7
International plans	2.1	2.6	2.4	3.3	3.6	3.5
Combined	3.7	4.0	3.7	3.4	3.9	3.6
Discount Rate Service Cost⁽¹⁾
US plans	1.2	4.5	3.9	4.0	4.2	3.7
International plans	2.5	3.1	2.4	3.4	3.8	3.5
Combined	2.5	3.1	3.7	2.9	3.8	3.6
Discount Rate Interest Cost⁽¹⁾
US plans	3.3	3.4	3.9	3.1	3.1	3.7
International plans	1.7	2.2	2.4	2.9	3.1	3.5
Combined	3.1	3.2	3.7	2.9	3.1	3.6
Expected Return on Plan Assets
US plans	7.5	7.5	8.0
International plans	5.9	6.1	6.0
Combined	7.3	7.3	7.8
Rate of Compensation Increase
US plans	N/A	N/A	N/A
International plans	2.8	2.7	2.8
Combined	2.8	2.7	2.8

______________________________


⁽¹⁾	Beginning in 2016, weighted-average discount rates reflect the adoption of the full yield curve approach.

Schedule of Health Care Cost Trend Rates

The Company's health care cost trend assumptions for US postretirement medical plan's net periodic benefit cost are as follows:



	As of December 31,
	2017	2016	2015
	(In percentages, except year)
Health care cost trend rate assumed for next year	9.0	9.5	10.0
Health care cost trend ultimate rate	5.0	5.0	5.0
Health care cost trend ultimate rate year	2026	2026	2026

Schedule of Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend

The impact of a one percentage point change in the assumed health care cost trend is as follows:



	Trend Rate Change
	Decreases 1%	Increases 1%
	(In $ millions)
Postretirement obligations	2	2
Service and interest cost	—	—

Schedule of Weighted Average Target Asset Allocations

The weighted average target asset allocations for the Company's pension plans in 2017 are as follows:



	US Plans	International Plans
	(In percentages)
Bonds - domestic to plans	75	59
Equities - domestic to plans	8	16
Equities - international to plans	7	—
Other	10	25
Total	100	100

Schedule of Fair Values of Pension Plan Assets

Other: Composed of real estate investment trust common stock valued at closing price as reported on the active market in which the individual securities are traded.



	Fair Value Measurement
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
	As of December 31,
	2017	2016	2017	2016	2017	2016
	(In $ millions)
Assets
Cash and cash equivalents	5	2	—	—	5	2
Derivatives
Swaps	—	—	8	2	8	2
Equity securities
US companies	—	260	—	—	—	260
International companies	72	345	—	—	72	345
Fixed income
Corporate debt	—	—	776	798	776	798
Treasuries, other debt	48	37	1,411	793	1,459	830
Mortgage backed securities	—	—	7	7	7	7
Insurance contracts	—	—	36	31	36	31
Other	4	24	1	—	5	24
Total investments, at fair value⁽¹⁾	129	668	2,239	1,631	2,368	2,299
Liabilities
Derivatives
Swaps	—	—	7	2	7	2
Other	—	—	—	1	—	1
Total liabilities	—	—	7	3	7	3
Total net assets⁽²⁾	129	668	2,232	1,628	2,361	2,296

______________________________

⁽¹⁾

In accordance with ASU 2015-07 (Note 2), certain investments that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy. Total investments, at fair value, for the year ended December 31, 2017 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $727 million, $60 million and $96 million, respectively. Total investments, at fair value, for the year ended December 31, 2016 excludes investments in common/collective trusts, registered investment companies and short-term investment funds with fair values of $195 million, $134 million and $149 million, respectively.


⁽²⁾	Total net assets excludes non-financial plan receivables and paya

Schedule of Company Commitments to Fund Benefit Obligations

Benefit obligation funding is as follows:



	Total Expected 2018
	(In $ millions)
Cash contributions to defined benefit pension plans	23
Benefit payments to nonqualified pension plans	21
Benefit payments to other postretirement benefit plans	5

Schedule of Pension Benefits Expected to be Paid from the Plans or From the Company's Assets

Pension and postretirement benefits expected to be paid are as follows:



	Pension Benefit Payments⁽¹⁾	Company Portion of Postretirement Benefit Cost⁽²⁾
	(In $ millions)
2018	235	5
2019	233	5
2020	231	4
2021	227	4
2022	224	4
2023-2027	1,090	18

______________________________


⁽¹⁾	Payments are expected to be made primarily from plan assets.


⁽²⁾	Payments are expected to be made primarily from Company assets.