Overview—As of December 31, 2019 we had defined benefit plans in the U.S., the United Kingdom (“U.K.”), and Norway. As of December 31, 2019, in the U.S., we had three funded and three unfunded defined benefit plans (the “U.S. Plans”). As of December 31, 2019, in the U.K., we had one funded defined benefit plan (the “U.K. Plan”). As of December 31, 2019, in Norway, we had four funded and two unfunded defined benefit plans (the “Norway Plans”), all of which were group pension schemes with life insurance companies. We refer to the U.K. Plan and the Norway Plans, collectively, as the “Non-U.S. Plans.” We refer to the U.S. Plans and the Non-U.S. Plans, collectively, as the “Transocean Plans”. Additionally, we maintain certain unfunded other postemployment benefit plans (collectively, the “OPEB Plans”), under which benefits to eligible participants diminish during a phase-out period ending December 31, 2025. Benefits under the U.S. Plans and the U.K. Plan have ceased accruing. We maintain the respective pension obligations under such plans until they have been fully satisfied.

Assumptions—We estimated our benefit obligations using the following weighted-average assumptions:

We estimated our net periodic benefit costs using the following weighted-average assumptions:

“na” means not applicable.

Net periodic benefit costs—Net periodic benefit costs recognized included the following components (in millions):


	Year ended December 31, 2019								Year ended December 31, 2018								Year ended December 31, 2017
	U.S.		Non-U.S.		OPEB				U.S.		Non-U.S.		OPEB				U.S.		Non-U.S.		OPEB
	Plans		Plans		Plans		Total		Plans		Plans		Plans		Total		Plans		Plans		Plans		Total
Net periodic benefit costs
Service cost	$	—	$	7	$	—	$	7	$	—	$	7	$	—	$	7	$	3	$	3	$	—	$	6
Interest cost		63		10		1		74		61		10		1		72		65		11		—		76
Expected return on plan assets		(71)		(17)		—		(88)		(72)		(19)		—		(91)		(74)		(20)		—		(94)
Special termination benefits		—		—		—		—		—		—		1		1		—		—		—		—
Settlements and curtailments		1		2		—		3		—		(1)		(4)		(5)		—		13		—		13
Actuarial loss, net		3		—		—		3		8		1		—		9		5		1		1		7
Prior service gain, net		—		—		(2)		(2)		—		—		(2)		(2)		—		—		(3)		(3)
Net periodic benefit costs (income)	$	(4)	$	2	$	(1)	$	(3)	$	(3)	$	(2)	$	(4)	$	(9)	$	(1)	$	8	$	(2)	$	5

Funded status—The changes in projected benefit obligation, plan assets and funded status and the amounts recognized on our consolidated balance sheets were as follows (in millions):


	Year ended December 31, 2019								Year ended December 31, 2018
	U.S.		Non-U.S.		OPEB				U.S.		Non-U.S.		OPEB
	Plans		Plans		Plans		Total		Plans		Plans		Plans		Total
Change in projected benefit obligation
Projected benefit obligation, beginning of period	$	1,527	$	338	$	17	$	1,882	$	1,680	$	379	$	19	$	2,078
Assumed projected benefit obligation		—		—		—		—		—		29		—		29
Actuarial (gains) losses, net		202		45		1		248		(145)		(45)		(2)		(192)
Service cost		—		7		—		7		—		7		—		7
Interest cost		63		10		1		74		61		10		1		72
Currency exchange rate changes		—		14		—		14		—		(21)		—		(21)
Benefits paid		(72)		(19)		(2)		(93)		(69)		(19)		(2)		(90)
Settlements		(24)		—		—		(24)		—		(3)		—		(3)
Plan amendment		—		—		—		—		—		1		—		1
Special termination benefit		—		—		—		—		—		—		1		1
Projected benefit obligation, end of period		1,696		395		17		2,108		1,527		338		17		1,882

Change in plan assets
Fair value of plan assets, beginning of period		1,189		378		—		1,567		1,343		393		—		1,736
Fair value of acquired plan assets		—		—		—		—		—		22		—		22
Actual return on plan assets		272		39		—		311		(87)		(6)		—		(93)
Currency exchange rate changes		—		16		—		16		—		(22)		—		(22)
Employer contributions		4		16		2		22		2		13		2		17
Benefits paid		(72)		(19)		(2)		(93)		(69)		(19)		(2)		(90)
Settlements		(24)		—		—		(24)		—		(3)		—		(3)
Fair value of plan assets, end of period		1,369		430		—		1,799		1,189		378		—		1,567

Funded status, end of period	$	(327)	$	35	$	(17)	$	(309)	$	(338)	$	40	$	(17)	$	(315)

Balance sheet classification, end of period:
Pension asset, non-current	$	—	$	42	$	—	$	42	$	—	$	47	$	—	$	47
Pension liability, current		(1)		(1)		(3)		(5)		(3)		(1)		(3)		(7)
Pension liability, non-current		(326)		(6)		(14)		(346)		(335)		(6)		(14)		(355)
Accumulated other comprehensive loss (income), before taxes		304		84		(12)		376		307		64		(15)		356

Accumulated benefit obligation, end of period	$	1,696	$	385	$	17	$	2,098	$	1,527	$	328	$	17	$	1,872

The aggregate projected benefit obligation and fair value of plan assets for plans with a projected benefit obligation in excess of plan assets were as follows (in millions):


	December 31, 2019								December 31, 2018
	U.S.		Non-U.S.		OPEB				U.S.		Non-U.S.		OPEB
	Plans		Plans		Plans		Total		Plans		Plans		Plans		Total
Projected benefit obligation	$	1,696	$	56	$	17	$	1,769	$	1,527	$	26	$	17	$	1,570
Fair value of plan assets		1,369		49		—		1,418		1,189		20		—		1,209

The aggregate accumulated benefit obligation and fair value of plan assets for plans with an accumulated benefit obligation in excess of plan assets were as follows (in millions):


	December 31, 2019								December 31, 2018
	U.S.		Non-U.S.		OPEB				U.S.		Non-U.S.		OPEB
	Plans		Plans		Plans		Total		Plans		Plans		Plans		Total
Accumulated benefit obligation	$	1,696	$	1	$	17	$	1,714	$	1,527	$	3	$	17	$	1,547
Fair value of plan assets		1,369		—		—		1,369		1,189		—		—		1,189

The amounts in accumulated other comprehensive loss (income) that have not been recognized were as follows (in millions):


	December 31, 2019								December 31, 2018
	U.S.		Non-U.S.		OPEB				U.S.		Non-U.S.		OPEB
	Plans		Plans		Plans		Total		Plans		Plans		Plans		Total
Actuarial loss, net	$	304	$	84	$	2	$	390	$	307	$	63	$	1	$	371
Prior service cost, net		—		—		(14)		(14)		—		1		(16)		(15)
Accumulated other comprehensive loss (income), before taxes	$	304	$	84	$	(12)	$	376	$	307	$	64	$	(15)	$	356

The amounts in accumulated other comprehensive loss (income) expected to be recognized as components of net periodic benefit costs are as follows (in millions):


	Year ending December 31, 2020
	U.S.		Non-U.S.		OPEB
	Plans		Plans		Plans		Total
Actuarial loss, net	$	9	$	1	$	—	$	10
Prior service cost, net		—		—		(2)		(2)
Total amount expected to be recognized	$	9	$	1	$	(2)	$	8

Plan assets—We periodically review our investment policies, plan assets and asset allocation strategies to evaluate performance relative to specified objectives. In determining our asset allocation strategies for the U.S. Plans, we review the results of regression models to assess the most appropriate target allocation for each plan, given the plan’s status, demographics and duration. For the U.K. Plan, the plan trustees establish the asset allocation strategies consistent with the regulations of the U.K. pension regulators and in consultation with financial advisors and company representatives. Investment managers for the U.S. Plans and the U.K. Plan are given established ranges within which the investments may deviate from the target allocations. For the Norway Plans, we establish minimum rates of return under the terms of investment contracts with insurance companies. The weighted-average target and actual allocations of the investments for the funded Transocean Plans were as follows:


	December 31, 2019									December 31, 2018
		Target allocation				Actual allocation				Target allocation				Actual allocation
		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
		Plans		Plans		Plans		Plans		Plans		Plans		Plans		Plans
Equity securities		50	%	24	%	51	%	27	%	50	%	34	%	50	%	32	%
Fixed income securities		50	%	60	%	49	%	56	%	50	%	51	%	50	%	52	%
Other investments		—	%	16	%	—	%	17	%	—		15	%	—		16	%
Total		100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

The investments for the funded Transocean Plans were categorized as follows (in millions):


	December 31, 2019
	Significant observable inputs						Significant other observable inputs						Total
	U.S.		Non-U.S.		Transocean		U.S.		Non-U.S.		Transocean		U.S.		Non-U.S.		Transocean
	Plans		Plans		Plans		Plans		Plans		Plans		Plans		Plans		Plans
Mutual funds
U.S. equity funds	$	480	$	—	$	480	$	1	$	—	$	1	$	481	$	—	$	481
Non-U.S. equity funds		216		—		216		5		115		120		221		115		336
Bond funds		656		—		656		6		240		246		662		240		902
Total mutual funds		1,352		—		1,352		12		355		367		1,364		355		1,719

Other investments
Cash and money market funds		5		4		9		—		—		—		5		4		9
Property collective trusts		—		—		—		—		20		20		—		20		20
Investment contracts		—		—		—		—		51		51		—		51		51
Total other investments		5		4		9		—		71		71		5		75		80

Total investments	$	1,357	$	4	$	1,361	$	12	$	426	$	438	$	1,369	$	430	$	1,799


	December 31, 2018
	Significant observable inputs						Significant other observable inputs						Total
	U.S.		Non-U.S.		Transocean		U.S.		Non-U.S.		Transocean		U.S.		Non-U.S.		Transocean
	Plans		Plans		Plans		Plans		Plans		Plans		Plans		Plans		Plans
Mutual funds
U.S. equity funds	$	401	$	—	$	401	$	—	$	—	$	—	$	401	$	—	$	401
Non-U.S. equity funds		179		—		179		5		120		125		184		120		304
Bond funds		591		—		591		7		195		202		598		195		793
Total mutual funds		1,171		—		1,171		12		315		327		1,183		315		1,498

Other investments
Cash and money market funds		6		1		7		—		—		—		6		1		7
Property collective trusts		—		—		—		—		19		19		—		19		19
Investment contracts		—		—		—		—		43		43		—		43		43
Total other investments		6		1		7		—		62		62		6		63		69

Total investments	$	1,177	$	1	$	1,178	$	12	$	377	$	389	$	1,189	$	378	$	1,567

The U.S. Plans and the U.K. Plan invest primarily in passively managed funds that reference market indices. The funded Norway Plans are subject to contractual terms under selected insurance programs. Each plan’s investment managers have discretion to select the securities held within each asset category. Given this discretion, the managers may occasionally invest in our debt or equity securities and may hold either long or short positions in such securities. As the plan investment managers are required to maintain well diversified portfolios, the actual investment in our securities would be immaterial relative to asset categories and the overall plan assets.

Funding contributions—In the years ended December 31, 2019, 2018 and 2017, we made an aggregate contribution of $22 million, $17 million and $15 million, respectively, to the Transocean Plans and the OPEB Plans using our cash flows from operations. In the year ending December 31, 2020, we expect to contribute $18 million to the Transocean Plans, and we expect to fund benefit payments of approximately $3 million for the OPEB Plans as costs are incurred.

Benefit payments—The projected benefits payments were as follows (in millions):


	U.S.		Non-U.S.		OPEB
	Plans		Plans		Plans		Total
Years ending December 31,
2020	$	79	$	8	$	3	$	90
2021		79		8		3		90
2022		81		8		3		92
2023		82		9		2		93
2024		82		10		3		95
2025 - 2029		419		59		3		481

Defined contribution plans

We sponsor defined contribution plans, for our employees, the most significant of which were as follows: (1) a qualified savings plan covering certain employees working in the U.S., (2) a non-qualified supplemental plan covering certain eligible employees working in the U.S., (3) a qualified savings plan covering certain eligible U.K. employees, (4) a non-qualified savings plan covering certain employees working outside the U.S. and U.K. and (5) various savings plans covering eligible employees working in Norway. In the years ended December 31, 2019, 2018 and 2017, we recognized expense of $52 million, $50 million and $43 million, respectively, related to our defined contribution plans.