Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block

Schedule of Net Benefit Costs

The components of net periodic benefit cost for other postretirement employee benefit plans are as follows:

	Year Ended December 31,
(in millions)	2016			2015			2014
Service cost	$	1		$	1		$	1
Interest cost	3			2			3
Amortization of prior service credit	(3		)	(3		)	(1		)
Amortization of net actuarial loss	3			3			2
Net periodic benefit cost	$	4		$	3		$	5

Schedule of Changes in Accumulated Postemployment Benefit Obligations

Other changes in benefit obligations recognized in other comprehensive loss, as they pertain to other postretirement employee benefit plans are as follows:

	Year Ended December 31,
(in millions)	2016			2015			2014
Net loss (gain)	$	3		$	4		$	12
Prior service credit	—			(1		)	(18		)
Amortization of prior service credit	3			3			1
Amortization of net actuarial loss	(3		)	(3		)	(2		)
Foreign Exchange/Other	1			—			—
Losses (gains) recognized in other comprehensive loss	$	4		$	3		$	(7	)
Total losses (gains) recognized in comprehensive income	$	8		$	6		$	(2	)

Defined benefit contributions by employer

Matching obligations, the majority of which were funded in cash in connection with the plans, along with transition credits and other company contributions are as follows:

(in millions)	Defined Contribution
2016	$	35
2015	32
2014	36

Summary of amounts recorded within accumulated other comprehensive income

The following table provides a summary of the funded status of our postretirement plans, the presentation of such balances and a summary of amounts recorded within accumulated other comprehensive income.

(in millions)	December 31, 2016									December 31, 2015
	Pension			Other			Total			Pension			Other			Total
Fair value of plan assets	$	562		$	—		$	562		$	559		$	—		$	559
Projected benefit obligation	(854		)	(64		)	(918		)	(779		)	(61		)	(840		)
Funded status	$	(292	)	$	(64	)	$	(356	)	$	(220	)	$	(61	)	$	(281	)
Amounts recognized in the balance sheet
Other non-current assets	$	67		$	—		$	67		$	68		$	—		$	68
Accrued and other current liabilities	(11		)	(4		)	(15		)	(10		)	(4		)	(14		)
Accrued postretirement benefits	(348		)	(60		)	(408		)	(278		)	(57		)	(335		)
Net amount recognized	$	(292	)	$	(64	)	$	(356	)	$	(220	)	$	(61	)	$	(281	)
Accumulated other comprehensive income (loss):
Net actuarial losses	$	(220	)	$	(32	)	$	(252	)	$	(234	)	$	(31	)	$	(265	)
Prior service credit	1			12			13			—			15			15
Total	$	(219	)	$	(20	)	$	(239	)	$	(234	)	$	(16	)	$	(250	)

Summary of the funded status of postretirement plans

The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit domestic and international pension plans were:

	Domestic Plans						International Plans
	December 31,						December 31,
(in millions)	2016			2015			2016			2015
Change in benefit obligation:
Benefit obligation at beginning of year	$	86		$	88		$	693		$	784
Service cost	3			3			10			12
Interest cost	4			4			21			22
Benefits paid	(4		)	(4		)	(26		)	(29		)
Actuarial loss (gain)	(2		)	(5		)	52			(39		)
Plan amendments, settlements and curtailments	(1		)	1			(1		)	(1		)
Acquisitions	13			—			83			—
Foreign currency translation/Other	1			(1		)	(78		)	(56		)
Benefit obligation at end of year	$	100		$	86		$	754		$	693
Change in plan assets:
Fair value of plan assets at beginning of year	$	57		60			$	502		$	524
Employer contributions	4			3			20			19
Actual return on plan assets	4			(2		)	64			22
Benefits paid	(4		)	(4		)	(26		)	(29		)
Acquisitions	9			—			—			—
Foreign currency translation/Other	(1		)	—			(67		)	(34		)
Fair value of plan assets at end of year	$	69		$	57		$	493		$	502
Unfunded status of the plans	$	(31	)	$	(29	)	$	(261	)	$	(191	)

Accumulated benefit obligation and fair value of the plans' assets

For defined benefit pension plans in which the ABO was in excess of the fair value of the plans’ assets, the projected benefit obligation, ABO and fair value of the plans’ assets were as follows:

	December 31,
(in millions)	2016		2015
Projected benefit obligation	$	474	$	392
Accumulated benefit obligation	453		365
Fair value of plan assets	116		106

Weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our pension plans.

	2016				2015				2014
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Benefit Obligation Assumptions
Discount rate	4.25	%	2.63	%	4.27	%	3.44	%	4.01	%	3.14	%
Rate of future compensation increase	NM		2.76	%	NM		3.29	%	NM		3.34	%
Net Periodic Benefit Cost Assumptions
Discount rate	4.27	%	3.44	%	4.01	%	3.14	%	4.79	%	4.23	%
Expected long-term return on plan assets	8.00	%	7.25	%	8.00	%	7.31	%	8.00	%	7.30	%
Rate of future compensation increase	NM		3.29	%	NM		3.34	%	NM		3.48	%

NM

Not meaningful

Actual plan returns

The table below provides the weighted average actual rate of return generated on all of our plan assets during each of the years presented as compared to the weighted average expected long-term rates of return utilized
in calculating the net periodic benefit costs.

	2016		2015		2014
Expected long-term rate of return on plan assets	7.32	%	7.38	%	7.38	%
Actual rate of return on plan assets	12.20	%	3.51	%	18.13	%

Allocation of plan assets

The following table provides the actual asset allocations of plan assets as of December 31, 2016 and 2015, and the related asset target allocation ranges by asset category.

	2016		2015		Target Allocation Ranges
Equity securities	24.2	%	22.5	%	20-50%
Fixed income	32.7	%	31.5	%	10-40%
Hedge funds	31.7	%	34.0	%	0-40%
Private equity	2.4	%	3.1	%	0-30%
Insurance contracts and other	9.0	%	8.9	%	0-30%

The following table provides the fair value of plan assets held by our pension benefit plans by asset class.

	2016										2015
(in millions)	Level 1		Level 2		Level 3		NAV Practical Expedient		Total		Level 1		Level 2		Level 3		NAV Practical Expedient		Total
Equity securities
Global stock funds/securities	$	87	$	—	$	—	$	6	$	93	$	79	$	—	$	—	$	4	$	83
Index funds	4		—		—		36		40		6		—		—		34		40
Emerging market funds	4		—		—		—		4		3		—		—		—		3
Fixed income
Corporate bonds	22		—		—		18		40		34		4		—		11		49
Government bonds	88		—		—		11		99		99		18		—		10		127
Hedging Instruments	—		45		—		—		45		—		—		—		—		—
Hedge funds	—		—		—		178		178		9		—		—		181		190
Private equity	—		—		—		13		13		—		—		—		17		17
Insurance contracts and other	26		—		24		—		50		25		—		25		—		50
Total plan assets subject to leveling	$	231	$	45	$	24	$	262	$	562	$	255	$	22	$	25	$	257	$	559

Reconciliation of the beginning and ending balances of fair value measurements with pension plans using significant unobservable inputs (level 3)

The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our pension plans using significant unobservable inputs (Level 3).

(in millions)	Insurance Contracts and Other
Balance, December 31, 2014	$	17
Purchases, sales, settlements	2
Net transfers	7
Currency impact	(1		)
Balance, December 31, 2015	$	25
Purchases, sales, settlements	1
Currency impact	(2		)
Balance, December 31, 2016	$	24

Expected benefit payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:

(in millions)	Pension		Other Benefits
2017	$	33	$	4
2018	33		4
2019	34		4
2020	36		4
2021	36		5
Years 2022 - 2026	195		22

Other postretirement benefit plans

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block

Projected benefit obligations

The following table provides a rollforward of the projected benefit obligation for the other postretirement employee benefit plans:

(in millions)	2016			2015
Change in benefit obligation:
Benefit obligation at beginning of year	$	61		$	58
Service cost	1			1
Interest cost	3			2
Benefits paid	(4		)	(3		)
Actuarial loss	3			4
Plan amendment	—			(1		)
Benefit obligation at the end of year	$	64		$	61

Pension

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block

Schedule of Net Benefit Costs

The components of net periodic benefit cost for our defined benefit pension plans are as follows:

	Year Ended December 31,
(in millions)	2016			2015			2014
Domestic defined benefit pension plans:
Service cost	$	3		$	3		$	2
Interest cost	4			4			3
Expected return on plan assets	(5		)	(5		)	(4		)
Amortization of net actuarial loss	2			2			2
Net periodic benefit cost	$	4		$	4		$	3
International defined benefit pension plans:
Service cost	$	10		$	12		$	12
Interest cost	21			22			27
Expected return on plan assets	(30		)	(32		)	(32		)
Amortization of net actuarial loss	8			13			7
Settlement	—			—			1
Net periodic benefit cost	$	9		$	15		$	15
Total net periodic benefit cost	$	13		$	19		$	18

Components of net periodic benefit cost and other amounts recognized in other comprehensive income

Other changes in assets and benefit obligations recognized in other comprehensive loss, as they pertain to our defined benefit pension plans are as follows:

	Year Ended December 31,
(in millions)	2016			2015			2014
Domestic defined benefit pension plans:
Net (gain) loss	$	(1	)	$	2		$	14
Prior service cost	—			—			1
Amortization of net actuarial loss	(2		)	(2		)	(2		)
(Gains) losses recognized in other comprehensive loss	$	(3	)	$	—		$	13
International defined benefit pension plans:
Net (gain) loss	$	18		$	(29	)	$	84
Prior service credit	(1		)	—			—
Amortization of net actuarial loss	(8		)	(13		)	(7		)
Settlement	—			—			(1		)
Foreign Exchange	(20		)	(21		)	(20		)
(Gains) losses recognized in other comprehensive loss	$	(11	)	$	(63	)	$	56
Total (gains) losses recognized in other comprehensive loss	$	(14	)	$	(63	)	$	69
Total (gains) losses recognized in comprehensive income	$	(1	)	$	(44	)	$	87