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Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2019
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)
2019
 
2018
 
2017
Service cost
$
—

 
$
—

 
$
1

Interest cost
2

 
2

 
2

Amortization of prior service credit
(4
)
 
(4
)
 
(3
)
Amortization of net actuarial loss
2

 
2

 
2

Net periodic benefit cost
$
—

 
$
—

 
$
2
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)
2019
 
2018
 
2017
Net loss (gain)
$
(2
)
 
$
1

 
$
(5
)
Prior service credit
—

 
(3
)
 
(3
)
Amortization of prior service credit
4

 
4

 
3

Amortization of net actuarial loss
(2
)
 
(2
)
 
(2
)
Foreign Exchange/Other
—

 
—

 
(1
)
Losses (gains) recognized in other comprehensive loss
$
—

 
$
—

 
$
(8
)
Total losses (gains) recognized in comprehensive income
$
—

 
$
—

 
$
(6
)
Defined benefit contributions by employer Matching obligations, the majority of which were funded in cash in connection with the plans, and other company contributions are as follows:
(in millions)
Defined Contribution
2019
$
49

2018
39

2017
38
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, 2019
 
December 31, 2018
 
Pension
 
Other
 
Total
 
Pension
 
Other
 
Total
Fair value of plan assets
$
605

 
$
—

 
$
605

 
$
567

 
$
—

 
$
567

Projected benefit obligation
(959
)
 
(49
)
 
(1,008
)
 
(862
)
 
(52
)
 
(914
)
Funded status
$
(354
)
 
$
(49
)
 
$
(403
)
 
$
(295
)
 
$
(52
)
 
$
(347
)
Amounts recognized in the balance sheet
 
 
 
 
 
 
 
 
 
 
 
Other non-current assets
$
58

 
$
—

 
$
58

 
$
68

 
$
—

 
$
68

Accrued and other current liabilities
(13
)
 
(3
)
 
(16
)
 
(12
)
 
(3
)
 
(15
)
Accrued postretirement benefits
(399
)
 
(46
)
 
(445
)
 
(351
)
 
(49
)
 
(400
)
Net amount recognized
$
(354
)
 
$
(49
)
 
$
(403
)
 
$
(295
)
 
$
(52
)
 
$
(347
)
Accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Net actuarial losses
$
(330
)
 
$
(19
)
 
$
(349
)
 
$
(260
)
 
$
(24
)
 
$
(284
)
Prior service credit
(3
)
 
7

 
4

 
(4
)
 
12

 
8

Total
$
(333
)
 
$
(12
)
 
$
(345
)
 
$
(264
)
 
$
(12
)
 
$
(276
)
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)
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
99

 
$
107

 
$
763

 
$
843

Service cost
3

 
3

 
9

 
9

Interest cost
4

 
4

 
19

 
19

Benefits paid
(7
)
 
(5
)
 
(28
)
 
(36
)
Actuarial loss (gain)
15

 
(10
)
 
104

 
(20
)
Plan amendments, settlements and curtailments
—

 
—

 
(23
)
 
3

Foreign currency translation/other
(1
)
 
—

 
2

 
(55
)
Benefit obligation at end of year
$
113

 
$
99

 
$
846

 
$
763

Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
97

 
84

 
$
470

 
$
544

Employer contributions
—

 
22

 
16

 
16

Actual return on plan assets
17

 
(4
)
 
52

 
(20
)
Benefits paid
(7
)
 
(5
)
 
(28
)
 
(36
)
Plan amendments, settlements and curtailments
—

 
—

 
(23
)
 
—

Foreign currency translation/other
(2
)
 
—

 
13

 
(34
)
Fair value of plan assets at end of year
$
105

 
$
97

 
$
500

 
$
470

Unfunded status of the plans
$
(8
)
 
$
(2
)
 
$
(346
)
 
$
(293
)
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)
2019
 
2018
Projected benefit obligation
$
562

 
$
500

Accumulated benefit obligation
526

 
470

Fair value of plan assets
150

 
137
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.
 
2019
 
2018
 
2017
 
U.S.
 
Int’l
 
U.S.
 
Int’l
 
U.S.
 
Int’l
Benefit Obligation Assumptions
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.25
%
 
1.80
%
 
4.50
%
 
2.60
%
 
3.75
%
 
2.43
%
Rate of future compensation increase
NM

 
2.94
%
 
NM

 
2.92
%
 
NM

 
2.93
%
Net Periodic Benefit Cost Assumptions
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.50
%
 
2.60
%
 
3.75
%
 
2.43
%
 
4.25
%
 
2.63
%
Expected long-term return on plan assets
7.75
%
 
6.96
%
 
8.00
%
 
7.23
%
 
8.00
%
 
7.20
%
Rate of future compensation increase
NM

 
2.92
%
 
NM

 
2.93
%
 
NM

 
2.76
%

NM
Not meaningful. The pension benefits for future service for all the U.S. pension plans are based on years of service and not impacted by future compensation increases.
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.
 
2019
 
2018
 
2017
Expected long-term rate of return on plan assets
7.09
%
 
7.34
 %
 
7.30
%
Actual rate of return (loss) on plan assets
12.59
%
 
(3.85
)%
 
5.70
%
Allocation of plan assets
The following table provides the actual asset allocations of plan assets as of December 31, 2019 and 2018, and the related asset target allocation ranges by asset category.
 
2019
 
2018
 
Target
Allocation
Ranges
Equity securities
18.6
%
 
29.7
%
 
15-60%
Fixed income
31.7
%
 
24.5
%
 
10-50%
Hedge funds
2.0
%
 
11.8
%
 
0-40%
Private equity
—
%
 
1.1
%
 
0-30%
Cash, insurance contracts and other
47.7
%
 
32.9
%
 
0-60%

The following table provides the fair value of plan assets held by our pension benefit plans by asset class:
 
2019
 
2018
(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
$
90

$
—

$
—

$
13

$
103

 
$
88

$
—

$
—

$
29

$
117

Index funds
—

—

—

—

—

 
—

—

—

1

1

Diversified Growth and Income Funds
—

—

—

9

9

 
—

—

—

51

51

Fixed income
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
86

—

—

5

91

 
34

—

—

25

59

Government bonds
35

—

—

27

62

 
31

—

—

20

51

Hedging Instruments
4

35

—

—

39

 
5

22

—

—

27

Diversified Growth and Income Funds
—

—

—

—

—

 
—

—

—

2

2

Hedge funds
—

—

—

12

12

 
—

—

—

67

67

Private equity
—

—

—

—

—

 
—

—

—

6

6

Insurance contracts and other


—

13

3

16

 
104

—

12

70

186

Cash & Cash Equivalents
273

—

—

—

273

 
—

—

—

—

—

Total plan assets subject to leveling
$
488

$
35

$
13

$
69

$
605

 
$
262

$
22

$
12

$
271

$
567
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, 2017
 
$
17

Purchases, sales, settlements
 
(5
)
Currency impact
 
—

Balance, December 31, 2018
 
$
12

Purchases, sales, settlements
 
1

Currency impact
 
—

Balance, December 31, 2019
 
$
13
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
2020
$
37

 
$
3

2021
36

 
3

2022
37

 
3

2023
38

 
3

2024
39

 
3

Years 2025 - 2029
208

 
16
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)
2019
 
2018
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
52

 
$
55

Service cost
—

 
—

Interest cost
2

 
2

Benefits paid
(3
)
 
(3
)
Actuarial gain/(loss)
(2
)
 
1

Plan Amendment and other
—

 
(3
)
Benefit obligation at the end of year
$
49

 
$
52
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)
2019
 
2018
 
2017
Domestic defined benefit pension plans:
 
 
 
 
 
Service cost
$
3

 
$
3

 
$
3

Interest cost
4

 
4

 
4

Expected return on plan assets
(8
)
 
(7
)
 
(6
)
Amortization of net actuarial loss
1

 
2

 
2

Net periodic benefit cost
$
—

 
$
2

 
$
3

International defined benefit pension plans:
 
 
 
 
 
Service cost
$
9

 
$
9

 
$
12

Interest cost
19

 
19

 
21

Expected return on plan assets
(27
)
 
(35
)
 
(34
)
Amortization of net actuarial loss
9

 
9

 
9

Settlement
9

 
1

 
1

Net periodic benefit cost
$
19

 
$
3

 
$
9

Total net periodic benefit cost
$
19

 
$
5

 
$
12
Components of net periodic benefit cost and other amounts recognized in other comprehensive income
Other changes in plan 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)
2019
 
2018
 
2017
Domestic defined benefit pension plans:
 
 
 
 
 
Net (gain) loss
$
6

 
$
1

 
$
1

Prior service cost
—

 
—

 
1

Amortization of net actuarial loss
(1
)
 
(2
)
 
(2
)
(Gains) losses recognized in other comprehensive loss
$
5

 
$
(1
)
 
$
—

International defined benefit pension plans:
 
 
 
 
 
Net (gain) loss
$
79

 
$
35

 
$
23

Prior service credit
—

 
3

 
1

Amortization of net actuarial loss
(9
)
 
(9
)
 
(9
)
Settlement
(9
)
 
(1
)
 
(1
)
Foreign Exchange
3

 
(15
)
 
19

(Gains) losses recognized in other comprehensive loss
$
64

 
$
13

 
$
33

Total (gains) losses recognized in other comprehensive loss
$
69

 
$
12

 
$
33

Total (gains) losses recognized in comprehensive income
$
88

 
$
17

 
$
45