Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

The following table provides an analysis of the changes in the benefit obligations, plan assets and funded status of our dedicated pension plans (including those transferred to us):



	As of and for the
	Year Ended December 31,
(MILLIONS OF DOLLARS)	2019			2018
Change in benefit obligation:
Projected benefit obligation, beginning	$	123		$	129
Service cost	6			7
Interest cost	3			3
Changes in actuarial assumptions and other	19			(4		)
Settlements and curtailments	(1		)	(6		)
Benefits paid	(2		)	—
Adjustments for foreign currency translation	(3		)	(5		)
Other––net	(1		)	(1		)
Benefit obligation, ending	144			123
Change in plan assets:
Fair value of plan assets, beginning	65			69
Actual return on plan assets	7			(1		)
Company contributions	5			5
Settlements and curtailments	(1		)	(5		)
Benefits paid	(2		)	—
Adjustments for foreign currency translation	(2		)	(2		)
Other––net	—			(1		)
Fair value of plan assets, ending	72			65
Funded status—Projected benefit obligation in excess of plan assets at end of year^(a)	$	(72	)	$	(58	)

^(a)

Included in Other noncurrent liabilities.

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

Information related to the funded status of selected plans follows:



	As of December 31,
(MILLIONS OF DOLLARS)	2019		2018
Pension plans with an accumulated benefit obligation in excess of plan assets:
Fair value of plan assets	$	65	$	56
Accumulated benefit obligation	113		95
Pension plans with a projected benefit obligation in excess of plan assets:
Fair value of plan assets	66		60
Projected benefit obligation	138		118

Schedule of Net Benefit Costs

The following table provides the net periodic benefit cost associated with dedicated pension plans (including those transferred to us):



	Year Ended December 31,
(MILLIONS OF DOLLARS)	2019			2018			2017
Service cost	$	6		$	7		$	7
Interest cost	3			3			3
Expected return on plan assets	(3		)	(3		)	(3		)
Amortization of net (gains) / losses	1			1			1
Settlement and curtailments (gains) / losses	—			(1		)	1
Net periodic benefit cost	$	7		$	7		$	9

Schedule of Assumptions Used

The following table provides the weighted average actuarial assumptions for the dedicated pension plans (including those transferred to us):



	As of December 31,
(PERCENTAGES)	2019		2018		2017
Weighted average assumptions used to determine benefit obligations:
Discount rate	1.3	%	2.3	%	2.2	%
Rate of compensation increase	3.1	%	3.0	%	3.0	%
Weighted average assumptions used to determine net benefit cost for the year ended December 31:
Discount rate	2.3	%	2.2	%	2.1	%
Expected return on plan assets	4.1	%	4.4	%	3.9	%
Rate of compensation increase	3.0	%	3.0	%	3.2	%

Schedule of Allocation of Plan Assets

The components of plan assets follow:



	As of December 31,
(MILLIONS OF DOLLARS)	2019		2018
Cash and cash equivalents	$	1	$	1
Equity securities: Equity commingled funds	27		25
Debt securities: Government bonds	36		31
Other investments	8		8
Total^(a)	$	72	$	65

^(a)

Fair values are determined based on valuation inputs categorized as Level 1, 2 or 3 (see Note 3. Significant Accounting Policies—Fair Value). Investment plan assets are valued using Level 1 or Level 2 inputs.

Schedule Of Percentage Of Allocation Of Plan Assets

The long-term target asset allocations and the percentage of the fair value of plans assets for dedicated benefit plans follow:



	As of December 31,
	Target allocation
	percentage		Percentage of Plan Assets
(PERCENTAGES)	2019		2019		2018
Cash and cash equivalents	0-10%		1.7	%	0.9	%
Equity securities	0-60%		36.9	%	43.0	%
Debt securities	15-100%		49.7	%	46.5	%
Other investments	0-100%		11.7	%	9.6	%
Total	100	%	100	%	100	%