We sponsor the Sabre Inc. 401(k) Savings Plan (“401(k) Plan”), which is a tax qualified defined contribution plan that allows tax deferred savings by eligible employees to provide funds for their retirement. We make a matching contribution equal to 100% of each pre-tax dollar contributed by the participant on the first 6% of eligible compensation. We recognized expenses related to the 401(k) Plan of approximately $23 million, $22 million and $25 million for the years ended December 31, 2019, 2018 and 2017, respectively.

We sponsor the Sabre Inc. Legacy Pension Plan (“LPP”), which is a tax qualified defined benefit pension plan for employees meeting certain eligibility requirements. The LPP was amended to freeze pension benefit accruals as of December 31, 2005, and as a result, no additional pension benefits have been accrued since that date. In April 2008, we amended the LPP to add a lump sum optional form of payment which participants may elect when their plan benefits commence. The effect of the amendment was to decrease the projected benefit obligation by $34 million, which is being amortized over 23.5 years, representing the weighted average of the lump sum benefit period and the life expectancy of all plan participants. We also sponsor postretirement benefit plans for certain employees in Canada and other jurisdictions.

The following tables provide a reconciliation of the changes in the LPP’s benefit obligations and fair value of assets during the years ended December 31, 2019 and 2018, and the unfunded status as of December 31, 2019 and 2018 (in thousands):


	Year Ended December 31,
	2019		2018
Change in benefit obligation:
Benefit obligation at January 1	$	(428,216)	$	(459,439)

Interest cost	(18,324)		(17,090)
Actuarial (loss) gain, net	(47,632)		18,529
Benefits paid	30,736		29,784
Benefit obligation at December 31	$	(463,436)	$	(428,216)
Change in plan assets:
Fair value of assets at January 1	$	312,455	$	347,773
Actual return on plan assets	54,945		(25,333)
Employer contributions	1,600		19,800
Benefits paid	(30,736)		(29,785)
Fair value of assets at December 31	$	338,264	$	312,455
Unfunded status at December 31	$	(125,172)	$	(115,761)

The actuarial loss, net of $48 million for the year ended December 31, 2019 is attributable to a decrease in the discount rate. The actuarial gain, net of $19 million for the year ended December 31, 2018, is attributable to an increase in the discount rate.

The net benefit obligation of $125 million and $116 million as of December 31, 2019 and 2018, respectively, is included in other noncurrent liabilities in our consolidated balance sheets.

The amounts recognized in accumulated other comprehensive income (loss) associated with the LPP, net of deferred taxes of $42 million and $40 million as of December 31, 2019 and 2018, respectively, are as follows (in thousands):

The following table provides the components of net periodic benefit costs associated with the LPP and the principal assumptions used in the measurement of the LPP benefit obligations and net benefit costs for the three years ended December 31, 2019, 2018 and 2017 (in thousands):


	Year Ended December 31,
	2019			2018			2017
Interest cost	$	18,324		$	17,090		$	18,731
Expected return on plan assets	(18,510)			(18,790)			(20,934)
Amortization of prior service credit	(1,432)			(1,432)			(1,432)
Amortization of actuarial loss	6,516			7,362			6,517
Net cost	$	4,898		$	4,230		$	2,882
Weighted-average discount rate used to measure benefit obligations	3.53		%	4.41		%	3.81		%
Weighted average assumptions used to determine net benefit cost:
Discount rate	4.41		%	3.81		%	4.36		%
Expected return on plan assets	5.75		%	5.75		%	6.50		%

The following table provides the pre-tax amounts recognized in other comprehensive income (loss), including the amortization of the actuarial loss and prior service credit, associated with the LPP for the years ended December 31, 2019, 2018 and 2017 (in thousands):


Obligations Recognized in	Year Ended December 31,
Other Comprehensive Income	2019		2018		2017
Net actuarial loss	$	11,196	$	25,595	$	679
Amortization of actuarial loss	(6,516)		(7,362)		(6,517)
Amortization of prior service credit	1,432		1,432		1,432
Total loss (income) recognized in other comprehensive income	$	6,112	$	19,665	$	(4,406)
Total recognized in net periodic benefit cost and other comprehensive income	$	11,010	$	23,895	$	(1,524)

Our overall investment strategy for the LPP is to provide and maintain sufficient assets to meet pension obligations both as an ongoing business, as well as in the event of termination, at the lowest cost consistent with prudent investment management, actuarial circumstances and economic risk, while minimizing the earnings impact. Diversification is provided by using an asset allocation primarily between equity and debt securities in proportions expected to provide opportunities for reasonable long term returns with acceptable levels of investment risk. Fair values of the applicable assets are determined as follows:

Common Collective Trusts—The fair value of our common collective trusts are estimated by using market quotes as of the last day of the period, quoted prices for similar securities and quoted prices in non-active markets.

Real Estate—The fair value of our real estate funds are derived from the fair value of the underlying real estate assets held by the funds. These assets are initially valued at cost and are reviewed periodically utilizing available market data to determine if the assets held should be adjusted.

The basis for the selected target asset allocation included consideration of the demographic profile of plan participants, expected future benefit obligations and payments, projected funded status of the plan and other factors. The target allocations for LPP assets are 40% global equities, 15% real estate assets, 15% diversified credit and 30% liability hedging fixed income. It is recognized that the investment management of the LPP assets has a direct effect on the achievement of its goal. As defined in Note 10. Fair Value Measurements, the following tables present the fair value of the LPP assets as of December 31, 2019, and 2018:


	Fair Value Measurements at December 31, 2019
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common collective trusts:

Global equity securities	$	—	$	323,810	$	—	$	323,810
Money market mutual fund	4,506		—		—		4,506
Real estate	—		—		9,948		9,948
Total assets at fair value	$	4,506	$	323,810	$	9,948	$	338,264


	Fair Value Measurements at December 31, 2018
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Common collective trusts:
Fixed income securities	$	—	$	181,156	$	—	$	181,156
Global equity securities	—		108,152		—		108,152
Money market mutual fund	2,311		—		—		2,311
Real estate	—		—		20,836		20,836
Total assets at fair value	$	2,311	$	289,308	$	20,836	$	312,455


	Real Estate
Ending balance at December 31, 2017	$	19,455
Contributions	307
Net distributions	(307)
Advisory fee	(198)
Net investment income	845
Unrealized gain	717
Net realized gain	17
Ending balance at December 31, 2018	20,836
Contributions	331
Net distributions	(11,235)
Advisory fee	(205)
Net investment income	771
Unrealized loss	(541)
Net realized loss	(9)
Ending balance at December 31, 2019	$	9,948

We contributed $2 million and $20 million to fund our defined benefit pension plans during the years ended December 31, 2019 and 2018, respectively. Annual contributions to our defined benefit pension plans in the United States, Canada, and other jurisdictions are based on several factors that may vary from year to year. Our funding practice is to contribute the minimum required contribution as defined by law while also maintaining an 80% funded status as defined by the Pension Protection Act of 2006. Thus, past contributions are not always indicative of future contributions. Based on current assumptions, we expect to make $17 million in contributions to our defined benefit pension plans in 2020.

The expected long term rate of return on plan assets for each measurement date was selected after giving consideration to historical returns on plan assets, assessments of expected long term inflation and market returns for each asset class and the target asset allocation strategy. We do not anticipate the return of any plan assets to us in 2020.