19. Employee Bargaining Agreements and Benefit Plans

Collective bargaining agreements

At December 31, 2016 the Company had approximately 4,500 employees, of which approximately 300 were temporary employees. Some of the Company’s employees in various foreign locations are subject to collective bargaining agreements. Less than one percent of the Company’s employees in the U.S. are subject to collective bargaining agreements.

Benefit plans

The Company has benefit plans covering substantially all of its employees. Defined contribution benefit plans cover most of the U.S. and Canadian employees, and benefits are based on years of service, a percentage of current earnings and matching of employee contributions. For the years ended December 31, 2016, 2015 and 2014, employer contributions for defined contribution plans were $13 million, $14 million, and $13 million, respectively, and all funding is current.

Defined Benefit Pension Plans

The company sponsors two defined benefit plans in the UK which are frozen.

Net periodic benefit cost for the Company’s defined benefit plans aggregated less than $1 million each year for the years ended December 31, 2016, 2015 and 2014.

The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United Kingdom using a measurement date of December 31, 2016 and 2015, are as follows (in millions):

	Pension Benefits
At year end	2016			2015
Benefit obligation at beginning of year	$	16		$	4
Interest cost		1			1
Actuarial loss (gain)		3			(1	)
Benefits paid		(1	)		—
Plan settlements		(3	)		—
Foreign currency exchange rate changes		(3	)		(1	)
Acquisitions (disposals)		—			13
Benefit obligation at end of year		13			16

Fair value of plan assets at beginning of year	$	18		$	5
Actual return		2			(1	)
Benefits paid		(1	)		—
Company contributions		1			1
Plan settlements		(3	)		—
Foreign currency exchange rate changes		(2	)		—
Acquisitions (disposals)		—			13
Fair value of plan assets at end of year		15			18

Funded status		2			2
Accumulated benefit obligation at end of year		13			16

The net asset is presented within other assets on the consolidated balance sheet.

Assumed long-term rates of return on plan assets and discount rates vary for the different plans according to the local economic conditions. The assumption rates used for benefit obligations are as follows:

	Years Ended December 31,
	2016			2015
Discount rate:		2.70	%		3.70	%

The assumption rates used for net periodic benefit costs are as follows:

	Years Ended December 31,
	2016		2015	2014
Discount rate:		3.70%	3.10% - 3.90%	3.90% - 4.40%
Expected return on assets:	4.04% - 4.50%		2.13% - 5.50%		5.50%

In determining the overall expected long-term rate of return for plan assets, the Company takes into consideration the historical experience as well as future expectations of the asset mix involved. As different investments yield different returns, each asset category is reviewed individually and then weighted for significance in relation to the total portfolio.

Both plans have plan assets in excess of projected benefit obligations.

The Company expects to pay future benefit amounts on its defined benefit plans of less than $1 million for each of the next five years and in the aggregate $3 million for the five years thereafter. The Company expects to contribute less than $1 million to its pension plans in 2017.

Plan Assets

The Company and its investment advisers collaboratively reviewed market opportunities using historic and statistical data, as well as the actuarial valuation reports for the plans, to ensure that the levels of acceptable return and risk are well-defined and monitored. Currently, the Company’s management believes that there are no significant concentrations of risk associated with plan assets.

The following table sets forth by level, within the fair value hierarchy, the Plan’s assets carried at fair value (in millions):

	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
December 31, 2015:
Equity securities	$	10	$	10	$	—	$	—
Fixed Income Securities		3		3		—		—
Other		5		—		5		—
Total Fair Value Measurements	$	18	$	13	$	5	$	—

December 31, 2016:
Equity securities	$	8	$	8	$	—	$	—
Fixed Income Securities		3		3		—		—
Other		4		—		4		—
Total Fair Value Measurements	$	15	$	11	$	4	$	—