At December 31, 2020, the Company had approximately 2,500 employees, of which approximately 100 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.

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 and a percentage of current earnings. For the years ended December 31, 2020, 2019 and 2018, employer contributions for defined contribution plans were $5 million, $13 million and $13 million, respectively, and all funding is current.

The Company has a non-qualified deferred compensation plan (the “NQDC Plan”) for certain members of senior management. NQDC Plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Such equity securities held in a rabbi trust are measured using quoted market prices at the reporting date (Level 1 within the fair value hierarchy) and were included in other assets, with the corresponding liability included in other long-term liabilities in the consolidated balance sheets.

As of December 31, 2020, the Company sponsors two defined benefit plans in the United Kingdom under which accrual of pension benefits have ceased. Plan member benefits that have previously been accrued are indexed in line with inflation during the period up to retirement in order to protect their purchasing power. During 2020, the Company completed a lump-sum window in one plan, which allowed participants to elect a one-time voluntary lump sum payment in lieu of future pension payments. As a result of the lump-sum transaction, the Company recognized a settlement charge of approximately $3 million in other expenses in its consolidated statement of operations. For the remaining participants who did not elect the lump-sum distribution, the Company entered into a buy-in annuity contract in 2020, which is expected to transfer the remaining liability to the insurance provider when the remaining buy-out contract provisions are completed. In connection with these transactions, the Company made a voluntary cash contribution of $3 million in 2020.

Net periodic benefit cost for the Company’s defined benefit plans aggregated $6 million for the year ended December 31, 2020, and were included in other expense in the consolidated statement of operations. Actuarial loss during the year is primarily attributable to the de-risking of the Company’s defined benefit plans including the lump-sum settlement and the purchase of the buy-in annuity contract. The Company immediately recognizes actuarial gains and losses in other expense. These gains and losses are generally measured annually and will normally be recorded in the fourth quarter, unless an earlier remeasurement is required. Should actual experience differ from actuarial assumptions, the projected pension benefit obligation and net pension cost would be affected in future years. Net periodic benefit cost for the defined benefit plans aggregated less than $1 million for each of the years ended December 31, 2019 and 2018.

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, 2020 and 2019, are as follows (in millions):

	Pension Benefits
At year end	2020			2019
Benefit obligation at beginning of year	$	11		$	11
Service cost		—			—
Interest cost		—			—
Actuarial loss (gain)		6			—
Benefits paid		—			—
Participants contributions		—			—
Plan settlements		(8	)		—
Foreign currency exchange rate changes		—			—
Acquisitions (disposals)		—			—
Benefit obligation at end of year	$	9		$	11

Fair value of plan assets at beginning of year	$	16		$	15
Actual return		—			1
Benefits paid		—			—
Company contributions		3			—
Participants contributions		—			—
Plan settlements		(8	)		—
Foreign currency exchange rate changes		—			—
Acquisitions (disposals)		—			—
Fair value of plan assets at end of year	$	11		$	16

Funded status		2			5
Accumulated benefit obligation at end of year	$	9		$	11

The net asset is presented within other assets in the consolidated balance sheets.

The Company estimates income or expense related to its pension and postretirement plans based on actuarial assumptions, including assumptions regarding discount rates and expected returns on plan assets, adjusted for current period actuarial gains and losses. Assumed long-term rates of return on plan assets and discount rates vary for the different plans according to the local economic conditions.

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. In the plan that purchased the annuity contract, the long-term rate of return is equal to the discount rate used to value the obligation.

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 $1 million or less for each of the next five years and in the aggregate $1 million for the five years thereafter. The Company does not expect to contribute to its defined benefit pension plans in 2021.

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 ⁽¹⁾
December 31, 2020:
Annuity contract	$	6	$	—	$	—	$	6
Other		5		1		4		—
Total fair value measurements	$	11	$	1	$	4	$	6

December 31, 2019:
Equity securities	$	6	$	6	$	—	$	—
Fixed income securities		5		5		—		—
Other		5		1		4		—
Total fair value measurements	$	16	$	12	$	4	$	—