Retirement and Employee Benefit Plans

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement and Employee Benefit Plans

Retirement and Employee Benefit Plans

We have defined contribution plans covering certain employees. Contribution expenses related to these plans totaled $66 million, $79 million and $73 million in 2015, 2014 and 2013, respectively. The decrease in employer contributions in 2015 compared to 2014 relates to the reduction in force initiative implemented during the year.

We have defined benefit pension and other post-retirement benefit plans covering certain U.S. and international employees.  Plan benefits are generally based on factors such as age, compensation levels and years of service. Early in 2015, we converted one of our larger defined benefit plans to a defined contribution plan. As a result, amounts shown for 2015 are significantly lower than previous years. Net periodic benefit cost related to these plans totaled $9 million, $18 million and $20 million in 2015, 2014 and 2013, respectively. The projected benefit obligations on a consolidated basis were $245 million and $325 million as of December 31, 2015 and 2014, respectively. Curtailments and settlements totaling $63 million and currency fluctuations of $17 million were the main components reducing the obligation during the year. The fair values of plan assets on a consolidated basis (determined primarily using Level 2 inputs) were $121 million and $161 million as of December 31, 2015 and 2014, respectively. Settlements were the primary factor contributing to the decrease in assets this year. The net underfunded obligation was substantially all recorded within Other Noncurrent Liabilities at each balance sheet date. Additionally, consolidated amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost were $38 million and $75 million as of December 31, 2015 and 2014, respectively. The decrease in other comprehensive loss year over year is due primarily to pre-tax curtailment and settlement gains of $30 million resulting from the conversion of our defined benefit plan to a defined contribution plan, as mentioned above, and also our reduction in force initiatives.

The weighted average assumption rates used for benefit obligations were as follows:

	Year Ended December 31,
	2015	2014
Discount rate:
United States plans	1.00% - 4.25%	1.00% - 4.00%
International plans	2.30% - 8.00%	1.65% - 7.00%
Rate of compensation increase:
United States plans	—	—
International plans	2.00% - 3.20%	2.00% - 3.30%

During 2015 and 2014, we contributed $6 million and $14 million, respectively, to our defined benefit pension and other post-retirement benefit plans. In 2016, we expect to contribute approximately $5 million to those plans.