Retirement and Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

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 $30 million, $66 million and $79 million in 2016, 2015 and 2014, respectively. The decrease in employer contributions in 2016 compared to 2015 relates primarily to the suspension of employer matching contributions to our U.S. 401(k) savings plan and other contribution plans sponsored by the Company.

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, $9 million and $18 million in 2016, 2015 and 2014, respectively. The projected benefit obligations on a consolidated basis were $205 million and $245 million as of December 31, 2016 and 2015, respectively. The decrease year over year is due primarily to a net actuarial gain associated with our supplemental executive retirement plan. The fair values of plan assets on a consolidated basis (determined primarily using Level 2 inputs) were $118 million and $121 million as of December 31, 2016 and 2015, respectively. As of December 31, 2016, the net underfunded obligation was primarily recorded within Other Non-current Liabilities with approximately $22 million recorded in Accrued Salaries and Benefits. As of December 31, 2015, the net underfunded obligation was substantially all recorded within Other Non-current Liabilities. Additionally, consolidated pre-tax amounts in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit cost were income of $3 million and loss of $38 million as of December 31, 2016 and 2015, respectively. The increase in other comprehensive income (loss) year over year is due primarily to the net actuarial gain mentioned above.

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

	Year Ended December 31,
	2016	2015
Discount rate:
United States plans	1.00% - 4.00%	1.00% - 4.25%
International plans	1.90% - 7.50%	2.30% - 8.00%
Rate of compensation increase:
United States plans	—	—
International plans	2.00% - 3.50%	2.00% - 3.20%

During 2016 and 2015, we made contributions and paid direct benefits of $6 million and $6 million, respectively, in connection with our defined benefit pension and other post-retirement benefit plans. In 2017, we expect to fund approximately $3 million with cash and $22 million with shares related to those plans. In addition, we expect to recognize net gains of approximately $40 million in net periodic benefit cost in conjunction with amortization associated primarily with our supplemental executive retirement plan.