Retirement and Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

17. Retirement and Employee Benefit Plans

We have defined contribution plans covering certain employees. Contribution expenses related to these plans totaled $31 million, $37 million and $24 million for the Predecessor Period and years ended December 31, 2018 and 2017, respectively. Contribution expenses for the Successor Period were not material. The increase in employer contributions subsequent to 2017 relates primarily to the recommencement 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. Net periodic benefit income/cost related to these plans totaled $5 million of cost, $8 million of cost, and $38 million of income for the Predecessor Period and the years ended December 31, 2018 and 2017 respectively. Net periodic benefit cost for the Successor Period was not material. The decrease in net periodic benefit cost in the Predecessor Period is due primarily to the conversion of our Netherlands plan from

defined benefit to defined contribution which led to no defined benefit expense for the year and a curtailment gain for that plan. The change in net periodic benefit cost in 2018 was due primarily to amortization of the unrecognized net gain associated with our supplemental executive retirement plan in 2017. The projected benefit obligations on a consolidated basis were $198 million and $173 million as of December 31, 2019 and 2018, respectively. The increase year over year is due primarily to actuarial losses as a result of lower discount rates. The fair values of plan assets on a consolidated basis (determined primarily using Level 2 inputs) were $144 million and $123 million as of December 31, 2019 and 2018, respectively. The increase in plan assets year over year is due primarily to positive asset returns. As of December 31, 2019 and December 31, 2018, the net underfunded obligation was substantially all recorded within Other Non-current Liabilities. Additionally, the consolidated pre-tax amount in accumulated other comprehensive income (loss) as of December 31, 2019, that has not yet been recognized as a component of net periodic benefit cost was a net gain of $2 million. The consolidated pre-tax amount in accumulated other comprehensive income (loss) as of December 31, 2018, along with gains (losses) incurred up to December 13, 2019 have been eliminated in conjunction with Fresh Start Accounting.

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



	Successor	Predecessor
	Period From 12/14/19	Year Ended December 31,
	to 12/31/19	2018
Discount rate:
United States Plans	2.50% - 3.25%	3.00% - 4.25%
International Plans	0.80% - 6.25%	1.85% - 7.25%
Rate of Compensation Increase:
United States Plans	—	—
International Plans	2.00% - 3.50%	2.00% - 3.50%

During the Predecessor Period and the year ended December 31, 2018, we made contributions and paid direct benefits of $5 million and $5 million, respectively, in connection with our defined benefit pension and other post-retirement benefit plans. Contributions in the Successor Period were immaterial. In 2020, we expect to fund approximately $5 million related to those plans.