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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]  
Expense recognized for defined contribution savings plans, included in compensation and benefits and discontinued operations in the consolidated statements of income
The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income, as follows (in millions):
Years ended December 31
2016
 
2015
 
2014
U.S.
$
142

 
$
133

 
$
123

U.K.
43

 
42

 
42

Netherlands and Canada
27

 
25

 
30

Total
$
212

 
$
200

 
$
195
Pension Plans, Defined Benefit  
Defined Benefit Plan Disclosure [Line Items]  
Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status
The following tables provide a reconciliation of the changes in the projected benefit obligations and fair value of assets for the years ended December 31, 2016 and 2015 and a statement of the funded status as of December 31, 2016 and 2015, for the material U.K. plans, U.S. plans and other major plans, which are located in the Netherlands and Canada. These plans represent approximately 92% of the Company’s projected benefit obligations.
 
U.K.
 
U.S.
 
Other
(millions)
2016

2015
 
2016
 
2015
 
2016
 
2015
Change in projected benefit obligation
 
 
 
 
 
 
 
 
 
 
 
At January 1
$
4,985

 
$
5,529

 
$
3,160

 
$
3,350

 
$
1,177

 
$
1,399

Service cost
—

 
1

 
—

 
—

 
—

 
—

Interest cost
158

 
198

 
111

 
131

 
29

 
33

Plan amendment
(20
)
 
27

 
—

 
—

 
—

 
(10
)
Settlements
(159
)
 
—

 
(281
)
 
—

 
—

 
—

Plan transfer and acquisitions
—

 
(2
)
 
—

 
(18
)
 
—

 
—

Actuarial loss (gain)
32

 
(83
)
 
(43
)
 
(25
)
 
(7
)
 
24

Benefit payments
(242
)
 
(217
)
 
(139
)
 
(133
)
 
(39
)
 
(38
)
Change in discount rate
1,079

 
(247
)
 
100

 
(145
)
 
100

 
(66
)
Foreign currency impact
(959
)
 
(221
)
 
—

 
—

 
(33
)
 
(165
)
At December 31
$
4,874

 
$
4,985

 
$
2,908

 
$
3,160

 
$
1,227

 
$
1,177

Accumulated benefit obligation at end of year
$
4,874

 
$
4,985

 
$
2,908

 
$
3,160

 
$
1,191

 
$
1,135

Change in fair value of plan assets
 
 
 
 
 
 
 
 
 
 
 
At January 1
$
5,903

 
$
6,224

 
$
1,951

 
$
2,036

 
$
1,019

 
$
1,161

Actual return on plan assets
1,233

 
91

 
116

 
(60
)
 
111

 
8

Employer contributions
67

 
65

 
36

 
108

 
20

 
21

Settlements
(159
)
 
—

 
(281
)
 
—

 
—

 
—

Plan transfer and acquisitions
—

 
(3
)
 
—

 
—

 
—

 
—

Benefit payments
(242
)
 
(217
)
 
(139
)
 
(133
)
 
(39
)
 
(38
)
Foreign currency impact
(1,127
)
 
(257
)
 
—

 
—

 
(35
)
 
(133
)
At December 31
$
5,675

 
$
5,903

 
$
1,683

 
$
1,951

 
$
1,076

 
$
1,019

Market related value at end of year
$
5,675

 
$
5,903

 
$
1,819

 
$
2,064

 
$
1,076

 
$
1,019

Amount recognized in Statement of Financial Position at December 31
 
 
 
 
 
 
 
 
 
 
 
Funded status
$
801

 
$
918

 
$
(1,225
)
 
$
(1,209
)
 
$
(151
)
 
$
(158
)
Unrecognized prior-service cost
19

 
46

 
6

 
9

 
(6
)
 
(7
)
Unrecognized loss
1,237

 
1,465

 
1,612

 
1,723

 
400

 
389

Net amount recognized
$
2,057

 
$
2,429

 
$
393

 
$
523

 
$
243

 
$
224
Amounts recognized in the Consolidated Statements of Financial Position
Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions):
 
U.K.
 
U.S.
 
Other
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Prepaid benefit cost (1)
$
836

 
$
1,012

 
$
—

 
$
—

 
$
—

 
$
—

Accrued benefit liability (2)
(35
)
 
(94
)
 
(1,225
)
 
(1,209
)
 
(151
)
 
(158
)
Accumulated other comprehensive loss
1,256

 
1,511

 
1,618

 
1,732

 
394

 
382

Net amount recognized
$
2,057

 
$
2,429

 
$
393

 
$
523

 
$
243

 
$
224


(1)
Included in Prepaid pension
(2)
Included in Other current liabilities and Pension, other post retirement, and post employment liabilities
Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost
Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2016 and 2015 consist of (in millions):
 
U.K.
 
U.S.
 
Other
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Net loss
$
1,237

 
$
1,465

 
$
1,612

 
$
1,723

 
$
400

 
$
389

Prior service cost (income)
19

 
46

 
6

 
9

 
(6
)
 
(7
)
Total
$
1,256

 
$
1,511

 
$
1,618

 
$
1,732

 
$
394

 
$
382
Components of net periodic benefit cost for the pension plans
The following table provides the components of net periodic benefit (income) cost for the plans (in millions):
 
U.K.
 
U.S.
 
Other
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
$
—

 
$
1

 
$
1

 
$
—

 
$
—

 
$
2

 
$
—

 
$
—

 
$
—

Interest cost
158

 
198

 
230

 
111

 
131

 
129

 
29

 
33

 
47

Expected return on plan assets, net of administration expenses
(243
)
 
(307
)
 
(326
)
 
(156
)
 
(154
)
 
(157
)
 
(48
)
 
(50
)
 
(59
)
Amortization of prior-service cost
2

 
1

 
1

 
2

 
2

 
2

 
—

 
—

 
—

Amortization of net actuarial loss
31

 
41

 
52

 
50

 
54

 
42

 
10

 
11

 
10

Net periodic benefit (income) cost
(52
)
 
(66
)
 
(42
)
 
7

 
33

 
18

 
(9
)
 
(6
)
 
(2
)
Settlement expense
61

 
—

 
—

 
158

 
—

 
—

 
—

 
—

 
—

Curtailment gain and other
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(2
)
Total net periodic benefit cost (income)
$
9

 
$
(66
)
 
$
(42
)
 
$
165

 
$
33

 
$
18

 
$
(9
)
 
$
(6
)
 
$
(4
)
Weighted-average assumptions used to determine future benefit obligations and net periodic benefit cost
The weighted-average assumptions used to determine benefit obligations are as follows:
 
U.K.

U.S.

Other
 
2016

2015

2016

2015

2016

2015
Discount rate
2.77%

3.96%

3.53-4.11%

3.69-4.43%

1.85-3.81%

2.43-3.96%
Rate of compensation increase
3.70 - 4.20%

3.63-4.13%

N/A

N/A

1.00-3.50%

2.00-3.50%
Underlying price inflation
1.83%

1.88%

N/A

N/A

2.00-2.50%

2.00-2.50%
The weighted-average assumptions used to determine the net periodic benefit cost are as follows:
 
U.K.

U.S.

Other
 
2016

2015

2014

2016

2015

2014

2016

2015

2014
Discount rate
3.96%

3.70%

4.55%

3.69 - 4.43%

3.37 - 4.08%

3.97 - 4.87%

2.43 - 3.96%

2.03 - 3.91%

3.60 - 4.71%
Expected return on plan assets, net of administration expenses
4.55%

5.09%

6.00%

7.81%

7.96%

8.80%

3.47 - 4.95%

3.99 - 5.21%

4.70 - 6.50%
Rate of compensation increase
3.63 - 4.13%

3.55 - 4.05%

3.70 - 4.40%

N/A

N/A

N/A

2.00 - 3.50%

2.25 - 3.50%

2.25 - 3.50%
Estimated Future Benefit Payments
Estimated future benefit payments for plans are as follows at December 31, 2016 (in millions):
 
 
U.K.
 
U.S.
 
Other
2017
 
$
124

 
$
168

 
$
39

2018
 
130

 
180

 
40

2019
 
140

 
187

 
40

2020
 
148

 
191

 
41

2021
 
156

 
185

 
42

2022 – 2026
 
892

 
893

 
228
U.S.  
Defined Benefit Plan Disclosure [Line Items]  
Fair values of pension plan assets
The fair values of the Company’s U.S. pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
 
 
 
Fair Value Measurements Using
Asset Category
Balance at December 31, 2016
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents (1)
$
100

 
$
100

 
$
—

 
$
—

Equity investments:
 
 
 
 
 
 
 
Large cap domestic
268

 
268

 
—

 
—

Small cap domestic
15

 
15

 
—

 
—

International
64

 
64

 
—

 
—

Equity derivatives
81

 
78

 
3

 
—

Pooled funds:
 
 
 
 
 
 
 
   International (2)
196

 
—

 
—

 
—

   Small cap domestic (2)
52

 
—

 
—

 
—

Fixed income investments: (3)
 
 
 
 
 
 
 
Corporate bonds
105

 
—

 
105

 
—

Government and agency bonds
132

 
76

 
56

 
—

Asset-backed securities
—

 
—

 
—

 
—

Fixed income derivatives
65

 
65

 
—

 
—

Pooled funds:
 
 
 
 
 
 
 
   Corporate bonds (2)
255

 
—

 
—

 
—

Other investments:
 
 
 
 
 
 
 
Commodity derivatives (4)
22

 
—

 
22

 
—

Real estate and REITS (5)
61

 
61

 
—

 
—

Alternative investments (2) (6)
267

 
—

 
—

 
—

Total
$
1,683

 
$
727

 
$
186

 
$
—

(1)
Consists of cash and institutional short-term investment funds.
(2)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.
(3)
Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives.
(4)
Consists of long-dated options and swaps on a commodity index.
(5)
Consists of exchange traded real estate investment trusts (“REITS”).
(6)
Consists of limited partnerships, private equity and hedge funds.
 
 
 
Fair Value Measurements Using
Asset Category
Balance at December 31, 2015
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents (1)
$
33

 
$
33

 
$
—

 
$
—

Equity investments:
 
 
 
 
 
 
 
Large cap domestic
299

 
299

 
—

 
—

Small cap domestic
30

 
30

 
—

 
—

International
52

 
52

 
—

 
—

Equity derivatives
203

 
170

 
33

 
—

  Pooled funds:
 
 
 
 
 
 
 
    International (2)
210

 
—

 
—

 
—

    Small cap domestic (2)
58

 
—

 
—

 
—

Fixed income investments: (3)
 
 
 
 
 
 
 
Corporate bonds
148

 
—

 
148

 
—

Government and agency bonds
128

 
52

 
76

 
—

Asset-backed securities
—

 
—

 
—

 
—

Fixed income derivatives
69

 
47

 
22

 
—

Pooled funds:
 
 
 
 
 
 
 
   Corporate bonds (2)
336

 
—

 
—

 
—

Other investments:
 
 
 
 
 
 
 
Commodity derivatives (4)
13

 
—

 
13

 
—

Real estate and REITS (5)
67

 
67

 
—

 
—

Alternative investments (2) (6)
305

 
—

 
—

 
—

Total
$
1,951

 
$
750

 
$
292

 
$
—


(1)
Consists of cash and institutional short-term investment funds.
(2)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.
(3)
Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives.
(4)
Consists of long-dated options on a commodity index.
(5)
Consists of exchange traded REITS.
(6)
Consists of limited partnerships, private equity and hedge funds.
U.K.  
Defined Benefit Plan Disclosure [Line Items]  
Fair values of pension plan assets
The fair values of the Company’s major U.K. pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2016
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents (1)
$
86

 
$
86

 
$
—

 
$
—

Equity investments:
 
 


 

 

  Global
135

 
135

 
—

 
—

  Pooled funds:
 
 

 

 

  Global (2)
365

 
—

 
—

 
—

  Europe (2)
18

 
—

 
—

 
—

Fixed income investments: (3)
 
 

 

 

  Derivatives (4)
10

 
—

 
10

 
—

  Fixed income securities (5)
2,129

 
1,726

 
403

 
—

  Annuities
1,773

 
—

 
—

 
1,773

  Pooled funds:
 
 

 

 
 
    Derivatives (2)
62

 
—

 
—

 
—

  Fixed income securities (2)
223

 
—

 
—

 
—

Other investments:
 
 

 

 

  Real estate (2) (6)
101

 
—

 
—

 
—

  Alternative investments (2) (7)
773

 
—

 
—

 
—

Total
$
5,675

 
$
1,947

 
$
413

 
$
1,773

(1)
Consists of cash and institutional short-term investment funds.
(2)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.
(3)
Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.
(4)
Consists of equity securities and equity derivatives.
(5)
Consists of corporate and government bonds and fixed income derivatives.
(6)
Consists of property funds and trusts holding direct real estate investments.
(7)
Consists of limited partnerships, private equity and hedge funds.



 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2015
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents (1)
$
159

 
$
159

 
$
—

 
$
—

Equity investments:
 
 
 
 
 
 
 
  Derivatives
66

 
—

 
66

 
—

Global
133

 
133

 
—

 
—

  Pooled funds:
 

 


 


 


  Global (2)
360

 
—

 
—

 
—

    Europe (2)
17

 
—

 
—

 
—

Fixed income investments: (3)
 

 


 


 


  Derivatives (4)
111

 
—

 
111

 
—

  Fixed income securities (5)
3,145

 
2,268

 
877

 
—

Annuities
827

 
—

 
—

 
827

  Pooled funds:
 

 


 


 


    Fixed income securities (2)
283

 
—

 
—

 
—

Other investments:
 
 
 
 
 
 
 
  Real estate (2) (6)
85

 
—

 
—

 
—

Alternative investments (2) (7)
717

 
—

 
—

 
—

  Total
$
5,903

 
$
2,560

 
$
1,054

 
$
827
Changes in the Level 3 fair-value category
The following table presents the changes in the Level 3 fair-value category in the Company’s U.K. pension plans for the years ended December 31, 2016 and December 31, 2015 (in millions):
Fair Value Measurements Using Level 3 Inputs
Annuities
Balance at January 1, 2015
$
836

Actual return on plan assets:
 
Relating to assets still held at December 31, 2015
(32
)
Purchases, sales and settlements—net
58

Foreign exchange
(35
)
Balance at December 31, 2015
827

Actual return on plan assets:
 
Relating to assets still held at December 31, 2016
7

Purchases, sales and settlements—net
1,248

Foreign exchange
(309
)
Balance at December 31, 2016
$
1,773
U.S. and Canadian Other Post-Retirement Benefits  
Defined Benefit Plan Disclosure [Line Items]  
Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status
The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2016 and 2015 for the Company’s other significant post-retirement benefit plans located in the U.S. and Canada (in millions):
 
2016
 
2015
Accumulated projected benefit obligation
$
110

 
$
105

Fair value of plan assets
18

 
18

Funded status
(92
)
 
(87
)
Unrecognized prior-service credit
(3
)
 
(3
)
Unrecognized loss
10

 
7

Net amount recognized
$
(85
)
 
$
(83
)
Fair values of pension plan assets
The fair values of the Company’s other major pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2016
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents
$
11

 
$
11

 
$
—

 
$
—

Equity investments:
 
 
 
 
 
 
 
   Pooled funds:
 
 
 
 
 
 
 
  Global (1)
322

 
—

 
—

 
—

  North America (1)
36

 
—

 
—

 
—

  Derivatives (1)
20

 
—

 
—

 
—

Fixed income investments:
 
 
 
 
 
 
 
   Fixed income securities (2)
166

 
—

 
166

 
—

   Derivatives (2)
37

 
—

 
37

 
—

   Pooled funds:
 
 
 
 
 
 
 
   Fixed income securities (1)
469

 
—

 
—

 
—

Other investments:
 
 
 
 
 
 
 
   Alternative investments (1) (3)
9

 
—

 
—

 
—

   Pooled funds:
 
 
 
 
 
 
 
   REITS (1) (4)
6

 
—

 
—

 
—

Total
$
1,076

 
$
11

 
$
203

 
$
—

(1)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note.
(2)
Consists of corporate and government bonds and fixed income derivatives.
(3)
Consists of limited partnerships, private equity and hedge funds.
(4)
Consists of property funds and trusts holding direct real estate investments.
 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2015
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash and cash equivalents
$
11

 
$
11

 
$
—

 
$
—

Equity investments:
 
 
 
 
 
 
 
   Pooled funds:
 
 
 
 
 
 
 
  Global (1)
270

 
—

 
—

 
—

  North America (1)
37

 
—

 
—

 
—

  Derivatives (1)
21

 
—

 
—

 
—

Fixed income investments:
 
 
 

 
 

 
 

   Fixed income securities (2)
30

 
—

 
30

 
—

   Derivatives (2)
48

 
—

 
48

 
—

   Pooled funds:
 
 
 

 
 

 
 

   Fixed income securities (1)
576

 
—

 
—

 
—

   Derivatives (1)
12

 
—

 
—

 
—

Other investments:
 
 
 

 
 

 
 

   Alternative investments (1) (3)
9

 
—

 
—

 
—

   Pooled funds:
 
 
 

 
 

 
 

   Commodities (1)
2

 
—

 
—

 
—

   REITS (1) (4)
3

 
—

 
—

 
—

Total
$
1,019

 
$
11

 
$
78

 
$
—
Other information related to the Company's other post-retirement benefit plans
Other information related to the Company’s other post-retirement benefit plans are as follows:
 
2016
 
2015
 
2014
Net periodic benefit cost recognized (millions)
$5
 
$6
 
$3
Weighted-average discount rate used to determine future benefit obligations
3.71-4.15%

3.99-4.33%

3.83 - 4.08
Weighted-average discount rate used to determine net periodic benefit costs
3.99-4.33%

3.83-4.08%

4.44 - 4.95