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Pension, Other Postretirement Benefits and Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Benefit Costs and Amounts Recognized in Other Comprehensive (Income) Loss
Total benefits cost and amounts recognized in other comprehensive (income) loss follows:
 
Pension Plans
 
 
 
 
 
 
 
U.S.
 
Non-U.S.
 
Other Postretirement Benefits
(In millions)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Benefits cost:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Service cost
$
5

 
$
4

 
$
15

 
$
29

 
$
43

 
$
34

 
$
3

 
$
3

 
$
4

Interest cost
164

 
238

 
256

 
80

 
113

 
131

 
12

 
15

 
19

Expected return on plan assets
(255
)
 
(295
)
 
(311
)
 
(88
)
 
(107
)
 
(118
)
 
—

 
—

 
(1
)
Amortization of prior service cost (credit)
—

 
—

 
1

 
—

 
1

 
1

 
(45
)
 
(45
)
 
(45
)
Amortization of net losses
109

 
106

 
114

 
27

 
32

 
35

 
5

 
7

 
8

Net periodic cost
23

 
53

 
75

 
48

 
82

 
83

 
(25
)
 
(20
)
 
(15
)
Curtailments/settlements/termination benefits
—

 
137

 
32

 
16

 
2

 
(13
)
 
2

 
—

 
—

Total benefits cost
$
23

 
$
190

 
$
107

 
$
64

 
$
84

 
$
70

 
$
(23
)
 
$
(20
)
 
$
(15
)
Recognized in other comprehensive (income) loss before tax and minority:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Prior service (credit) cost from plan amendments
$
—

 
$
—

 
$
(1
)
 
$
—

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

Increase (decrease) in net actuarial losses
81

 
150

 
292

 
35

 
(45
)
 
(78
)
 
(1
)
 
(19
)
 
3

Amortization of prior service (cost) credit in net periodic cost
—

 
—

 
(1
)
 
—

 
(1
)
 
(1
)
 
45

 
45

 
45

Amortization of net losses in net periodic cost
(109
)
 
(106
)
 
(114
)
 
(27
)
 
(34
)
 
(36
)
 
(5
)
 
(7
)
 
(8
)
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures
—

 
(386
)
 
(32
)
 
(17
)
 
(5
)
 
(16
)
 
—

 
4

 
—

Deconsolidation of Venezuelan subsidiary (Note 1)
—

 
—

 
—

 
—

 
(62
)
 
—

 
—

 
—

 
—

Total recognized in other comprehensive loss (income) before tax and minority
(28
)
 
(342
)
 
144

 
(9
)
 
(147
)
 
(130
)
 
39

 
23

 
40

Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority
$
(5
)
 
$
(152
)
 
$
251

 
$
55

 
$
(63
)
 
$
(60
)
 
$
16

 
$
3

 
$
25
Changes in Benefit Obligation and Plan Assets
The change in benefit obligation and plan assets for 2016 and 2015 and the amounts recognized in our Consolidated Balance Sheet at December 31, 2016 and 2015 are as follows:
 
Pension Plans
 
 
 
 
 
U.S.
 
Non-U.S.
 
Other Postretirement Benefits
(In millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Change in benefit obligation:
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
(5,338
)
 
$
(6,507
)
 
$
(2,808
)
 
$
(3,178
)
 
$
(291
)
 
$
(361
)
Newly adopted plans
—

 
—

 
(2
)
 
(9
)
 
—

 
—

Service cost — benefits earned
(5
)
 
(4
)
 
(29
)
 
(43
)
 
(3
)
 
(3
)
Interest cost
(164
)
 
(238
)
 
(80
)
 
(113
)
 
(12
)
 
(15
)
Actuarial gain (loss)
(171
)
 
262

 
(384
)
 
(5
)
 
—

 
22

Participant contributions
—

 
—

 
(2
)
 
(2
)
 
(13
)
 
(15
)
Curtailments/settlements/termination benefits
1

 
285

 
52

 
19

 
(2
)
 
—

Divestitures
—

 
500

 
—

 
—

 
—

 
6

Deconsolidation of Venezuelan subsidiary (Note 1)
—

 
—

 
—

 
80

 
—

 
—

Foreign currency translation
—

 
—

 
262

 
303

 
(10
)
 
35

Benefit payments
392

 
364

 
128

 
140

 
37

 
40

Ending balance
$
(5,285
)
 
$
(5,338
)
 
$
(2,863
)
 
$
(2,808
)
 
$
(294
)
 
$
(291
)
Change in plan assets:
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
5,011

 
$
6,250

 
$
2,493

 
$
2,721

 
$
3

 
$
5

Newly adopted plans
—

 
—

 
1

 
9

 
—

 
—

Actual return on plan assets
345

 
(117
)
 
393

 
60

 
1

 
—

Company contributions to plan assets
—

 
—

 
56

 
60

 
2

 
2

Cash funding of direct participant payments
9

 
7

 
24

 
36

 
22

 
23

Participant contributions
—

 
—

 
2

 
2

 
13

 
15

Settlements
(1
)
 
(285
)
 
(51
)
 
(18
)
 
—

 
—

Divestitures
—

 
(480
)
 
—

 
—

 
—

 
—

Foreign currency translation
—

 
—

 
(283
)
 
(237
)
 
—

 
(2
)
Benefit payments
(392
)
 
(364
)
 
(128
)
 
(140
)
 
(37
)
 
(40
)
Ending balance
$
4,972

 
$
5,011

 
$
2,507

 
$
2,493

 
$
4

 
$
3

Funded status at end of year
$
(313
)
 
$
(327
)
 
$
(356
)
 
$
(315
)
 
$
(290
)
 
$
(288
)
Funded Status Recognized in the Consolidated Balance Sheets
The funded status recognized in the Consolidated Balance Sheets consists of:
 
Pension Plans
 
 
 
 
 
U.S.
 
Non-U.S.
 
Other Postretirement Benefits
(In millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Noncurrent assets
$
—

 
$
—

 
$
231

 
$
249

 
$
—

 
$
—

Current liabilities
(12
)
 
(12
)
 
(19
)
 
(19
)
 
(21
)
 
(23
)
Noncurrent liabilities
(301
)
 
(315
)
 
(568
)
 
(545
)
 
(269
)
 
(265
)
Net amount recognized
$
(313
)
 
$
(327
)
 
$
(356
)
 
$
(315
)
 
$
(290
)
 
$
(288
)
Amounts Recognized in Accumulated Other Comprehensive Loss
The amounts recognized in AOCL, net of tax, consist of:
 
Pension Plans
 
 
 
 
 
U.S.
 
Non-U.S.
 
Other Postretirement Benefits
(In millions)
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Prior service (credit) cost
$
(4
)
 
$
(4
)
 
$
1

 
$
2

 
$
(59
)
 
$
(104
)
Net actuarial loss
2,615

 
2,643

 
685

 
693

 
68

 
74

Gross amount recognized
2,611

 
2,639

 
686

 
695

 
9

 
(30
)
Deferred income taxes
(118
)
 
(128
)
 
(115
)
 
(96
)
 
(20
)
 
(9
)
Net amount recognized
$
2,493

 
$
2,511

 
$
571

 
$
599

 
$
(11
)
 
$
(39
)
Weighted Average Assumptions Used
The following table presents significant weighted average assumptions used to determine benefit obligations at December 31:
 
Pension Plans
 
Other
Postretirement
Benefits
 
2016
 
2015
 
2016
 
2015
Discount rate:
 

 
 

 
 

 
 

— U.S.
3.99
%
 
4.20
%
 
3.72
%
 
3.86
%
— Non-U.S.
2.72

 
3.47

 
5.12

 
5.30

Rate of compensation increase:
 

 
 

 
 

 
 

— U.S.
N/A

 
N/A

 
N/A

 
N/A

— Non-U.S.
3.18

 
2.63

 
N/A

 
N/A




The following table presents significant weighted average assumptions used to determine benefits cost for the years ended December 31:
 
Pension Plans
 
Other Postretirement Benefits
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate for determining interest cost:
 
 
 
 
 
 
 
 
 
 
 
— U.S.
3.23
 
3.89
 
4.40
 
2.98
 
3.59
 
4.06
— Non-U.S.
3.37
 
3.31
 
4.36
 
6.31
 
4.89
 
6.62
Expected long term return on plan assets:
 
 
 
 
 
 
 
 
 
 
 
— U.S.
5.33
 
5.00
 
5.47
 
N/A
 
N/A
 
N/A
— Non-U.S.
3.81
 
4.12
 
5.12
 
N/A
 
N/A
 
N/A
Rate of compensation increase:
 
 
 
 
 
 
 
 
 
 
 
— U.S.
N/A
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
— Non-U.S.
2.63
 
2.88
 
3.11
 
N/A
 
N/A
 
N/A
Estimated Future Benefit Payments
The following table presents estimated future benefit payments from the plans as of December 31, 2016. Benefit payments for other postretirement benefits are presented net of retiree contributions:
 
Pension Plans
 
Other Postretirement Benefits
(In millions)
U.S.
 
Non-U.S.
 
Without Medicare Part D Subsidy
 
Medicare Part D Subsidy Receipts
2017
$
431

 
$
124

 
$
23

 
$
1

2018
415

 
125

 
23

 
1

2019
396

 
129

 
22

 
1

2020
387

 
132

 
22

 
1

2021
382

 
133

 
21

 
1

2022-2026
1,765

 
733

 
103

 
5
Selected Pension Plan Information
The following table presents selected information on our pension plans:
 
U.S.
 
Non-U.S.
(In millions)
2016
 
2015
 
2016
 
2015
All plans:
 

 
 

 
 

 
 

Accumulated benefit obligation
$
5,275

 
$
5,329

 
$
2,792

 
$
2,722

Plans not fully-funded:
 

 
 

 
 

 
 

Projected benefit obligation
$
5,282

 
$
5,336

 
$
911

 
$
876

Accumulated benefit obligation
5,273

 
5,327

 
862

 
811

Fair value of plan assets
4,970

 
5,009

 
327

 
316
Assumed Health Care Cost Trend Rates
Assumed health care cost trend rates at December 31 follow:
 
2016
 
2015
Health care cost trend rate assumed for the next year
6.5
%
 
6.5
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
5.0

 
5.0

Year that the rate reaches the ultimate trend rate
2025

 
2022
Effect of 1% Change in Assumed Health Care Cost Trend Rates
A 1% change in the assumed health care cost trend would have increased (decreased) the accumulated other postretirement benefits obligation at December 31, 2016 and the aggregate service and interest cost for the year then ended as follows:
(In millions)
1% Increase
 
1% Decrease
Accumulated other postretirement benefits obligation
$
19

 
$
(16
)
Aggregate service and interest cost
1

 
(1
)
Pension Plan Weighted Average Investment Allocation
Our pension plan weighted average investment allocation at December 31, by asset category, follows:
 
U.S.
 
Non-U.S.
 
2016
 
2015
 
2016
 
2015
Cash and short term securities
3
%
 
5
%
 
1
%
 
1
%
Equity securities
6

 
6

 
9

 
9

Debt securities
91

 
89

 
78

 
77

Alternatives
—

 
—

 
12

 
13

Total
100
%
 
100
%
 
100
%
 
100
%
Fair Values of Pension Plan Assets
The fair values of our pension plan assets at December 31, 2016, by asset category are as follows:
 
U.S.
 
Non-U.S.
(In millions)
Total
 
Quoted
Prices
in Active
Markets
for Identical
Assets (Level 1)
 
Significant
Other
Observable
Inputs (Level 2)
 
Significant
Other
Unobservable
Inputs (Level 3)
 
Total
 
Quoted
Prices in Active
Markets for
Identical
Assets (Level 1)
 
Significant
Other
Observable
Inputs (Level 2)
 
Significant
Other
Unobservable
Inputs (Level 3)
Cash and Short Term Securities
$
62

 
$
58

 
$
4

 
$
—

 
$
24

 
$
23

 
$
1

 
$
—

Equity Securities
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
Common and Preferred Stock:
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
Non-U.S. Companies
—

 
—

 
—

 
—

 
20

 
20

 
—

 
—

Commingled Funds
—

 
—

 
—

 
—

 
134

 
16

 
—

 
118

Mutual Funds
—

 
—

 
—

 
—

 
3

 
3

 
—

 
—

Debt Securities
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
Corporate Bonds
2,707

 
—

 
2,707

 
—

 
154

 
13

 
141

 
—

Government Bonds
968

 
—

 
968

 
—

 
2,148

 
68

 
2,080

 
—

Repurchase Agreements
—

 
—

 
—

 
—

 
(777
)
 
—

 
(777
)
 
—

Asset Backed Securities
63

 
—

 
63

 
—

 
30

 
2

 
28

 
—

Commingled Funds
—

 
—

 
—

 
—

 
9

 
—

 
9

 
—

Mutual Funds
—

 
—

 
—

 
—

 
5

 
5

 
—

 
—

Alternatives
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
Real Estate
—

 
—

 
—

 
—

 
62

 
—

 
1

 
61

Insurance Contracts
2

 
—

 
—

 
2

 
14

 
—

 
—

 
14

Other Investments
1

 
—

 
1

 
—

 
10

 
2

 
5

 
3

Total Investments in the Fair Value Hierarchy
3,803

 
$
58

 
$
3,743

 
$
2

 
1,836

 
$
152

 
$
1,488

 
$
196

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments Measured at Net Asset Value, as Practical Expedient:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commingled Funds
38

 
 
 
 
 
 
 
59

 
 
 
 
 
 
Mutual Funds
—

 
 
 
 
 
 
 
21

 
 
 
 
 
 
Partnership Interests
263

 
 
 
 
 
 
 
—

 
 
 
 
 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds
123

 
 
 
 
 
 
 
5

 
 
 
 
 
 
Commingled Funds
697

 
 
 
 
 
 
 
471

 
 
 
 
 
 
Short Term Securities


 
 
 
 
 
 
 


 
 
 
 
 
 
Commingled Funds
87

 
 
 
 
 
 
 
2

 
 
 
 
 
 
Alternatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commingled Funds
—

 
 
 
 
 
 
 
154

 
 
 
 
 
 
Real Estate
—

 
 
 
 
 
 
 
59

 
 
 
 
 
 
Total Investments
5,011

 
 
 
 
 
 
 
2,607

 
 
 
 
 
 
Other
(39
)
 
 

 
 

 
 

 
(100
)
 
 

 
 

 
 

Total Plan Assets
$
4,972

 
 

 
 

 
 

 
$
2,507

 
 

 
 

 
 


The fair values of our pension plan assets at December 31, 2015, by asset category are as follows:
 
U.S.
 
Non-U.S.
(In millions)
Total
 
Quoted
Prices
in Active
Markets
for Identical
Assets (Level 1)
 
Significant
Other
Observable
Inputs (Level 2)
 
Significant
Other
Unobservable
Inputs (Level 3)
 
Total
 
Quoted
Prices in Active
Markets for
Identical
Assets (Level 1)
 
Significant
Other
Observable
Inputs (Level 2)
 
Significant
Other
Unobservable
Inputs (Level 3)
Cash and Short Term Securities
$
103

 
$
100

 
$
3

 
$
—

 
$
28

 
$
28

 
$
—

 
$
—

Equity Securities
 

 
 

 
 

 
 
 
 

 
 
 
 
 
 
Common and Preferred Stock:
 

 
 

 
 

 
 
 
 

 
 
 
 
 
 
Non-U.S. Companies
—

 
—

 
—

 
—

 
19

 
19

 
—

 
—

Commingled Funds
—

 
—

 
—

 
—

 
17

 
17

 
—

 
—

Mutual Funds
—

 
—

 
—

 
—

 
3

 
3

 
—

 
—

Debt Securities
 

 
 

 
 
 
 
 
 

 
 
 
 
 
 
Corporate Bonds
2,413

 
—

 
2,413

 
—

 
154

 
14

 
140

 
—

Government Bonds
1,091

 
—

 
1,091

 
—

 
2,093

 
67

 
2,026

 
—

Repurchase Agreements
—

 
—

 
—

 
—

 
(719
)
 
—

 
(719
)
 
—

Asset Backed Securities
158

 
—

 
158

 
—

 
11

 
2

 
2

 
7

Commingled Funds
—

 
—

 
—

 
—

 
9

 
—

 
9

 
—

Mutual Funds
—

 
—

 
—

 
—

 
3

 
3

 
—

 
—

Alternatives
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
Real Estate
—

 
—

 
—

 
—

 
72

 
—

 
—

 
72

Insurance Contracts
2

 
—

 
—

 
2

 
56

 
—

 
—

 
56

Other Investments
(2
)
 
—

 
(2
)
 
—

 
9

 
1

 
6

 
2

Total Investments in the Fair Value Hierarchy
3,765

 
$
100

 
$
3,663

 
$
2

 
1,755

 
$
154

 
$
1,464

 
$
137

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments Measured at Net Asset Value, as Practical Expedient:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commingled Funds
6

 
 
 
 
 
 
 
121

 
 
 
 
 
 
Mutual Funds
—

 
 
 
 
 
 
 
57

 
 
 
 
 
 
Partnership Interests
295

 
 
 
 
 
 
 
—

 
 
 
 
 
 
Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds
86

 
 
 
 
 
 
 
5

 
 
 
 
 
 
Commingled Funds
714

 
 
 
 
 
 
 
431

 
 
 
 
 
 
Short Term Securities


 
 
 
 
 
 
 


 
 
 
 
 
 
Commingled Funds
137

 
 
 
 
 
 
 
2

 
 
 
 
 
 
Alternatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commingled Funds
—

 
 
 
 
 
 
 
127

 
 
 
 
 
 
Real Estate
—

 
 
 
 
 
 
 
69

 
 
 
 
 
 
Total Investments
5,003

 
 
 
 
 
 
 
2,567

 
 
 
 
 
 
Other
8

 
 

 
 

 
 

 
(74
)
 
 

 
 

 
 

Total Plan Assets
$
5,011

 
 

 
 

 
 

 
$
2,493

 
 

 
 

 
 
Changes in Fair Value of Pension Plan Investments Classified as Level 3
The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2016:
 
 
Non-U.S.
(In millions)
 
Insurance Contracts
 
Real Estate
 
Equity Securities - Commingled Funds
 
Other
Balance, beginning of year
 
$
56

 
$
72

 
$
—

 
$
9

Realized gains (losses)
 
3

 
1

 
—

 
—

Purchases, sales, issuances and settlements (net)
 
(42
)
 
—

 
132

 
—

Transfers from Level 3
 
—

 
—

 
—

 
(7
)
Foreign currency translation
 
(3
)
 
(12
)
 
(14
)
 
1

Balance, end of year
 
$
14

 
$
61

 
$
118

 
$
3


The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2015:
 
 
Non-U.S.
(In millions)
 
Insurance Contracts
 
Real Estate
 
Other
Balance, beginning of year
 
$
18

 
$
67

 
$
4

Unrealized (losses) gains relating to instruments still held at the reporting date
 
—

 
8

 
—

Purchases, sales, issuances and settlements (net)
 
41

 
—

 
7

Foreign currency translation
 
(3
)
 
(3
)
 
(2
)
Balance, end of year
 
$
56

 
$
72

 
$
9