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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]  
Summary of the Benefit Obligation and the Fair Value of Plan Assets, as well as the Funded Status for the Retirement and Post-retirement Plans
A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets): 
(in millions)
Retirement Plans
 
Postretirement Plans
 
2015
 
2014
 
2015
 
2014
Net benefit obligation at beginning of year
$
2,462

 
$
2,004

 
$
96

 
$
103

Service cost
6

 
5

 
—

 
1

Interest cost
96

 
99

 
3

 
4

Plan participants’ contributions
—

 
—

 
4

 
4

Actuarial (gain) loss
(189
)
 
504

 
(12
)
 
5

Gross benefits paid
(150
)
 
(125
)
 
(12
)
 
(13
)
Foreign currency effect
(26
)
 
(25
)
 
—

 
—

Other adjustments
—

 
—

 
1

 
(8
)
Net benefit obligation at end of year
2,199

 
2,462

 
80

 
96

Fair value of plan assets at beginning of year
2,236

 
2,088

 
—

 
—

Actual return on plan assets
(57
)
 
270

 
—

 
—

Employer contributions
15

 
22

 
8

 
9

Plan participants’ contributions
—

 
—

 
4

 
4

Gross benefits paid
(150
)
 
(125
)
 
(12
)
 
(13
)
Foreign currency effect
(21
)
 
(19
)
 
—

 
—

Fair value of plan assets at end of year
2,023

 
2,236

 
—

 
—

Funded status
$
(176
)
 
$
(226
)
 
$
(80
)
 
$
(96
)
Amounts recognized in consolidated balance sheets:
 
 
 
 
 
 
 
Non-current assets
$
36

 
$
28

 
$
—

 
$
—

Current liabilities
(8
)
 
(8
)
 
(8
)
 
(9
)
Non-current liabilities
(204
)
 
(246
)
 
(72
)
 
(87
)

$
(176
)
 
$
(226
)
 
$
(80
)
 
$
(96
)
Accumulated benefit obligation
$
2,190

 
$
2,440

 
 
 
 
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
1,810

 
$
2,046

 
 
 
 
Accumulated benefit obligation
$
1,801

 
$
2,024

 
 
 
 
Fair value of plan assets
$
1,598

 
$
1,792

 
 
 
 
Amounts recognized in accumulated other comprehensive loss, net of tax:
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
433

 
$
452

 
$
(24
)
 
$
(8
)
Prior service credit
1

 
1

 
(5
)
 
(5
)
Total recognized
$
434

 
$
453

 
$
(29
)
 
$
(13
)
Summary of Net Periodic Benefit Cost for Retirement and Postretirement Plans
A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows: 
(in millions)
Retirement Plans
 
Postretirement Plans
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Service cost
$
6

 
$
5

 
$
10

 
$
—

 
$
1

 
$
2

Interest cost
96

 
99

 
91

 
3

 
4

 
5

Expected return on assets
(127
)
 
(138
)
 
(129
)
 


 
—

 
—

Amortization of:

 

 

 

 

 

Actuarial loss (gain)
20

 
11

 
26

 
—

 
(1
)
 
—

Prior service cost (credit)
—

 
—

 
5

 
(1
)
 
—

 
(1
)
Curtailment 1
—

 
—

 
(8
)
 
—

 
(1
)
 
(12
)
Net periodic benefit cost
$
(5
)
 
$
(23
)
 
$
(5
)
 
$
2

 
$
3

 
$
(6
)

1 
The curtailment gain for our retirement plans in 2013 relates to a freeze of pension accruals for MHE employees as well as all remaining active employees in the United Kingdom ("U.K."). The curtailment gain for our postretirement plans in 2014 is a result of plan changes effective October 31, 2014 eliminating retiree medical and life insurance benefits for active employees not retiring by July 1, 2016. The curtailment gain for our postretirement plans in 2013 relates to the sale of MHE on March 22, 2013.
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, Net of Tax
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows: 
(in millions)
Retirement Plans
 
Postretirement Plans
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Net actuarial (gain) loss
$
(6
)
 
$
232

 
$
(213
)
 
$
(17
)
 
$
3

 
$
(8
)
Recognized actuarial (gain) loss
(13
)
 
(7
)
 
(15
)
 
—

 
1

 
—

Prior service cost (credit)
—

 
—

 
5

 
1

 
(5
)
 
—

Total recognized
$
(19
)
 
$
225

 
$
(223
)
 
$
(16
)
 
$
(1
)
 
$
(8
)
Assumptions
 
Retirement Plans
 
Postretirement Plans
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.47
%
 
4.15
%
 
5.00
%
 
3.90
%
 
3.60
%
 
4.20
%
Net periodic cost:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average healthcare cost rate 1
 
 
 
 
 
 
7.0
%
 
7.0
%
 
7.0
%
Discount rate - U.S. plan 2
4.15
%
 
5.0
%
 
4.1
%
 
3.60
%
 
4.125
%
 
3.45
%
Discount rate - U.K. plan 2
3.8
%
 
4.5
%
 
4.8
%
 
 
 
 
 
 
Compensation increase factor - U.S. plan
N/A

 
N/A

 
N/A

 
 
 
 
 
 
Compensation increase factor - U.K. plan
N/A

 
N/A

 
5.75
%
 
 
 
 
 
 
Return on assets 3
6.25
%
 
7.125
%
 
7.25
%
 
 
 
 
 
 

1 
The assumed weighted-average healthcare cost trend rate will decrease ratably from 7% in 2015 to 5% in 2024 and remain at that level thereafter. Assumed healthcare cost trends have an effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend creates the following effects:
(in millions)
1% point
increase
 
1% point
decrease
Effect on postretirement obligation
$
4

 
$
(3
)

2 
Effective January 1, 2016, we changed our discount rate assumption on our U.S. retirement plans to 4.47% from 4.15% in 2015 and changed our discount rate assumption on our U.K. plan to 3.84% from 3.8% in 2015. At the end of 2015, we changed our approach used to measure service and interest costs on all of our retirement plans. For 2015 and prior periods presented, we measured service and interest costs utilizing and single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. For 2016, we elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans' liability cash flows. We believe this new approach provides a more precise measurement of service and interest costs by aligning the timing of the plans' liability cash flows to the corresponding spot rates on the yield curve. This change does not affect the measurement of our benefit obligation. We have accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and, accordingly, have accounted for it on a prospective basis. We expect pension and postretirement medical costs to decrease by approximately $13 million in 2016 as a result of this change.
3 
The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2016, our return on assets assumption for the U.S. plan and U.K. plan remained unchanged to 6.25%.
Effects Created by One Percentage Point Change in Assumed Healthcare Cost Trend
A one percentage point change in assumed healthcare cost trend creates the following effects:
(in millions)
1% point
increase
 
1% point
decrease
Effect on postretirement obligation
$
4

 
$
(3
)
Information About the Expected Cash Flows for Retirement and Post-Retirement Plans and Impact of the Medicare Subsidy
Information about the expected cash flows for our retirement and postretirement plans and the impact of the Medicare subsidy is as follows: 
(in millions)
 
 
Postretirement Plans 2
 
Retirement 1
Plans
 
Gross
payments
 
Retiree
contributions
 
Medicare
subsidy
 
Net
payments
2016
$
91

 
$
13

 
$
(4
)
 
$
(1
)
 
$
8

2017
90

 
13

 
(4
)
 
(1
)
 
8

2018
93

 
12

 
(4
)
 
(1
)
 
7

2019
96

 
12

 
(4
)
 
(1
)
 
7

2020
99

 
11

 
(4
)
 
(1
)
 
6

2021-2025
539

 
43

 
(12
)
 
(3
)
 
28

1 
Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost.
2 
Reflects the total benefits expected to be paid from our assets.
Fair Value of Defined Benefit Plan Assets by Asset Class
The fair value of our defined benefit plans assets as of December 31, 2015 and 2014, by asset class is as follows:
(in millions)
December 31, 2015
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash and short-term investments
$
188

 
$
8

 
$
180

 
$
—

Equities:

 

 

 

U.S. indexes 1
312

 
63

 
249

 
—

U.S. growth and value
132

 
92

 
40

 
—

U.K.
47

 
34

 
13

 
—

International, excluding U.K.
124

 
40

 
84

 
—

Fixed income:

 

 

 

Long duration strategy 2
1,072

 
—

 
1,072

 
—

Intermediate duration securities
33

 
—

 
33

 
—

Agency mortgage backed securities
6

 
—

 
6

 
—

Asset backed securities
17

 
—

 
17

 
—

Non-agency mortgage backed securities 3
23

 
—

 
23

 
—

U.K. 4
6

 
—

 
6

 
—

International, excluding U.K.
48

 
—

 
48

 
—

Other
15

 
—

 
15

 
—

Total
$
2,023

 
$
237

 
$
1,786

 
$
—

(in millions)
December 31, 2014
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash, short-term investments, and other
$
176

 
$
17

 
$
159

 
$
—

Equities:

 

 

 

U.S. indexes 1
293

 
88

 
205

 
—

U.S. growth and value
204

 
147

 
57

 
—

U.K.
67

 
56

 
11

 
—

International, excluding U.K.
139

 
42

 
97

 
—

Fixed income:

 

 

 

Long duration strategy 2
1,165

 
—

 
1,165

 
—

Intermediate duration securities
25

 
—

 
25

 
—

Agency mortgage backed securities
6

 
—

 
6

 
—

Asset backed securities
18

 
—

 
18

 
—

Non-agency mortgage backed securities 3
37

 
—

 
37

 
—

U.K. 4
7

 
—

 
7

 
—

International, excluding U.K.
85

 
—

 
85

 
—

Other
14

 
—

 
14

 
—

Total
$
2,236

 
$
350

 
$
1,886

 
$
—

1 
Includes securities that are tracked in the following indexes: S&P 500, S&P MidCap 400, S&P MidCap 400 Growth and S&P Smallcap 600.
2 
Includes securities that are investment grade obligations of issuers in the U.S.
3 
Includes U.S. mortgage-backed securities that are not backed by the U.S. government.
4 
Includes securities originated by the government of and other issuers from the U.K.