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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Summary of the Benefit Obligation and the Fair Value of Plan Assets, as well as the Funded Status
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
 
2016
 
2015
 
2016
 
2015
Net benefit obligation at beginning of year
$
2,199

 
$
2,462

 
$
80

 
$
96

Service cost
3

 
6

 
—

 
—

Interest cost
78

 
96

 
2

 
3

Plan participants’ contributions
—

 
—

 
4

 
4

Actuarial loss (gain)
196

 
(189
)
 
(6
)
 
(12
)
Gross benefits paid
(121
)
 
(150
)
 
(10
)
 
(12
)
Foreign currency effect
(75
)
 
(26
)
 
—

 
—

Other adjustments
(20
)
 
—

 
(13
)
 
1

Net benefit obligation at end of year
2,260

 
2,199

 
57

 
80

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

 
2,236

 
—

 
—

Actual return on plan assets
259

 
(57
)
 
—

 
—

Employer contributions
8

 
15

 
6

 
8

Plan participants’ contributions
—

 
—

 
4

 
4

Gross benefits paid
(121
)
 
(150
)
 
(10
)
 
(12
)
Foreign currency effect
(74
)
 
(21
)
 
—

 
—

Other adjustments
(22
)
 
—

 
—

 
—

Fair value of plan assets at end of year
2,073

 
2,023

 
—

 
—

Funded status
$
(187
)
 
$
(176
)
 
$
(57
)
 
$
(80
)
Amounts recognized in consolidated balance sheets:
 
 
 
 
 
 
 
Non-current assets
$
46

 
$
36

 
$
—

 
$
—

Current liabilities
(8
)
 
(8
)
 
(8
)
 
(8
)
Non-current liabilities
(225
)
 
(204
)
 
(49
)
 
(72
)

$
(187
)
 
$
(176
)
 
$
(57
)
 
$
(80
)
Accumulated benefit obligation
$
2,251

 
$
2,190

 
 
 
 
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
 
 
 
 
 
 
 
Projected benefit obligation
$
674

 
$
1,810

 
 
 
 
Accumulated benefit obligation
$
665

 
$
1,801

 
 
 
 
Fair value of plan assets
$
441

 
$
1,598

 
 
 
 
Amounts recognized in accumulated other comprehensive loss, net of tax:
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
483

 
$
433

 
$
(35
)
 
$
(24
)
Prior service credit
1

 
1

 
(13
)
 
(5
)
Total recognized
$
484

 
$
434

 
$
(48
)
 
$
(29
)
Summary of Net Periodic Benefit Cost
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
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
$
3

 
$
6

 
$
5

 
$
—

 
$
—

 
$
1

Interest cost
78

 
96

 
99

 
2

 
3

 
4

Expected return on assets
(122
)
 
(127
)
 
(138
)
 


 


 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Actuarial loss (gain)
16

 
20

 
11

 
(1
)
 
—

 
(1
)
Prior service (credit) cost
—

 
—

 
—

 
—

 
(1
)
 
—

Curtailment 1
—

 
—

 
—

 
—

 
—

 
(1
)
Net periodic benefit cost
$
(25
)
 
$
(5
)
 
$
(23
)
 
$
1

 
$
2

 
$
3


1 
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.
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
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net actuarial loss (gain)
$
60

 
$
(6
)
 
$
232

 
$
(12
)
 
$
(17
)
 
$
3

Recognized actuarial (gain) loss
(10
)
 
(13
)
 
(7
)
 
1

 
—

 
1

Prior service cost (credit)
—

 
—

 
—

 
(8
)
 
1

 
(5
)
Total recognized
$
50

 
$
(19
)
 
$
225

 
$
(19
)
 
$
(16
)
 
$
(1
)
Schedule of Assumptions Used
 
Retirement Plans
 
Postretirement Plans
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Discount rate 2
4.14
%
 
4.47
%
 
4.15
%
 
3.69
%
 
3.90
%
 
3.60
%
Net periodic cost:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average healthcare cost rate 1
 
 
 
 
 
 
7.0
%
 
7.0
%
 
7.0
%
Discount rate - U.S. plan 2
4.47
%
 
4.15
%
 
5.0
%
 
3.94
%
 
3.60
%
 
4.125
%
Discount rate - U.K. plan 2
3.84
%
 
3.8
%
 
4.5
%
 
 
 
 
 
 
Return on assets 3
6.25
%
 
6.25
%
 
7.125
%
 
 
 
 
 
 

1 
The assumed weighted-average healthcare cost trend rate will decrease ratably from 7% in 2016 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
$
1

 
$
(1
)

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 a 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. Pension and postretirement medical costs decreased by approximately $14 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, 2017, our return on assets assumption for the U.S. plan and U.K. plan remained unchanged at 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
$
1

 
$
(1
)
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 3
 
Net
payments
2017
$
88

 
$
12

 
$
(4
)
 
$
—

 
$
8

2018
90

 
11

 
(4
)
 
—

 
7

2019
93

 
10

 
(3
)
 
—

 
7

2020
96

 
9

 
(3
)
 
—

 
6

2021
98

 
8

 
(3
)
 
—

 
5

2022-2026
527

 
30

 
(12
)
 
—

 
18

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.
3 
Expected medicare subsidy amounts, for the years presented, are less than $1 million.
Fair Value of Defined Benefit Plan Assets by Asset Class
The fair value of our defined benefit plans assets as of December 31, 2016 and 2015, by asset class is as follows:
(in millions)
December 31, 2016
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash and short-term investments
$
38

 
$
38

 
$
—

 
$
—

Equities:
 
 
 
 
 
 
 
U.S. indexes 1
69

 
69

 
—

 
—

U.S. growth and value
103

 
103

 
—

 
—

U.K.
3

 
3

 
—

 
—

International, excluding U.K.
38

 
38

 
—

 
—

Fixed income:
 
 
 
 
 
 
 
Long duration strategy 2
970

 
—

 
970

 
—

Intermediate duration securities
32

 
—

 
32

 
—

Agency mortgage backed securities
5

 
—

 
5

 
—

Asset backed securities
19

 
—

 
19

 
—

Non-agency mortgage backed securities 3
20

 
—

 
20

 
—

International
16

 
—

 
16

 
—

Real Estate
 
 
 
 
 
 
 
U.K. 4
11

 
—

 
—

 
11

Other
—

 
—

 
—

 
—

Total
$
1,324

 
$
251

 
$
1,062

 
$
11

Collective investment funds
749

 
 
 
 
 
 
Total
$
2,073

 
 
 
 
 
 
(in millions)
December 31, 2015
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash, short-term investments, and other
$
1

 
$
1

 
$
—

 
$
—

Equities:
 
 
 
 
 
 
 
U.S. indexes 1
63

 
63

 
—

 
—

U.S. growth and value
92

 
92

 
—

 
—

U.K.
6

 
6

 
—

 
—

International, excluding U.K.
35

 
35

 
—

 
—

Fixed income:
 
 
 
 
 
 
 
Long duration strategy 2
969

 
—

 
969

 
—

Intermediate duration securities
31

 
—

 
31

 
—

Agency mortgage backed securities
6

 
—

 
6

 
—

Asset backed securities
17

 
—

 
17

 
—

Non-agency mortgage backed securities 3
23

 
—

 
23

 
—

International
17

 
—

 
17

 
—

Other
—

 
—

 
—

 
—

Total
$
1,260

 
$
197

 
$
1,063

 
$
—

Collective investment funds
763

 
 
 
 
 
 
Total
$
2,023

 
 
 
 
 
 
1 
Includes securities that are tracked in the S&P Smallcap 600 index.
2 
Includes securities that are mainly 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 a fund which holds real estate properties in the U.K.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The trustee obtains estimated prices from vendors for securities that are not easily quotable and they are categorized accordingly as Level 3. The following table details further information on our plan assets where we have used significant unobservable inputs (Level 3):

(in millions)
Level 3
Balance as of December 31, 2015
$
—

Purchases

11

Balance as of December 31, 2016
$
11