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Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of Components of Other Income, Net
The components of other expense (income), net for the year ended December 31 are as follows: 
(in millions)
2019
 
2018
 
2017
Other components of net periodic benefit cost 1
$
79

 
$
(30
)
 
$
(27
)
Net loss from investments
19

 
5

 
—

Other expense (income), net
$
98

 
$
(25
)
 
$
(27
)


1 During 2019, the Company purchased a group annuity contract under which an insurance company assumed a portion of the Company's obligation to pay pension benefits to the plan's beneficiaries. The purchase of this group annuity contract was funded by pension plan assets. The net periodic benefit cost for our retirement and post retirement plans for 2019 includes a non-cash pre-tax settlement charge of $113 million reflecting the accelerated recognition of a portion of unamortized actuarial losses in the plan.
Schedule of Assumptions Used in Valuing the Options Granted
We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted:
 
 
Year Ended
 
 
December 31, 2018
Risk-free average interest rate
 
2.6 - 2.7%

Dividend yield
 
1.1
%
Volatility
 
21.8 - 22.0%

Expected life (years)
 
5.67 - 6.07

Weighted-average grant-date fair value per option
 
$
112.98



We use a lattice-based option-pricing model to estimate the fair value of options granted. The following assumptions were used in valuing the options granted: 
 
Year Ended
 
December 31, 2018
Risk-free average interest rate
2.6 - 2.7%

Dividend yield
1.1
%
Volatility
21.8 - 22.0%

Expected life (years)
5.67 - 6.07

Weighted-average grant-date fair value per option
$
112.98