Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2018

The following table sets forth the components of retirement plan expense for the years ended December 31, 2018, 2017, and 2016:



	Pension Benefits									Postretirement Benefits
(In millions)	Year Ended December 31									Year Ended December 31
	2018			2017			2016			2018			2017			2016
Retirement plan expense
Defined benefit plans:
Service cost (benefits earned during the period)	$	66		$	78		$	82		$	2		$	2		$	3
Interest cost	93			106			113			5			6			8
Expected return on plan assets	(146		)	(145		)	(137		)	—			—			—
Settlement charges	117			—			(5		)	—			—			—
Curtailments	(1		)	—			—			—			—			(38		)
Amortization of actuarial loss	55			65			56			3			4			3
Amortization of prior service cost (credit)	(19		)	(7		)	2			(15		)	(13		)	(17		)
Net periodic defined benefit plan expense	165			97			111			(5		)	(1		)	(41		)
Defined contribution plans	50			57			57			—			—			—
Total retirement plan expense	$	215		$	154		$	168		$	(5	)	$	(1	)	$	(41	)

Changes In Defined Benefit Obligation And Fair Value Of Defined Benefit Plan Assets

The following tables set forth changes in the defined benefit obligation and the fair value of defined benefit plan assets for the years ended December 31, 2018 and 2017:



	Pension Benefits						Postretirement Benefits
	December 31 2018			December 31 2017			December 31 2018			December 31 2017
	(In millions)						(In millions)
Benefit obligation, beginning	$	3,109		$	2,992		$	154		$	171
Service cost	66			78			2			2
Interest cost	93			106			5			6
Actuarial loss (gain)	(278		)	129			(4		)	(4		)
Employee contributions	2			2			—			—
Curtailments	(1		)	—			—			—
Acquisitions	—			3			—			—
Settlements	(528		)	(6		)	—			—
Benefits paid	(99		)	(86		)	(13		)	(11		)
Plan amendments	2			(180		)	—			(10		)
Actual expenses	—			(2		)	—			—
Foreign currency effects	(43		)	73			—			—
Benefit obligation, ending	$	2,323		$	3,109		$	144		$	154

Fair value of plan assets, beginning	$	2,448		$	2,131		$	—		$	—
Actual return on plan assets	(122		)	340			—			—
Employer contributions	66			29			13			11
Employee contributions	2			2			—			—
Settlements	(528		)	(6		)	—			—
Benefits paid	(99		)	(86		)	(13		)	(11		)
Actual expenses	—			(2		)	—			—
Foreign currency effects	(31		)	40			—			—
Fair value of plan assets, ending	$	1,736		$	2,448		$	—		$	—

Funded status	$	(587	)	$	(661	)	$	(144	)	$	(154	)

Prepaid benefit cost	$	53		$	55		$	—		$	—
Accrued benefit liability – current	(17		)	(17		)	(13		)	(12		)
Accrued benefit liability – long-term	(623		)	(699		)	(131		)	(142		)
Net amount recognized in the balance sheet	$	(587	)	$	(661	)	$	(144	)	$	(154	)

Principal Assumptions In Developing Net Periodic Pension Cost

The following table sets forth the principal assumptions used in developing net periodic pension cost:



	Pension Benefits		Postretirement Benefits
	December 31 2018	December 31 2017	December 31 2018	December 31 2017
Discount rate	3.4%	3.7%	3.7%	3.9%
Expected return on plan assets	6.8%	6.8%	N/A	N/A
Rate of compensation increase	4.7%	4.6%	N/A	N/A

The following table sets forth the principal assumptions used in developing the year-end actuarial present value of the projected benefit obligations:



	Pension Benefits				Postretirement Benefits
	December 31 2018		December 31 2017		December 31 2018	December 31 2017
Discount rate	3.9	%	3.4	%	4.3%	3.7%
Rate of compensation increase	4.9	%	4.7	%	N/A	N/A

Impact Of 1% Change In Assumed Health Care Cost Trend Rates

A 1% change in assumed health care cost trend rates would have the following effects:



	1% Increase		1% Decrease
	(In millions)
Effect on accumulated postretirement benefit obligations	$	4	$	(5	)

Schedule Of Fair Value Of Plan Assets

The following tables set forth, by level within the fair value hierarchy, the fair value of plan assets as of December 31, 2018 and 2017.



	Fair Value Measurements at December 31, 2018
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In millions)
Common stock	$	152	$	—	$	—	$	152
Mutual funds	540		—		—		540
Corporate bonds	—		406		—		406
U.S. Treasury instruments	112		—		—		112
U.S. government agency, state and local government bonds	—		31		—		31
Other	—		7		—		7
Total assets	$	804	$	444	$	—	$	1,248

Common collective trust funds at NAV
U.S. equity							351
International equity							137
Total assets at fair value							$	1,736



	Fair Value Measurements at December 31, 2017
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In millions)
Common stock	$	261	$	—	$	—	$	261
Mutual funds	750		—		—		750
Corporate bonds	—		601		—		601
U.S. Treasury instruments	98		—		—		98
U.S. government agency, state and local government bonds	—		29		—		29
Other	—		19		—		19
Total assets	$	1,109	$	649	$	—	$	1,758

Common collective trust funds at NAV
U.S. equity							327
International equity							363
Total assets at fair value							$	2,448

Actual Asset Allocation For Global Pension Plan Assets

The following table sets forth the actual asset allocation for the Company’s global pension plan assets as of the measurement date:



	December 31 2018⁽¹⁾⁽²⁾	December 31 2017⁽²⁾
Equity securities	48%	58%
Debt securities	40%	40%
Other	12%	2%
Total	100%	100%

⁽¹⁾

The Company’s U.S. pension plans contain approximately 73% of the Company’s global pension plan assets. The actual asset allocation for the Company’s U.S. pension plans as of the measurement date consists of 55% equity securities and 45% debt . The target asset allocation for the Company’s U.S. pension plans is approximately the same as the actual asset allocation. The Company’s U.S. pensions plans’ assets and asset allocation reflect the impact of the $528 million purchase of the group annuity contract, which was funded directed by the Plan’s assets, transferring the future benefit obligations and annuity administration for approximately 3,800 retirees from the Plan to Prudential on November 2, 2018. The actual asset allocation for the Company’s foreign pension plans as of the measurement date consists of 32% equity securities, 26% debt securities, and 42% in other investments. The target asset allocation for the Company’s foreign pension plans is approximately the same as the actual asset allocation.


⁽²⁾	The Company’s pension plans did not directly hold any shares of Company common stock as of the December 31, 2018 and 2017 measurement dates.

Expected Future Benefit Payments To Be Paid

The following benefit payments, which reflect expected future service, are expected to be paid by the benefit plans:



	Pension Benefits		Postretirement Benefits
	(In millions)
2019	$	65	$	13
2020	72		13
2021	80		12
2022	88		12
2023	96		11
2024-2028	585		53