9. EMPLOYEE BENEFIT PLANS

Pension, Postretirement and Postemployment Plans NCR sponsors defined benefit pension plans. NCR’s U.S. pension plan no longer offers additional benefits and is closed to new participants. Internationally, the defined benefit plans are based primarily upon compensation and years of service. Certain international plans also no longer offer additional benefits and are closed to new participants. NCR’s funding policy is to contribute annually not less than the minimum required by applicable laws and regulations. Assets of NCR’s defined benefit plans are primarily invested in corporate and government debt securities, common and commingled trusts, publicly traded common stocks, real estate investments, and cash or cash equivalents.

NCR recognizes the funded status of each applicable plan on the Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. For pension plans, changes in the fair value of plan assets and net actuarial gains or losses are recognized upon remeasurement, which is at least annually in the fourth quarter of each year. For postretirement and postemployment plans, changes to the funded status are recognized as a component of other comprehensive loss in stockholders' equity.

NCR sponsors a U.S. postretirement benefit plan that no longer offers benefits to U.S. participants who had not reached a certain age and years of service with NCR. The plan provides medical care benefits to retirees and their eligible dependents. Non-U.S. employees are typically covered under government-sponsored programs, and NCR generally does not provide postretirement benefits other than pensions to non-U.S. retirees. NCR generally funds these benefits on a pay-as-you-go basis.

NCR offers various postemployment benefits to involuntarily terminated and certain inactive employees after employment but before retirement. These benefits are paid in accordance with NCR’s established postemployment benefit practices and policies. Postemployment benefits include mainly severance as well as continuation of healthcare benefits and life insurance coverage while on disability. NCR provides appropriate accruals for these postemployment benefits. These postemployment benefits are funded on a pay-as-you-go basis.

Pension Plans Reconciliation of the beginning and ending balances of the benefit obligations for NCR's pension plans are as follows:



	U.S. Pension Benefits						International Pension Benefits						Total Pension Benefits
In millions	2016			2015			2016			2015			2016			2015
Change in benefit obligation
Benefit obligation as of January 1	$	2,155		$	2,271		$	1,159		$	2,106		$	3,314		$	4,377
Net service cost	—			—			7			12			7			12
Interest cost	90			87			28			42			118			129
Amendment	—			—			—			3			—			3
Actuarial loss (gain)	53			(93		)	174			(17		)	227			(110		)
Benefits paid	(113		)	(110		)	(75		)	(1,364		)	(188		)	(1,474		)
Plan participant contributions	—			—			1			2			1			2
Curtailment	—			—			—			(2		)	—			(2		)
Settlement	—			—			—			425			—			425
Currency translation adjustments	—			—			(122		)	(48		)	(122		)	(48		)
Benefit obligation as of December 31	$	2,185		$	2,155		$	1,172		$	1,159		$	3,357		$	3,314
Accumulated benefit obligation as of December 31	$	2,185		$	2,155		$	1,162		$	1,148		$	3,347		$	3,303

A reconciliation of the beginning and ending balances of the fair value of the plan assets of NCR's pension plans are as follows:



	U.S. Pension Benefits						International Pension Benefits						Total Pension Benefits
In millions	2016			2015			2016			2015			2016			2015
Change in plan assets
Fair value of plan assets as of January 1	$	1,726		$	1,884		$	1,009		$	2,325		$	2,735		$	4,209
Actual return on plan assets	109			(48		)	136			38			245			(10		)
Company contributions	—			—			31			33			31			33
Benefits paid	(113		)	(110		)	(75		)	(1,364		)	(188		)	(1,474		)
Currency translation adjustments	—			—			(124		)	(25		)	(124		)	(25		)
Plan participant contributions	—			—			1			2			1			2
Fair value of plan assets as of December 31	$	1,722		$	1,726		$	978		$	1,009		$	2,700		$	2,735

In November 2013, the trustees of the NCR Pension Plan (UK London) entered into an agreement with Pension Insurance Corporation (PIC) to purchase, as a plan asset, an insurance policy with PIC to facilitate the wind-up and buy-out of the pension plan. NCR Limited, a UK subsidiary of the Company, was the principal employer of the pension plan which had approximately 5,400 participants. During the second quarter of 2015, the Company completed the transfer of the UK London pension plan to PIC by issuing individual insurance policies. As a result of the transfer, for the the year ended December 31, 2015, the Company recorded a settlement loss of $427 million in the Consolidated Statement of Operations as well as an offsetting decrease to prepaid pension costs in the Consolidated Balance Sheet.

During 2014, the Company offered a voluntary lump sum payment option to certain former employees who were participants of the Company's U.S. pension plan who had started monthly payments of their pension benefit. The voluntary lump sum payment offer was completed during the fourth quarter of 2014. In addition, during 2014, the Company entered into an agreement with an insurer, where the Company's U.S. qualified plan purchased a single premium group annuity contract from the insurer in order to secure benefits for approximately 4,500 former employees or their related beneficiaries who commenced monthly pension benefits under the plan before January 1, 1994. Additionally, during 2014, the Company transferred the pension plan obligations in Spain and the Netherlands to a third party through the completion of a buy-out of the pension plans.

The following table presents the funded status and the reconciliation of the funded status to amounts recognized in the Consolidated Balance Sheets and in accumulated other comprehensive loss as of December 31:



	U.S. Pension Benefits						International Pension Benefits						Total Pension Benefits
In millions	2016			2015			2016			2015			2016			2015
Funded Status	$	(463	)	$	(429	)	$	(194	)	$	(150	)	$	(657	)	$	(579	)
Amounts recognized in the Consolidated Balance Sheets
Noncurrent assets	$	—		$	—		$	94		$	130		$	94		$	130
Current liabilities	—			—			(12		)	(13		)	(12		)	(13		)
Noncurrent liabilities	(463		)	(429		)	(276		)	(267		)	(739		)	(696		)
Net amounts recognized	$	(463	)	$	(429	)	$	(194	)	$	(150	)	$	(657	)	$	(579	)
Amounts recognized in accumulated other comprehensive loss
Prior service cost	—			—			15			19			15			19
Total	$	—		$	—		$	15		$	19		$	15		$	19

For pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of assets were $2,711 million, $2,702 million, and $1,991 million, respectively, as of December 31, 2016, and $2,692 million, $2,682 million and $2,013 million, respectively, as of December 31, 2015.

The net periodic benefit (income) cost of the pension plans for the years ended December 31 was as follows:



In millions	U.S. Pension Benefits									International Pension Benefits									Total Pension Benefits
In millions	2016			2015			2014			2016			2015			2014			2016			2015			2014
Net service cost	$	—		$	—		$	—		$	7		$	12		$	12		$	7		$	12		$	12
Interest cost	90			87			130			28			42			81			118			129			211
Expected return on plan assets	(72		)	(72		)	(118		)	(36		)	(60		)	(104		)	(108		)	(132		)	(222		)
Amortization of prior service cost	—			—			—			1			1			2			1			1			2
Curtailment	—			—			—			—			(2		)	—			—			(2		)	—
Settlement	—			—			—			—			427			(1		)	—			427			(1		)
Actuarial (gain) loss	16			27			146			69			2			4			85			29			150
Net periodic benefit (income) cost	$	34		$	42		$	158		$	69		$	422		$	(6	)	$	103		$	464		$	152

Effective January 1, 2017, we changed the method used to estimate the service and interest components of net periodic benefit cost for our significant pension plans where yield curves are available. Previously, we estimated such cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the pension benefit obligation. The new methodology utilizes a full yield curve approach by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. This change does not affect the measurement of our total benefit obligation and is applied prospectively as a change in estimate, beginning January 1, 2017.

During 2015, the Company transferred the UK London pension plan obligations to PIC through the completion of a buy-out of the pension plan, resulting in a settlement of $427 million in 2015.

During 2014, the Company transferred the pension plan obligations in Spain and the Netherlands to a third party through the completion of a buy-out of the pension plans, resulting in an actuarial loss in 2014.

The weighted average rates and assumptions used to determine benefit obligations as of December 31 were as follows:



	U.S. Pension Benefits				International Pension Benefits				Total Pension Benefits
	2016		2015		2016		2015		2016		2015
Discount rate	4.1	%	4.3	%	1.9	%	2.6	%	3.3	%	3.7	%
Rate of compensation increase	N/A		N/A		0.9	%	1.3	%	0.9	%	1.3	%

The weighted average rates and assumptions used to determine net periodic benefit cost for the years ended December 31 were as follows:



	U.S. Pension Benefits						International Pension Benefits						Total Pension Benefits
	2016		2015		2014		2016		2015		2014		2016		2015		2014
Discount rate	4.3	%	4.0	%	4.6	%	2.6	%	2.9	%	3.8	%	3.7	%	3.5	%	4.3	%
Expected return on plan assets	4.3	%	4.0	%	4.6	%	3.8	%	3.8	%	4.5	%	4.1	%	3.9	%	4.5	%
Rate of compensation increase	N/A		N/A		N/A		1.3	%	1.8	%	2.7	%	1.3	%	1.8	%	2.7	%

The discount rate used to determine December 31, 2016 U.S. benefit obligations was derived by matching the plans’ expected future cash flows to the corresponding yields from the Aon Hewitt AA Bond Universe Curve. This yield curve has been constructed to represent the available yields on high-quality, fixed-income investments across a broad range of future maturities. International discount rates were determined by examining interest rate levels and trends within each country, particularly yields on high-quality, long-term corporate bonds, relative to our future expected cash flows. During 2014, the Society of Actuaries published updated mortality tables and an improvement scale for U.S. plans, which both reflect improved longevity. Based on evaluation of these new tables, we updated our mortality assumptions for our U.S. pension benefits as of December 31, 2014.

NCR employs a building block approach as its primary approach in determining the long-term expected rate of return assumptions for plan assets. Historical market returns are studied and long-term relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatilities generate higher returns over the long run. Current market factors, such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The expected long-term portfolio return is established for each plan via a building block approach with proper rebalancing consideration. The result is then adjusted to reflect additional expected return from active management net of plan expenses. Historical plan returns, the expectations of other capital market participants, and peer data may be used to review and assess the results for reasonableness and appropriateness.

Plan Assets The weighted average asset allocations as of December 31, 2016 and 2015 by asset category are as follows:



	U.S. Pension Fund					International Pension Fund
	Actual Allocation of Plan Assets as of December 31				Target Asset Allocation	Actual Allocation of Plan Assets as of December 31				Target Asset Allocation
	2016		2015		Target Asset Allocation	2016		2015		Target Asset Allocation
Equity securities	—	%	—	%	0 - 0%	23	%	24	%	16 - 26%
Debt securities	96	%	96	%	95 - 100%	52	%	50	%	50 - 60%
Real estate	1	%	1	%	0 - 2%	13	%	13	%	8- 14%
Other	3	%	3	%	0 - 3%	12	%	13	%	11 - 17%
Total	100	%	100	%		100	%	100	%

The Company has adopted updated accounting guidance on fair value measurement which removed both the requirement to categorize within the fair value hierarchy and the requirement to provide related sensitivity disclosures for all investments for which fair value is measured using net asset value (NAV) as a practical expedient. The amount of these investments is disclosed separately in the following tables as "Not Subject to Leveling". The updated guidance was adopted on a retrospective basis, therefore, the investment amounts for which fair value is measured using NAV as a practical expedient have been removed from the fair value hierarchy for all periods presented.

The fair value of plan assets as of December 31, 2016 and 2015 by asset category is as follows:



		U.S.										International
In millions	Notes	Fair Value as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Not Subject to Leveling		Fair Value as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Not Subject to Leveling
Assets
Equity securities:
Common stock	1	$	—	$	—	$	—	$	—	$	—	$	47	$	47	$	—	$	—	$	—
Fixed income securities:
Government securities	2	234		—		234		—		—		27		—		27		—		—
Corporate debt	3	797		—		797		—		—		110		—		108		2		—
Other types of investments:
Money market funds	4	28		—		—		—		28		8		—		8		—		—
Common and commingled trusts - Equities	4	—		—		—		—		—		169		—		—		—		169
Common and commingled trusts - Bonds	4	530		—		—		—		530		363		—		—		—		363
Common and commingled trusts - Short Term Investments	4	23		—		—		—		23		27		—		—		—		27
Common and commingled trusts - Balanced	4	—		—		—		—		—		104		—		—		—		104
Partnership/joint venture interests - Real estate	5	8		—		—		—		8		—		—		—		—		—
Partnership/joint venture interests - Other	5	6		—		—		—		6		—		—		—		—		—
Mutual funds	4	60		60		—		—		—		—		—		—		—		—
Hedge Funds	5	36		—		—		—		36		—		—		—		—		—
Insurance products	4	—		—		—		—		—		1		—		1		—		—
Real estate and other	5	—		—		—		—		—		122		—		—		122		—
Total		$	1,722	$	60	$	1,031	$	—	$	631	$	978	$	47	$	144	$	124	$	663



		U.S.										International
In millions	Notes	Fair Value as of December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Not Subject to Leveling		Fair Value as of December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Not Subject to Leveling
Assets
Equity securities:
Common stock	1	$	—	$	—	$	—	$	—	$	—	$	50	$	50	$	—	$	—	$	—
Fixed income securities:
Government securities	2	222		—		222		—		—		13		—		13		—		—
Corporate debt	3	805		—		805		—		—		145		—		141		4		—
Other types of investments:
Money market funds	4	33		—		—		—		33		13		—		12		—		1
Common and commingled trusts - Equities	4	—		—		—		—		—		184		—		—		—		184
Common and commingled trusts - Bonds	4	500		—		—		—		500		327		—		—		—		327
Common and commingled trusts - Short Term Investments	4	30		—		—		—		30		31		—		—		—		31
Common and commingled trusts - Balanced	4	—		—		—		—		—		116		—		—		—		116
Partnership/joint venture interests - Real estate	5	21		—		—		—		21		—		—		—		—		—
Partnership/joint venture interests - Other	5	7		—		—		—		7		—		—		—		—		—
Mutual funds	4	74		74		—		—		—		—		—		—		—		—
Hedge Funds	5	34		—		—		—		34		—		—		—		—		—
Insurance products	4	—		—		—		—		—		1		—		1		—		—
Real estate and other	5	—		—		—		—		—		129		—		—		129		—
Total		$	1,726	$	74	$	1,027	$	—	$	625	$	1,009	$	50	$	167	$	133	$	659

Notes:


1.	Common stocks are valued based on quoted market prices at the closing price as reported on the active market on which the individual securities are traded.

Government securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the security is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields on similar instruments but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks.


3.	Corporate debt is valued primarily based on observable market quotations for similar bonds at the closing price reported on the active market on which the individual securities are traded. When such quoted prices are not available, the bonds are valued using a discounted cash flows approach using current yields on similar instruments of issuers with similar credit ratings.

Common/collective trusts and registered investment companies (RICs) such as mutual funds are valued using a Net Asset Value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares or units outstanding. The fair value of the underlying securities within the fund, which are generally traded on an active market, are valued at the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches, are employed by the fund manager or independent third party to value investments.

Partnership/joint ventures and hedge funds are valued based on the fair value of the underlying securities within the fund, which include investments both traded on an active market and not traded on an active market. For those investments that are traded on an active market, the values are based on the closing price reported on the active market on which those individual securities are traded and in the case of hedge funds they are valued using a Net Asset Value (NAV) provided by the manager of each fund. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiples and cost valuation approaches, are employed by the fund manager to value investments.

The following table presents the reconciliation of the beginning and ending balances of those plan assets classified within Level 3 of the valuation hierarchy. When the determination is made to classify the plan assets within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.



In millions	International Pension Plans
Balance, December 31, 2014	$	1,388
Realized and unrealized gains and losses, net	(58		)
Purchases, sales and settlements, net	(1,196		)
Transfers, net	(1		)
Balance, December 31, 2015	$	133
Realized and unrealized gains and losses, net	(8		)
Purchases, sales and settlements, net	1
Transfers, net	(2		)
Balance, December 31, 2016	$	124

Investment Strategy NCR has historically employed a total return investment approach, whereby a mix of fixed-income, equities and real estate investments are used to maximize the long-term return of plan assets subject to a prudent level of risk. The risk tolerance is established for each plan through a careful consideration of plan liabilities, plan funded status and corporate financial condition. To reduce volatility in the value of assets held by the U.S. pension plan, we have rebalanced the asset allocation to a portfolio of 96% of fixed income assets as of December 31, 2016. Similar investment strategy changes are under consideration or being implemented in a number of NCR’s international plans.

The investment portfolios contain primarily fixed-income investments, which are diversified across U.S. and non-U.S. issuers, type of fixed-income security (i.e., government bonds, corporate bonds, mortgage-backed securities) and credit quality. The investment portfolios also contain a blend of equity investments, which are diversified across U.S. and non-U.S. stocks, small and large capitalization stocks, and growth and value stocks, primarily of non-U.S. issuers. Where applicable, real estate investments are made through real estate securities, partnership interests or direct investment and are diversified by property type and location. Other assets, such as cash or private equity are used judiciously to improve portfolio diversification and enhance risk-adjusted portfolio returns. Derivatives may be used to adjust market exposures in an efficient and timely manner. Due to the timing of security purchases and sales, cash held by fund managers is classified in the same asset category as the related investment. Rebalancing algorithms are applied to keep the asset mix of the plans from deviating excessively from their targets. Investment risk is measured and monitored on an ongoing basis through regular performance reporting, investment manager reviews, actuarial liability measurements and periodic investment strategy reviews.

Postretirement Plans Reconciliation of the beginning and ending balances of the benefit obligation for NCR's U.S. postretirement plan is as follows:



	Postretirement Benefits
In millions	2016			2015
Change in benefit obligation
Benefit obligation as of January 1	$	27		$	26
Gross service cost	—			—
Interest cost	1			1
Actuarial (gain) loss	(2		)	2
Plan participant contributions	1			1
Benefits paid	(2		)	(3		)
Benefit obligation as of December 31	$	25		$	27



	Postretirement Benefits
In millions	2016			2015
Benefit obligation	$	(25	)	$	(27	)
Amounts recognized in the Consolidated Balance Sheets
Current liabilities	$	(3	)	$	(4	)
Noncurrent liabilities	(22		)	(23		)
Net amounts recognized	$	(25	)	$	(27	)
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	16		$	20
Prior service benefit	(19		)	(33		)
Total	$	(3	)	$	(13	)

The net periodic benefit income of the postretirement plan for the years ended December 31 was:



In millions	Postretirement Benefits
In millions	2016			2015			2014
Interest cost	$	1		$	1		$	1
Net service cost	—			—			—
Amortization of:
Prior service benefit	(14		)	(18		)	(18		)
Actuarial loss	2			2			2
Net periodic benefit income	$	(11	)	$	(15	)	$	(15	)

The assumptions utilized in accounting for postretirement benefit obligations as of December 31 and for postretirement benefit income for the years ended December 31 were:



	Postretirement Benefit Obligations						Postretirement Benefit Costs
	2016		2015		2014		2016		2015		2014
Discount rate	3.2	%	3.3	%	3.1	%	3.3	%	3.1	%	3.4	%

Assumed healthcare cost trend rates as of December 31 were:



	2016				2015
	Pre-65 Coverage		Post-65 Coverage		Pre-65 Coverage		Post-65 Coverage
Healthcare cost trend rate assumed for next year	6.6	%	5.8	%	6.8	%	5.9	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.0	%	5.0	%	5.0	%	5.0	%
Year that the rate reaches the ultimate rate	2024		2024		2024		2024

In addition, a one percentage point change in assumed healthcare cost trend rates would have had an immaterial impact on the postretirement benefit income and obligation.

Postemployment Benefits Reconciliation of the beginning and ending balances of the benefit obligation for NCR's postemployment plan was:



	Postemployment Benefits
In millions	2016			2015
Change in benefit obligation
Benefit obligation as of January 1	$	143		$	227
Restructuring program cost	4			1
Service cost	16			17
Interest cost	3			3
Amendments	—			(12		)
Benefits paid	(37		)	(47		)
Foreign currency exchange	(6		)	(12		)
Actuarial loss (gain)	4			(34		)
Benefit obligation as of December 31	$	127		$	143

The following tables present the funded status and the reconciliation of the unfunded status to amounts recognized in the Consolidated Balance Sheets and in accumulated other comprehensive loss at December 31:



	Postemployment Benefits
In millions	2016			2015
Benefit obligation	$	(127	)	$	(143	)
Amounts recognized in the Consolidated Balance Sheets
Current liabilities	$	(22	)	$	(33	)
Noncurrent liabilities	(105		)	(110		)
Net amounts recognized	$	(127	)	$	(143	)
Amounts recognized in accumulated other comprehensive loss
Net actuarial gain	$	(42	)	$	(47	)
Prior service benefit	(17		)	(23		)
Total	$	(59	)	$	(70	)

The net periodic benefit cost of the postemployment plan for the years ended December 31 was:



In millions	Postemployment Benefits
In millions	2016			2015			2014
Service cost	$	16		$	17		$	17
Interest cost	3			3			5
Amortization of:
Prior service benefit	(6		)	(4		)	(4		)
Actuarial (gain) loss	(7		)	—			(2		)
Net benefit cost	$	6		$	16		$	16
Restructuring severance cost	4			1			73
Net periodic benefit cost	$	10		$	17		$	89

During the years ended December 31, 2016, 2015 and 2014, restructuring charges for employee severance of $4 million, $1 million and $73 million, respectively, were recognized associated with the restructuring plan. See Note 3, "Restructuring Plan" for additional information.

The weighted average assumptions utilized in accounting for postemployment benefit obligations as of December 31 and for postemployment benefit costs for the years ended December 31 were:



	Postemployment Benefit Obligations				Postemployment Benefit Costs
	2016		2015		2016		2015		2014
Discount rate	2.0	%	2.2	%	2.2	%	2.1	%	3.2	%
Salary increase rate	1.8	%	2.1	%	2.1	%	2.0	%	2.8	%
Involuntary turnover rate	4.8	%	4.8	%	4.8	%	4.8	%	4.8	%

Cash Flows Related to Employee Benefit Plans

Cash Contributions NCR does not plan to contribute to the U.S. qualified pension plan in 2017, and plans to contribute approximately $30 million to the international pension plans in 2017. The Company also plans to make contributions of $3 million to the U.S. postretirement plan and $55 million to the postemployment plan in 2017.

Estimated Future Benefit Payments NCR expects to make the following benefit payments reflecting past and future service from its pension, postretirement and postemployment plans:



In millions	U.S. Pension Benefits		International Pension Benefits		Total Pension Benefits		Postretirement Benefits		Postemployment Benefits
Year
2017	$	124	$	49	$	173	$	3	$	55
2018	$	127	$	49	$	176	$	3	$	20
2019	$	130	$	49	$	179	$	2	$	19
2020	$	132	$	48	$	180	$	2	$	17
2021	$	135	$	47	$	182	$	2	$	16
2022-2026	$	690	$	243	$	933	$	6	$	65

Savings Plans U.S. employees and many international employees participate in defined contribution savings plans. These plans generally provide either a specified percent of pay or a matching contribution on participating employees’ voluntary elections. NCR’s matching contributions typically are subject to a maximum percentage or level of compensation. Employee contributions can be made pre-tax, after-tax or a combination thereof. The expense under the U.S. plan was approximately $24 million in 2016, $23 million in 2015, and $20 million in 2014. The expense under international and subsidiary savings plans was $26 million in 2016, $22 million in 2015, and $24 million in 2014.

Amounts to be Recognized The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during 2017 are as follows:



In millions	U.S. Pension Benefits		International Pension Benefits		Total Pension Benefits		Postretirement Benefits			Postemployment Benefits
Prior service cost (benefit)	$	—	$	1	$	1	$	(6	)	$	(5	)
Actuarial loss (gain)	$	—	$	—	$	—	$	2		$	(4	)