
	Employee Benefit Plans

Defined Contribution Savings Plans

The Company sponsors several defined contribution savings plans in the United States and certain foreign subsidiaries that provide certain eligible employees of the Company an opportunity to accumulate funds for retirement. The Company matches portions of the contributions of participating employees on the basis specified by the plans. The Company’s contributions to these plans were $33 million, $32 million and $34 million during 2016, 2015 and 2014, respectively.

Defined Benefit Pension Plans

The Company sponsors defined benefit pension plans in the United States and in certain foreign subsidiaries with some plans offering participation in the plans at the employees’ option. Under these plans, benefits are based on an employee’s years of credited service and a percentage of final average compensation. However, the majority of the plans are closed to new employees and participants are no longer accruing benefits.

The funded status of the defined benefit pension plans is recognized on the Consolidated Balance Sheets and the gains or losses and prior service costs or credits that arise during the period, but are not recognized as components of net periodic benefit cost, are recognized as a component of accumulated other comprehensive loss, net of tax.

The components of net periodic benefit cost consisted of the following:



	Year Ended December 31,
	2016			2015			2014
Service cost	$	4		$	5		$	5
Interest cost	21			22			29
Expected return on plan assets	(27		)	(31		)	(32		)
Amortization of unrecognized amounts	5			5			3
Net periodic benefit cost	$	3		$	1		$	5

The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017 is $9 million, which consists of $8 million for net actuarial loss and $1 million for prior service cost.

The Company uses a measurement date of December 31 for its pension plans. The funded status of the pension plans were as follows:



	As of December 31,
Change in Benefit Obligation	2016			2015
Benefit obligation at end of prior year	$	656		$	716
Service cost	4			5
Interest cost	21			22
Actuarial (gain) loss	115			(32		)
Currency translation adjustment	(53		)	(30		)
Net benefits paid	(23		)	(25		)
Benefit obligation at end of current year	$	720		$	656

Change in Plan Assets
Fair value of assets at end of prior year	$	527		$	553
Actual return on plan assets	60			5
Employer contributions	12			14
Currency translation adjustment	(53		)	(20		)
Net benefits paid	(23		)	(25		)
Fair value of assets at end of current year	$	523		$	527



	As of December 31,
Funded Status	2016			2015
Classification of net balance sheet assets (liabilities):
Non-current assets	$	—		$	30
Current liabilities	(1		)	(1		)
Non-current liabilities	(196		)	(158		)
Net funded status	$	(197	)	$	(129	)

The following assumptions were used to determine pension obligations and pension costs for the principal plans in which the Company’s employees participated:



		For the Year Ended December 31,
U.S. Pension Benefit Plans		2016		2015		2014
Discount rate:
	Net periodic benefit cost	4.40	%	4.00	%	4.75	%
	Benefit obligation	3.90	%	4.40	%	4.00	%
Long-term rate of return on plan assets		7.00	%	7.25	%	7.50	%

Non-U.S. Pension Benefit Plans
Discount rate:
	Net periodic benefit cost	3.45	%	3.30	%	4.50	%
	Benefit obligation	2.45	%	3.45	%	3.30	%
Long-term rate of return on plan assets		4.45	%	4.65	%	5.30	%

To select discount rates for its defined benefit pension plans, the Company uses a modeling process that involves matching the expected cash outflows of such plans, to yield curves constructed from portfolios of AA-rated fixed-income debt instruments. The Company uses the average yields of the hypothetical portfolios as a discount rate benchmark.

The Company’s expected rate of return on plan assets of 7.00% and 4.45% for the U.S. plans and non-U.S. plans, respectively, used to determine pension obligations and pension costs, is a long-term rate based on historic plan asset returns in individual jurisdictions, over varying long-term periods combined with current market expectations and broad asset mix considerations.

As of December 31, 2016, plans with benefit obligations in excess of plan assets had accumulated benefit obligations of $720 million and plan assets of $523 million. As of December 31, 2015, plans with benefit obligations in excess of plan assets had accumulated benefit obligations of $386 million and plan assets of $228 million. The accumulated benefit obligation for all plans was $712 million and $646 million as of December 31, 2016 and 2015, respectively. The Company expects to contribute approximately $4 million to the U.S. plans and $7 million to the non-U.S. plans in 2017.

The Company’s defined benefit pension plans’ assets are invested primarily in mutual funds and may change in value due to various risks, such as interest rate and credit risk and overall market volatility. Due to the level of risk associated with investment securities, it is reasonably possible that changes in the values of the pension plans’ investment securities will occur in the near term and that such changes would materially affect the amounts reported in the Company’s financial statements.

The defined benefit pension plans’ investment goals and objectives are managed by the Company or Company-appointed trustees with consultation from independent investment advisors. While the objectives may vary slightly by country and jurisdiction, collectively the Company seeks to produce returns on pension plan investments, which are based on levels of liquidity and investment risk that the Company believes are prudent and reasonable, given prevailing capital market conditions. The pension plans’ assets are managed in the long-term interests of the participants and the beneficiaries of the plans. A suitable strategic asset allocation benchmark is determined for each plan to maintain a diversified portfolio, taking into account government requirements, if any, regarding unnecessary investment risk and protection of pension plans’ assets. The Company believes that diversification of the pension plans’ assets is an important investment strategy to provide reasonable assurance that no single security or class of securities will have a disproportionate impact on the pension plans. As such, the Company allocates assets among traditional equity, fixed income (government issued securities, corporate bonds and short-term cash investments) and other investment strategies.

The equity component’s purpose is to provide a total return that will help preserve the purchasing power of the assets. The pension plans hold various mutual funds that invest in equity securities and are diversified among funds that invest in large cap, small cap, growth, value and international stocks as well as funds that are intended to “track” an index, such as the S&P 500. The equity investments in the portfolios will represent a greater assumption of market volatility and risk as well as provide higher anticipated total return over the long term. The equity component is expected to approximate 40%-60% of the plans’ assets.

The purpose of the fixed income component is to provide a deflation hedge, to reduce the overall volatility of the pension plans’ assets in relation to the liability and to produce current income. The pension plans hold mutual funds that invest in securities issued by governments, government agencies and corporations. The fixed income component is expected to approximate 40%-60% of the plans’ assets.

The following table presents the defined benefit pension plans’ assets measured at fair value, as of December 31:



	2016
Asset Class	Level 1		Level 2		Total
Cash equivalents and short-term investments	$	12	$	15	$	27
U.S. equities	87		34		121
Non-U.S. equities	40		70		110
Real estate	—		15		15
Government bonds	7		70		77
Corporate bonds	82		40		122
Other assets	2		49		51
Total assets	$	230	$	293	$	523



	2015
Asset Class	Level 1		Level 2		Total
Cash equivalents and short-term investments	$	—	$	12	$	12
U.S. equities	—		126		126
Non-U.S. equities	—		129		129
Government bonds	—		103		103
Corporate bonds	—		133		133
Other assets	—		24		24
Total assets	$	—	$	527	$	527

The Company estimates that future benefit payments from plan assets will be $23 million, $25 million, $27 million, $27 million, $28 million and $158 million for 2017, 2018, 2019, 2020, 2021 and 2022 to 2026, respectively.

Multiemployer Plans

The Company contributes to a number of multiemployer plans under the terms of collective-bargaining agreements that cover a portion of its employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; (iii) if the Company elects to stop participating in a multiemployer plan, it may be required to contribute to such plan an amount based on the under-funded status of the plan; and (iv) the Company has no involvement in the management of the multiemployer plans’ investments. For the years ended December 31, 2016, 2015 and 2014, the Company contributed a total of $9 million in each of the periods to multiemployer plans.