Pension Plans, Other Postretirement Benefits, and Defined-Contribution Plans (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Changes in Benefit Obligations, Fair Value of Plan Assets, and Funded Status of the Plans

The following sets forth changes in the benefit obligations and fair value of plan assets for the Company’s pension and other postretirement benefit plans for the years ended December 31, 2017 and 2016, as well as the funded status of the plans and amounts recognized in the financial statements at December 31, 2017 and 2016:



	Pension Benefits						Other Benefits
millions	2017			2016			2017			2016
Change in benefit obligation
Benefit obligation at beginning of year	$	2,301		$	2,431		$	296		$	266
Service cost	87			99			2			3
Interest cost	84			95			12			12
Actuarial (gain) loss ⁽¹⁾	130			211			14			34
Participant contributions	—			—			5			4
Benefit payments	(396		)	(513		)	(27		)	(23		)
Foreign-currency exchange-rate changes	12			(22		)	—			—
Benefit obligation at end of year ⁽²⁾	$	2,218		$	2,301		$	302		$	296



Change in plan assets
Fair value of plan assets at beginning of year	$	1,340		$	1,674		$	—		$	—
Actual return on plan assets	209			107			—			—
Employer contributions	254			101			22			19
Participant contributions	—			—			5			4
Benefit payments	(396		)	(513		)	(27		)	(23		)
Foreign-currency exchange-rate changes	17			(29		)	—			—
Fair value of plan assets at end of year	$	1,424		$	1,340		$	—		$	—

Funded status of the plans at end of year	$	(794	)	$	(961	)	$	(302	)	$	(296	)

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⁽¹⁾	Includes $19 million of settlement losses for pension benefits at December 31, 2017, and $44 million of termination benefits at December 31, 2016, related to the Company’s workforce reduction program initiated in the first quarter of 2016. See Note 17—Restructuring Charges.


⁽²⁾	The accumulated benefit obligation for all defined-benefit pension plans was $1.9 billion at December 31, 2017 and $2.0 billion at December 31, 2016.

Schedule of Amounts Recognized in Balance Sheet



Amounts recognized on the balance sheet
Other assets	$	58		$	44		$	—		$	—
Other current liabilities	(16		)	(66		)	(21		)	(23		)
Other long-term liabilities—other	(836		)	(939		)	(281		)	(273		)
Total	$	(794	)	$	(961	)	$	(302	)	$	(296	)

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income



Amounts recognized in accumulated other comprehensive income
Prior service (credit) cost	$	—	$	—	$	(26	)	$	(50	)
Net actuarial (gain) loss	501		616		14			—
Total	$	501	$	616	$	(12	)	$	(50	)

Schedule of Defined-Benefit Pension Plans With Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

The following summarizes the Company’s defined-benefit pension plans with accumulated benefit obligations in excess of plan assets for the years ended December 31:



millions	2017		2016
Projected benefit obligation	$	2,079	$	2,175
Accumulated benefit obligation	1,749		1,866
Fair value of plan assets	1,227		1,171

Components of Net Periodic Benefit Cost Table

The following summarizes the Company’s pension and other postretirement benefit cost for the years ended December 31:



	Pension Benefits									Other Benefits
millions	2017			2016			2015			2017			2016			2015
Components of net periodic benefit cost
Service cost	$	87		$	99		$	118		$	2		$	3		$	9
Interest cost	84			95			101			12			12			15
Expected (return) loss on plan assets	(84		)	(97		)	(109		)	—			—			—
Amortization of net actuarial (gain) loss	25			42			52			—			—			—
Amortization of net prior service (credit) cost	(1		)	—			—			(24		)	(25		)	(4		)
Settlement expense ⁽¹⁾	91			146			11			—			—			—
Termination benefits expense ⁽¹⁾	4			44			—			—			—			—
Curtailment expense ⁽¹⁾	—			8			—			—			—			—
Net periodic benefit cost	$	206		$	337		$	173		$	(10	)	$	(10	)	$	20

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⁽¹⁾	Settlement expense, termination benefits expense, and curtailment expense for 2016 relate to the workforce reduction program initiated in the first quarter of 2016. See Note 18—Restructuring Charges.

Schedule of Amounts Recognized in Other Comprehensive Income

The following summarizes the amounts recognized in other comprehensive income (before tax benefit) for the years ended December 31:



	Pension Benefits								Other Benefits
millions	2017			2016			2015		2017			2016			2015
Amounts recognized in other comprehensive income (expense)
Net actuarial gain (loss)	$	—		$	(150	)	$	22	$	(14	)	$	(25	)	$	27
Amortization of net actuarial (gain) loss	116			188			63		—			—			—
Net prior service credit (cost)	—			—			—		—			—			89
Amortization of net prior service (credit) cost	(1		)	—			—		(24		)	(34		)	(4		)
Total amounts recognized in other comprehensive income (expense)	$	115		$	38		$	85	$	(38	)	$	(59	)	$	112

Schedule of Assumptions Used

The following summarizes the weighted-average assumptions used by the Company in determining the pension and other postretirement benefit obligations and net periodic benefit cost for the years ended December 31:



	Pension Benefits						Other Benefits
	2017		2016		2015		2017		2016		2015
Benefit obligation assumptions
Discount rate	3.62	%	4.06	%	4.50	%	3.75	%	4.26	%	5.00	%
Rates of increase in compensation levels	5.36	%	5.40	%	5.25	%	5.46	%	5.48	%	5.50	%
Net periodic benefit cost assumptions
Discount rate	4.06	%	4.62	%	4.00	%	4.26	%	5.00	%	4.25	%
Long-term rate of return on plan assets	6.12	%	6.77	%	6.75	%	N/A		N/A		N/A
Rates of increase in compensation levels	5.40	%	5.34	%	5.25	%	5.48	%	5.41	%	5.25	%

Fair Value Hierarchy of Plan Assets Table

The fair value of the Company’s pension plan assets by asset class and input level within the fair-value hierarchy were as follows:



millions
December 31, 2017	Level 1		Level 2		Level 3 ⁽³⁾		Total
Investments
Cash and cash equivalents	$	1	$	—	$	—	$	1
Fixed income	55		31		—		86
Equity securities	185		—		—		185
Other
Real estate	—		—		13		13
Other	—		53		—		53
Investments measured at net asset value ⁽¹⁾	—		—		—		1,086
Total investments⁽²⁾	$	241	$	84	$	13	$	1,424

December 31, 2016
Investments
Cash and cash equivalents	$	2	$	—	$	—	$	2
Fixed income	59		33		—		92
Equity securities	347		—		—		347
Other
Real estate	—		—		10		10
Other	—		28		—		28
Investments measured at net asset value ⁽¹⁾	—		—		—		861
Total investments⁽²⁾	$	408	$	61	$	10	$	1,340

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⁽¹⁾	Certain investments measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets.


⁽²⁾	Amount excludes receivables and payables, primarily related to Level 1 investments.


⁽³⁾	The changes in level 3 investments of $3 million for the year ended December 31, 2017, and $(3) million for the year ended December 31, 2016, were attributable to the actual return on plan assets still held at the reporting date.

Schedule Of Estimated Future and Current Year Employer Contributions

The following summarizes the Company’s contributions for 2017 and expected contributions for 2018:



millions	Expected 2018		2017
Funded pension plans	$	114	$	167
Unfunded pension plans	16		87
Unfunded other postretirement plans	22		22
Total	$	152	$	276

Schedule of Estimated Future Benefit Payments

The following summarizes estimated benefit payments for the next 10 years, including benefit increases due to continuing employee service:



millions	Pension Benefit Payments		Other Benefit Payments
2018	$	138	$	22
2019	155		21
2020	154		21
2021	166		20
2022	195		20
2023-2027	938		90