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Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Expense Related to Defined Benefit and Retiree Health Care Benefit Plans
Expense related to defined benefit and retiree health care benefit plans is as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
201920182017201920182017201920182017
Service cost$18  $19  $22  $3  $5  $5  $31  $36  $37  
Interest cost38  35  42  14  15  17  43  45  44  
Expected return on plan assets(41) (42) (41) (14) (15) (17) (86) (67) (62) 
Amortization of prior service cost (credit)—  —  —  (1) (3) (4) 1  (1) (2) 
Recognized net actuarial loss9  17  14  —  2  3  29  20  28  
Net periodic benefit costs24  29  37  2  4  4  18  33  45  
Settlement losses10  23  36  —  —  —  3  3  2  
Total, including other postretirement losses$34  $52  $73  $2  $4  $4  $21  $36  $47  
Schedule of Changes in the Benefit Obligations and Plan Assets for the Defined Benefit and Retiree Health Care Benefit Plans
Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
201920182019201820192018
Change in plan benefit obligation
Benefit obligation at beginning of year:$874  $998  $361  $414  $2,411  $2,469  
Service cost18  19  3  5  31  36  
Interest cost38  35  14  15  43  45  
Participant contributions—  —  13  11  7  7  
Benefits paid(11) (10) (41) (41) (103) (87) 
Settlements(66) (100) —  —  (12) (16) 
Curtailments—  —  —  —  (1) —  
Actuarial loss (gain)107  (68) 9  (43) 193  6  
Plan amendments—  —  —  —  —  7  
Effects of exchange rate changes—  —  —  —  12  (56) 
Benefit obligation at end of year$960  $874  $359  $361  $2,581  $2,411  
Change in plan assets
Fair value of plan assets at beginning of year:$869  $995  $330  $394  $2,410  $2,593  
Actual return on plan assets185  (56) 53  (12) 337  (52) 
Employer contributions (qualified plans)—  20  1  1  9  19  
Employer contributions (non-qualified plans)10  20  —  —  —  —  
Participant contributions—  —  13  11  7  7  
Benefits paid(11) (10) (41) (41) (103) (87) 
Settlements(66) (100) —  —  (12) (16) 
Effects of exchange rate changes—  —  —  —  13  (54) 
Other—  —  —  (23) —  —  
Fair value of plan assets at end of year$987  $869  $356  $330  $2,661  $2,410  
Funded status at end of year$27  $(5) $(3) $(31) $80  $(1) 
Schedule of Amounts Recognized in our Balance Sheet
Amounts recognized on our Consolidated Balance Sheets as of December 31, are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined BenefitTotal
2019
Overfunded retirement plans$73  $—  $145  $218  
Accrued expenses and other liabilities & other long-term liabilities(17) —  (4) (21) 
Underfunded retirement plans(29) (3) (61) (93) 
Funded status at end of 2019
$27  $(3) $80  $104  
2018
Overfunded retirement plans$40  $—  $52  $92  
Accrued expenses and other liabilities & other long-term liabilities(8) —  (3) (11) 
Underfunded retirement plans(37) (31) (50) (118) 
Funded status at end of 2018
$(5) $(31) $(1) $(37) 
Schedule of Change in AOCI
The change in AOCI is as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined BenefitTotal
Net Actuarial LossNet Actuarial LossPrior Service CreditNet Actuarial LossPrior Service CreditNet Actuarial LossPrior Service Credit
AOCI balance, net of taxes, December 31, 2018
$135  $21  $(5) $317  $3  $473  $(2) 
Changes in AOCI by category:
Adjustments(36) (31) —  (58) —  (125) —  
Recognized within net income(19) —  1  (32) (1) (51) —  
Tax effect11  7  —  32  —  50  —  
Total change to AOCI(44) (24) 1  (58) (1) (126) —  
AOCI balance, net of taxes, December 31, 2019
$91  $(3) $(4) $259  $2  $347  $(2) 
Schedule of Allocation of Plan Assets The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 6.
December 31, 2019
Level 1Level 2Other (a)Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents$—  $—  $640  $640  
Equity securities—  —  347  347  
Total$—  $—  $987  $987  
Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents$62  $—  $168  $230  
Equity securities—  —  126  126  
Total$62  $—  $294  $356  
Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents$59  $126  $1,762  $1,947  
Equity securities41  2  671  714  
Total$100  $128  $2,433  $2,661  
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
December 31, 2018
Level 1Level 2Other (a)Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents$—  $—  $563  $563  
Equity securities—  —  306  306  
Total$—  $—  $869  $869  
Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents$59  $—  $155  $214  
Equity securities—  —  116  116  
Total$59  $—  $271  $330  
Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents$47  $139  $1,602  $1,788  
Equity securities33  1  588  622  
Total$80  $140  $2,190  $2,410  
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
Fixed income securities and cash equivalents65%  65%  
60% – 100%
Equity securities35%  35%  
0% – 40%
Weighted average asset allocations as of December 31 are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
201920182019201820192018
Fixed income securities and cash equivalents65%  65%  65%  65%  73%  74%  
Equity securities35%  35%  35%  35%  27%  26%  
Schedule of Assumptions Used
Assumptions and investment policies
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
201920182019201820192018
Weighted average assumptions used to determine benefit obligations:
Discount rate3.62%  4.37%  3.63%  4.30%  1.46%  1.85%  
Long-term pay progression3.30%  3.30%  n/an/a3.06%  2.96%  
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate4.35%  3.77%  4.30%  3.63%  1.85%  1.84%  
Long-term rate of return on plan assets4.90%  4.80%  4.40%  4.10%  3.62%  2.58%  
Long-term pay progression3.30%  3.30%  n/an/a3.03%  2.96%  
Schedule of Assumed Future Benefit Payments
The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets.
202020212022202320242025 – 2029
U.S. Defined Benefit$99  $118  $85  $90  $87  $441  
U.S. Retiree Health Care32  30  29  27  26  115  
Non-U.S. Defined Benefit95  96  99  100  104  542  
Schedule of Assumed Health Care Cost Trend Rates for U.S Retiree Health Care Benefit Plan
Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows:
20192018
Assumed health care cost trend rate for next year7.00%  7.25%  
Ultimate trend rate5.00%  5.00%  
Year in which ultimate trend rate is reached2028  2028