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Retirement Plans | 12 Months Ended
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Dec. 31, 2017
Retirement Benefits [Abstract] |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Plans Our company and subsidiaries have various plans that cover a significant number of our employees. These plans include defined contribution plans, defined benefit plans and other postretirement plans:
- | our defined contribution plans provide retirement benefits in return for services rendered. These plans provide an individual account for each participant and have terms that specify how contributions to the participant’s account are to be determined rather than the amount of pension benefits the participant is to receive. Contributions to these plans are based on pretax income and/or discretionary amounts determined on an annual basis. Our expense for the defined contribution plans for continuing operations totaled $173 million in 2017, $111 million in 2016 and $288 million in 2015. The increase in 2017 resulted from an increase in the domestic workforce and the reinstatement of discretionary contributions in 2017.
- | our defined benefit plans, which include both funded and unfunded pension plans, define an amount of pension benefit to be provided, usually as a function of age, years of service and/or compensation. The unfunded obligations and net periodic benefit cost of our United States defined benefit plans were not material for the periods presented; and
- | our postretirement plans other than pensions are offered to specific eligible employees. The accumulated benefit obligations and net periodic benefit cost for these plans were not material for the periods presented.
Funded status For our international pension plans, at December 31, 2017, the projected benefit obligation was $1.2 billion and the fair value of plan assets was $940 million, which resulted in an unfunded obligation of $280 million. At December 31, 2016, the projected benefit obligation was $1.1 billion and the fair value of plan assets was $865 million, which resulted in an unfunded obligation of $241 million. The accumulated benefit obligation was approximately the same as the projected benefit obligation for our international plans in both years presented. The following table presents additional information about our international pension plans.
| December 31
Millions of dollars | 2017 | 2016
Amounts recognized on the Consolidated Balance Sheets |  |
Accrued employee compensation and benefits | $ | 15 |  | $ | 16 |
Employee compensation and benefits | 267 |  | 227 |
Pension plans in which projected benefit obligation exceeded plan assets |  |
Projected benefit obligation | $ | 1,202 |  | $ | 1,083 |
Fair value of plan assets | 920 |  | 840 |
Pension plans in which accumulated benefit obligation exceeded plan assets |  |
Accumulated benefit obligation | $ | 1,139 |  | $ | 1,037 |
Fair value of plan assets | 920 |  | 840 |
Fair value measurements of plan assets The fair value of our plan assets categorized within level 1 on the fair value hierarchy is based on quoted prices in active markets for identical assets. The fair value of our plan assets categorized within level 2 on the fair value hierarchy is based on significant observable inputs for similar assets. The fair value of our plan assets categorized within level 3 on the fair value hierarchy is based on significant unobservable inputs. The following table sets forth the fair values of assets held by our international pension plans by level within the fair value hierarchy.
Millions of dollars | Level 1 | Level 2 | Level 3 | Total
Cash and equivalents | $ | — |  | $ | 11 |  | $ | — |  | $ | 11 |
Common/collective trust funds (a) |  |  |  |
Equity funds (b) | — |  | 204 |  | — |  | 204 |
Bond funds (c) | — |  | 323 |  | 46 |  | 369 |
Alternatives funds (d) | — |  | 184 |  | — |  | 184 |
Real estate funds (e) | — |  | 98 |  | 28 |  | 126 |
Other assets | 7 |  | 22 |  | 17 |  | 46 |
Fair value of plan assets at December 31, 2017 | $ | 7 |  | $ | 842 |  | $ | 91 |  | $ | 940 |
Cash and equivalents | $ | — |  | $ | 49 |  | $ | — |  | $ | 49 |
Common/collective trust funds (a) |  |  |  |
Equity funds (b) | — |  | 197 |  | — |  | 197 |
Bond funds (c) | — |  | 232 |  | 44 |  | 276 |
Alternatives fund (d) | — |  | 221 |  | — |  | 221 |
Real estate funds (e) | — |  | 36 |  | 35 |  | 71 |
Other assets | 5 |  | 20 |  | 26 |  | 51 |
Fair value of plan assets at December 31, 2016 | $ | 5 |  | $ | 755 |  | $ | 105 |  | $ | 865 |
(a) Common/collective trust funds are valued at the net asset value of units held by the plans at year-end. (b) Strategy is to invest in diversified funds of global common stocks. (c) Strategy is to invest in diversified funds of fixed income securities of varying geographies and credit quality and whose cash flows approximate the maturities of the benefit obligation. (d) Strategy is to invest in a fund of diversifying investments, including but not limited to reinsurance, commodities and currencies. (e) Strategy is to invest in diversified funds of real estate investment trusts and private real estate. Our investment strategy varies by country depending on the circumstances of the underlying plan. Risk management practices include diversification by issuer, industry and geography, as well as the use of multiple asset classes and investment managers within each asset class. Our investment strategy for our United Kingdom pension plan, which constituted 84% of our international pension plans’ projected benefit obligation at December 31, 2017 and is no longer accruing service benefits, aims to achieve full funding of the benefit obligation, with the plan's assets increasingly composed of investments whose cash flows match the maturities of the obligation. Net periodic benefit cost Net periodic benefit cost for our international pension plans was $30 million in 2017, $30 million in 2016 and $42 million in 2015. Included in net periodic benefit cost were $13 million in 2017 and $8 million in 2016 of net curtailment and settlement cost arising from reductions in workforce during these years. Actuarial assumptions Certain weighted-average actuarial assumptions used to determine benefit obligations of our international pension plans at December 31 were as follows:
| 2017 | 2016
Discount rate | 2.8% | 2.9%
Rate of compensation increase | 5.5% | 4.8%
Certain weighted-average actuarial assumptions used to determine net periodic benefit cost of our international pension plans for the years ended December 31 were as follows:
| 2017 | 2016 | 2015
Discount rate | 2.9% | 4.2% | 4.1%
Expected long-term return on plan assets | 4.2% | 5.3% | 5.9%
Rate of compensation increase | 4.8% | 5.4% | 5.3%
Assumed long-term rates of return on plan assets, discount rates for estimating benefit obligations and rates of compensation increases vary by plan according to local economic conditions. Where possible, discount rates were determined based on the prevailing market rates of a portfolio of high-quality debt instruments with maturities matching the expected timing of the payment of the benefit obligations. Expected long-term rates of return on plan assets were determined based upon an evaluation of our plan assets and historical trends and experience, taking into account current and expected market conditions. Other information Contributions. Funding requirements for each plan are determined based on the local laws of the country where such plan resides. In certain countries the funding requirements are mandatory, while in other countries they are discretionary. We currently expect to contribute $17 million to our international pension plans in 2018. Benefit payments. Expected benefit payments over the next 10 years for our international pension plans are as follows: $68 million in 2018, $61 million in 2019, $63 million in 2020, $67 million in 2021, $72 million in 2022 and $424 million in years 2023 through 2027.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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