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Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2019
Pension Plan  
Pension and postretirement benefit plans  
Schedule of funded status

U.S. Plans

Non-U.S. Plans

(in millions)

2019

2018

2019

2018

 

Benefit obligation

At January 1

$

357

$

393

$

223

$

248

Service cost

5

6

3

3

Interest cost

14

13

10

10

Benefits paid

(28)

(26)

(11)

(12)

Actuarial loss (gain)

39

(27)

24

(8)

Curtailment/settlement/amendments

(2)

(2)

Foreign currency translation

7

(18)

Benefit obligation at December 31

$

387

$

357

$

254

$

223

Fair value of plan assets

At January 1

$

353

$

404

$

207

$

235

Actual return on plan assets

82

(25)

24

Employer contributions

1

2

7

4

Benefits paid

(28)

(26)

(11)

(12)

Plan settlements

(2)

(3)

Foreign currency translation

7

(20)

Fair value of plan assets at December 31

$

408

$

353

$

231

$

207

Funded status

$

21

$

(4)

$

(23)

$

(16)

Schedule of amounts recognized in the consolidated balance sheets

U.S. Plans

Non-U.S. Plans

(in millions)

    

2019

    

2018

    

2019

    

2018

 

Non-current asset

$

32

$

7

$

31

$

32

Current liabilities

(1)

(1)

(2)

(1)

Non-current liabilities

(10)

(10)

(52)

(47)

Net asset (liability) recognized

$

21

$

(4)

$

(23)

$

(16)

Schedule of amounts recognized in accumulated other comprehensive loss

U.S. Plans

Non-U.S. Plans

(in millions)

    

2019

    

2018

    

2019

    

2018

 

Net actuarial loss

$

15

$

40

$

62

$

57

Transition obligation

1

1

Prior service credit

(6)

(6)

(1)

Net amount recognized

$

9

$

34

$

63

$

57

Schedule of plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets

U.S. Plans

Non-U.S. Plans

(in millions)

2019

2018

2019

2018

 

Projected benefit obligation

$

11

$

11

$

56

$

49

Accumulated benefit obligation

10

9

45

41

Fair value of plan assets

2

2

Components of net periodic benefit cost

Year Ended December 31, 

U.S. Plans

Non-U.S. Plans

 (in millions)

    

  

2019

    

2018

    

2017

    

2019

    

2018

    

2017

 

Service cost

$

5

$

6

$

6

$

3

$

3

$

3

Interest cost

14

13

13

10

10

11

Expected return on plan assets

(18)

(21)

(21)

(8)

(9)

(10)

Amortization of actuarial loss

1

2

2

2

Amortization of prior service credit

(1)

(1)

Net periodic benefit cost

$

1

$

(2)

$

(3)

$

7

$

6

$

6

Schedule of amounts recorded in other comprehensive income and net periodic benefit cost

(in millions, pre-tax)

    

U.S. Plans

    

Non-U.S. Plans

2019

2018

2017

2019

2018

2017

Net actuarial (gain) loss

$

(25)

$

19

$

(7)

$

7

$

4

$

(3)

Prior service cost

1

Amortization of actuarial loss

(1)

(2)

(2)

(2)

Amortization of prior service credit

1

1

Total recorded in other comprehensive income

(25)

19

(6)

6

2

(5)

Net periodic benefit cost

1

(2)

(3)

7

6

6

Total recorded in other comprehensive income and net periodic benefit cost

$

(24)

$

17

$

(9)

$

13

$

8

$

1

Schedule of weighted average assumptions used to determine the company's obligations

U.S. Plans

Non-U.S. Plans

2019

2018

2019

2018

 

Discount rate

3.34

%

4.38

%

3.55

%

4.33

%

Rate of compensation increase

4.21

4.31

3.75

3.63

Schedule of weighted average assumptions used to determine the company's net periodic benefit cost

U.S. Plans

Non-U.S. Plans

2019

2018

2017

2019

2018

2017

 

Discount rate

4.38

%

3.70

%

4.30

%

4.33

%

4.02

%

4.34

%

Expected long-term return on plan assets

5.30

5.30

5.75

4.37

4.31

5.29

Rate of compensation increase

4.31

4.42

4.54

3.63

3.58

3.62

Schedule of weighted average asset allocation

U.S. Plans

Non-U.S. Plans

Asset Category

2019

2018

2019

2018

 

Equity securities

21

%

19

%

17

%

16

%

Debt securities

78

80

63

64

Cash and other

1

1

20

20

Total

100

%

100

%

100

%

100

%

Schedule of fair values of the company's plan assets, by asset category and level

Fair Value Measurements at December 31,  2019

(in millions)

    

Level 1

    

Level 2

    

Level 3

    

Total

 

U.S. Plans:

Equity index:

U.S. (a)

$

$

43

$

$

43

International (b)

42

42

Fixed income index:

Long bond (c)

295

295

Long government bond (d)

25

25

Cash (e)

3

3

Total U.S. Plans

$

$

408

$

$

408

Non-U.S. Plans:

Equity index:

U.S. (a)

$

$

22

$

$

22

International (b)

17

17

Fixed income index:

Intermediate bond (h)

52

52

Long bond (i)

95

95

Other (j)

24

24

Cash (e)

2

19

21

Total Non-U.S. Plans

$

2

$

229

$

$

231

Fair Value Measurements at December 31,  2018

(in millions)

    

Level 1

    

Level 2

    

Level 3

    

Total

U.S. Plans:

Equity index:

U.S. (a)

$

$

33

$

$

33

International (l)

35

35

Fixed income index:

Long bond (c)

258

258

Long govt bond (d)

24

24

Cash (e)

3

3

Total U.S. Plans

$

$

353

$

$

353

Non-U.S. Plans:

Equity index:

U.S. (a)

$

$

3

$

$

3

Canada (f)

13

13

International (l)

15

15

Real estate (g)

2

2

Fixed income index:

Intermediate bond (h)

34

34

Long bond (k)

99

99

Other (j)

24

24

Cash (e)

2

15

17

Total Non-U.S. Plans

$

2

$

205

$

$

207

(a)This category consists of both passively and actively managed equity index funds that track the return of large capitalization U.S. equities.
(b)This category consists of both passively and actively managed equity index funds that track an index of returns on international developed market equities.
(c)This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income corporate securities with maturities generally exceeding 10 years.
(d)This category consists of an actively managed fixed income index fund that invests in a diversified portfolio of fixed-income U.S. treasury securities with maturities generally exceeding 10 years.
(e)This category represents cash or cash equivalents.
(f)This category consists of an actively managed equity index fund that tracks against an index of large capitalization Canadian equities.
(g)This category consists of an actively managed equity index fund that tracks against real estate investment trusts and real estate operating companies.
(h)This category consists of both passively and actively managed fixed income index funds that track the return of intermediate duration government and investment grade corporate bonds.
(i)This category consists of both passively and actively managed fixed income index funds that track the return of government bonds and investment grade corporate bonds.
(j)This category mainly consists of investment products provided by insurance companies that offer returns that are subject to a minimum guarantee and mutual funds.
(k)This category consists of both passively and actively managed fixed income index funds that track the return of government bonds, investment grade corporate bonds and hedge funds.
(l)This category consists of both passively and actively managed equity index funds that track an index of returns on international developed market equities as well as infrastructure assets.
Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made

(in millions)

U.S. Plans

Non-U.S. Plans

 

2020

$

20

$

12

2021

21

11

2022

21

12

2023

23

13

2024

22

12

Years 2025 - 2029

120

71

Postemployment Retirement Benefits  
Pension and postretirement benefit plans  
Schedule of funded status

(in millions)

    

2019

    

2018

 

Accumulated postretirement benefit obligation

At January 1

$

64

$

70

Service cost

1

1

Interest cost

3

3

Plan curtailments

(1)

Actuarial loss (gain)

6

(2)

Benefits paid

(5)

(4)

Foreign currency translation

(3)

At December 31

69

64

Fair value of plan assets

Funded status

$

(69)

$

(64)

Schedule of amounts recognized in the consolidated balance sheets

(in millions)

2019

2018

 

Current liabilities

$

(4)

$

(4)

Non-current liabilities

(65)

(60)

Net liability recognized

$

(69)

$

(64)

Schedule of amounts recognized in accumulated other comprehensive loss

(in millions)

    

2019

    

2018

 

Net actuarial loss

$

14

$

8

Prior service credit

(2)

(4)

Net amount recognized

$

12

$

4

Components of net periodic benefit cost

Year Ended December 31, 

(in millions)

2019

    

2018

    

2017

Service cost

$

1

$

1

$

1

Interest cost

3

3

3

Amortization of prior service credit

(2)

(2)

(3)

Net periodic benefit cost

$

2

$

2

$

1

Schedule of amounts recorded in other comprehensive income and net periodic benefit cost

(in millions, pre-tax)

    

2019

 

2018

2017

Net actuarial loss (gain)

$

6

$

(3)

$

2

Amortization of prior service credit

2

2

3

Total recorded in other comprehensive income

8

(1)

5

Net periodic benefit cost

2

2

1

Total recorded in other comprehensive income and net periodic benefit cost

$

10

$

1

$

6

Schedule of weighted average assumptions used to determine the company's obligations

2019

2018

Discount rate

4.18

%

5.24

%

Schedule of weighted average assumptions used to determine the company's net periodic benefit cost

2019

2018

2017

Discount rate

5.49

%

4.93

%

5.46

%

Schedule of assumptions made in measuring the company's postretirement benefit obligation

U.S.

Canada

Brazil

2019 increase in per capita cost

6.00

%

5.83

%

7.38

%

Ultimate trend

4.50

%

4.00

%

7.38

%

Year ultimate trend reached

2037

2040

2019

Sensitivity to Trend Assumptions

(in millions)

2019

One-percentage point increase in trend rates:

- Increase in service cost and interest cost components

$

- Increase in year-end benefit obligations

6

One-percentage point decrease in trend rates:

- Decrease in service cost and interest cost components

- Decrease in year-end benefit obligations

5

Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made

(in millions)

 

2020

$

4

2021

4

2022

4

2023

4

2024

4

Years 2025 - 2029

21