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Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract]  
Change in Benefit Obligation, Plan Assets and Funded Status of Defined Benefit Pension Plans

The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway, Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2019 and 2018, is as follows (in millions):

 

 

 

Pension benefits

 

 

Postretirement benefits

 

At year end

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Benefit obligation at beginning of year

 

$

575

 

 

$

633

 

 

$

45

 

 

$

62

 

Service cost

 

 

1

 

 

 

1

 

 

 

 

 

 

 

Interest cost

 

 

18

 

 

 

18

 

 

 

2

 

 

 

2

 

Actuarial loss (gain)

 

 

42

 

 

 

(24

)

 

 

(15

)

 

 

(8

)

Benefits paid

 

 

(29

)

 

 

(40

)

 

 

(11

)

 

 

(13

)

Participants contributions

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Exchange rate loss (gain)

 

 

5

 

 

 

(15

)

 

 

 

 

 

 

Special events

 

 

 

 

 

 

 

 

30

 

 

 

 

Plan amendments

 

 

 

 

 

4

 

 

 

 

 

 

 

Settlements

 

 

(12

)

 

 

(2

)

 

 

 

 

 

 

Benefit obligation at end of year

 

$

600

 

 

$

575

 

 

$

53

 

 

$

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

517

 

 

$

588

 

 

$

 

 

$

 

Actual return

 

 

80

 

 

 

(21

)

 

 

 

 

 

 

Benefits paid

 

 

(29

)

 

 

(40

)

 

 

(11

)

 

 

(13

)

Company contributions

 

 

5

 

 

 

5

 

 

 

9

 

 

 

11

 

Participants contributions

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Exchange rate gain (loss)

 

 

6

 

 

 

(13

)

 

 

 

 

 

 

Settlements

 

 

(11

)

 

 

(2

)

 

 

 

 

 

 

Fair value of plan assets at end of year

 

$

568

 

 

$

517

 

 

$

 

 

$

 

Funded status

 

$

(32

)

 

$

(58

)

 

$

(53

)

 

$

(45

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated benefit obligation at end of year

 

$

597

 

 

$

572

 

 

 

 

 

 

 

 

 

Assumption Rates Used for Benefit Obligations The assumption rates used for benefit obligations are as follows:

 

 

Years Ended December 31,

 

 

2019

 

2018

Discount rate:

 

 

 

 

United States plan

 

2.50% - 3.20%

 

3.90% - 4.20%

International plans

 

0.90% - 2.30%

 

1.80% - 2.90%

Salary increase:

 

 

 

 

United States plan

 

N/A

 

N/A

International plans

 

1.80% - 3.10%

 

1.80% - 3.40%

 

Assumption Rates Used for Net Periodic Benefit Costs

The assumption rates used for net periodic benefit costs are as follows:

 

 

 

Years Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate:

 

 

 

 

 

 

 

 

 

 

 

 

United States plan

 

3.90% - 4.20%

 

 

3.00% - 3.60%

 

 

3.10% - 4.00%

 

International plans

 

1.80% - 2.90%

 

 

1.80% - 2.40%

 

 

1.80% - 2.80%

 

Salary increase:

 

 

 

 

 

 

 

 

 

 

 

 

United States plan

 

N/A

 

 

N/A

 

 

N/A

 

International plans

 

1.80% - 3.40%

 

 

1.80% - 3.30%

 

 

1.80% - 3.50%

 

Expected return on assets:

 

 

 

 

 

 

 

 

 

 

 

 

United States plan

 

5.70%

 

 

5.60%

 

 

5.60%

 

International plans

 

1.90% - 4.30%

 

 

1.80% - 4.00%

 

 

1.80% - 3.00%

 

Plan's Assets Carried at Fair Value

The following table sets forth by level, within the fair value hierarchy, the Plan’s assets carried at fair value (in millions):

 

 

 

Fair Value Measurements

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

140

 

 

$

 

 

$

140

 

 

$

 

Bonds

 

 

209

 

 

 

 

 

 

209

 

 

 

 

Other (insurance contracts)

 

 

168

 

 

 

 

 

 

113

 

 

 

55

 

Total Fair Value Measurements

 

$

517

 

 

$

 

 

$

462

 

 

$

55

 

December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

157

 

 

$

 

 

$

157

 

 

$

 

Bonds

 

 

227

 

 

 

 

 

 

227

 

 

 

 

Other (insurance contracts)

 

 

184

 

 

 

 

 

 

121

 

 

 

63

 

Total Fair Value Measurements

 

$

568

 

 

$

 

 

$

505

 

 

$

63

 

Summary of Changes in Fair Value of Plan's Level Three Assets The following table sets forth a summary of changes in the fair value of the Plan’s Level 3 assets (in millions):

 

 

Level 3 Plan

Assets

 

Balance at December 31, 2017

 

$

61

 

Actual return on plan assets still held at

   reporting date

 

 

(1

)

Purchases, sales and settlements

 

 

(2

)

Currency translation adjustments

 

 

(3

)

Balance at December 31, 2018

 

$

55

 

Actual return on plan assets still held at

   reporting date

 

 

10

 

Purchases, sales and settlements

 

 

(1

)

Currency translation adjustments

 

 

(1

)

Balance at December 31, 2019

 

$

63