19. Employee Bargaining Agreements and Benefit Plans

Collective bargaining agreements

At December 31, 2015 the Company had approximately 5,000 employees, of which approximately 300 were temporary employees. Some of the Company’s employees in various foreign locations are subject to collective bargaining agreements. Less than one percent of the Company’s employees in the U.S. are subject to collective bargaining agreements.

Benefit plans

The Company has benefit plans covering substantially all of its employees. Defined-contribution benefit plans cover most of the U.S. and Canadian employees, and benefits are based on years of service, a percentage of current earnings and matching of employee contributions. For the years ended December 31, 2015, 2014 and 2013, employer contributions for defined-contribution plans were $14 million, $13 million, and $14 million, respectively, and all funding is current.

Defined Benefit Pension Plans

The company sponsors two defined benefit plans in the UK which are frozen. The second defined benefit plan was acquired from the John MacLean & Sons Electrical acquisition in March 2015.

Net periodic benefit cost for the Company’s defined benefit plans aggregated less than $1 million each year for the years ended December 31, 2015, 2014 and 2013.

The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United Kingdom using a measurement date of December 31, 2015 and 2014, are as follows (in millions):

	Pension Benefits
At year end	2015			2014
Benefit obligation at beginning of year	$	4		$	5
Service cost		—			—
Interest cost		1			—
Actuarial loss (gain)		(1	)		—
Benefits paid		—			—
Participants contributions		—			—
Exchange rate loss (gain)		—			—
Acquisitions (disposals)		13			—
Currency Impact		(1	)		(1	)
Benefit obligation at end of year		16			4

Fair value of plan assets at beginning of year	$	5		$	6
Actual return		(1	)		—
Benefits paid		—			—
Company contributions		1			—
Participants contributions		—			—
Exchange rate gain (loss)		—			—
Acquisitions (disposals)		13			—
Currency Impact		—			(1	)
Fair value of plan assets at end of year		18			5

Funded status		2			1
Accumulated benefit obligation at end of year		16			4

The net asset is presented within other assets on the Consolidated Balance Sheet.

Assumed long-term rates of return on plan assets and discount rates vary for the different plans according to the local economic conditions. The assumption rates used for benefit obligations are as follows:

	Years Ended December 31,
	2015			2014
Discount rate:		3.70	%		3.90	%

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

	Years Ended December 31,
	2015	2014		2013
Discount rate:	3.10% - 3.90%	3.90% - 4.40%			4.40%
Expected return on assets:	2.13% - 5.50%		5.50%		5.50%

In determining the overall expected long-term rate of return for plan assets, the Company takes into consideration the historical experience as well as future expectations of the asset mix involved. As different investments yield different returns, each asset category is reviewed individually and then weighted for significance in relation to the total portfolio.

Both plans have plan assets in excess of projected benefit obligations.

The Company expects to pay future benefit amounts on its defined benefit plans of less than $1 million for each of the next five years and in the aggregate $3 million for the five years thereafter.

The Company expects to contribute less than $1 million to its pension plans in 2016.

Plan Assets

The Company and its investment advisers collaboratively reviewed market opportunities using historic and statistical data, as well as the actuarial valuation reports for the plans, to ensure that the levels of acceptable return and risk are well-defined and monitored. Currently, the Company’s management believes that there are no significant concentrations of risk associated with plan assets.

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, 2014:
Equity securities	$	—	$	—	$	—	$	—
Fixed Income Securities		—		—		—		—
Other		5		—		5		—
Total Fair Value Measurements	$	5	$	—	$	5	$	—

December 31, 2015:
Equity securities	$	10	$	10	$	—	$	—
Fixed Income Securities		3		3		—		—
Other		5		—		5		—
Total Fair Value Measurements	$	18	$	13	$	5	$	—