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Employee Bargaining Agreements and Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2020
Postemployment Benefits [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 Kingdom using a measurement date of December 31, 2020 and 2019, are as follows (in millions):

 

 

Pension Benefits

 

At year end

 

2020

 

 

2019

 

Benefit obligation at beginning of year

 

$

11

 

 

$

11

 

Service cost

 

 

—

 

 

 

—

 

Interest cost

 

 

—

 

 

 

—

 

Actuarial loss (gain)

 

 

6

 

 

 

—

 

Benefits paid

 

 

—

 

 

 

—

 

Participants contributions

 

 

—

 

 

 

—

 

Plan settlements

 

 

(8

)

 

 

—

 

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

Acquisitions (disposals)

 

 

—

 

 

 

—

 

Benefit obligation at end of year

 

$

9

 

 

$

11

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

16

 

 

$

15

 

Actual return

 

 

—

 

 

 

1

 

Benefits paid

 

 

—

 

 

 

—

 

Company contributions

 

 

3

 

 

 

—

 

Participants contributions

 

 

—

 

 

 

—

 

Plan settlements

 

 

(8

)

 

 

—

 

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

Acquisitions (disposals)

 

 

—

 

 

 

—

 

Fair value of plan assets at end of year

 

$

11

 

 

$

16

 

 

 

 

 

 

 

 

 

 

Funded status

 

 

2

 

 

 

5

 

Accumulated benefit obligation at end of year

 

$

9

 

 

$

11

 
Assumption Rates Used for Benefit Obligations

The assumption rates used for benefit obligations are as follows:

 

 

December 31,

 

 

2020

 

2019

Discount rate:

 

0.70% - 1.20%

 

2.00% - 2.10%
Assumption Rates Used for Net Periodic Benefit Costs

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

 

 

December 31,

 

 

 

2020

 

2019

 

2018

 

Discount rate:

 

2.00% - 2.10%

 

2.65% - 2.90%

 

2.50%

 

Expected return on assets:

 

2.54% - 3.03%

 

3.02% - 3.62%

 

3.10% - 4.17%

 
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 (1)

 

December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuity contract

 

$

6

 

 

$

—

 

 

$

—

 

 

$

6

 

Other

 

 

5

 

 

 

1

 

 

 

4

 

 

 

—

 

Total fair value measurements

 

$

11

 

 

$

1

 

 

$

4

 

 

$

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

6

 

 

$

6

 

 

$

—

 

 

$

—

 

Fixed income securities

 

 

5

 

 

 

5

 

 

 

—

 

 

 

—

 

Other

 

 

5

 

 

 

1

 

 

 

4

 

 

 

—

 

Total fair value measurements

 

$

16

 

 

$

12

 

 

$

4

 

 

$

—

 

 

(1)

Transfers of $6 million into Level 3 in the fair value hierarchy consist of the buy-in annuity contract entered into during 2020. Fair value is estimated by adjusting the premium paid by movements in gilt yields during the reporting period.