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Long-Term Employee Benefits | 12 Months Ended
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Dec. 31, 2017
General Discussion of Pension and Other Postretirement Benefits [Abstract] |
Long Term Employee Benefits | LONG-TERM EMPLOYEE BENEFITS The company offers various long-term benefits to its employees. Where permitted by applicable law, the company reserves the right to change, modify or discontinue the plans. Defined Benefit Pensions The company has both funded and unfunded noncontributory defined benefit pension plans covering a majority of the U.S. employees. The benefits under these plans are based primarily on years of service and employees' pay near retirement. In November 2016, the company announced changes to the U.S. pension plans. The company will freeze the pay and service amounts used to calculate pension benefits for active employees who participate in the U.S. pension plans at the earlier of the effective date of the first of the Intended Business Separations or November 30, 2018 (the Effective Date). See Note 2 for further discussion of the Intended Business Separations. Therefore, as of the Effective Date, active employees in the U.S. will not accrue additional benefits for future service and eligible compensation received. These changes resulted in a $527 decline in the projected benefit obligation, which is reflected in actuarial loss (gain) in the below table, and recognition of a $25 pre-tax curtailment gain during the fourth quarter of 2016. The decline in the projected benefit obligation is primarily due to the decrease in expected future compensation. Most employees hired on or after January 1, 2007 are not eligible to participate in the U.S. defined benefit pension plans. The company's funding policy is consistent with the funding requirements of federal laws and regulations. Pension coverage for employees of the company's non-U.S. consolidated subsidiaries is provided, to the extent deemed appropriate, through separate plans. Obligations under such plans are funded by depositing funds with trustees, covered by insurance contracts, or remain unfunded. The workforce reductions in 2016 related to the 2016 global cost savings and restructuring plan triggered curtailments for certain of the company's pension plans, including the principal U.S. pension plan. For the principal U.S. pension plan, the company recorded curtailment losses of $63 during 2016 driven by the changes in the benefit obligation based on the demographics of the terminated positions partially offset by accelerated recognition of a portion of the prior service benefit. In the fourth quarter 2016, about $550 of lump-sum payments were made from the principal U.S. pension plan trust fund to a group of separated, vested plan participants who were extended a limited-time opportunity and voluntarily elected to receive their pension benefits in a single lump-sum payment. Since the company recognizes pension settlements only when the lump-sum payments exceed the sum of the plan's service and interest cost components of net periodic pension cost for the year, these lump-sum payments did not result in the recognition of a pension settlement charge. Other Post Employment Benefits The parent company and certain subsidiaries provide medical, dental and life insurance benefits to pensioners and survivors. The associated plans for retiree benefits are unfunded and the cost of the approved claims is paid from company funds. Essentially all of the cost and liabilities for these retiree benefit plans are attributable to the U.S. benefit plans. The non-Medicare eligible retiree medical plan is contributory with pensioners and survivors' contributions adjusted annually to achieve a 50/50 target sharing of cost increases between the company and pensioners and survivors. In addition, limits are applied to the company's portion of the retiree medical cost coverage. For Medicare eligible pensioners and survivors, the company provides a company-funded Health Reimbursement Arrangement (HRA). In November 2016, the company announced that eligible employees who will be under the age of 50 at the Effective Date, as defined above, will not receive post-retirement medical, dental and life insurance benefits. As a result of these changes, the company recognized a pre-tax curtailment gain of $357 during the fourth quarter of 2016. Beginning January 1, 2015, eligible employees who retire on and after that date will receive the same life insurance benefit payment, regardless of age. The majority of U.S. employees hired on or after January 1, 2007 are not eligible to participate in the post-retirement medical, dental and life insurance plans. As a result of the workforce reductions noted above, curtailments were triggered for the company’s other post employment benefit plans. The company recorded curtailment gains of $35 during the year ended December 31, 2016. The curtailment gains were driven by accelerated recognition of a portion of the prior service benefit partially offset by the change in the benefit obligation based on the demographics of the terminated positions. The company also provides disability benefits to employees. Employee disability benefit plans are insured in many countries. However, primarily in the U.S., such plans are generally self-insured. Obligations and expenses for self-insured plans are reflected in the figures below. Summarized information on the company's pension and other post employment benefit plans is as follows:
| Pension Benefits | Other Benefits
Obligations and Funded Status at December 31, | 2016 | 2015 | 2016 | 2015
Change in benefit obligation |  |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 26,094 |  |  | $ | 29,669 |  |  | $ | 2,758 |  |  | $ | 2,889 |  |
Service cost | 174 |  |  | 232 |  |  | 11 |  |  | 15 |  |
Interest cost | 800 |  |  | 1,084 |  |  | 87 |  |  | 112 |  |
Plan participants' contributions | 18 |  |  | 19 |  |  | 36 |  |  | 45 |  |
Actuarial loss (gain) | 460 |  |  | (1,404 | ) |  | 153 |  |  | (4 | ) |
Benefits paid 1 | (2,374 | ) |  | (1,761 | ) |  | (254 | ) |  | (282 | ) |
Amendments | — |  |  | — |  |  | (28 | ) |  | — |  |
Effect of foreign exchange rates | (348 | ) |  | (456 | ) |  | 1 |  |  | (6 | ) |
Acquisitions/divestitures/other activity | 7 |  |  | (52 | ) |  | 65 |  |  | — |  |
Spin-off of Chemours | — |  |  | (1,237 | ) |  | — |  |  | (11 | ) |
Benefit obligation at end of year | $ | 24,831 |  |  | $ | 26,094 |  |  | $ | 2,829 |  |  | $ | 2,758 |  |
Change in plan assets |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 17,497 |  |  | $ | 20,446 |  |  | $ | — |  |  | $ | — |  |
Actual gain on plan assets | 1,219 |  |  | 88 |  |  | — |  |  | — |  |
Employer contributions | 535 |  |  | 308 |  |  | 218 |  |  | 237 |  |
Plan participants' contributions | 18 |  |  | 19 |  |  | 36 |  |  | 45 |  |
Benefits paid 1 | (2,374 | ) |  | (1,761 | ) |  | (254 | ) |  | (282 | ) |
Effect of foreign exchange rates | (239 | ) |  | (330 | ) |  | — |  |  | — |  |
Acquisitions/divestitures/other activity | — |  |  | (47 | ) |  | — |  |  | — |  |
Spin-off of Chemours | — |  |  | (1,226 | ) |  | — |  |  | — |  |
Fair value of plan assets at end of year | $ | 16,656 |  |  | $ | 17,497 |  |  | $ | — |  |  | $ | — |  |
Funded status |  |  |  |  |  |  |  |
U.S. plan with plan assets | $ | (6,391 | ) |  | $ | (6,662 | ) |  | $ | — |  |  | $ | — |  |
Non-U.S. plans with plan assets | (674 | ) |  | (748 | ) |  | — |  |  | — |  |
All other plans 2 | (1,110 | ) |  | (1,187 | ) |  | (2,829 | ) |  | (2,758 | ) |
Total | $ | (8,175 | ) |  | $ | (8,597 | ) |  | $ | (2,829 | ) |  | $ | (2,758 | ) |
Amounts recognized in the Consolidated Balance Sheets consist of: |  |  |  |  |  |  |  |
Other assets | $ | 3 |  |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |
Other accrued liabilities (Note 12) | (78 | ) |  | (130 | ) |  | (275 | ) |  | (234 | ) |
Other liabilities (Note 14) | (8,100 | ) |  | (8,478 | ) |  | (2,554 | ) |  | (2,524 | ) |
Net amount recognized | $ | (8,175 | ) |  | $ | (8,597 | ) |  | $ | (2,829 | ) |  | $ | (2,758 | ) |
1. | 2016 benefits paid includes about $550 of lump sum benefits associated with the limited-time opportunity provided to certain separated, vested participants in the principal U.S. pension plan. See further discussion above.
2. | Includes pension plans maintained around the world where funding is not customary.
The pre-tax amounts recognized in accumulated other comprehensive loss are summarized below:
| Pension Benefits | Other Benefits
December 31, | 2016 | 2015 | 2016 | 2015
Net loss | $ | (10,280 | ) | $ | (10,803 | ) | $ | (830 | ) | $ | (787 | )
Prior service benefit | 17 |  | 54 |  | 281 |  | 811 |
| $ | (10,263 | ) | $ | (10,749 | ) | $ | (549 | ) | $ | 24 |
The accumulated benefit obligation for all pension plans was $24,345 and $24,984 at December 31, 2016 and 2015, respectively.
Information for pension plans with projected benefit obligation in excess of plan assets | 2016 | 2015
Projected benefit obligation | $ | 24,779 |  | $ | 25,769 |
Accumulated benefit obligation | 24,297 |  | 24,715 |
Fair value of plan assets | 16,601 |  | 17,162 |
Information for pension plans with accumulated benefit obligations in excess of plan assets | 2016 | 2015
Projected benefit obligation | $ | 23,946 |  | $ | 25,515 |
Accumulated benefit obligation | 23,591 |  | 24,508 |
Fair value of plan assets | 15,838 |  | 16,930 |
| Pension Benefits
Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive loss | 2016 | 2015 | 2014
Net periodic benefit cost |  |  |
Service cost | $ | 174 |  | $ | 232 |  | $ | 241 |
Interest cost | 800 |  | 1,084 |  | 1,162 |
Expected return on plan assets | (1,320 | ) | (1,554 | ) | (1,611 | )
Amortization of loss | 822 |  | 768 |  | 601 |
Amortization of prior service (benefit) cost | (6 | ) | (9 | ) | 2 |
Curtailment loss (gain) | 40 |  | (6 | ) | 4 |
Settlement loss | 62 |  | 76 |  | 7 |
Net periodic benefit cost - Total | $ | 572 |  | $ | 591 |  | $ | 406 |
Less: Discontinued operations | (5 | ) | (5 | ) | 40 |
Net period benefit cost - Continuing operations | $ | 577 |  | $ | 596 |  | $ | 366 |
Changes in plan assets and benefit obligations recognized in other comprehensive loss |  |  |
Net loss | $ | 570 |  | $ | 57 |  | $ | 4,131 |
Amortization of loss | (822 | ) | (768 | ) | (601 | )
Prior service benefit | — |  | — |  | (44 | )
Amortization of prior service benefit (cost) | 6 |  | 9 |  | (2 | )
Curtailment (loss) gain | (40 | ) | 6 |  | (4 | )
Settlement loss | (62 | ) | (76 | ) | (7 | )
Effect of foreign exchange rates | (138 | ) | (119 | ) | — |
Spin-off of Chemours | — |  | (382 | ) | — |
Total (benefit) loss recognized in other comprehensive loss | $ | (486 | ) | $ | (1,273 | ) | $ | 3,473 |
Noncontrolling interest | — |  | — |  | 1 |
Total (benefit) loss recognized in other comprehensive loss, attributable to DuPont | $ | (486 | ) | $ | (1,273 | ) | $ | 3,474 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ | 86 |  | $ | (682 | ) | $ | 3,880 |
The estimated pre-tax net loss and prior service benefit for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2017 are $758 and $(4), respectively. These amounts do not include any potential settlement charges related to the company's Pension Restoration Plan which provides lump sum payments to certain eligible retirees.
| Other Benefits
Components of net periodic benefit cost (credit) and amounts recognized in other comprehensive loss | 2016 | 2015 | 2014
Net periodic benefit cost |  |  |
Service cost | $ | 11 |  | $ | 15 |  | $ | 17 |
Interest cost | 87 |  | 112 |  | 121 |
Amortization of loss | 78 |  | 78 |  | 57 |
Amortization of prior service benefit | (134 | ) | (182 | ) | (214 | )
Curtailment gain | (392 | ) | (274 | ) | — |
Net periodic benefit credit - Total | $ | (350 | ) | $ | (251 | ) | $ | (19 | )
Less: Discontinued operations | — |  | (272 | ) | 3 |
Net periodic benefit (credit) cost - Continuing operations | $ | (350 | ) | $ | 21 |  | $ | (22 | )
Changes in plan assets and benefit obligations recognized in other comprehensive loss |  |  |
Net loss (gain) | $ | 153 |  | $ | (4 | ) | $ | 280 |
Amortization of loss | (78 | ) | (78 | ) | (57 | )
Prior service benefit | (28 | ) | — |  | (50 | )
Amortization of prior service benefit | 134 |  | 182 |  | 214 |
Curtailment gain | 392 |  | 274 |  | — |
Effect of foreign exchange rates | — |  | 1 |  | — |
Total loss recognized in other comprehensive loss, attributable to DuPont | $ | 573 |  | $ | 375 |  | $ | 387 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ | 223 |  | $ | 124 |  | $ | 368 |
The estimated pre-tax net loss and prior service benefit for the other post employment benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2017 are $91 and $(69), respectively.
| Pension Benefits | Other Benefits
Weighted-average assumptions used to determine benefit obligations at December 31, | 2016 | 2015 | 2016 | 2015
Discount rate | 3.80 | % | 4.13 | % | 4.03 | % | 4.32 | %
Rate of compensation increase 1 | 3.80 | % | 3.94 | % | — | % | — | %
1. | The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant's entire career at the company.
| Pension Benefits | Other Benefits
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, | 2016 | 2015 | 2014 | 2016 | 2015 | 2014
Discount rate | 3.77 | % | 3.93 | % | 4.55 | % | 3.87 | % | 4.13 | % | 4.60 | %
Expected return on plan assets | 7.74 | % | 8.10 | % | 8.35 | % | — | % | — | % | — | %
Rate of compensation increase | 3.96 | % | 4.01 | % | 4.22 | % | — | % | — | % | — | %
For determining U.S. pension plans' net periodic benefit costs, the discount rate, expected return on plan assets and the rate of compensation increase were 4.04 percent, 8.00 percent and 4.15 percent for 2016. For determining U.S. pension plans' net periodic benefit costs, the discount rate, expected return on plan assets and the rate of compensation increase were 4.29 percent, 8.50 percent and 4.20 percent for 2015. For determining U.S. pension plans' net periodic benefit costs, the discount rate, expected return on plan assets and the rate of compensation increase were 4.90 percent, 8.75 percent and 4.50 percent for 2014. In the U.S., the discount rate is developed by matching the expected cash flow of the benefit plans to a yield curve constructed from a portfolio of high quality fixed-income instruments provided by the plan's actuary as of the measurement date. Effective in 2016, the company changed its method to estimate the service and interest cost components of net periodic benefit cost for the U.S. benefit plans. The company utilized a full yield curve approach in the estimation of service and interest rate components by applying specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. For non-U.S. benefit plans, the company utilizes prevailing long-term high quality corporate bond indices to determine the discount rate applicable to each country at the measurement date. The long-term rate of return on assets in the U.S. was selected from within the reasonable range of rates determined by historical real returns (net of inflation) for the asset classes covered by the investment policy, expected performance, and projections of inflation over the long-term period during which benefits are payable to plan participants. Consistent with prior years, the long-term rate of return on plan assets in the U.S. reflects the asset allocation of the plan and the effect of the company's active management of the plan's assets. For non-U.S. plans, assumptions reflect economic assumptions applicable to each country. In October 2014, the Society of Actuaries released final reports of new mortality tables and a mortality improvement scale for measurement of retirement program obligations in the U.S. The Society of Actuaries published other mortality improvement scales in October 2015 and October 2016. The company adopted these tables in measuring the 2015 and 2016 long-term employee benefit obligations, respectively. The effect of these adoptions is amortized into net periodic benefit cost for the years following the adoption.
Assumed health care cost trend rates at December 31, | 2016 | 2015
Health care cost trend rate assumed for next year | 7 | % | 7 | %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | %
Year that the rate reaches the ultimate trend rate | 2023 |  | 2023 |
Assumed health care cost trend rates have a modest effect on the amount reported for the health care plan. A one-percentage point change in assumed health care cost trend rates would have the following effects:
| 1-Percentage Point Increase | 1-Percentage Point Decrease
Increase (decrease) on total of service and interest cost | $ | — |  | $ | — |
Increase (decrease) on post-retirement benefit obligation | 11 |  | (11 | )
Plan Assets All pension plan assets in the U.S. are invested through a single master trust fund. The strategic asset allocation for this trust fund is approved by management. The general principles guiding U.S. pension asset investment policies are those embodied in the Employee Retirement Income Security Act of 1974 (ERISA). These principles include discharging the company's investment responsibilities for the exclusive benefit of plan participants and in accordance with the "prudent expert" standard and other ERISA rules and regulations. The company establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. Strategic asset allocations in other countries are selected in accordance with the laws and practices of those countries. Where appropriate, asset liability studies are utilized in this process. U.S. plan assets and a portion of non-U.S. plan assets are managed by investment professionals employed by the company. The remaining assets are managed by professional investment firms unrelated to the company. The company's pension investment professionals have discretion to manage the assets within established asset allocation ranges approved by management of the company. Additionally, pension trust funds are permitted to enter into certain contractual arrangements generally described as "derivatives". Derivatives are primarily used to reduce specific market risks, hedge currency and adjust portfolio duration and asset allocation in a cost-effective manner. The weighted-average target allocation for plan assets of the company's U.S. and non-U.S. pension plans is summarized as follows:
Target allocation for plan assets at December 31, | 2016 | 2015
U.S. equity securities | 27 | % | 29 | %
Non-U.S. equity securities | 24 |  | 22 |
Fixed income securities | 33 |  | 32 |
Hedge funds | 2 |  | 2 |
Private market securities | 8 |  | 9 |
Real estate | 4 |  | 3 |
Cash and cash equivalents | 2 |  | 3 |
Total | 100 | % | 100 | %
Global equity securities include varying market capitalization levels. U.S. equity investments are primarily large-cap companies. Global fixed income investments include corporate-issued, government-issued and asset-backed securities. Corporate debt investments include a range of credit risk and industry diversification. U.S. fixed income investments are weighted heavier than non-U.S fixed income securities. Other investments include cash and cash equivalents, hedge funds, real estate and private market securities such as interests in private equity and venture capital partnerships. Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The tables below presents the fair values of the company's pension assets by level within the fair value hierarchy, as described in Note 1, as of December 31, 2016 and 2015, respectively.
| Fair Value Measurements at December 31, 2016
Asset Category | Total | Level 1 | Level 2 | Level 3
Cash and cash equivalents | $ | 1,505 |  | $ | 1,480 |  | $ | 25 |  | $ | — |
U.S. equity securities 1 | 4,071 |  | 4,033 |  | 20 |  | 18 |
Non-U.S. equity securities | 3,278 |  | 3,126 |  | 151 |  | 1 |
Debt – government-issued | 2,067 |  | 864 |  | 1,203 |  | — |
Debt – corporate-issued | 2,475 |  | 273 |  | 2,163 |  | 39 |
Debt – asset-backed | 721 |  | 39 |  | 682 |  | — |
Hedge funds | 1 |  | — |  | 1 |  | — |
Private market securities | 67 |  | — |  | 25 |  | 42 |
Real estate | 275 |  | 175 |  | 2 |  | 98 |
Derivatives – asset position | 53 |  | 7 |  | 46 |  | — |
Derivatives – liability position | (47 | ) | — |  | (47 | ) | — |
Other | 4 |  | — |  | 4 |  | — |
Subtotal | $ | 14,470 |  | $ | 9,997 |  | $ | 4,275 |  | $ | 198 |
Investments measured at net asset value |  |  |  |
Hedge funds | 434 |  |  |  |
Private market securities | 1,416 |  |  |  |
Real estate funds | 444 |  |  |  |
Total investments measured at net asset value | $ | 2,294 |  |  |  |
Other items to reconcile to fair value of plan assets |  |  |  |
Pension trust receivables 2 | 264 |  |  |  |  |  |  |
Pension trust payables 3 | (372 | ) |  |  |  |  |  |
Total | $ | 16,656 |  |  |  |  |  |  |
1. | The company's pension plans directly held $732 (4 percent of total plan assets) of DuPont common stock at December 31, 2016.
2. | Primarily receivables for investment securities sold.
3. | Primarily payables for investment securities purchased.
| Fair Value Measurements at December 31, 2015
Asset Category | Total | Level 1 | Level 2 | Level 3
Cash and cash equivalents | $ | 1,962 |  | $ | 1,961 |  | $ | 1 |  | $ | — |
U.S. equity securities 1 | 3,873 |  | 3,843 |  | 10 |  | 20 |
Non-U.S. equity securities | 3,597 |  | 3,480 |  | 115 |  | 2 |
Debt – government-issued | 2,028 |  | 852 |  | 1,176 |  | — |
Debt – corporate-issued | 2,374 |  | 291 |  | 2,049 |  | 34 |
Debt – asset-backed | 831 |  | 44 |  | 786 |  | 1 |
Hedge funds | 1 |  | — |  | 1 |  | — |
Private market securities | 54 |  | — |  | 17 |  | 37 |
Real estate | 246 |  | 98 |  | 4 |  | 144 |
Derivatives – asset position | 58 |  | 10 |  | 48 |  | — |
Derivatives – liability position | (59 | ) | 1 |  | (60 | ) | — |
Subtotal | $ | 14,965 |  | $ | 10,580 |  | $ | 4,147 |  | $ | 238 |
Investments measured at net asset value |  |  |  |
Debt - government issued | $ | 8 |  |  |  |
Debt - corporate issued | 6 |  |  |  |
Hedge funds | 429 |  |  |  |
Private market securities | 1,553 |  |  |  |
Real estate funds | 457 |  |  |  |
Total investments measured at net asset value | $ | 2,453 |  |  |  |
Other items to reconcile to fair value of plan assets |  |  |  |
Pension trust receivables 2 | 783 |  |  |  |  |  |  |
Pension trust payables 3 | (704 | ) |  |  |  |  |  |
Total | $ | 17,497 |  |  |  |  |  |  |
1. | The company's pension plans directly held $664 (4 percent of total plan assets) of DuPont common stock at December 31, 2015.
2. | Primarily receivables for investment securities sold.
3. | Primarily payables for investment securities purchased.
The company's pension plans hold Level 3 assets which are primarily ownership interests in investment partnerships and trusts that own private market securities and real estate. Fair value is generally based on the company's units of ownership and net asset value of the investment entity or the company's share of the investment entity's total equity. The table below presents a rollforward of activity for these assets for the years ended December 31, 2016 and 2015:
| Level 3 Assets
| Total | U.S. Equity Securities | Non-U.S. Equity Securities | Debt- Corporate Issued | Debt- Asset- Backed | Private Market Securities | Real Estate
Beginning balance at December 31, 2014 | $ | 286 |  | $ | 29 |  | $ | 4 |  | $ | 15 |  | $ | 1 |  | $ | 37 |  | $ | 200 |
Realized (loss) gain | (32 | ) | (14 | ) | — |  | (18 | ) | — |  | — |  | — |
Change in unrealized (loss) gain | (11 | ) | 5 |  | (3 | ) | 15 |  | — |  | (5 | ) | (23 | )
Purchases, sales and settlements, net | (18 | ) | — |  | — |  | 10 |  | — |  | 5 |  | (33 | )
Transfers in (out) of Level 3 | 13 |  | — |  | 1 |  | 12 |  | — |  | — |  | — |
Ending balance at December 31, 2015 | $ | 238 |  | $ | 20 |  | $ | 2 |  | $ | 34 |  | $ | 1 |  | $ | 37 |  | $ | 144 |
Realized (loss) gain | (28 | ) | (3 | ) | — |  | (25 | ) | — |  | — |  | — |
Change in unrealized (loss) gain | 19 |  | 1 |  | (1 | ) | 27 |  | — |  | 2 |  | (10 | )
Purchases, sales and settlements, net | (37 | ) | — |  | — |  | (3 | ) | (1 | ) | 3 |  | (36 | )
Transfers in (out) of Level 3 | 6 |  | — |  | — |  | 6 |  | — |  | — |  | — |
Ending balance at December 31, 2016 | $ | 198 |  | $ | 18 |  | $ | 1 |  | $ | 39 |  | $ | — |  | $ | 42 |  | $ | 98 |
The following table presents additional information about the pension plan assets valued using net asset value as a practical expedient:
| 2016 | 2015 |  |
| Fair Value | Unfunded Commitments | Fair Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period Range
Debt - government issued | $ | — |  | $ | — |  | $ | 8 |  | $ | — |  | Monthly | 3 days
Debt - corporate issued | — |  | — |  | 6 |  | — |  | Monthly | 3 days
Hedge funds 1 | 434 |  | — |  | 429 |  | — |  | Monthly, Quarterly | Ranges from 3-45 days monthly, 3-90 days quarterly
Private market securities 2 | 1,416 |  | 693 |  | 1,553 |  | 632 |  | Not applicable | Not applicable
Real estate funds 2 | 444 |  | 244 |  | 457 |  | 361 |  | Not applicable | Not applicable
Total | $ | 2,294 |  | $ | 937 |  | $ | 2,453 |  | $ | 993 |  |
1. | Less than 5 percent of hedge funds have gates in place at the investor level for year end redemptions. Hedge funds also contain either no lock up or a lock up period of less than 1 year.
2. | The remaining life of private market securities and real estate funds is an average of 15 years per investment.
Cash Flow Contributions No contributions to its principal U.S. pension plan were made in 2014 or 2015. The company contributed $230 to the principal U.S. pension plan in 2016 and is expected to contribute about the same amount to this plan in 2017. The company contributed $121, $184, and $218 to its pension plans other than the principal U.S. pension plan, its remaining plans with no plan assets and its other post employment benefit plans, respectively, in 2016. The company contributed $164, $144, and $237 to its pension plans other than the principal U.S. pension plan, its remaining plans with no plan assets and its other post employment benefit plans, respectively, in 2015. In 2017, the company expects to contribute $95 to its pension plans other than the principal U.S. pension plan, $85 to its remaining plans with no plan assets, and $275 to its other post employment benefit plans. Estimated Future Benefit Payments The following benefit payments, which reflect future service, as appropriate, are expected to be paid:
| Pension Benefits | Other Benefits
2017 | $ | 1,622 |  | $ | 275 |
2018 | 1,601 |  | 233 |
2019 | 1,589 |  | 226 |
2020 | 1,575 |  | 217 |
2021 | 1,567 |  | 210 |
Years 2022-2026 | 7,596 |  | 931 |
Defined Contribution Plan The company provides defined contribution benefits to its employees. The most significant is the Retirement Savings Plan (the Plan), which covers all U.S. full-service employees. This Plan includes a non-leveraged Employee Stock Ownership Plan (ESOP). Employees are not required to participate in the ESOP and those who do are free to diversify out of the ESOP. The purpose of the Plan is to provide retirement savings benefits for employees and to provide employees an opportunity to become stockholders of the company. The Plan is a tax qualified contributory profit sharing plan, with cash or deferred arrangement and any eligible employee of the company may participate. Currently, the company contributes 100 percent of the first 6 percent of the employee's contribution election and also contributes 3 percent of each eligible employee's eligible compensation regardless of the employee's contribution. The company's contributions to the Plan were $187, $219 and $262 for the years ended December 31, 2016, 2015 and 2014, respectively. The company's matching contributions vest immediately upon contribution. The 3 percent nonmatching company contribution vests after employees complete three years of service. In addition, the company made contributions to other defined contribution plans of $33, $57 and $66 for the years ended December 31, 2016, 2015 and 2014, respectively. Included in the company's contributions are amounts related to discontinued operations of $32 and $57 for the years ended December 31, 2015 and 2014, respectively. The company expects to contribute about the same amount as 2016 to its defined contribution plans in 2017.

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