Table of Contents The weighted average rates used to determine net periodic pension expense (benefit) were as follows for the period July 2, 2019 through December 31, 2019, January 1, 2019 through July 1, 2019 and the years ended December 31, 2018 and 2017: Non-Pension Postretirement Benefits U.S. Plans Non-U.S. Plans Successor (1) Predecessor Successor Predecessor July 2, 2019 through December 31, 2019 January 1, 2019 through July 1, 2019 Year ended December 31, July 2, 2019 through December 31, 2019 January 1, 2019 through July 1, 2019 Year ended December 31, 2018 2017 2018 2017 Discount rate — % 4.1 % 3.2 % 3.4 % 6.9 % 6.3 % 5.3 % 6.1 % Rate of increase in future compensation levels — — — — — — — — Expected long- term rate of return on plan assets — — — — — — — — Pension Benefits U.S. Plans Non-U.S. Plans Successor Predecessor Successor Predecessor July 2, 2019 through December 31, 2019 January 1, 2019 through July 1, 2019 Year ended December 31, July 2, 2019 through December 31, 2019 January 1, 2019 through July 1, 2019 Year ended December 31, 2018 2017 2018 2017 Discount rate 3.3 % 4.1 % 3.5 % 3.9 % 1.3 % 1.9 % 1.9 % 1.9 % Rate of increase in future compensation levels — — — — 3.4% 2.3% 2.4% 2.4% Expected long- term rate of return on plan assets 6.6 % 6.6 % 6.7 % 6.7 % 2.6 % 3.1 % 3.1 % 2.9 % (1) As mentioned above as of December 31, 2018 the non-pension postretirement benefit plan offered to certain U.S. associates was transferred to a third party financial institution, which moved the liability from the Company to the third party. A one-percentage-point change in the assumed health care cost trend rates would change the projected benefit obligation for international non-pension postretirement benefits by approximately $2 and service cost and interest cost by a negligible amount. The impact on U.S. plans is negligible. The Company’s investment strategy for the assets of its North American defined benefit pension plans is to maximize the long-term return on plan assets using a mix of equities, fixed income and alternative investments with a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and expected timing of future cash flow requirements. The investment portfolio contains a diversified blend of equity, fixed-income and alternative investments. For U.S. plans, equity investments are also diversified across U.S. and international stocks, as well as growth, value and small and large capitalization investments, while the Company’s Canadian plan includes a blend of Canadian securities with U.S. and other foreign investments. The alternative investments are allocated in a diversified fund structure with exposure to a variety of hedge fund strategies. Investment risk and performance is measured and monitored on an ongoing basis through periodic investment portfolio reviews, annual liability measurements and periodic asset and liability studies. As plan funded status changes, adjustments to the diversified portfolio may be considered to reduce funded status volatility and better match the duration of plan liabilities. The Company periodically reviews its target allocation of North American plan assets among the various asset classes. The targeted allocations are based on anticipated asset performance, discussions with investment professionals and on the projected timing of future benefit payments. The Company observes local regulations and customs governing its European pension plans in determining asset allocations, which generally require a blended weight leaning toward more fixed income securities, including government bonds. Pension Investment Policies and Strategies 91