Masco corporation

We froze all future benefit accruals under substantially all our domestic and foreign qualified and domestic non-qualified defined benefit pension plans several years ago.

Changes in the projected benefit obligation and fair value of plan assets, and the funded status of our defined-benefit pension plans were as follows, in millions:

	2016								2015
	Qualified				Non-Qualified				Qualified				Non-Qualified
Changes in projected benefit obligation:
Projected benefit obligation at January 1	$	1,059			$	174			$	1,145			$	190
Service cost	3				—				3				—
Interest cost	41				7				41				7
Actuarial (gain) loss, net	50				1				(61		)		(11		)
Foreign currency exchange	(29		)		—				(23		)		—
Benefit payments	(69		)		(12		)		(46		)		(12		)
Projected benefit obligation at December 31	$	1,055			$	170			$	1,059			$	174
Changes in fair value of plan assets:
Fair value of plan assets at January 1	$	658			$	—			$	691			$	—
Actual return on plan assets	58				—				(12		)		—
Foreign currency exchange	(20		)		—				(7		)		—
Company contributions	100				12				38				12
Expenses, other	(10		)		—				(6		)		—
Benefit payments	(69		)		(12		)		(46		)		(12		)
Fair value of plan assets at December 31	$	717			$	—			$	658			$	—
Funded status at December 31:	$	(338	)		$	(170	)		$	(401	)		$	(174	)

Amounts in our consolidated balance sheets were as follows, in millions:

	At December 31, 2016								At December 31, 2015
	Qualified				Non-Qualified				Qualified				Non-Qualified
Other assets	$	2			$	—			$	1			$	—
Accrued liabilities	(1		)		(12		)		(3		)		(12		)
Other liabilities	(339		)		(158		)		(399		)		(162		)
Total net liability	$	(338	)		$	(170	)		$	(401	)		$	(174	)

59

MASCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

M. EMPLOYEE RETIREMENT PLANS (Continued)

Unrealized loss included in accumulated other comprehensive loss before income taxes was as follows, in millions:

	At December 31, 2016								At December 31, 2015
	Qualified				Non-Qualified				Qualified				Non-Qualified
Net loss	$	519			$	54			$	501			$	56
Net transition obligation	1				—				1				—
Net prior service cost	3				—				2				—
Total	$	523			$	54			$	504			$	56