XML 57 R41.htm IDEA: XBRL DOCUMENT v3.22.0.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
The changes in benefit obligation, the changes in fair value of plan assets, and the funded status of our pension plans and other postretirement benefit plans
The changes in benefit obligation related to all of our defined benefit plans, the changes in fair value of plan assets(a), and the funded status of our defined benefit plans as of and for the years ended below were as follows (in millions):
Pension PlansOther Postretirement
Benefit Plans
December 31,December 31,
2021202020212020
Changes in benefit obligation
Benefit obligation as of beginning of year$3,625 $3,239 $358 $336 
Service cost161 140 7 6 
Interest cost73 85 7 9 
Participant contributions— — 13 12 
Benefits paid(284)(195)(29)(28)
Actuarial (gain) loss(111)339 (9)23 
Other(1)17 — — 
Benefit obligation as of end of year$3,463 $3,625 $347 $358 
Changes in plan assets (a)
Fair value of plan assets as of beginning of year$3,067 $2,709 $— $— 
Actual return on plan assets389 413 — — 
Company contributions135 129 16 16 
Participant contributions— — 13 12 
Benefits paid(284)(195)(29)(28)
Other(4)11 — — 
Fair value of plan assets as of end of year$3,303 $3,067 $— $— 
Reconciliation of funded status (a)
Fair value of plan assets as of end of year$3,303 $3,067 $— $— 
Less: Benefit obligation as of end of year3,463 3,625 347 358 
Funded status as of end of year$(160)$(558)$(347)$(358)
Accumulated benefit obligation$3,238 $3,398 n/an/a
________________________
(a)Plan assets include only the assets associated with pension plans subject to legal minimum funding standards. Plan assets associated with U.S. nonqualified pension plans are not included here because they are not protected from our creditors and therefore cannot be reflected as a reduction from our obligations under the pension plans. As a result, the reconciliation of funded status does not reflect the effect of plan assets that exist for all of our defined benefit plans. See Note 20 for the assets associated with certain U.S. nonqualified pension plans.
Schedule of amounts recognized in balance sheet
Amounts recognized in our balance sheet for our pension and other postretirement benefits plans include (in millions):
Pension PlansOther Postretirement
Benefit Plans
December 31,December 31,
2021202020212020
Deferred charges and other assets, net$135 $7 $— $— 
Accrued expenses(19)(24)(22)(21)
Other long-term liabilities(276)(541)(325)(337)
$(160)$(558)$(347)$(358)
Projected benefit obligations in excess of fair value of plan assets
The following table presents information for our pension plans with projected benefit obligations in excess of plan assets (in millions):
December 31,
20212020
Projected benefit obligation$335 $3,561 
Fair value of plan assets40 2,997 
Accumulated benefit obligations in excess of fair value of plan assets
The following table presents information for our pension plans with accumulated benefit obligations in excess of plan assets (in millions):
December 31,
20212020
Accumulated benefit obligation$265 $3,336 
Fair value of plan assets31 2,997 
Expected benefit payments
Benefit payments that we expect to pay, including amounts related to expected future services that we expect to receive, are as follows for the years ending December 31 (in millions):
Pension
Benefits		Other
Postretirement
Benefits
2022$189 $22 
2023236 21 
2024185 21 
2025207 21 
2026223 20 
2027-20311,068 91 
Components of net periodic benefit costs
The components of net periodic benefit cost related to our defined benefit plans were as follows (in millions):
Pension PlansOther Postretirement
Benefit Plans
Year Ended December 31,Year Ended December 31,
202120202019202120202019
Service cost$161 $140 $119 $7 $6 $5 
Interest cost73 85 98 7 9 11 
Expected return on plan assets(192)(179)(166)— — — 
Amortization of:
Net actuarial (gain) loss81 74 41 (1)— (3)
Prior service credit(18)(19)(19)(7)(7)(9)
Special charges8 5 4 — — 1 
Net periodic benefit cost$113 $106 $77 $6 $8 $5 
Pre-tax amounts recognized in other comprehensive income (loss)
Pre-tax amounts recognized in other comprehensive income were as follows (in millions):
Pension PlansOther Postretirement
Benefit Plans
Year Ended December 31,Year Ended December 31,
202120202019202120202019
Net gain (loss) arising during
the year:
Net actuarial gain (loss)$308 $(105)$(204)$9 $(23)$(41)
Prior service cost(4)(5)— — — (3)
Net (gain) loss reclassified into
income:
Net actuarial (gain) loss81 74 41 (1)— (3)
Prior service credit(18)(19)(19)(7)(7)(9)
Curtailment and settlement loss8 5 4 — — — 
Effect of exchange rates2 — — — — — 
Total changes in other
comprehensive income
$377 $(50)$(178)$1 $(30)$(56)
Pre-tax amounts in accumulated other comprehensive loss not yet recognized
The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost were as follows (in millions):
Pension PlansOther Postretirement
Benefit Plans
December 31,December 31,
2021202020212020
Net actuarial (gain) loss$615 $1,014 $(4)$4 
Prior service credit(44)(66)(6)(13)
Total$571 $948 $(10)$(9)
Weighted-average assumptions used to determine the benefit obligations and net periodic benefit cost
The weighted-average assumptions used to determine the benefit obligations were as follows:
Pension PlansOther Postretirement
Benefit Plans
December 31,December 31,
2021202020212020
Discount rate2.93 %2.62 %2.96 %2.64 %
Rate of compensation increase3.70 %3.66 %n/an/a
Interest crediting rate for
cash balance plans
3.03 %3.03 %n/an/a
The weighted-average assumptions used to determine the net periodic benefit cost were as follows:
Pension PlansOther Postretirement
Benefit Plans
Year Ended December 31,Year Ended December 31,
202120202019202120202019
Discount rate2.62 %3.14 %4.24 %2.64 %3.32 %4.40 %
Expected long-term rate of return
on plan assets
7.09 %7.20 %7.22 %n/an/an/a
Rate of compensation increase3.66 %3.75 %3.78 %n/an/an/a
Interest crediting rate for
cash balance plans
3.03 %3.03 %3.04 %n/an/an/a
Assumed health care cost trend rates
The assumed health care cost trend rates were as follows:
December 31,
20212020
Health care cost trend rate assumed for the next year6.61 %6.83 %
Rate to which the cost trend rate was assumed to decline
(the ultimate trend rate)
5.00 %5.00 %
Year that the rate reaches the ultimate trend rate20262026
Fair value of pension plan assets by level of fair value hierarchy
The following table presents the fair values of the assets of our pension plans (in millions) as of December 31, 2021 and 2020 by level of the fair value hierarchy. Assets categorized in Level 1 of the hierarchy are measured at fair value using a market approach based on unadjusted quoted prices from national securities exchanges. Assets categorized in Level 2 of the hierarchy are measured at net asset value in a market that is not active or inputs other than quoted prices that are observable. No assets were categorized in Level 3 of the hierarchy as of December 31, 2021 or 2020. As previously noted, we do not fund or fully fund U.S. nonqualified and certain foreign pension plans that are not subject to funding requirements, and we do not fund our other postretirement benefit plans.
20212020
Level 1Level 2TotalLevel 1Level 2Total
Equity securities (a)$681 $— $681 $682 $— $682 
Mutual funds246 — 246 244 — 244 
Corporate debt instruments (a)— 355 355 — 297 297 
Government securities94 141 235 85 142 227 
Common collective trusts (b)— 1,202 1,202 — 1,066 1,066 
Pooled separate accounts (c)— 370 370 — 316 316 
Private funds— 112 112 — 128 128 
Insurance contract— 15 15 — 15 15 
Interest and dividends receivable5 — 5 5 — 5 
Cash and cash equivalents82 — 82 98 — 98 
Securities transactions payable, net— — — (11)— (11)
Total pension plan assets$1,108 $2,195 $3,303 $1,103 $1,964 $3,067 
________________________
(a)This class of securities includes domestic and international securities, which are held in a wide range of industry sectors.
(b)This class primarily includes investments in approximately 80 percent equities and 20 percent bonds as of December 31, 2021 and 2020.
(c)This class primarily includes investments in approximately 55 percent equities and 45 percent bonds as of December 31, 2021. As of December 31, 2020, this class included primarily investments in approximately 60 percent equities and 40 percent bonds. These pension assets are held by our foreign pension plans.