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PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS (Tables)
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Reconciliation of Pension and OPEB Plan Obligations, Assets and Funded Status
The benefit plan information in the table below pertains to all of our pension and OPEB plans, both in the United States and in other countries.    
Pension benefitsOPEB
as of and for the years ended December 31 (in millions)2020201920202019
Benefit obligations
Beginning of period$3,973 $5,635 $228 $211 
Service cost83 74 1 
Interest cost95 172 6 
Participant contributions4  — 
Actuarial loss401 924 13 26 
Benefit payments(109)(267)(20)(18)
Settlements(271)(2,550) — 
Curtailment(4)(13) — 
Foreign exchange and other141 (6) — 
End of period4,313 3,973 228 228 
Fair value of plan assets
Beginning of period2,973 4,774  — 
Actual return on plan assets688 939  — 
Employer contributions74 69 20 18 
Participant contributions4  — 
Benefit payments(109)(267)(20)(18)
Settlements(271)(2,550) — 
Foreign exchange and other75  — 
End of period3,434 2,973  — 
Funded status at December 31$(879)$(1,000)$(228)$(228)
Amounts recognized in the consolidated balance sheets
Noncurrent asset$155 $77 $ $— 
Current liability(30)(25)(18)(20)
Noncurrent liability(1,004)(1,052)(210)(208)
Net liability recognized at December 31$(879)$(1,000)$(228)$(228)
Information Relating to Individual Plans in Funded Status that have ABO in Excess of Plan Assets The following table is information relating to the individual plans in the funded status table above that have an ABO in excess of plan assets.
as of December 31 (in millions)20202019
ABO$2,920 $3,240 
Fair value of plan assets$2,047 $2,339 
Information Relating to Individual Plans in Funded Status that have PBO in Excess of Plan Assets
The following table presents information relating to the individual plans in the funded status table above that have a PBO in excess of plan assets (many of which also have an ABO in excess of assets and are therefore also included in the table directly above).

as of December 31 (in millions)20202019
PBO$3,421 $3,688 
Fair value of plan assets$2,387 $2,611 
Expected Net Pension and OPEB Plan Payments for Next 10 Years
(in millions)Pension benefitsOPEB
2021$104 $18 
2022116 16 
2023130 16 
2024146 16 
2025161 15 
2026 through 2030917 67 
Total expected net benefit payments for next 10 years$1,574 $148 
Summary of Pre-Tax losses Included in AOCI
The following table is a summary of the pre-tax losses included in AOCI at December 31, 2020 and December 31, 2019.
(in millions)Pension benefitsOPEB
Actuarial loss (gain)$811 $(23)
Prior service credit and transition obligation(9)(45)
Total pre-tax loss (gain) recognized in AOCI at December 31, 2020$802 $(68)
Actuarial loss (gain)$1,025 $(41)
Prior service credit and transition obligation(9)(59)
Total pre-tax loss (gain) recognized in AOCI at December 31, 2019$1,016 $(100)
Summary of Net-of-Tax Amounts Recorded in OCI Relating to Pension and OPEB Plans The following table is a summary of the net-of-tax amounts recorded in OCI relating to pension and OPEB plans.
Year ended December 31 (in millions)202020192018
Gain (loss) arising during the year, net of tax of $17 in 2020, $(64) in 2019 and $(4) in 2018
$59 $(184)$(22)
Amortization of loss to earnings, net of tax of $12 in 2020, $6 in 2019 and $14 in 2018
47 25 55 
Settlement charges, net of tax of $11 in 2020 and $188 in 2019
$35 $567 $— 
Pension and other employee benefits$141 $408 $33 
Net Periodic Benefit Cost - Continuing Operations
Year ended December 31 (in millions)202020192018
Pension benefits
Service cost$83 $74 $87 
Interest cost95 172 178 
Expected return on plan assets(163)(264)(303)
Amortization of net losses and other deferred amounts77 58 94 
Settlement charges46 755 
Net periodic pension benefit cost$138 $795 $57 
OPEB
Service cost$1 $$
Interest cost6 
Amortization of net losses and prior service credit(18)(27)(25)
Net periodic OPEB cost$(11)$(18)$(17)
Weighted-Average Assumptions Used in Determining Benefit Obligations at Measurement Date
Pension benefitsOPEB
2020201920202019
Discount rate
U.S. and Puerto Rico plans2.73 %3.44 %2.33 %3.16 %
International plans1.00 %1.34 %n/an/a
Rate of compensation increase
U.S. and Puerto Rico plans3.68 %3.68 %n/an/a
International plans3.03 %3.03 %n/an/a
Annual rate of increase in the per-capita costn/an/a6.50 %6.75 %
Rate decreased ton/an/a5.00 %5.00 %
by the year endedn/an/a20272027
Pension benefitsOPEB
202020192018202020192018
Discount rate
U.S. and Puerto Rico plans3.44 %4.18 %3.60 %3.16 %4.20 %3.51 %
International plans1.34 %2.02 %2.02 %n/an/an/a
Expected return on plan assets
U.S. and Puerto Rico plans6.50 %6.29 %6.25 %n/an/an/a
International plans4.23 %5.45 %5.58 %n/an/an/a
Rate of compensation increase
U.S. and Puerto Rico plans3.68 %3.66 %3.42 %n/an/an/a
International plans3.03 %3.08 %3.05 %n/an/an/a
Annual rate of increase in the per-capita costn/an/an/a6.50 %6.75 %7.00 %
Rate decreased ton/an/an/a5.00 %5.00 %5.00 %
by the year endedn/an/an/a202720272027
Fair Value of Pension Plan Assets and Liabilities
The following tables summarize our pension plan financial instruments that are measured at fair value on a recurring basis.
Basis of fair value measurement
(in millions)Balance at December 31, 2020Quoted prices
in active
markets for
identical assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Measured at NAV (a)
Assets
Fixed income securities
Cash and cash equivalents$265 $91 $174 $— $— 
U.S. government and government agency issues280 — 280 — — 
Corporate bonds744 — 744 — — 
Equity securities
Common stock453 453 — — — 
Mutual funds510 217 293 — 
Common/collective trust funds771 — 341 — 430 
Partnership investments296 — — — 296 
Other holdings115 22 82 11 — 
Collateral held on loaned securities19 — 19 — — 
Liabilities
Collateral to be paid on loaned securities(19)(19)— — — 
Fair value of pension plan assets$3,434 $764 $1,933 $11 $726 

(a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Basis of fair value measurement
(in millions)Balance at December 31, 2019Quoted prices
in active
markets for
identical assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Measured at NAV (a)
Assets
Fixed income securities
Cash and cash equivalents$224 $72 $152 $— $— 
U.S. government and government agency issues452 — 452 — — 
Corporate bonds352 — 352 — — 
Equity securities
Common stock426 426 — — — 
Mutual funds442 189 253 — 
Common/collective trust funds668 19 272 — 377 
Partnership investments333 — — — 333 
Other holdings76 58 10 — 
Collateral held on loaned securities— — — 
Liabilities
Collateral to be paid on loaned securities(9)(9)— — — 
Fair value of pension plan assets$2,973 $705 $1,548 $10 $710 
(a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Changes in Fair Value Measurements that Used Significant Unobservable Inputs
The following table is a reconciliation of changes in fair value measurements that used significant unobservable inputs (Level 3).
(in millions)Other
holdings
Balance at December 31, 2018$10 
Purchases— 
Balance at December 31, 201910 
Purchases
Balance at December 31, 2020$11 
Funded Status Percentage of Pension Plans
The following table details the funded status percentage of our pension plans as of December 31, 2020, including certain plans that are unfunded in accordance with the guidelines of our funding policy outlined above.
United States and Puerto RicoInternational
as of December 31, 2020 (in millions)Qualified
plans
Nonqualified
plan
Funded
plans
Unfunded
plans
Total
Fair value of plan assets$2,362 n/a$1,072 n/a$3,434 
PBO2,366 $269 1,155 $523 4,313 
Funded status percentage100 %n/a93 %n/a80 %