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Pension and Other Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plans and PRB Plans [Line Items]  
Schedule of Fair Value of Pension Plans
The fair value of plan assets for our domestic and foreign Pension Benefits plans was as follows:
(In millions)
2019

 
2018

Domestic Pension Benefits plan
$
20,366

 
$
18,488

Foreign Pension Benefits plan
951

 
833
Marketable Securities The fair value of marketable securities held in trusts, which are considered Level 1 assets under the fair value hierarchy, consisted of the following at December 31:
(In millions)
2019

 
2018

Marketable securities held in trusts
$
753

 
$
642
Schedule of Pension Contributions
We made the following contributions to our pension and PRB plans during the years ended December 31:  
(In millions)
2019

 
2018

 
2017

Required pension contributions
$
343

 
$
889

 
$
615

Discretionary pension contributions
—

 
1,250

 
1,000

PRB contributions
37

 
22

 
27

Total
$
380

 
$
2,161

 
$
1,642
Pension Benefits Expected to be Paid From Plans or Companies Assets
The table below reflects the total Pension Benefits expected to be paid from the plans or from our assets, including both our share of the benefit cost and the participants’ share of the cost, which is funded by participant contributions. PRB benefits expected to be paid reflect our portion only.
(In millions)
Pension
Benefits

 
PRB

2020
$
1,984

 
$
61

2021
1,874

 
58

2022
1,806

 
55

2023
1,646

 
53

2024
1,583

 
50

Thereafter (next 5 years)
7,641

 
218
Amounts Recognized on the Balance Sheets
 
Pension Benefits
 
PRB
Funded Status – Amounts Recognized on our Balance Sheets
(in millions) December 31:
2019

 
2018

 
2019

 
2018

Noncurrent assets
$
174

 
$
126

 
$
—

 
$
—

Current liabilities
(160
)
 
(150
)
 
(18
)
 
(18
)
Noncurrent liabilities
(7,687
)
 
(6,111
)
 
(369
)
 
(354
)
Net amount recognized on our balance sheets
$
(7,673
)
 
$
(6,135
)
 
$
(387
)
 
$
(372
)

 
Pension Benefits
 
PRB
Reconciliation of Amounts Recognized on our Balance Sheets
(in millions) December 31:
2019

 
2018

 
2019

 
2018

Accumulated other comprehensive loss:
 
 
 
 
 
 
 
Prior service (cost) credit
$
(23
)
 
$
(27
)
 
$
—

 
$
—

Net actuarial loss
(11,389
)
 
(10,590
)
 
(148
)
 
(121
)
Accumulated other comprehensive loss
(11,412
)
 
(10,617
)
 
(148
)
 
(121
)
Accumulated contributions in excess of (below) net periodic expense
3,739

 
4,482

 
(239
)
 
(251
)
Net amount recognized on our balance sheets
$
(7,673
)
 
$
(6,135
)
 
$
(387
)
 
$
(372
)
Sources of Change in Accumulated Other Comprehensive Loss
 
Pension Benefits
 
PRB
Sources of Change in Accumulated Other Comprehensive Loss
(in millions)
2019

 
2018

 
2019

 
2018

Prior service (cost) credit arising during period
$
(1
)
 
$
(10
)
 
$
—

 
$
—

Amortization of prior service cost (credit) included in net income
5

 
6

 
—

 
—

Net change in prior service (cost) credit not recognized in net income during the period
4

 
(4
)
 
—

 
—

Actuarial gain (loss) arising during period
(1,847
)
 
(630
)
 
(39
)
 
4

Amortization of net actuarial (gain) loss
1,050

 
1,351

 
10

 
11

Loss recognized due to settlements
1

 
286

 
2

 
1

Net change in actuarial gain (loss) not included in net income during the period
(796
)
 
1,007

 
(27
)
 
16

Effect of exchange rates
(3
)
 
9

 
—

 
—

Total change in accumulated other comprehensive loss during period
$
(795
)
 
$
1,012

 
$
(27
)
 
$
16
Adjustment to Accumulated Other Comprehensive Loss
The amounts in AOCL at December 31, 2019 expected to be recognized as components of net periodic pension or PRB expense in 2020 are as follows: 
(In millions)
Pension Benefits

 
PRB

Amortization of net actuarial gain (loss)
$
(1,197
)
 
$
(13
)
Amortization of prior service (cost) credit
(4
)
 
—

Total
$
(1,201
)
 
$
(13
)
PBO and ABO Schedule The PBO, ABO and asset values for our domestic qualified pension plans were as follows:
(In millions)
2019

 
2018

PBO for domestic qualified pension plans
$
26,597

 
$
23,359

ABO for domestic qualified pension plans
24,213

 
21,595

Asset values for domestic qualified pension plans
20,366

 
18,488
Schedule of Change In Projected Benefit Obligation
 
Pension Benefits
 
PRB
Change in Projected Benefit Obligation (in millions)
2019

 
2018

 
2019

 
2018

PBO at beginning of year
$
25,456

 
$
28,569

 
$
672

 
$
745

Service cost
420

 
504

 
3

 
5

Interest cost
1,046

 
1,004

 
28

 
27

Plan participants’ contributions
4

 
6

 
58

 
49

Amendments
1

 
10

 
—

 
—

Plan settlements
(7
)
 
(474
)
 
(9
)
 
(10
)
Actuarial loss (gain)
3,926

 
(1,580
)
 
71

 
(39
)
Foreign exchange loss (gain)
24

 
(56
)
 
—

 
—

Benefits paid
(1,880
)
 
(2,527
)
 
(112
)
 
(105
)
PBO at end of year
$
28,990

 
$
25,456

 
$
711

 
$
672
Schedule of Change In Plan Assets
 
Pension Benefits
 
PRB
Change in Plan Assets (in millions)
2019

 
2018

 
2019

 
2018

Fair value of plan assets at beginning of year
$
19,321

 
$
21,002

 
$
300

 
$
358

Actual return (loss) on plan assets
3,516

 
(775
)
 
50

 
(14
)
Company contributions
343

 
2,139

 
37

 
22

Plan participants’ contributions
4

 
6

 
58

 
49

Plan settlements
(7
)
 
(474
)
 
(9
)
 
(10
)
Foreign exchange gain (loss)
20

 
(50
)
 
—

 
—

Benefits paid
(1,880
)
 
(2,527
)
 
(112
)
 
(105
)
Fair value of plan assets at end of year
$
21,317

 
$
19,321

 
$
324

 
$
300
Retirement Plan Assumptions
 
Pension Benefits
Weighted-Average Net Periodic Benefit Cost Assumptions
2019

 
2018

 
2017

Discount rate
4.28
%
 
3.68
%
 
4.31
%
Expected long-term rate of return on plan assets
7.38
%
 
7.38
%
 
7.39
%
Rate of compensation increase
 
 
 
 
 
Range
2%–7%

 
2%–7%

 
2%–7%

Average
4.43
%
 
4.43
%
 
4.43
%
 
PRB
Weighted-Average Net Periodic Benefit Cost Assumptions
2019

 
2018

 
2017

Discount rate
4.31
%
 
3.72
%
 
4.28
%
Expected long-term rate of return on plan assets
6.25
%
 
6.25
%
 
6.25
%
Rate of compensation increase

 

 

Range
2%–7%

 
2%–7%

 
2%–7%

Average
4.50
%
 
4.50
%
 
4.50
%
Health care trend rate*
4.00
%
 
4.00
%
 
4.00
%

 * Currently at the ultimate trend rate.
 
Pension Benefits
 
PRB
Weighted-Average Year-End Benefit Obligation Assumptions
2019

 
2018

 
2019

 
2018

Discount rate
3.25
%
 
4.28
%
 
3.29
%
 
4.31
%
Rate of compensation increase
 
 
 
 
 
 
 
Range
3%–8%

 
2%–7%

 
3%–8%

 
2%–7%

Average
4.40
%
 
4.40
%
 
4.50
%
 
4.50
%
Health care trend rate*
 
 
 
 
3.50
%
 
4.00
%

 * Currently at the ultimate trend rate.
Long-term returns used in ROA assumptions
The reasonable range of long-term returns that was used to validate the long-term ROA assumption for the calculation of the net periodic benefit cost for 2019, 2018 and 2017 is shown below.
Percentile
2019

 
2018

 
2017

35th
5.49
%
 
5.67
%
 
5.82
%
65th
7.57
%
 
7.81
%
 
7.96
%
Schedule of Allocation of Plan Assets
The investment policy asset allocation ranges for the Plan, as set by the Investment Committee, for the year ended December 31, 2019 were as follows:
Asset Category
 
Global equity (combined U.S. and international equity)
30%-60%
U.S. equities
20%-35%
International equities
10%-25%
Fixed income
20%-45%
Cash and cash equivalents
0%-10%
Private equity and private real estate funds
10%-20%
Real assets
0%-4%
Other (including absolute return funds)
5%-15%
Pension Plan [Member]  
Defined Benefit Plans and PRB Plans [Line Items]  
Components of Net Periodic Benefit Cost
 
Pension Benefits
Components of Net Periodic Pension Expense (Income) (in millions)
2019

 
2018

 
2017

Operating expense
 
 
 
 
 
Service cost
$
420

 
$
504

 
$
473

Non-operating expense
 
 
 
 
 
Interest cost
1,046

 
1,004

 
1,088

Expected return on plan assets
(1,436
)
 
(1,435
)
 
(1,377
)
Amortization of prior service cost
5

 
6

 
5

Amortization of net actuarial loss
1,050

 
1,351

 
1,177

Loss recognized due to settlements
1

 
286

 
1

Total pension non-service expense
666

 
1,212

 
894

Net periodic pension expense (income)
$
1,086

 
$
1,716

 
$
1,367
PRB [Member]  
Defined Benefit Plans and PRB Plans [Line Items]  
Components of Net Periodic Benefit Cost
 
PRB
Components of Net Periodic PRB Expense (Income) (in millions)
2019

 
2018

 
2017

Operating expense
 
 
 
 
 
Service cost
$
3

 
$
5

 
$
6

Non-operating expense
 
 
 
 
 
Interest cost
28

 
27

 
30

Expected return on plan assets
(18
)
 
(21
)
 
(21
)
Amortization of prior service cost
—

 
—

 
(1
)
Amortization of net actuarial loss
10

 
11

 
10

Loss recognized due to settlements
2

 
1

 
1

Total PRB non-service expense
22

 
18

 
19

Net periodic PRB expense (income)
$
25

 
$
23

 
$
25
VEBA [Member]  
Defined Benefit Plans and PRB Plans [Line Items]  
Schedule of Allocation of Plan Assets
The table below details assets by category for our VEBA trusts. These assets consisted primarily of publicly-traded equity securities and publicly-traded fixed income securities.
 
% of Plan Assets at Dec 31:
Asset category
2019

 
2018

Fixed income securities
43
%
 
42
%
U.S. equities
38
%
 
36
%
International equities
10
%
 
10
%
Cash and cash equivalents
9
%
 
12
%
Total
100
%
 
100
%
UNITED STATES  
Defined Benefit Plans and PRB Plans [Line Items]  
Schedule of Allocation of Plan Assets
The fair value of our Plan assets by asset category and by level (as described in “Note 1: Summary of Significant Accounting Policies”) at December 31, 2019 and December 31, 2018 were as follows: 
December 31, 2019 (in millions)
Total

 
Level 1

 
Level 2

 
Level 3

 
Not subject to leveling(7)

U.S. equities(1)
$
5,563

 
$
715

 
$
—

 
$
—

 
$
4,848

International equities(1)
3,403

 
2,838

 
13

 
—

 
552

Real assets(2)
157

 
—

 
—

 
—

 
157

Fixed income
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
2,026

 
1,836

 
190

 
—

 
—

Corporate debt securities/instruments(3)
3,039

 
378

 
2,308

 
—

 
353

Global multi-sector fixed income(4)
303

 
303

 
—

 
—

 
—

Securitized and structured credit(5)
573

 
—

 
—

 
—

 
573

Cash and cash equivalents(6)
603

 
43

 
—

 
—

 
560

Absolute return funds
1,564

 
—

 
—

 
—

 
1,564

Private equity funds
1,579

 
—

 
—

 
—

 
1,579

Private real estate funds
1,403

 
—

 
—

 
—

 
1,403

Insurance contracts
32

 
—

 
—

 
32

 
—

Total investments
20,245

 
6,113

 
2,511

 
32

 
11,589

Net receivables and payables
121

 
—

 
—

 
—

 
121

Total assets
$
20,366

 
$
6,113

 
$
2,511

 
$
32

 
$
11,710

(1)
U.S. and International equities primarily include investments across the spectrum of large, medium and small market capitalization stocks.
(2)
Real assets primarily include investments in physical and permanent assets, including infrastructure.
(3)
Corporate debt securities/instruments primarily include investments in investment grade and non-investment grade fixed income securities.
(4)
Global multi-sector fixed income primarily includes investments that invest globally among several sectors including governments, investment grade corporate bonds, high yield corporate bonds and emerging market securities.
(5)
Securitized and structured credit primarily includes investments that pool together various cash flow producing financial assets that are structured in a way that can achieve desired targeted credit, maturity or other characteristics and are typically collateralized by residential mortgages, commercial mortgages and other assets, and other fixed income related securities.
(6)
Cash and cash equivalents are primarily investments in highly liquid money market funds and bank sponsored collective funds. Included in cash and cash equivalents is excess cash in investment manager accounts which is available for immediate use and is used to fund daily operations and execute the investment policy. Excess cash in investment manager accounts is not considered to be part of the cash target allocation set forth in the investment policy.
(7)
Receivables, payables and certain investments that are valued using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amount presented for the total domestic pension benefits plan assets.

December 31, 2018 (in millions)
Total

 
Level 1

 
Level 2

 
Level 3

 
Not subject to leveling(7)

U.S. equities(1)
$
4,701

 
$
2,189

 
$
—

 
$
—

 
$
2,512

International equities(1)
3,141

 
2,522

 
4

 
—

 
615

Real assets(2)
53

 
—

 
—

 
—

 
53

Fixed income
 
 
 
 
 
 
 
 
 
U.S. government and agency securities
1,923

 
1,727

 
196

 
—

 
—

Corporate debt securities/instruments(3)
2,907

 
329

 
2,088

 
—

 
490

Global multi-sector fixed income(4)
400

 
400

 
—

 
—

 
—

Securitized and structured credit(5)
534

 
—

 
—

 
—

 
534

Cash and cash equivalents(6)
486

 
39

 
—

 
—

 
447

Absolute return funds
1,432

 
—

 
—

 
—

 
1,432

Private equity funds
1,419

 
—

 
—

 
—

 
1,419

Private real estate funds
1,264

 
—

 
—

 
—

 
1,264

Insurance contracts
31

 
—

 
—

 
31

 
—

Total investments
18,291

 
7,206

 
2,288

 
31

 
8,766

Net receivables and payables
197

 
—

 
—

 
—

 
197

Total assets
$
18,488

 
$
7,206

 
$
2,288

 
$
31

 
$
8,963

(1)
U.S. and International equities primarily include investments across the spectrum of large, medium and small market capitalization stocks.
(2)
Real assets primarily include investments in physical and permanent assets, including infrastructure.
(3)
Corporate debt securities/instruments primarily include investments in investment grade and non-investment grade fixed income securities.
(4)
Global multi-sector fixed income primarily includes investments that invest globally among several sectors including governments, investment grade corporate bonds, high yield corporate bonds and emerging market securities.
(5)
Securitized and structured credit primarily includes investments that pool together various cash flow producing financial assets that are structured in a way that can achieve desired targeted credit, maturity or other characteristics and are typically collateralized by residential mortgages, commercial mortgages and other assets, and other fixed income related securities.
(6)
Cash and cash equivalents are primarily investments in highly liquid money market funds and bank sponsored collective funds. Included in cash and cash equivalents is excess cash in investment manager accounts which is available for immediate use and is used to fund daily operations and execute the investment policy. Excess cash in investment manager accounts is not considered to be part of the cash target allocation set forth in the investment policy.
(7)
Receivables, payables and certain investments that are valued using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amount presented for the total domestic pension benefits plan assets.