XML 51 R37.htm IDEA: XBRL DOCUMENT v3.21.4
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Components of net periodic benefit cost
The cost to the company of its retirement benefit plans is shown in the following table:
 Year Ended December 31
 Pension BenefitsMedical and Life Benefits
$ in millions202120202019202120202019
Components of net periodic benefit cost (benefit)
Service cost$414 $409 $367 $16 $17 $16 
Interest cost1,054 1,226 1,360 53 67 80 
Expected return on plan assets(2,512)(2,376)(2,101)(105)(102)(92)
Amortization of prior service (credit) cost(9)(59)(59)(1)4 (3)
Mark-to-market (benefit) expense(1,921)1,034 1,783 (434)— 17 
Other(1)10 — — 2 — 
Net periodic benefit cost (benefit)$(2,975)$244 $1,350 $(471)$(12)$18 
Changes in unamortized benefit plan costs
The table below summarizes the components of changes in unamortized prior service credit (cost) for the years ended December 31, 2019, 2020 and 2021:
$ in millionsPension BenefitsMedical and Life BenefitsTotal
Changes in unamortized prior service credit
Amortization of prior service credit$59 $3 $62 
Tax expense(14)(1)(15)
Change in unamortized prior service credit – 201945 2 47 
Amortization of prior service credit (cost)59 (4)55 
Tax expense(15)1 (14)
Change in unamortized prior service credit (cost) – 202044 (3)41 
Amortization of prior service credit (cost)9 1 10 
Tax expense(2)— (2)
Change in unamortized prior service credit (cost) – 2021$7 $1 $8 
Change in plan assets and amounts recognized in the consolidated statements of financial position The following table sets forth the funded status and amounts recognized in the consolidated statements of financial position for the company’s defined benefit retirement plans. Pension benefits data includes the qualified plans,
foreign plans and U.S. unfunded non-qualified plans for benefits provided to directors, officers and certain employees. The company uses a December 31 measurement date for its plans.
 Pension BenefitsMedical and Life Benefits
$ in millions2021202020212020
Plan Assets
Fair value of plan assets at beginning of year$34,452 $30,646 $1,515 $1,392 
Net gain on plan assets3,637 4,802 170 218 
Employer contributions104 851 37 36 
Participant contributions8 8 23 24 
Benefits paid(1,964)(1,865)(157)(155)
Other(1)10 — — 
Fair value of plan assets at end of year36,236 34,452 1,588 1,515 
Projected Benefit Obligation
Projected benefit obligation at beginning of year40,182 36,914 2,119 2,048 
Service cost414 409 16 17 
Interest cost1,054 1,226 53 67 
Participant contributions8 8 23 24 
Actuarial (gain) loss(794)3,455 (369)115 
Benefits paid(1,964)(1,865)(157)(155)
Other(12)35 — 3 
Projected benefit obligation at end of year38,888 40,182 1,685 2,119 
Funded status$(2,652)$(5,730)$(97)$(604)
Pension Benefits
The increase in the fair value of our plan assets for the year ended December 31, 2021 was principally driven by net plan asset returns of 10.9 percent. In 2020, the fair value of our plan assets increased primarily due to net plan asset returns of 16.2 percent and a $750 million discretionary pension contribution.
The decrease in our projected benefit obligation for the year ended December 31, 2021, was primarily driven by a 30 basis point increase in the discount rate from year end 2020. In 2020, our projected benefit obligation increased primarily due to a 71 basis point decrease in the discount rate from year end 2019.
Pension BenefitsMedical and Life Benefits
$ in millions2021202020212020
Classification of amounts recognized in the consolidated statements of financial position
Non-current assets$462 $211 $285 $179 
Current liability(182)(180)(45)(46)
Non-current liability(2,932)(5,761)(337)(737)
Pension plans with accumulated benefit obligations in excess of fair value of plan assets
Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows:
 December 31
$ in millions20212020
Projected benefit obligation$36,524 $37,681 
Accumulated benefit obligation35,994 37,135 
Fair value of plan assets33,410 31,741 
Weighted-average plan assumptions On a weighted-average basis, the following assumptions were used to determine benefit obligations at December 31 of each year and net periodic benefit cost for the following year:
 Pension Benefits  Medical and Life Benefits
  
202120202019202120202019
Discount rate2.98 %2.68 %3.39 %2.93 %2.58 %3.35 %
Expected long-term return on plan assets7.50 %7.50 %8.00 %7.19 %7.22 %7.66 %
Initial cash balance crediting rate assumed for the next year2.25 %2.25 %2.39 %
Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate)2.25 %2.25 %2.64 %
Year that the cash balance crediting rate reaches the ultimate rate202720262025
Rate of compensation increase3.00 %3.00 %3.00 %
Initial health care cost trend rate assumed for the next year5.30 %5.60 %5.90 %
Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate)5.00 %5.00 %5.00 %
Year that the health care cost trend rate reaches the ultimate trend rate202320232023
Plan asset allocation
For the majority of the plans’ assets, the investment policies require that the asset allocation be maintained within the following ranges as of December 31, 2021:
  
Asset Allocation Ranges
Cash and cash equivalents
—% - 12%
Global public equities
30% - 50%
Fixed-income securities
20% - 40%
Alternative investments
18% - 38%
The table below provides the fair values of the company’s pension and Voluntary Employee Beneficiary Association (VEBA) trust plan assets at December 31, 2021 and 2020, by asset category. The table also identifies the level of inputs used to determine the fair value of assets in each category. See Note 1 for the definitions of these levels. Certain investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table. As of December 31, 2021 and 2020, there were no investments expected to be sold at a value materially different than NAV.
 Level 1Level 2Level 3Total
$ in millions20212020202120202021202020212020
Asset category
Cash and cash equivalents$119 $120 $2,268 $1,238 $2,387 $1,358 
U.S. equities3,085 2,981 2 — 3,087 2,981 
International equities3,105 3,354 $3 $2 3,108 3,356 
Fixed-income securities
U.S. Treasuries21 22 2,815 2,273 2,836 2,295 
U.S. Government Agency180 258 180 258 
Non-U.S. Government277 332 277 332 
Corporate debt30 31 5,501 6,228 5,531 6,259 
Asset backed987 1,080 987 1,080 
High yield debt19 24 31 48 50 72 
Bank loans21 59 21 59 
Other assets33 (2)57 59 2 2 92 59 
Investments valued using NAV as a practical expedient
U.S. equities1,652 1,567 
International equities6,849 7,193 
Fixed-income funds1,461 1,959 
Hedge funds63 65 
Opportunistic investments3,039 2,499 
Private equity funds3,535 2,627 
Real estate funds2,742 2,180 
Payables, net(73)(232)
Fair value of plan assets at the end of the year$6,412 $6,530 $12,139 $11,575 $5 $4 $37,824 $35,967 
Estimated benefit payments
The following table reflects estimated future benefit payments for the next ten years, based upon the same assumptions used to measure the benefit obligation, and includes expected future employee service, as of December 31, 2021:
$ in millionsPension PlansMedical and Life PlansTotal
Year Ending December 31
2022$1,945 $146 $2,091 
20231,988 145 2,133 
20242,039 122 2,161 
20252,081 118 2,199 
20262,118 114 2,232 
2027 through 203110,857 506 11,363