XML 50 R35.htm IDEA: XBRL DOCUMENT v3.22.4
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2022
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 millions202220212020202220212020
Components of net periodic benefit cost (benefit)
Service cost$367 $414 $409 $9 $16 $17 
Interest cost1,136 1,054 1,226 47 53 67 
Expected return on plan assets(2,641)(2,512)(2,376)(110)(105)(102)
Amortization of prior service (credit) cost— (9)(59)(1)(1)4 
Mark-to-market (benefit) expense (1,262)(1,921)1,034 30 (434)— 
Other— (1)10 — — 2 
Net periodic benefit cost (benefit)$(2,400)$(2,975)$244 $(25)$(471)$(12)
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, 2020, 2021 and 2022:
$ in millionsPension BenefitsMedical and Life BenefitsTotal
Changes in unamortized prior service credit (cost)
Amortization of prior service credit (cost)$59 $(4)$55 
Tax expense(15)1 (14)
Change in unamortized prior service credit (cost) – 202044 (3)41 
Amortization of prior service credit (cost)9 1 10 
Tax expense(2)— (2)
Change in unamortized prior service credit (cost) – 20217 1 8 
Amortization of prior service credit (cost)— 1 1 
Tax expense— — — 
Change in unamortized prior service credit (cost) – 2022$— $1 $1 
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 millions2022202120222021
Plan Assets
Fair value of plan assets at beginning of year$36,236 $34,452 $1,588 $1,515 
Net (loss) gain on plan assets(5,422)3,637 (257)170 
Employer contributions101 104 35 37 
Participant contributions7 8 24 23 
Benefits paid(1,973)(1,964)(164)(157)
Other(29)(1)— — 
Fair value of plan assets at end of year28,920 36,236 1,226 1,588 
Projected Benefit Obligation
Projected benefit obligation at beginning of year38,888 40,182 1,685 2,119 
Service cost367 414 9 16 
Interest cost1,136 1,054 47 53 
Participant contributions7 8 24 23 
Actuarial loss(9,325)(794)(337)(369)
Benefits paid(1,973)(1,964)(164)(157)
Other(33)(12)— — 
Projected benefit obligation at end of year29,067 38,888 1,264 1,685 
Funded status$(147)$(2,652)$(38)$(97)
The decrease in the fair value of our plan assets for the year ended December 31, 2022 was principally driven by losses of 15.4 percent on plan assets and $2.1 billion of benefit payments. The decrease in our projected benefit obligation for the year ended December 31, 2022, was primarily driven by a 256 basis point increase in the discount rate from year end 2021 and $2.1 billion of benefit payments, partially offset by $1.2 billion of interest cost.
Pension BenefitsMedical and Life Benefits
$ in millions2022202120222021
Classification of amounts recognized in the consolidated statements of financial position
Non-current assets$982 $462 $240 $285 
Current liability(177)(182)(42)(45)
Non-current liability(952)(2,932)(236)(337)
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 millions20222021
Projected benefit obligation$1,126 $36,524 
Accumulated benefit obligation1,117 35,994 
Fair value of plan assets2 33,410 
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 BenefitsMedical and Life Benefits

202220212020202220212020
Discount rate5.54 %2.98 %2.68 %5.57 %2.93 %2.58 %
Expected long-term return on plan assets7.50 %7.50 %7.50 %7.23 %7.19 %7.22 %
Initial cash balance crediting rate assumed for the next year3.96 %2.25 %2.25 %
Rate to which the cash balance crediting rate is assumed to increase/decrease (the ultimate rate)3.88 %2.25 %2.25 %
Year that the cash balance crediting rate reaches the ultimate rate202820272026
Rate of compensation increase3.00 %3.00 %3.00 %
Initial health care cost trend rate assumed for the next year6.50 %5.30 %5.60 %
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 rate202820232023
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, 2022:
Asset Allocation Ranges
Cash and cash equivalents
—% - 12%
Global public equities
24% - 44%
Fixed-income securities
31% - 51%
Alternative investments
14% - 34%
The table below provides the fair values of the company’s pension and Voluntary Employees’ Beneficiary Association (VEBA) trust plan assets at December 31, 2022 and 2021, 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, 2022 and 2021, there were no investments expected to be sold at a value materially different than NAV.
 Level 1Level 2Level 3Total
$ in millions20222021202220212022202120222021
Asset category
Cash and cash equivalents$115 $119 $1,076 $2,268 $1,191 $2,387 
U.S. equities2,138 3,085 1 2 2,139 3,087 
International equities1,784 3,105 $— $3 1,784 3,108 
Fixed-income securities
U.S. Treasuries22 21 2,977 2,815 2,999 2,836 
U.S. Government Agency145 180 145 180 
Non-U.S. Government172 277 172 277 
Corporate debt28 30 4,717 5,501 4,745 5,531 
Asset backed353 987 353 987 
High yield debt12 19 19 31 31 50 
Bank loans13 21 13 21 
Other assets33 2 57 2 2 4 92 
Investments valued using NAV as a practical expedient
U.S. equities1,043 1,652 
International equities3,904 6,849 
Fixed-income funds2,569 1,461 
Hedge funds44 63 
Opportunistic investments2,983 3,039 
Private equity funds3,299 3,535 
Real estate funds2,753 2,742 
Payables, net(25)(73)
Fair value of plan assets at the end of the year$4,099 $6,412 $9,475 $12,139 $2 $5 $30,146 $37,824 
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, 2022:
$ in millionsPension PlansMedical and Life PlansTotal
Year Ending December 31
2023$1,949 $139 $2,088 
20242,001 141 2,142 
20252,041 135 2,176 
20262,077 112 2,189 
20272,108 107 2,215 
2028 through 203210,717 474 11,191