Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Status of Employee Benefit Plans

The status of these plans as of December 31, 2019 and 2018 is summarized below:

	Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018
	(in millions)
Change in benefit obligation
Benefit obligation at the beginning of period	$	(13,185	)	$	(13,838	)	$	(1,876	)	$	(1,996	)
Service cost	(291		)	(314		)	(22		)	(23		)
Interest cost	(489		)	(448		)	(78		)	(70		)
Plan participants’ contributions	0			0			(21		)	(25		)
Medicare Part D subsidy receipts	0			0			(7		)	(9		)
Amendments	0			(3		)	(27		)	(32		)
Actuarial gains (losses), net	(1,499		)	611			(124		)	96
Settlements	45			27			0			0
Special termination benefits	(26		)	(1		)	(1		)	0
Benefits paid	831			797			165			182
Foreign currency changes and other	(23		)	(16		)	(2		)	1
Benefit obligation at end of period	$	(14,637	)	$	(13,185	)	$	(1,993	)	$	(1,876	)
Change in plan assets
Fair value of plan assets at beginning of period	$	12,807		$	13,655		$	1,432		$	1,615
Actual return on plan assets	1,681			(224		)	264			(70		)
Employer contributions	280			219			5			44
Plan participants’ contributions	0			0			21			25
Disbursement for settlements	(45		)	(27		)	0			0
Benefits paid	(831		)	(797		)	(165		)	(182		)
Foreign currency changes and other	14			(19		)	0			0
Fair value of plan assets at end of period	$	13,906		$	12,807		$	1,557		$	1,432
Funded status at end of period	$	(731	)	$	(378	)	$	(436	)	$	(444	)
Amounts recognized in the Statements of Financial Position
Prepaid benefit cost	$	2,204		$	2,458		$	0		$	4
Accrued benefit liability	(2,935		)	(2,836		)	(436		)	(448		)
Net amount recognized	$	(731	)	$	(378	)	$	(436	)	$	(444	)
Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost:
Prior service cost	$	(12	)	$	(15	)	$	65		$	41
Net actuarial loss	4,191			3,829			341			408
Net amount not recognized	$	4,179		$	3,814		$	406		$	449
Accumulated benefit obligation	$	(13,934	)	$	(12,560	)	$	(1,993	)	$	(1,877	)

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

	2019		2018
	(in millions)
Projected benefit obligation	$	2,997	$	2,895
Fair value of plan assets	$	62	$	59

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

	2019		2018
	(in millions)
Accumulated benefit obligation	$	2,760	$	2,697
Fair value of plan assets	$	7	$	6

Schedule of Net Benefit Costs

Net periodic (benefit) cost included in “General and administrative expenses” in the Company’s Consolidated Statements of Operations for the years ended December 31, includes the following components:

	Pension Benefits									Other Postretirement Benefits
	2019			2018			2017			2019			2018			2017
	(in millions)
Service cost	$	291		$	314		$	284		$	22		$	23		$	20
Interest cost	489			448			476			78			70			82
Expected return on plan assets	(816		)	(817		)	(781		)	(95		)	(108		)	(102		)
Amortization of prior service cost	(4		)	(4		)	(3		)	4			1			0
Amortization of actuarial (gain) loss, net	217			213			191			24			17			36
Settlements	59			8			13			0			0			0
Special termination benefits(1)(2)	26			1			4			1			0			0
Net periodic (benefit) cost	$	262		$	163		$	184		$	34		$	3		$	36

__________

(1) For 2019, 2018 and 2017 certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination.

(2)

For 2019 certain employees were provided special termination benefits in the qualified and non-qualified plans in the form of retirement eligibility bridging as a result of their participation in the Voluntary Separation Program that was offered to eligible U.S.-based employees in 2019.

Schedule of Changes in Accumulated Other Comprehensive Income

The amounts recorded in AOCI as of the end of the period, which have not yet been recognized as a component of net periodic (benefit) cost, and the related changes in these items during the period that are recognized in “Other comprehensive income (loss)” are as follows: 

	Pension Benefits						Other Postretirement Benefits
	Prior Service Cost			Net Actuarial (Gain) Loss			Prior Service Cost			Net Actuarial (Gain) Loss
	(in millions)
Balance, December 31, 2016	$	(25	)	$	3,481		$	1		$	557
Amortization for the period	3			(191		)	0			(36		)
Deferrals for the period	0			323			9			(179		)
Impact of foreign currency changes and other	0			(2		)	0			2
Balance, December 31, 2017	(22		)	3,611			10			344
Amortization for the period	4			(213		)	(1		)	(17		)
Deferrals for the period	3			430			32			82
Impact of foreign currency changes and other	0			1			0			(1		)
Balance, December 31, 2018	(15		)	3,829			41			408
Amortization for the period	4			(217		)	(4		)	(24		)
Deferrals for the period	0			634			27			(45		)
Impact of foreign currency changes and other	(1		)	(55		)	1			2
Balance, December 31, 2019	$	(12	)	$	4,191		$	65		$	341

Amounts in AOCI to be recognized in next year

The amounts included in AOCI expected to be recognized as components of net periodic (benefit) cost in 2020 are as follows:

	Pension Benefits			Other Postretirement Benefits
	(in millions)
Amortization of prior service cost	$	(4	)	$	6
Amortization of actuarial (gain) loss, net	262			17
Total	$	258		$	23

Schedule of Assumptions Used

The Company’s assumptions related to the calculation of the domestic benefit obligation (end of period) and the determination of net periodic (benefit) cost (beginning of period) are presented in the table below:

	Pension Benefits						Other Postretirement Benefits
	2019		2018		2017		2019		2018		2017
Weighted average assumptions
Discount rate (beginning of period)	4.30	%	3.65	%	4.15	%	4.30	%	3.60	%	4.05	%
Discount rate (end of period)	3.30	%	4.30	%	3.65	%	3.25	%	4.30	%	3.60	%
Rate of increase in compensation levels (beginning of period)	4.50	%	4.50	%	4.50	%	N/A		N/A		N/A
Rate of increase in compensation levels (end of period)	4.50	%	4.50	%	4.50	%	N/A		N/A		N/A
Expected return on plan assets (beginning of period)	6.50	%	6.25	%	6.25	%	7.00	%	7.00	%	7.00	%
Health care cost trend rates (beginning of period)	N/A		N/A		N/A		6.00	%	6.20	%	6.60	%
Health care cost trend rates (end of period)	N/A		N/A		N/A		6.25	%	6.00	%	6.20	%
For 2019, 2018 and 2017, the ultimate health care cost trend rate after gradual decrease until: 2024, 2024, 2021, (beginning of period)	N/A		N/A		N/A		5.00	%	5.00	%	5.00	%
For 2019, 2018 and 2017, the ultimate health care cost trend rate after gradual decrease until: 2028, 2024, 2024 (end of period)	N/A		N/A		N/A		5.00	%	5.00	%	5.00	%

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects:

	Other Postretirement Benefits
	(in millions)
One percentage point increase
Increase in total service and interest costs	$	6
Increase in postretirement benefit obligation	$	110
One percentage point decrease
Decrease in total service and interest costs	$	5
Decrease in postretirement benefit obligation	$	102

Schedule of Plans Assets-Fair Value and Allocation % (Target/Actual)

Asset allocation targets as of December 31, 2019 are as follows:

	Pension				Postretirement
	Minimum		Maximum		Minimum		Maximum
Asset Category
U.S. Equities	2	%	8	%	29	%	66	%
International Equities	2	%	10	%	2	%	21	%
Fixed Maturities	54	%	66	%	10	%	48	%
Short-term Investments	0	%	12	%	0	%	35	%
Real Estate	2	%	16	%	0	%	0	%
Other	6	%	27	%	0	%	0	%

Postretirement plan asset allocations in accordance with the investment guidelines are as follows:

	As of December 31, 2019
	Level 1		Level 2		Level 3		NAV Practical Expedient		Total
	(in millions)
U.S. Equities:
Variable Life Insurance Policies (1)	$	0	$	688	$	0	$	0	$	688
Common trusts (2)	0		83		0		0		83
Subtotal									771
International Equities:
Variable Life Insurance Policies (3)	0		118		0		0		118
Common trusts (4)	0		59		0		0		59
Subtotal									177
Fixed Maturities:
Variable Life Insurance Policies (5)	0		194		0		0		194
Common trusts (5)	0		131		0		0		131
U.S. government securities (federal):
Other U.S. government securities	0		20		0		0		20
Non-U.S. government securities	0		2		0		0		2
Corporate Debt:
Corporate bonds	0		53		0		0		53
Asset-backed	0		15		0		0		15
Collateralized Mortgage Obligations	0		10		0		0		10
Collateralized Loan Obligations	0		16		0		0		16
Interest rate swaps (Notional amount: $253)	0		0		0		0		0
Registered investment companies	4		0		0		0		4
Other (6)	0		0		1		0		1
Subtotal									446
Short-term Investments:
Registered investment companies	163		0		0		0		163
Subtotal									163
Total	$	167	$	1,389	$	1	$	0	$	1,557

	December 31, 2018(7)
	Level 1		Level 2			Level 3		NAV Practical Expedient		Total
	(in millions)
U.S. Equities:
Variable Life Insurance Policies (1)	$	0	$	538		$	0	$	0	$	538
Common trusts (2)	0		75			0		0		75
Equities	25		6			0		0		31
Subtotal										644
International Equities:
Variable Life Insurance Policies (3)	0		91			0		0		91
Common trusts (4)	0		53			0		0		53
Equities	0		6			0		0		6
Subtotal										150
Fixed Maturities:
Variable Life Insurance Policies (5)	0		157			0		0		157
Common trusts (5)	0		130			0		0		130
U.S. government securities (federal):
Other U.S. government securities	0		25			0		0		25
Corporate Debt:
Corporate bonds	0		120			0		0		120
Asset-backed	0		26			1		0		27
Collateralized Mortgage Obligations	0		17			1		0		18
Collateralized Loan Obligations	0		18			0		0		18
Interest rate swaps (Notional amount: $188)	0		(1		)	0		0		(1		)
Registered investment companies	3		0			0		0		3
Other (6)	0		0			3		0		3
Subtotal										500
Short-term Investments:
Registered investment companies	138		0			0		0		138
Subtotal										138
Total	$	166	$	1,261		$	5	$	0	$	1,432

__________

(1) This category invests in U.S. equity funds, primarily large cap equities whose objective is to track an index via pooled separate accounts and registered investment companies.

(2) This category invests in U.S. equity funds, primarily large cap equities.

(3) This category invests in international equity funds, primarily large cap international equities whose objective is to track an index.

(4) This category fund invests in large cap international equity fund whose objective is to outperform an index.

(5) This category invests in U.S. government and corporate bond funds.

(6) Cash and cash equivalents, short-term investments, payables and receivables and open future contract positions (including fixed income collateral).

(7) Prior period amounts have been updated to conform to the current year presentation.

Pension plan asset allocations in accordance with the investment guidelines are as follows:

	As of December 31, 2019
	Level 1		Level 2			Level 3		NAV Practical Expedient		Total
	(in millions)
U.S. Equities:
Pooled separate accounts (1)	$	0	$	204		$	0	$	0	$	204
Common/collective trusts (1)	0		271			0		0		271
Subtotal										475
International Equities:
Pooled separate accounts (2)	0		312			0		0		312
Common/collective trusts (3)	0		393			0		0		393
United Kingdom insurance pooled funds (4)	0		48			0		0		48
Subtotal										753
Fixed Maturities:
Pooled separate accounts (5)	0		1,521			0		0		1,521
Common/collective trusts (6)	0		521			0		0		521
U.S. government securities (federal):
Mortgage-backed	0		1			0		0		1
Other U.S. government securities	0		783			0		0		783
U.S. government securities (state & other)	0		562			0		0		562
Non-U.S. government securities	0		93			0		0		93
United Kingdom insurance pooled funds (7)	0		90			0		0		90
Corporate Debt:
Corporate bonds	0		4,281			0		0		4,281
Asset-backed	0		22			0		0		22
Collateralized Mortgage Obligations	0		485			0		0		485
Collateralized Loan Obligations	0		397			0		0		397
Interest rate swaps (Notional amount: $2,462)	0		2			0		0		2
Registered investment companies	7		0			0		0		7
Other (8)	37		(2		)	44		0		79
Unrealized gain (loss) on investment of securities
lending collateral (9)	0		0			0		0		0
Subtotal										8,844
Short-term Investments:
Pooled separate accounts	5		56			0		0		61
United Kingdom insurance pooled funds	30		0			0		0		30
Subtotal										91
Real Estate:
Pooled separate accounts (10)	0		0			770		0		770
Partnerships	0		0			0		688		688
Subtotal										1,458
Other:
Partnerships	0		0			0		973		973
Hedge funds	0		0			0		1,312		1,312
Subtotal										2,285
Total	$	79	$	10,040		$	814	$	2,973	$	13,906

	December 31, 2018(11)
	Level 1		Level 2		Level 3		NAV Practical Expedient		Total
	(in millions)
U.S. Equities:
Pooled separate accounts (1)	$	0	$	448	$	0	$	0	$	448
Common/collective trusts (1)	0		70		0		0		70
Subtotal									518
International Equities:
Pooled separate accounts (2)	0		315		0		0		315
Common/collective trusts (3)	0		283		0		0		283
United Kingdom insurance pooled funds (4)	0		42		0		0		42
Subtotal									640
Fixed Maturities:
Pooled separate accounts (5)	0		1,326		0		0		1,326
Common/collective trusts (6)	0		485		0		0		485
U.S. government securities (federal):
Mortgage-backed	0		1		0		0		1
Other U.S. government securities	0		712		0		0		712
U.S. government securities (state & other)	0		519		0		0		519
Non-U.S. government securities	0		7		0		0		7
United Kingdom insurance pooled funds (7)	0		289		0		0		289
Corporate Debt:
Corporate bonds	0		3,476		2		0		3,478
Asset-backed	0		24		0		0		24
Collateralized Mortgage Obligations	0		474		0		0		474
Collateralized Loan Obligations	0		293		0		0		293
Interest rate swaps (Notional amount: $1,694)	0		11		0		0		11
Guaranteed investment contract	0		53		0		0		53
Registered investment companies	293		0		0		0		293
Other (8)	6		5		62		0		73
Unrealized gain (loss) on investment of securities
lending collateral (9)	0		0		0		0		0
Subtotal									8,038
Short-term Investments:
Pooled separate accounts	0		74		0		0		74
United Kingdom insurance pooled funds	0		3		0		0		3
Subtotal									77
Real Estate:
Pooled separate accounts (10)	0		0		760		0		760
Partnerships	0		0		0		478		478
Subtotal									1,238
Other:
Partnerships	0		0		0		831		831
Hedge funds	0		0		0		1,465		1,465
Subtotal									2,296
Total	$	299	$	8,910	$	824	$	2,774	$	12,807

__________

(1) These categories invest in U.S. equity funds whose objective is to track or outperform various indexes.

(2) This category invests in a large cap international equity funds whose objective is to track an index.

(3) This category mainly consists of a global equity fund, primarily focused on new market leaders with sustainable competitive advantage.

(4) This category invests in an international equity fund whose objective is to track an index.

(5) This category invests in bond funds, primarily highly rated private placement securities.

(6) This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index.

(7) This category invests in bond funds, primarily highly rated corporate securities.

(8) Primarily cash and cash equivalents, short-term investments, payables and receivables, and open future contract positions (including fixed income collateral).

(9) The contractual net value of the investment of securities lending collateral invested primarily in short-term bond funds is $135 million and $157 million and the liability for securities lending collateral is $135 million and $157 million for the years ended December 31, 2019 and 2018, respectively.

(10) This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index.

(11) Prior period amounts have been updated to conform to the current year presentation.

A summary of pension and postretirement plan asset allocation as of the year ended December 31, are as follows:

	Pension Percentage of Plan Assets				Postretirement Percentage of Plan Assets
	2019		2018		2019		2018
Asset Category
U.S. Equities	3	%	4	%	50	%	43	%
International Equities	5		5		11		10
Fixed Maturities	64		63		29		37
Short-term Investments	1		0		10		10
Real Estate	11		10		0		0
Other	16		18		0		0
Total	100	%	100	%	100	%	100	%

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

		Year Ended December 31, 2019
		Fixed Maturities– Corporate Debt– Corporate Bonds			Fixed Maturities– Other			Real  Estate– Pooled Separate Accounts
	(in millions)
Fair Value, beginning of period		$	2		$	62		$	760
Actual Return on Assets:
Relating to assets still held at the reporting date		0			0			39
Relating to assets sold during the period		0			0			15
Purchases, sales and settlements		0			(18		)	(44		)
Transfers in and/or out of Level 3 (1)		(2		)	0			0
Fair Value, end of period		$	0		$	44		$	770

	Year Ended December 31, 2018
	Fixed Maturities– Pooled Separate Accounts			Fixed Maturities– Corporate Debt– Corporate Bonds			Fixed Maturities– Other		Real  Estate– Pooled Separate Accounts
	(in millions)
Fair Value, beginning of period	$	38		$	1		$	39	$	714
Actual Return on Assets:
Relating to assets still held at the reporting date	0			0			0		56
Relating to assets sold during the period	0			0			0		8
Purchases, sales and settlements	(38		)	(1		)	23		(18		)
Transfers in and/or out of Level 3 (1)	0			2			0		0
Fair Value, end of period	$	0		$	2		$	62	$	760

 __________

(1) The transfers from level 3 to level 2 are due to the availability of external pricing sources.

		Year Ended December 31, 2019
		Fixed Maturities– Corporate Debt– Asset-backed			Fixed Maturities– Corporate Debt– Collateralized Mortgage Obligations			Fixed Maturities– Other
	(in millions)
Fair Value, beginning of period		$	1		$	1		$	3
Actual Return on Assets:
Relating to assets still held at the reporting date		0			0			0
Relating to assets sold during the period		0			0			0
Purchases, sales and settlements		0			(1		)	(2		)
Transfers in and/or out of Level 3 (1)		(1		)	0			0
Fair Value, end of period		$	0		$	0		$	1

	Year Ended December 31, 2018
	Fixed Maturities– Corporate Debt– Asset-backed			Fixed Maturities– Corporate Debt– Collateralized Mortgage Obligations			Fixed Maturities– Corporate Debt– Collateralized Loan Obligations			Fixed Maturities– Other
	(in millions)
Fair Value, beginning of period	$	0		$	2		$	2		$	5
Actual Return on Assets:
Relating to assets still held at the reporting date	0			0			0			0
Relating to assets sold during the period	0			0			0			0
Purchases, sales and settlements	(1		)	(1		)	0			(2		)
Transfers in and/or out of Level 3 (1)	2			0			(2		)	0
Fair Value, end of period	$	1		$	1		$	0		$	3

 __________

(1)

The transfers from level 3 to level 2 are due to the availability of external pricing sources.

Schedule of Expected Benefit Payments

The expected benefit payments for the Company’s pension and postretirement plans, as well as the expected Medicare Part D subsidy receipts related to the Company’s postretirement plan, for the years indicated are as follows:

	Pension Benefit Payments		Other Postretirement Benefit Payments		Other Postretirement Benefits– Medicare Part D Subsidy Receipts
	(in millions)
2020	$	938	$	147	$	8
2021	797		148		8
2022	825		149		8
2023	858		148		7
2024	865		146		7
2025-2029	4,577		698		32
Total	$	8,860	$	1,436	$	70