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Retirement Plans and Other Retiree Benefits
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Retirement Plans and Other Retiree Benefits Retirement Plans and Other Retiree Benefits
Retirement Plans

The Company and certain of its U.S. and foreign subsidiaries maintain defined benefit retirement plans. Benefits under these plans are based primarily on years of service and employees’ earnings.

In the U.S., effective January 1, 2014, the Company provides virtually all future retirement benefits through the Company’s defined contribution plan. As a result, service after December 31, 2013 is not considered for participants in the Company’s principal U.S. defined benefit retirement plan. Participants in the Company’s principal U.S. defined benefit retirement plan whose retirement benefit was determined under the cash balance formula continue to earn interest credits on their vested balances as of December 31, 2013 but no longer receive pay credits. Participants whose retirement benefit was determined under the final average earnings formula or career average earnings formula continue to have their accrued benefit adjusted for pay increases until termination of employment.

During the third quarter of 2022, the Company amended its domestic postretirement plan to limit eligibility for certain existing employees and change the way coverage and subsidies are delivered for certain current and future retirees. As required, the Company remeasured the obligation for the domestic postretirement plan, which resulted in the reduction of the projected benefit obligation and a corresponding actuarial gain of $398. The reduction of the projected benefit obligation and actuarial gain were primarily due to an increase in the discount rate since December 31, 2021 and the impact of the plan amendment. The actuarial gain was recorded in Accumulated other comprehensive income and will be amortized over future periods.
In the Company’s principal U.S. plans and certain funded foreign plans, funds are contributed to trusts in accordance with regulatory limits to provide for current service and for any unfunded projected benefit obligation over a reasonable period. The target asset allocation for the Company’s defined benefit plans is as follows:
  United StatesInternational
Asset Category
Equity securities21 %23 %
Fixed income securities76 %61 %
Real estate and other investments3 %16 %
Total100 %100 %

At December 31, 2022, the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows:
 Level of Valuation
Input		Pension Plans
  United StatesInternational
    
Cash and cash equivalentsLevel 1$30 $8 
U.S. common stocksLevel 1— 2 
International common stocksLevel 1— 13 
Pooled funds(1)
Level 138 95 
Fixed income securities(2)
Level 2676 62 
Guaranteed investment contracts(3)
Level 2— 34 
  744 214 
Investments valued using NAV per share(4)
  
Domestic, developed and emerging markets equity funds  260 61 
Fixed income funds(5)
  337 202 
Hedge funds(6)
  — 7 
Multi-asset funds(7)
  24 1 
Real estate funds(8)
— 31 
  621 302 
Other assets and liabilities, net(9)
(2)— 
Total Investments$1,363 $516 
At December 31, 2021, the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows:
 Level of Valuation
Input		Pension Plans
  United StatesInternational
   
Cash and cash equivalentsLevel 1$38 $9 
U.S. common stocksLevel 1— 2 
International common stocksLevel 1— 13 
Pooled funds(1)
Level 148 116 
Fixed income securities(2)
Level 2905 67 
Guaranteed investment contracts(3)
Level 21 51 
  992 258 
Investments valued using NAV per share(4)
  
Domestic, developed and emerging markets equity funds  361 97 
Fixed income funds(5)
  469 328 
Hedge funds(6)
  — 8 
Multi-asset funds(7)
  26 2 
Real estate funds(8)
— 30 
856 465 
Other assets and liabilities, net(9)
(14)— 
Total Investments  $1,834 $723 
_______
(1)Pooled funds primarily invest in U.S. and foreign equity securities, debt and money market securities.
(2)The fixed income securities are traded over-the-counter and certain of these securities lack daily pricing or liquidity and as such are classified as Level 2. As of December 31, 2022 and December 31, 2021 approximately 40% of the U.S. pension plan fixed income portfolio was invested in U.S. treasury or agency securities, with the remainder invested in other government bonds and corporate bonds.
(3)The guaranteed investment contracts (“GICs”) represent contracts with insurance companies measured at the cash surrender value of each contract. The Level 2 valuation reflects that the cash surrender value is based principally on a referenced pool of investment funds with active redemption.
(4)Investments that are measured at fair value using net asset value (“NAV”) per share as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the value of the underlying investments owned, minus its liabilities, divided by the number of shares outstanding. There are no unfunded commitments related to these investments. Redemption notice period primarily ranges from 0-3 months and redemption frequency windows range from daily to quarterly.
(5)Fixed income funds primarily invest in U.S. government and investment grade corporate bonds.
(6)Consists of investments in underlying hedge fund strategies that are primarily implemented through the use of long and short equity and fixed income securities and derivative instruments such as futures and options.
(7)Multi-asset funds primarily invest across a variety of asset classes, including global stocks and bonds, as well as alternative strategies.
(8)Real estate is valued using the NAV per unit of funds that are invested in real estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager.
(9)This category primarily includes unsettled trades for investments purchased and sold and dividend receivables.
Equity securities in the U.S. plans did not include any investment in the Company’s common stock at either December 31, 2022 or December 31, 2021. No shares of the Company’s stock were purchased by the U.S. plans in 2022 or 2021. The plans received no dividends on the Company’s common stock in either 2022 or 2021.

Other Retiree Benefits

The Company and certain of its subsidiaries provide health care and life insurance benefits for retired employees to the extent not provided by government-sponsored plans.

The Company uses a December 31 measurement date for its defined benefit and other retiree benefit plans. Summarized information for the Company’s defined benefit and other retiree benefit plans is as follows:
  Pension PlansOther Retiree Benefit Plans
 202220212022202120222021
  United StatesInternational  
Change in Benefit Obligations      
Benefit obligations at beginning of year$2,207 $2,363 $937 $1,013 $1,080 $1,112 
Service cost— — 15 19 18 26 
Interest cost64 61 21 20 36 35 
Participants’ contributions— — 5 6 — — 
Plan amendments— (2)2 — (175)— 
Actuarial loss (gain)(430)(52)(190)(39)(250)(50)
Foreign exchange impact— — (56)(38)2 (8)
Termination benefits14 — — — 1 — 
Curtailments and settlements(4)(5)(27)(4)— — 
Benefit payments(178)(158)(32)(40)(54)(35)
Benefit obligations at end of year$1,673 $2,207 $675 $937 $658 $1,080 
Change in Plan Assets  
Fair value of plan assets at beginning of year$1,834 $1,921 $723 $698 $— $3 
Actual return on plan assets(321)46 (139)45 — — 
Company contributions32 28 35 33 54 32 
Participants’ contributions— — 5 6 — — 
Foreign exchange impact— — (49)(14)— — 
Settlements and acquisitions(4)(3)(27)(5)— — 
Benefit payments(178)(158)(32)(40)(54)(35)
Fair value of plan assets at end of year$1,363 $1,834 $516 $723 $— $— 
Funded Status  
Benefit obligations at end of year$1,673 $2,207 $675 $937 $658 $1,080 
Fair value of plan assets at end of year1,363 1,834 516 723 — — 
Net amount recognized$(310)$(373)$(159)$(214)$(658)$(1,080)
Amounts Recognized in Balance Sheet    
Noncurrent assets$33 $70 $51 $72 $— $— 
Current liabilities(25)(27)(14)(13)(43)(47)
Noncurrent liabilities(318)(416)(196)(273)(615)(1,033)
Net amount recognized$(310)$(373)$(159)$(214)$(658)$(1,080)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)  
Actuarial loss$811 $866 $137 $179 $92 $356 
Transition/prior service cost(credit)— — 10 9 (168)— 
  $811 $866 $147 $188 $(76)$356 
Accumulated benefit obligation$1,656 $2,171 $616 $872 $— $— 
  Pension PlansOther Retiree Benefit Plans
  202220212022202120222021
  United StatesInternational  
Weighted-Average Assumptions Used to Determine Benefit Obligations      
Discount rate5.66 %2.98 %4.75 %2.10 %5.67 %3.06 %
Expected long-term rate of return on plan assets6.25 %5.70 %4.66 %2.72 %N/AN/A
Long-term rate of compensation increase3.50 %3.50 %3.22 %2.89 %3.50 %3.50 %
ESOP growth rate— %— %— %— %6.00 %6.00 %
Medical cost trend rate of increase— %— %— %— %6.25 %6.00 %
Interest Crediting Rate5.21 %2.85 %2.28 %0.84 %— %— %

The actuarial gains recorded during 2022 for both the U.S. pension and Other retiree benefit plans were primarily a result of an increase in discount rates applied against future estimated benefit payments that resulted in a decrease in the benefit obligation for both the U.S. pension and Other retiree benefit plans, and amendment of the domestic postretirement plan to limit eligibility for certain existing employees and change the way coverage and subsidies are delivered for certain current and future retirees. The actuarial gains recorded during 2021 for both the U.S. pension and other retiree benefit plans were primarily a result of an increase in discount rates applied against future estimated benefit payments that resulted in a decrease in the benefit obligation for both the U.S. pension and Other retiree benefit plans.

The overall investment objective of the plans is to balance risk and return so that obligations to employees are met. The Company evaluates its expected long-term rate of return on plan assets on an annual basis. In determining the expected long-term rate of return, the Company considers the nature of the plans’ investments and the historical rates of return. The assumed expected long-term rate of return on plan assets for U.S. plans was 6.25% as of December 31, 2022 and 5.70% as of December 31, 2021. Average annual rates of return for the U.S. plans for the most recent 1-year, 5-year, 10-year, 15-year and 25-year periods were (18)%, 1%, 4%, 4% and 5%, respectively. Similar assessments were performed in determining rates of return on international pension plan assets to arrive at the Company’s 2022 weighted-average expected long-term rate of return on plan assets of 4.66%.

The medical cost trend rate of increase assumed in measuring the expected cost of benefits is projected to decrease from 6.25% in 2023 to 4.50% by 2027, remaining at 4.50% for the years thereafter.
Pension plans with projected benefit obligations in excess of plan assets and plans with accumulated benefit obligations in excess of plan assets as of December 31 consisted of the following:
  20222021
Benefit Obligation Exceeds Fair Value of Plan Assets  
Projected benefit obligation$657 $805 
Fair value of plan assets108 82 
Accumulated benefit obligation540 771 
Fair value of plan assets20 81 

Other Retiree Benefit plans with accumulated postretirement benefit obligation in excess of plan assets as of December 31 consisted of the following:
  20222021
Benefit Obligation Exceeds Fair Value of Plan Assets  
Accumulated postretirement benefit obligation$658 $1,080 
Fair value of plan assets— — 
Summarized information regarding the net periodic benefit costs for the Company’s defined benefit and other retiree benefit plans is as follows:
  Pension PlansOther Retiree Benefit Plans
  202220212020202220212020202220212020
  United StatesInternational   
Components of Net Periodic Benefit Cost         
Service cost$— $— $1 $15 $19 $17 $18 $26 $20 
Interest cost64 61 74 21 20 21 36 35 37 
Expected return on plan assets(101)(106)(111)(21)(20)(22)— — (2)
Amortization of transition and prior service costs (credits)— — — 1 1 — (6)— — 
Amortization of actuarial loss46 47 46 7 11 9 14 23 18 
Net periodic benefit cost$9 $2 $10 $23 $31 $25 $62 $84 $73 
Other postretirement charges13 (3)4 4 1 — 2 — — 
Total pension cost$22 $(1)$14 $27 $32 $25 $64 $84 $73 
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost         
Discount rate2.98 %2.65 %3.40 %

2.10 %1.61 %2.06 %3.06 %2.88 %3.56 %
Expected long-term rate of return on plan assets5.70 %5.70 %6.30 %2.72 %2.93 %3.38 %N/A5.70 %6.30 %
Long-term rate of compensation increase3.50 %3.50 %3.50 %2.89 %2.62 %2.83 %— %— %— %
ESOP growth rate— %— %— %— %— %— %6.00 %10.00 %10.00 %
Medical cost trend rate of increase— %— %— %— %— %— %6.00 %6.00 %6.00 %
Interest Crediting Rate2.82 %2.48 %3.21 %0.84 %0.83 %0.85 %— %— %— %
The service related component of pension and other postretirement benefit costs is included in Operating profit. The non-service related components (interest cost, expected return on assets and amortization of actuarial gains and losses) are included in the line item “Non-service related postretirement costs,” which is below Operating profit.

Other postretirement charges for the twelve months ended December 31, 2022 included pension and other charges of $15 incurred pursuant to the 2022 Global Productivity Initiative. The Company made no voluntary contributions in 2022, 2021, and 2020.

Expected Contributions and Benefit Payments

At present, the Company does not expect to make any voluntary contributions to its U.S. postretirement plans for the year ending December 31, 2023. Actual funding may differ from current estimates depending on the variability of the market value of the assets as compared to the obligation and other market or regulatory conditions.

Benefit payments expected to be paid from the Company’s assets to participants in unfunded plans are estimated to be approximately $86 for the year ending December 31, 2023.

Total benefit payments expected to be paid to participants in both funded and unfunded plans are estimated as follows:
  Pension Plans 
Years Ended December 31,United StatesInternationalOther Retiree Benefit PlansTotal
2023$141 $40 $44 $225 
2024142 40 50 232 
2025139 39 51 229 
2026143 42 51 236 
2027143 42 51 236 
2028-2032669 234 263 1,166