PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2018

Defined Benefit Plan Disclosure [Line Items]

Schedule of Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans

Summarized information on the Company's pension and other postretirement benefit plans is as follows:



Change in Projected Benefit Obligations, Plan Assets and Funded Status of All Significant Plans	Defined Benefit Pension Plans						Other Postretirement Benefits
In millions	2018			2017			2018			2017
Change in projected benefit obligations:
Benefit obligations at beginning of year	$	31,851		$	30,280		$	1,567		$	1,835
Service cost	520			506			12			14
Interest cost	886			883			45			54
Plan participants' contributions	19			14			—			—
Actuarial changes in assumptions and experience	(1,754		)	1,804			(13		)	(198		)
Benefits paid	(1,476		)	(1,440		)	(123		)	(151		)
Plan amendments	17			14			—			—
Acquisitions/divestitures/other ¹	(45		)	50			—			—
Effect of foreign exchange rates	(418		)	932			(10		)	13
Termination benefits/curtailment cost/settlements ²	—			(1,192		)	—			—
Benefit obligations at end of year	$	29,600		$	31,851		$	1,478		$	1,567

Change in plan assets:
Fair value of plan assets at beginning of year	$	23,401		$	21,208		$	—		$	—
Actual return on plan assets	(742		)	2,500			—			—
Employer contributions	1,656			1,676			—			—
Plan participants' contributions	19			14			—			—
Benefits paid	(1,476		)	(1,440		)	—			—
Acquisitions/divestitures/other ³	—			(15		)	—			—
Effect of foreign exchange rates	(314		)	646			—			—
Settlements ⁴	—			(1,188		)	—			—
Fair value of plan assets at end of year	$	22,544		$	23,401		$	—		$	—

Funded status:
U.S. plans with plan assets	$	(4,066	)	$	(5,363	)	$	—		$	—
Non-U.S. plans with plan assets	(2,263		)	(2,333		)	—			—
All other plans	(727		)	(754		)	(1,478		)	(1,567		)
Funded status at end of year	$	(7,056	)	$	(8,450	)	$	(1,478	)	$	(1,567	)

Amounts recognized in the consolidated balance sheets at Dec 31:
Deferred charges and other assets	$	491		$	548		$	—		$	—
Accrued and other current liabilities	(52		)	(48		)	(131		)	(125		)
Pension and other postretirement benefits - noncurrent	(7,495		)	(8,950		)	(1,347		)	(1,442		)
Net amount recognized	$	(7,056	)	$	(8,450	)	$	(1,478	)	$	(1,567	)

Pretax amounts recognized in accumulated other comprehensive loss at Dec 31:
Net loss (gain)	$	10,841		$	10,899		$	(315	)	$	(326	)
Prior service credit	(224		)	(265		)	—			—
Pretax balance in accumulated other comprehensive loss at end of year	$	10,617		$	10,634		$	(315	)	$	(326	)


1.	The 2018 impact includes the divestiture of a business with pension benefit obligations of $37 million. The 2017 impact includes the reclassification of a China pension liability of $69 million from "Other noncurrent obligations" to "Pension and other postretirement benefits - noncurrent" and the divestiture of a South Korean company with pension benefit obligations of $25 million.


2.	The 2017 impact includes the settlement of certain plan obligations for a U.S. non-qualified pension plan of $1,170 million required due to a change in control provision. The 2017 impact also includes the conversion of a South Korean pension plan of $22 million to a defined contribution plan.


3.	The 2017 impact relates to the divestiture of a South Korean company.


4.	The 2017 impact includes payments made of $1,170 million to settle certain plan obligations of a U.S. non-qualified pension plan required due to a change in control provision. The 2017 impact also includes payments made of $18 million to convert a South Korean pension plan to a defined contribution plan.

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



Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at Dec 31	2018		2017
In millions	2018		2017
Accumulated benefit obligations	$	25,392	$	27,248
Fair value of plan assets	$	18,902	$	19,515

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



Pension Plans with Projected Benefit Obligations in Excess of Plan Assets at Dec 31	2018		2017
In millions	2018		2017
Projected benefit obligations	$	26,599	$	28,576
Fair value of plan assets	$	19,051	$	19,578

Schedule of Net Benefit Costs



Net Periodic Benefit Costs for All Significant Plans for the Year Ended Dec 31	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2018			2017			2016			2018			2017			2016
Net Periodic Benefit Costs:
Service cost	$	520		$	506		$	463		$	12		$	14		$	13
Interest cost	886			883			846			45			54			52
Expected return on plan assets	(1,644		)	(1,548		)	(1,447		)	—			—			—
Amortization of prior service credit	(24		)	(25		)	(24		)	—			—			(3		)
Amortization of unrecognized (gain) loss	642			638			587			(24		)	(6		)	(7		)
Curtailment/settlement/other ¹	—			683			(36		)	—			—			—
Net periodic benefit costs	$	380		$	1,137		$	389		$	33		$	62		$	55
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net (gain) loss	$	584		$	845		$	1,954		$	(13	)	$	(199	)	$	14
Prior service cost	17			14			—			—			—			—
Amortization of prior service credit	24			25			24			—			—			3
Amortization of unrecognized gain (loss)	(642		)	(638		)	(587		)	24			6			7
Settlement loss ²	—			(687		)	—			—			—			—
Total recognized in other comprehensive (income) loss	$	(17	)	$	(441	)	$	1,391		$	11		$	(193	)	$	24
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	363		$	696		$	1,780		$	44		$	(131	)	$	79


1.	The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision. The 2016 impact relates to the curtailment of benefits for certain participants of a Dow Silicones plan in the U.S.


2.	The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision.

Schedule of Expected Benefit Payments

Estimated Future Benefit Payments

The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:



Estimated Future Benefit Payments at Dec 31, 2018	Defined Benefit Pension Plans		Other Postretirement Benefits
In millions	Defined Benefit Pension Plans		Other Postretirement Benefits
2019	$	1,549	$	133
2020	1,559		129
2021	1,585		129
2022	1,624		125
2023	1,663		120
2024-2028	8,641		519
Total	$	16,621	$	1,155

Schedule of Allocation of Plan Assets

The weighted-average target allocation for plan assets of the Company's pension plans is summarized as follows:



Target Allocation for Plan Assets at Dec 31, 2018	Target Allocation
Asset Category	Target Allocation
Equity securities	36	%
Fixed income securities	35
Alternative investments	28
Other investments	1
Total	100	%

Schedule of Defined Benefit Plans Disclosures

The following table summarizes the bases used to measure the Company’s pension plan assets at fair value for the years ended December 31, 2018 and 2017:



Basis of Fair Value Measurements	Dec 31, 2018											Dec 31, 2017
In millions	Total			Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3
Cash and cash equivalents	$	877		$	818		$	59		$	—	$	772		$	671		$	101		$	—
Equity securities:
U.S. equity securities ¹	$	3,493		$	3,251		$	241		$	1	$	3,755		$	3,416		$	339		$	—
Non - U.S. equity securities	4,242			3,497			707			38		5,551			4,533			978			40
Total equity securities	$	7,735		$	6,748		$	948		$	39	$	9,306		$	7,949		$	1,317		$	40
Fixed income securities:
Debt - government-issued	$	4,751		$	285		$	4,466		$	—	$	4,596		$	158		$	4,437		$	1
Debt - corporate-issued	2,929			411			2,518			—		3,300			351			2,935			14
Debt - asset-backed	90			—			89			1		101			—			100			1
Total fixed income securities	$	7,770		$	696		$	7,073		$	1	$	7,997		$	509		$	7,472		$	16
Alternative investments:²
Private market securities	$	1		$	—		$	—		$	1	$	—		$	—		$	—		$	—
Real estate	19			19			—			—		21			21			—			—
Derivatives - asset position	451			17			434			—		261			2			259			—
Derivatives - liability position	(506		)	(19		)	(487		)	—		(305		)	(2		)	(303		)	—
Total alternative investments	$	(35	)	$	17		$	(53	)	$	1	$	(23	)	$	21		$	(44	)	$	—
Other investments ²	$	380		$	47		$	333		$	—	$	273		$	37		$	236		$	—
Subtotal	$	16,727		$	8,326		$	8,360		$	41	$	18,325		$	9,187		$	9,082		$	56
Investments measured at net asset value: ²
Hedge funds	$	1,637										$	1,595
Private market securities	2,196											1,390
Real estate	2,080											2,200
Total investments measured at net asset value	$	5,913										$	5,185
Items to reconcile to fair value of plan assets:
Pension trust receivables ³	$	29										$	27
Pension trust payables ⁴	(125		)									(136		)
Total	$	22,544										$	23,401


1.	No DowDuPont common stock was directly held at December 31, 2018 or December 31, 2017.


2.	The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy. The assets are presented as "Investments measured at net asset value." Prior period amounts were updated to conform with the current year presentation.


3.	Primarily receivables for investment securities sold.


4.	Primarily payables for investment securities purchased.

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

The following table summarizes the changes in the fair value of Level 3 pension plan assets for the years ended December 31, 2018 and 2017:



Fair Value Measurement of Level 3 Pension Plan Assets	Equity Securities			Fixed Income Securities			Alternative Investments			Other Investments			Total
In millions	Equity Securities			Fixed Income Securities			Alternative Investments			Other Investments			Total
Balance at Jan 1, 2017, as previously reported	$	33		$	17		$	4,117		$	95		$	4,262
Reclassification of investments measured at net asset value ¹	—			—			(4,061		)	(95		)	(4,156		)
Balance at Jan 1, 2017, as restated	$	33		$	17		$	56		$	—		$	106
Actual return on assets:
Relating to assets sold during 2017	(1		)	—			5			—			4
Relating to assets held at Dec 31, 2017	5			1			(1		)	—			5
Purchases, sales and settlements, net	3			(2		)	(60		)	—			(59		)
Balance at Dec 31, 2017	$	40		$	16		$	—		$	—		$	56
Actual return on assets:
Relating to assets sold during 2018	—			4			(1		)	1			4
Relating to assets held at Dec 31, 2018	(3		)	(4		)	—			—			(7		)
Purchases, sales and settlements, net	2			(15		)	2			(1		)	(12		)
Balance at Dec 31, 2018	$	39		$	1		$	1		$	—		$	41


1.	The Company reviewed its fair value technique and elected to present assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy, including those classified as Level 3 pension plan assets. The assets are presented as "Investments measured at net asset value."

Defined Benefit Pension Plans

Defined Benefit Plan Disclosure [Line Items]

Schedule of Assumptions Used

The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for all plans are summarized in the table below:



Weighted-Average Assumptions for All Pension Plans	Benefit Obligations at Dec 31				Net Periodic Costs for the Year Ended
	2018		2017		2018		2017		2016
Discount rate	3.69	%	3.17	%	3.17	%	3.52	%	3.85	%
Interest crediting rate for applicable benefits	3.72	%	3.61	%	3.61	%	3.45	%	4.81	%
Rate of compensation increase	3.84	%	3.88	%	3.88	%	3.90	%	4.04	%
Expected return on plan assets	—		—		7.11	%	7.16	%	7.22	%

The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for U.S. plans are summarized in the table below:



Weighted-Average Assumptions for U.S. Pension Plans	Benefit Obligations at Dec 31				Net Periodic Costs for the Year Ended
	2018		2017		2018		2017		2016
Discount rate	4.39	%	3.66	%	3.66	%	4.11	%	4.40	%
Interest crediting rate for applicable benefits	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%
Rate of compensation increase	4.25	%	4.25	%	4.25	%	4.25	%	4.50	%
Expected return on plan assets	—		—		7.92	%	7.91	%	7.77	%