PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2019

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 Benefit Plans
In millions	2019			2018			2019			2018
Change in projected benefit obligations:
Benefit obligations at beginning of year	$	29,600		$	31,851		$	1,478		$	1,567
Impact of plans transferred to DowDuPont at separation	(331		)	—			—			—
Service cost	396			520			8			12
Interest cost	921			886			49			45
Plan participants' contributions	12			19			—			—
Actuarial changes in assumptions and experience	3,904			(1,754		)	148			(13		)
Benefits paid	(1,684		)	(1,476		)	(148		)	(123		)
Plan amendments	—			17			—			—
Acquisitions/divestitures/other ¹	(37		)	(45		)	—			—
Effect of foreign exchange rates	14			(418		)	3			(10		)
Termination benefits/curtailments/settlements	(174		)	—			(3		)	—
Benefit obligations at end of year	$	32,621		$	29,600		$	1,535		$	1,478

Change in plan assets:
Fair value of plan assets at beginning of year	$	22,544		$	23,401		$	—		$	—
Impact of plans transferred to DowDuPont at separation	(61		)	—			—			—
Actual return on plan assets	3,790			(742		)	—			—
Employer contributions	266			1,656			—			—
Plan participants' contributions	12			19			—			—
Benefits paid	(1,684		)	(1,476		)	—			—
Effect of foreign exchange rates	41			(314		)	—			—
Fair value of plan assets at end of year	$	24,908		$	22,544		$	—		$	—

Funded status:
U.S. plans with plan assets	$	(4,768	)	$	(4,066	)	$	—		$	—
Non-U.S. plans with plan assets	(2,207		)	(2,041		)	—			—
All other plans	(738		)	(695		)	(1,535		)	(1,478		)
Plans of discontinued operations	—			(254		)	—			—
Funded status at end of year	$	(7,713	)	$	(7,056	)	$	(1,535	)	$	(1,478	)

Amounts recognized in the consolidated balance sheets at Dec 31:
Deferred charges and other assets	$	623		$	491		$	—		$	—
Accrued and other current liabilities	(49		)	(50		)	(128		)	(131		)
Pension and other postretirement benefits - noncurrent	(8,287		)	(7,227		)	(1,407		)	(1,347		)
Liabilities of discontinued operations - current	—			(270		)	—			—
Net amount recognized	$	(7,713	)	$	(7,056	)	$	(1,535	)	$	(1,478	)

Pretax amounts recognized in accumulated other comprehensive loss at Dec 31:
Net loss (gain)	$	11,761		$	10,841		$	(147	)	$	(315	)
Prior service credit	(177		)	(224		)	—			—
Pretax balance in accumulated other comprehensive loss at end of year	$	11,584		$	10,617		$	(147	)	$	(315	)

The 2019 impact includes the divestiture of a business with pension benefit obligations of $53 million.The 2018 impact includes the divestiture of a business with pension benefit obligations of $37 million.

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	2019		2018
In millions	2019		2018
Accumulated benefit obligations	$	26,959	$	25,392
Fair value of plan assets	$	19,571	$	18,902

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	2019		2018
In millions	2019		2018
Projected benefit obligations	$	28,013	$	26,599
Fair value of plan assets	$	19,677	$	19,051

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 Benefit Plans
In millions	2019			2018			2017			2019			2018			2017
Net Periodic Benefit Costs:
Service cost	$	396		$	520		$	506		$	8		$	12		$	14
Interest cost	921			886			883			49			45			54
Expected return on plan assets	(1,679		)	(1,644		)	(1,548		)	—			—			—
Amortization of prior service credit	(20		)	(24		)	(25		)	—			—			—
Amortization of unrecognized (gain) loss	574			642			638			(20		)	(24		)	(6		)
Curtailment/settlement/other ¹	(27		)	—			683			(3		)	—			—
Net periodic benefit costs	$	165		$	380		$	1,137		$	34		$	33		$	62
Less: discontinued operations	21			101			105			—			3			3
Net periodic benefit costs - continuing operations	$	144		$	279		$	1,032		$	34		$	30		$	59
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net (gain) loss	$	1,606		$	584		$	845		$	145		$	(13	)	$	(199	)
Prior service cost	—			17			14			—			—			—
Amortization of prior service credit	20			24			25			—			—			—
Amortization of unrecognized gain (loss)	(574		)	(642		)	(638		)	20			24			6
Common control transaction ²	(112		)	—			—			—			—			—
Curtailment and settlement (gain) loss ¹	27			—			(687		)	3			—			—
Total recognized in other comprehensive (income) loss	$	967		$	(17	)	$	(441	)	$	168		$	11		$	(193	)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	1,132		$	363		$	696		$	202		$	44		$	(131	)


1.	The 2019 impact relates to plan curtailments and associated special termination benefits resulting from the reduction in plan participation due to the separation of the Company from DowDuPont. The 2017 impact relates to the settlement of a U.S. non-qualified plan triggered by a change in control provision.


2.	The 2019 impact is the result of the separation of the Company from DowDuPont.

Schedule of Expected Benefit Payments

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



Estimated Future Benefit Payments at Dec 31, 2019	Defined Benefit Pension Plans		Other Postretirement Benefit Plans
In millions	Defined Benefit Pension Plans		Other Postretirement Benefit Plans
2020	$	1,561	$	129
2021	1,571		124
2022	1,603		121
2023	1,636		118
2024	1,646		114
2025-2029	8,523		496
Total	$	16,540	$	1,102

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, 2019	Target Allocation
Asset Category	Target Allocation
Equity securities	35	%
Fixed income securities	36
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, 2019 and 2018:



Basis of Fair Value Measurements	Dec 31, 2019											Dec 31, 2018
In millions	Total			Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3
Cash and cash equivalents	$	754		$	675		$	79		$	—	$	877		$	818		$	59		$	—
Equity securities:
U.S. equity securities ¹	$	3,844		$	3,752		$	91		$	1	$	3,493		$	3,251		$	241		$	1
Non - U.S. equity securities	4,646			3,819			801			26		4,242			3,497			707			38
Total equity securities	$	8,490		$	7,571		$	892		$	27	$	7,735		$	6,748		$	948		$	39
Fixed income securities:
Debt - government-issued	$	4,992		$	197		$	4,795		$	—	$	4,751		$	285		$	4,466		$	—
Debt - corporate-issued	3,697			607			3,089			1		2,929			411			2,518			—
Debt - asset-backed	70			—			69			1		90			—			89			1
Total fixed income securities	$	8,759		$	804		$	7,953		$	2	$	7,770		$	696		$	7,073		$	1
Alternative investments:
Private market securities	$	11		$	—		$	—		$	11	$	1		$	—		$	—		$	1
Real estate	25			25			—			—		19			19			—			—
Derivatives - asset position	574			2			572			—		451			17			434			—
Derivatives - liability position	(513		)	(2		)	(511		)	—		(506		)	(19		)	(487		)	—
Total alternative investments	$	97		$	25		$	61		$	11	$	(35	)	$	17		$	(53	)	$	1
Other investments	$	411		$	28		$	383		$	—	$	380		$	47		$	333		$	—
Subtotal	$	18,511		$	9,103		$	9,368		$	40	$	16,727		$	8,326		$	8,360		$	41
Investments measured at net asset value:
Hedge funds	$	1,595										$	1,637
Private market securities	2,794											2,196
Real estate	2,110											2,080
Total investments measured at net asset value	$	6,499										$	5,913
Items to reconcile to fair value of plan assets:
Pension trust receivables ²	$	70										$	29
Pension trust payables ³	(172		)									(125		)
Total	$	24,908										$	22,544


1.	No Dow Inc. common stock was directly held at December 31, 2019. No DowDuPont common stock was directly held at December 31, 2018.


2.	Primarily receivables for investment securities sold.


3.	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, 2019 and 2018:



Fair Value Measurement of Level 3 Pension Plan Assets	Equity Securities			Fixed Income Securities			Alternative Investments			Other Investments			Total
In millions
Balance at Jan 1, 2018	$	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
Actual return on assets:
Relating to assets sold during 2019	(2		)	—			—			—			(2		)
Relating to assets held at Dec 31, 2019	1			—			(14		)	—			(13		)
Purchases, sales and settlements, net	(11		)	1			24			—			14
Balance at Dec 31, 2019	$	27		$	2		$	11		$	—		$	40

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
	2019		2018		2019		2018		2017
Discount rate	2.81	%	3.69	%	3.50	%	3.17	%	3.52	%
Interest crediting rate for applicable benefits	3.51	%	3.72	%	3.72	%	3.61	%	3.45	%
Rate of compensation increase	3.92	%	3.84	%	3.92	%	3.88	%	3.90	%
Expected return on plan assets	—		—		7.11	%	7.11	%	7.16	%

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
	2019		2018		2019		2018		2017
Discount rate	3.41	%	4.39	%	4.15	%	3.66	%	4.11	%
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	%	4.25	%
Expected return on plan assets	—		—		7.92	%	7.92	%	7.91	%