PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2021

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	2021		2020		2021		2020
Change in projected benefit obligations:
Benefit obligations at beginning of year	$	35,309	$	32,621	$	1,464	$	1,535

Service cost	387		399		7		7
Interest cost	594		767		23		40
Plan participants' contributions	10		12		—		—
Actuarial changes in assumptions and experience	(820)		3,021		(98)		7
Benefits paid	(1,582)		(1,569)		(141)		(132)
Plan amendments	2		8		—		—
Acquisitions/divestitures/other 1	8		(692)		—		—
Effect of foreign exchange rates	(545)		791		(4)		7
Termination benefits/curtailments/settlements 2	(386)		(49)		—		—
Benefit obligations at end of year	$	32,977	$	35,309	$	1,251	$	1,464

Change in plan assets:
Fair value of plan assets at beginning of year	$	26,406	$	24,908	$	—	$	—

Actual return on plan assets	2,501		2,877		—		—
Employer contributions	1,219		299		—		—
Plan participants' contributions	10		12		—		—
Benefits paid	(1,582)		(1,569)		—		—
Other 3	10		(681)		—		—
Effect of foreign exchange rates	(397)		571		—		—
Settlements	—		(11)		—		—
Fair value of plan assets at end of year	$	28,167	$	26,406	$	—	$	—

Funded status:
U.S. plans with plan assets	$	(2,585)	$	(5,873)	$	—	$	—
Non-U.S. plans with plan assets	(1,467)		(2,222)		—		—
All other plans	(758)		(808)		(1,251)		(1,464)

Funded status at end of year	$	(4,810)	$	(8,903)	$	(1,251)	$	(1,464)

Amounts recognized in the consolidated balance sheets at Dec 31:
Deferred charges and other assets	$	1,173	$	1,007	$	—	$	—
Accrued and other current liabilities	(58)		(54)		(99)		(113)
Pension and other postretirement benefits - noncurrent	(5,925)		(9,856)		(1,152)		(1,351)


Net amount recognized	$	(4,810)	$	(8,903)	$	(1,251)	$	(1,464)

Pretax amounts recognized in accumulated other comprehensive loss at Dec 31:
Net loss (gain)	$	9,934	$	12,736	$	(221)	$	(129)
Prior service credit	(112)		(154)		—		—
Pretax balance in accumulated other comprehensive loss at end of year	$	9,822	$	12,582	$	(221)	$	(129)

1.The 2020 impact relates primarily to the transfer of benefit obligations in the U.S. through the purchase of annuity contracts from an insurance company.

2.The 2021 impact primarily relates to the freeze of pensionable compensation and credited service amounts for employees that participate in the U.S. Plans. The 2020 impact relates to pension plan curtailments of a European plan resulting from the 2020 Restructuring Program and the settlement of certain plan obligations of a U.S. non-qualified pension plan resulting from lump-sum payments.

3.The 2020 impact relates to the purchase of annuity contracts associated with the transfer of benefit obligations to an insurance company.

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	2021		2020
In millions	2021		2020
Accumulated benefit obligations	$	27,052	$	29,084
Fair value of plan assets	$	21,385	$	20,130

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	2021		2020
In millions
Projected benefit obligations	$	27,367	$	30,161

Fair value of plan assets	$	21,385	$	20,251

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	2021		2020		2019		2021		2020		2019
Net Periodic Benefit Costs:
Service cost	$	387	$	399	$	396	$	7	$	7	$	8
Interest cost	594		767		921		23		40		49
Expected return on plan assets	(1,724)		(1,658)		(1,679)		—		—		—
Amortization of prior service credit	(22)		(19)		(20)		—		—		—
Amortization of unrecognized (gain) loss	822		773		574		(6)		(10)		(20)
Curtailment/settlement/other 1	(18)		9		(27)		—		—		(3)
Net periodic benefit costs	$	39	$	271	$	165	$	24	$	37	$	34
Less: discontinued operations	—		—		21		—		—		—
Net periodic benefit costs - continuing operations	$	39	$	271	$	144	$	24	$	37	$	34
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net (gain) loss	$	(1,980)	$	1,753	$	1,606	$	(98)	$	8	$	145
Prior service cost	2		8		—		—		—		—
Amortization of prior service credit	22		19		20		—		—		—
Amortization of unrecognized gain (loss)	(822)		(773)		(574)		6		10		20
Common control transaction 2	—		—		(112)		—		—		—
Curtailment and settlement gain (loss) 1	18		(9)		27		—		—		3
Total recognized in other comprehensive (income) loss	$	(2,760)	$	998	$	967	$	(92)	$	18	$	168
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	(2,721)	$	1,269	$	1,132	$	(68)	$	55	$	202

1.The 2021 impact primarily relates to the freeze of pensionable compensation and credited service amounts for employees that participate in the U.S. Plans. The 2020 impact relates to pension plan curtailments of a European plan resulting from the 2020 Restructuring Program and the settlement of certain plan obligations of a U.S. non-qualified pension plan resulting from lump-sum payments. The 2019 impact relates to plan curtailments and associated special termination benefits resulting from the reduction in plan participation due to the separation from DowDuPont.

2.The 2019 impact is the result of the Company's separation 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, 2021	Defined Benefit Pension Plans		Other Postretirement Benefit Plans
In millions
2022	$	1,705	$	100
2023	1,548		96
2024	1,551		92
2025	1,576		89
2026	1,593		87
2027-2031	8,093		386
Total	$	16,066	$	850

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, 2021	Target Allocation
Asset Category
Equity securities	33	%
Fixed income securities	37
Alternative investments	28
Other investments	2
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, 2021 and 2020:


Basis of Fair Value Measurements	Dec 31, 2021								Dec 31, 2020
In millions	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	1,463	$	1,353	$	110	$	—	$	1,298	$	1,103	$	195	$	—
Equity securities:
U.S. equity securities 1	$	4,117	$	4,097	$	18	$	2	$	3,934	$	3,911	$	22	$	1
Non - U.S. equity securities	4,559		3,935		620		4		5,186		4,213		964		9
Total equity securities	$	8,676	$	8,032	$	638	$	6	$	9,120	$	8,124	$	986	$	10
Fixed income securities:
Debt - government-issued	$	4,838	$	242	$	4,596	$	—	$	4,998	$	128	$	4,870	$	—
Debt - corporate-issued	4,949		1,095		3,854		—		3,970		553		3,416		1
Debt - asset-backed	117		—		116		1		103		—		102		1
Total fixed income securities	$	9,904	$	1,337	$	8,566	$	1	$	9,071	$	681	$	8,388	$	2
Alternative investments:

Private markets	$	5	$	—	$	—	$	5	$	13	$	—	$	—	$	13
Real estate	67		67		—		—		51		51		—		—
Derivatives - asset position	399		2		397		—		697		2		695		—
Derivatives - liability position	(324)		(2)		(322)		—		(594)		(1)		(593)		—
Total alternative investments	$	147	$	67	$	75	$	5	$	167	$	52	$	102	$	13
Other investments	$	1,068	$	7	$	1,061	$	—	$	472	$	22	$	448	$	2
Subtotal	$	21,258	$	10,796	$	10,450	$	12	$	20,128	$	9,982	$	10,119	$	27
Investments measured at net asset value:
Hedge funds	$	1,312							$	1,350
Private markets	3,857								3,135
Real estate	1,793								1,886
Total investments measured at net asset value	$	6,962							$	6,371
Items to reconcile to fair value of plan assets:
Pension trust receivables 2	$	62							$	66
Pension trust payables 3	(115)								(159)
Total	$	28,167							$	26,406

1.No Dow Inc. common stock was directly held at December 31, 2021 or December 31, 2020.

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, 2021 and 2020:


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, 2020	$	27	$	2	$	11	$	—	$	40
Actual return on assets:
Relating to assets sold during 2020	—		—		(11)		—		(11)
Relating to assets held at Dec 31, 2020	(1)		—		8		(1)		6
Purchases, sales and settlements, net	(19)		(1)		5		3		(12)
Transfers out of Level 3, net	3		1		—		—		4

Balance at Dec 31, 2020	$	10	$	2	$	13	$	2	$	27
Actual return on assets:

Relating to assets held at Dec 31, 2021	1		—		(11)		—		(10)
Purchases, sales and settlements, net	(5)		(1)		3		(2)		(5)


Balance at Dec 31, 2021	$	6	$	1	$	5	$	—	$	12

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 Benefit Costs for the Year Ended
	2021		2020		2021		2020		2019
Discount rate	2.57	%	2.20	%	2.40	%	2.81	%	3.50	%
Interest crediting rate for applicable benefits	3.57	%	3.55	%	3.55	%	3.51	%	3.72	%
Rate of compensation increase	3.94	%	3.91	%	3.91	%	3.92	%	3.92	%
Expected return on plan assets					6.86	%	7.00	%	7.11	%

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 Benefit Costs for the Year Ended
	2021		2020		2021		2020		2019
Discount rate	3.04	%	2.71	%	3.03	%	3.41	%	4.15	%
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					7.96	%	7.95	%	7.92	%