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Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefit Costs
Summarized information regarding net periodic benefit cost included in the statement of income related to the Company's significant defined benefit pension and other postretirement benefit plans is as follows:

 
 
Pension
 
Other Postretirement Benefits
In millions
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
60

 
$
63

 
$
62

 
$
8

 
$
9

 
$
9

Interest cost
 
72

 
72

 
92

 
18

 
19

 
24

Expected return on plan assets
 
(126
)
 
(133
)
 
(144
)
 
(25
)
 
(23
)
 
(23
)
Amortization of actuarial (gain) loss
 
43

 
57

 
44

 
(2
)
 
(1
)
 
—

Amortization of prior service cost
 
—

 
—

 
—

 
—

 
—

 
(1
)
Total net periodic benefit cost
 
$
49

 
$
59

 
$
54

 
$
(1
)
 
$
4

 
$
9
Change in Plan Benefit Obligations
The following tables provide a rollforward of the plan benefit obligations, plan assets and a reconciliation of funded status for the years ended December 31, 2018 and 2017:

 
 
Pension
 
Other Postretirement Benefits
In millions
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation at January 1
 
$
2,661

 
$
2,562

 
$
546

 
$
551

Service cost
 
60

 
63

 
8

 
9

Interest cost
 
72

 
72

 
18

 
19

Plan participants’ contributions
 
2

 
2

 
12

 
12

Amendments
 
9

 
—

 
—

 
—

Actuarial (gain) loss
 
(162
)
 
26

 
(35
)
 
(5
)
Benefits paid
 
(165
)
 
(152
)
 
(40
)
 
(41
)
Medicare subsidy received
 
—

 
—

 
2

 
1

Liabilities from other immaterial plans
 
5

 
—

 
—

 
—

Foreign currency translation
 
(53
)
 
88

 
—

 
—

Benefit obligation at December 31
 
$
2,429

 
$
2,661

 
$
511

 
$
546
Change in Plan Assets and Reconciliation of Funded Status
 
 
Pension
 
Other Postretirement Benefits
In millions
 
2018
 
2017
 
2018
 
2017
Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
 
$
2,832

 
$
2,487

 
$
373

 
$
351

Actual return on plan assets
 
(82
)
 
227

 
(19
)
 
45

Company contributions
 
23

 
178

 
7

 
6

Plan participants’ contributions
 
2

 
2

 
12

 
12

Benefits paid
 
(165
)
 
(152
)
 
(40
)
 
(41
)
Foreign currency translation
 
(60
)
 
90

 
—

 
—

Fair value of plan assets at December 31
 
$
2,550

 
$
2,832

 
$
333

 
$
373

Funded status
 
$
121

 
$
171

 
$
(178
)
 
$
(173
)
Other immaterial plans
 
(46
)
 
(65
)
 
(5
)
 
(5
)
Net asset (liability) at December 31
 
$
75

 
$
106

 
$
(183
)
 
$
(178
)
The amounts recognized in the statement of financial position as of December 31 consist of:
 
 
 
 
 
 
 
 
Other assets
 
$
290

 
$
337

 
$
—

 
$
—

Accrued expenses
 
(12
)
 
(12
)
 
(4
)
 
(4
)
Other noncurrent liabilities
 
(203
)
 
(219
)
 
(179
)
 
(174
)
Net asset (liability) at end of year
 
$
75

 
$
106

 
$
(183
)
 
$
(178
)
The pre-tax amounts recognized in accumulated other comprehensive income consist of:
 
 
 
 
 
 
 
 
Net actuarial (gain) loss
 
$
552

 
$
548

 
$
(53
)
 
$
(64
)
Prior service cost
 
8

 
—

 
—

 
—

 
 
$
560

 
$
548

 
$
(53
)
 
$
(64
)
Accumulated benefit obligation
 
$
2,299

 
$
2,499

 
 
 
 
Plans with accumulated benefit obligation in excess of plan assets as of December 31:
 
 
 
 
 
 
 
 
Projected benefit obligation
 
$
176

 
$
184

 
 
 
 
Accumulated benefit obligation
 
$
170

 
$
175

 
 
 
 
Fair value of plan assets
 
$
28

 
$
27

 
 
 
 
Weighted-average Assumptions Used in the Valuations of Pension and Other Postretirement Benefits
The weighted-average assumptions used in the valuations of pension and other postretirement benefits were as follows:

 
Pension
 
Other Postretirement Benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Assumptions used to determine benefit obligations at December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.66
%
 
3.12
%
 
3.41
%
 
4.40
%
 
3.72
%
 
4.30
%
Rate of compensation increases
3.52
%
 
3.54
%
 
3.77
%
 


 


 


Assumptions used to determine net periodic benefit cost for years ended December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.12
%
 
3.41
%
 
3.95
%
 
3.72
%
 
4.30
%
 
4.55
%
Expected return on plan assets
4.77
%
 
5.53
%
 
6.22
%
 
6.80
%
 
6.80
%
 
7.00
%
Rate of compensation increases
3.54
%
 
3.77
%
 
3.72
%
 


 


 
Assumed Health Care Cost Trend Rates
The assumed health care cost trend rates used to determine the postretirement benefit obligation at December 31 were as follows:

 
2018
 
2017
 
2016
Health care cost trend rate assumed for the next year
7.00
%
 
6.25
%
 
6.00
%
Ultimate trend rate
4.50
%
 
4.50
%
 
4.50
%
Year the rate reaches the ultimate trend rate
2026

 
2025

 
2023
Impact of One Percentage-point Change in Assumed Health Care Costs Trend Rates
A one percentage-point change in assumed health care cost trend rates would have the following impact:

In millions
 
1 Percentage-Point Increase
 
1 Percentage-Point Decrease
Change in service cost and interest cost for 2018
 
$
—

 
$
(1
)
Change in postretirement benefit obligation at December 31, 2018
 
$
5

 
$
(8
)
Benefit Plan Assets by Category and Valuation Methodology
The following tables present the fair value of the Company’s pension and other postretirement benefit plan assets at December 31, 2018 and 2017, by asset category and valuation methodology. Level 1 assets are valued using unadjusted quoted prices for identical assets in active markets. Level 2 assets are valued using quoted prices or other observable inputs for similar assets. Level 3 assets are valued using unobservable inputs, but reflect the assumptions market participants would be expected to use in pricing the assets. Each financial instrument’s categorization is based on the lowest level of input that is significant to the fair value measurement.

 
 
2018
In millions
 
Total
 
Level 1
 
Level 2
 
Level 3
Pension Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
28

 
$
27

 
$
1

 
$
—

Fixed income securities:
 
 
 
 
 
 
 
 
Government securities
 
371

 
—

 
371

 
—

Corporate debt securities
 
853

 
—

 
853

 
—

Investment contracts with insurance companies
 
1

 
—

 
—

 
1

Commingled funds:
 
 
 
 
 
 
 
 
Collective trust funds
 
1,257

 


 


 


Partnerships/private equity interests
 
36

 


 


 


Other
 
4

 
—

 
4

 
—

Total fair value of pension plan assets
 
$
2,550

 
$
27

 
$
1,229

 
$
1

 
 
 
 
 
 
 
 
 
Other Postretirement Benefit Plan Assets:
 
 
 
 
 
 
 
 
Life insurance policies
 
$
333

 


 


 


Total fair value of other postretirement benefit plan assets
 
$
333

 
$
—

 
$
—

 
$
—


 
 
2017
In millions
 
Total
 
Level 1
 
Level 2
 
Level 3
Pension Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
43

 
$
34

 
$
9

 
$
—

Fixed income securities:
 
 
 
 
 
 
 
 
Government securities
 
371

 
—

 
371

 
—

Corporate debt securities
 
943

 
—

 
943

 
—

Investment contracts with insurance companies
 
1

 
—

 
—

 
1

Commingled funds:
 
 
 
 
 
 
 
 
Collective trust funds
 
1,424

 


 


 


Partnerships/private equity interests
 
41

 


 


 


Other
 
9

 
—

 
9

 
—

Total fair value of pension plan assets
 
$
2,832

 
$
34

 
$
1,332

 
$
1

 
 
 
 
 
 
 
 
 
Other Postretirement Benefit Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
2

 
$
2

 
$
—

 
$
—

Life insurance policies
 
371

 


 


 


Total fair value of other postretirement benefit plan assets
 
$
373

 
$
2

 
$
—

 
$
—
Expected Benefit Payments
The Company’s portion of the benefit payments that are expected to be paid during the years ending December 31 is as follows:

In millions
 
Pension
 
Other Postretirement Benefits
2019
 
$
162

 
$
35

2020
 
165

 
36

2021
 
169

 
36

2022
 
172

 
37

2023
 
180

 
37

Years 2024-2028
 
895

 
182