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Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Summary of Information Regarding Net Periodic Benefit Cost Included in Statement of Income Related to Significant Defined Benefit Pension and Other Postretirement Benefit Plans
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 for the twelve months ended December 31, 2019, 2018 and 2017 is as follows:

 
 
Pension
 
Other Postretirement Benefits
In millions
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
52

 
$
60

 
$
63

 
$
7

 
$
8

 
$
9

Interest cost
 
78

 
72

 
72

 
20

 
18

 
19

Expected return on plan assets
 
(121
)
 
(126
)
 
(133
)
 
(22
)
 
(25
)
 
(23
)
Amortization of actuarial (gain) loss
 
21

 
43

 
57

 
(1
)
 
(2
)
 
(1
)
Amortization of prior service cost
 
1

 
—

 
—

 
—

 
—

 
—

Total net periodic benefit cost
 
$
31

 
$
49

 
$
59

 
$
4

 
$
(1
)
 
$
4
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 twelve months ended December 31, 2019 and 2018:

 
 
Pension
 
Other Postretirement Benefits
In millions
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation at January 1
 
$
2,429

 
$
2,661

 
$
511

 
$
546

Service cost
 
52

 
60

 
7

 
8

Interest cost
 
78

 
72

 
20

 
18

Plan participants’ contributions
 
2

 
2

 
12

 
12

Amendments
 
—

 
9

 
—

 
—

Actuarial (gain) loss
 
295

 
(162
)
 
61

 
(35
)
Transfer to liabilities held for sale
 
(2
)
 
—

 
—

 
—

Benefits paid
 
(156
)
 
(165
)
 
(42
)
 
(40
)
Medicare subsidy received
 
—

 
—

 
1

 
2

Liabilities from other immaterial plans
 
—

 
5

 
—

 
—

Foreign currency translation
 
33

 
(53
)
 
—

 
—

Benefit obligation at December 31
 
$
2,731

 
$
2,429

 
$
570

 
$
511
Change in Plan Assets and Reconciliation of Funded Status
 
 
Pension
 
Other Postretirement Benefits
In millions
 
2019
 
2018
 
2019
 
2018
Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
 
$
2,550

 
$
2,832

 
$
333

 
$
373

Actual return on plan assets
 
379

 
(82
)
 
66

 
(19
)
Company contributions
 
27

 
23

 
5

 
7

Plan participants’ contributions
 
2

 
2

 
12

 
12

Benefits paid
 
(156
)
 
(165
)
 
(42
)
 
(40
)
Foreign currency translation
 
42

 
(60
)
 
—

 
—

Fair value of plan assets at December 31
 
$
2,844

 
$
2,550

 
$
374

 
$
333

Funded status
 
$
113

 
$
121

 
$
(196
)
 
$
(178
)
Other immaterial plans
 
(42
)
 
(46
)
 
(5
)
 
(5
)
Net asset (liability) at December 31
 
$
71

 
$
75

 
$
(201
)
 
$
(183
)
The amounts recognized in the Statement of Financial Position as of December 31 consist of:
 
 
 
 
 
 
 
 
Other assets
 
$
297

 
$
290

 
$
—

 
$
—

Accrued expenses
 
(11
)
 
(12
)
 
(3
)
 
(4
)
Other noncurrent liabilities
 
(215
)
 
(203
)
 
(198
)
 
(179
)
Net asset (liability) at end of year
 
$
71

 
$
75

 
$
(201
)
 
$
(183
)
The pre-tax amounts recognized in accumulated other comprehensive income consist of:
 
 
 
 
 
 
 
 
Net actuarial (gain) loss
 
$
568

 
$
552

 
$
(35
)
 
$
(53
)
Prior service cost
 
7

 
8

 
—

 
—

 
 
$
575

 
$
560

 
$
(35
)
 
$
(53
)
Accumulated benefit obligation
 
$
2,589

 
$
2,299

 
 
 
 
Plans with accumulated benefit obligation in excess of plan assets as of December 31:
 
 
 
 
 
 
 
 
Projected benefit obligation
 
$
194

 
$
176

 
 
 
 
Accumulated benefit obligation
 
$
188

 
$
170

 
 
 
 
Fair value of plan assets
 
$
29

 
$
28

 
 
 
 
Weighted-average Assumptions Used in 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
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Assumptions used to determine benefit obligations as of December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
2.61
%
 
3.66
%
 
3.12
%
 
3.29
%
 
4.40
%
 
3.72
%
Rate of compensation increases
3.44
%
 
3.52
%
 
3.54
%
 


 


 


Assumptions used to determine net periodic benefit cost for the twelve months ended December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.66
%
 
3.12
%
 
3.41
%
 
4.40
%
 
3.72
%
 
4.30
%
Expected return on plan assets
4.71
%
 
4.77
%
 
5.53
%
 
6.70
%
 
6.80
%
 
6.80
%
Rate of compensation increases
3.52
%
 
3.54
%
 
3.77
%
 


 


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

 
2019
 
2018
 
2017
Health care cost trend rate assumed for the next year
6.70
%
 
7.00
%
 
6.25
%
Ultimate trend rate
4.50
%
 
4.50
%
 
4.50
%
Year the rate reaches the ultimate trend rate
2026

 
2026

 
2025
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 2019
 
$
—

 
$
(1
)
Change in postretirement benefit obligation at December 31, 2019
 
$
2

 
$
(3
)
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 as of December 31, 2019 and 2018, 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.

 
 
2019
In millions
 
Total
 
Level 1
 
Level 2
 
Level 3
Pension Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
28

 
$
27

 
$
1

 
$
—

Fixed income securities:
 
 
 
 
 
 
 
 
Government securities
 
355

 
—

 
355

 
—

Corporate debt securities
 
969

 
—

 
969

 
—

Investment contracts with insurance companies
 
1

 
—

 
—

 
1

Commingled funds:
 
 
 
 
 
 
 
 
Collective trust funds
 
1,460

 


 


 


Partnerships/private equity interests
 
27

 


 


 


Other
 
4

 
—

 
4

 
—

Total fair value of pension plan assets
 
$
2,844

 
$
27

 
$
1,329

 
$
1

 
 
 
 
 
 
 
 
 
Other Postretirement Benefit Plan Assets:
 
 
 
 
 
 
 
 
Life insurance policies
 
$
374

 


 


 


Total fair value of other postretirement benefit plan assets
 
$
374

 
$
—

 
$
—

 
$
—


 
 
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

 
$
—

 
$
—

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

In millions
 
Pension
 
Other Postretirement Benefits
2020
 
$
152

 
$
35

2021
 
157

 
35

2022
 
164

 
35

2023
 
171

 
35

2024
 
175

 
36

Years 2025-2029
 
862

 
176