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NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS
 12 Months Ended
Dec. 31, 2022
Nonpension Postretirement And Postemployment Benefits [Abstract]  
Nonpension Postretirement And Postemployment Benefits [Text Block]
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS
Postretirement
The Company sponsors a number of plans to provide health care and other welfare benefits to retired employees in the United States and Canada, who have met certain age and service requirements. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a limited number of multiemployer or other defined contribution plans for certain employee groups. The Company contributes to voluntary employee benefit association (VEBA) trusts to fund certain U.S. retiree health and welfare benefit obligations. The Company uses a December 31 measurement date for these plans and, when necessary, adjusts for plan contributions and significant events between December 31 and its fiscal year-end.
Obligations and funded status
The aggregate change in accumulated postretirement benefit obligation, plan assets, and funded status is presented in the following tables.
(millions)20222021
Change in accumulated benefit obligation
Beginning of year$1,065 $1,157 
Service cost11 13 
Interest cost24 20 
Actuarial (gain) loss(231)(68)
Benefits paid(54)(57)
Foreign currency adjustments(2)— 
End of year$813 $1,065 
Change in plan assets
Fair value beginning of year$1,608 $1,491 
Actual return on plan assets(325)175 
Employer contributions20 16 
Benefits paid(77)(74)
Fair value end of year$1,226 $1,608 
Funded status$413 $543 
Amounts recognized in the Consolidated Balance Sheet consist of
Other assets$437 $577 
Other current liabilities(2)(2)
Other liabilities(22)(32)
Net amount recognized$413 $543 
Amounts recognized in accumulated other comprehensive income consist of
Prior service credit(32)(41)
Net amount recognized$(32)$(41)

Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were:
(millions)20222021
Accumulated benefit obligation$24 $34 
Fair value of plan assets$— $— 
Expense
The components of nonpension postretirement expense are presented in the following table. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE. Components of postretirement benefit expense (income) were:
(millions)202220212020
Service cost$11 $13 $13 
Interest cost24 20 31 
Expected return on plan assets(111)(92)(94)
Amortization of unrecognized prior service credit(9)(9)(9)
Recognized net (gain) loss204 (152)(29)
Net periodic benefit expense (income)119 (220)(88)
Postretirement benefit expense (income):
Defined benefit plans119 (220)(88)
Defined contribution plans13 13 13 
Total$132 $(207)$(75)
Assumptions
The weighted-average actuarial assumptions used to determine benefit obligations were:
202220212020
Discount rate5.5 %2.9 %2.5 %
The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were:
202220212020
Discount rate2.9 %2.5 %3.3 %
Discount rate - interest2.4 %1.8 %2.8 %
Long-term rate of return on plan assets7.0 %6.3 %7.0 %
The Company determines the overall discount rate and expected long-term rate of return on VEBA trust obligations and assets in the same manner as that described for pension trusts in Note 11.
The assumed U.S. health care cost trend rate is 6.00% for 2023, remaining at this rate until 2025, then decreasing 0.5% annually to 4.5% by the year 2028 and remaining at that level thereafter. These trend rates reflect the Company’s historical experience and management’s expectations regarding future trends.
The Company may experience material actuarial gains or losses due to differences between assumed and actual experience and due to changing economic conditions. During 2022, the Company recognized a net actuarial loss of approximately $204 million driven by lower than expected asset returns, partially offset by the impact of higher discount rates.
Plan assets
The fair value of Plan assets as of December 31, 2022 and January 1, 2022 are summarized within fair value hierarchy described in Note 11, are as follows:
(millions)Fair Value Hierarchy Level20222021
Cash and cash equivalents (a)1, 2$— $3 
Corporate stock, common1172 263 
Mutual funds:
Equity236 39 
Debt2— 94 
Bonds, corporate2166 247 
Bonds, government268 99 
Bonds, other210 13 
Sub-total$452 $758 
Investments measured at net asset value (NAV) practical expedient (b)774 $850 
Total plan assets$1,226 $1,608 
(a) Cash and cash equivalents includes Level 1 assets of $0 million and $1 million for 2022 and 2021, respectively, and Level 2 assets of $0 million and $2 million for 2022 and 2021, respectively.
(b) Certain Assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The Company’s asset investment strategy for its VEBA trusts is consistent with that described for its pension trusts in Note 11. The current target asset allocation is 60% equity securities, 33% debt securities, and 7% real estate. The Company currently expects to contribute approximately $21 million to its VEBA trusts during 2023.
There were no Level 3 assets during 2022 and 2021.
Postemployment
Under certain conditions, the Company provides benefits to former or inactive employees, including salary continuance, severance, and long-term disability, in the United States and several foreign locations. The Company’s postemployment benefit plans are unfunded. Actuarial assumptions used are generally consistent with those presented for pension benefits in Note 11.

The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were:
(millions)20222021
Change in accumulated benefit obligation
Beginning of year$48 $48 
Service cost3 3 
Interest cost1 1 
Actuarial (gain)loss(9)1 
Benefits paid(6)(5)
End of year$37 $48 
Funded status$(37)$(48)
Amounts recognized in the Consolidated Balance Sheet consist of
Other current liabilities$(7)$(5)
Other liabilities(30)(43)
Net amount recognized$(37)$(48)
Amounts recognized in accumulated other comprehensive income consist of
Net prior service cost$2 $1 
Net experience gain(18)(14)
Net amount recognized$(16)$(13)
The components of postemployment benefit expense are presented in the following table. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE.
(millions)202220212020
Service cost$3 $3 $2 
Interest cost1 1 1 
Amortization of unrecognized prior service cost1 1 1 
Recognized net loss(2)(2)(3)
Net periodic benefit cost$3 $3 $1 
Settlement cost(2)(1)(1)
Postemployment benefit expense$1 $2 $— 
Benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
(millions)PostretirementPostemployment
2023$64 $7 
202464 6 
202564 5 
202664 5 
202764 5 
2028-2032314 19