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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2023

Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans

Benefit obligations, plan assets and funded status for our pension and postretirement plans were as follows at December 31:


	Pension				Postretirement
(in millions)	2023		2022		2023		2022
Change in benefit obligation:
Benefit obligation at beginning of year	$	6,292	$	8,544	$	1,275	$	1,688
Service cost	39		64		15		23
Interest cost	333		206		65		41
Benefits paid	(460)		(462)		(96)		(87)
Actuarial (gains) losses	224		(2,060)		(10)		(392)
Plan amendments	—		—		(3)		2


Benefit obligation at end of year	6,428		6,292		1,246		1,275
Change in plan assets:
Fair value of plan assets at beginning of year	6,603		8,793		122		185
Actual return on plan assets	612		(1,748)		13		(35)
Employer contributions	20		20		—		—
Benefits paid	(460)		(462)		(33)		(28)

Fair value of plan assets at end of year	6,775		6,603		102		122
Funded status at December 31	$	347	$	311	$	(1,144)	$	(1,153)
Amounts recognized on our consolidated balance sheets:
Other assets	$	506	$	469	$	—	$	—
Other accrued liabilities	(29)		(25)		(65)		(70)
Accrued pension costs	(130)		(133)		—		—

Accrued postretirement health care costs	—		—		(1,079)		(1,083)
	$	347	$	311	$	(1,144)	$	(1,153)

Net Pension Liability Recognized in Consolidated Balance Sheets

Benefit obligations, plan assets and funded status for our pension and postretirement plans were as follows at December 31:


	Pension				Postretirement
(in millions)	2023		2022		2023		2022
Change in benefit obligation:
Benefit obligation at beginning of year	$	6,292	$	8,544	$	1,275	$	1,688
Service cost	39		64		15		23
Interest cost	333		206		65		41
Benefits paid	(460)		(462)		(96)		(87)
Actuarial (gains) losses	224		(2,060)		(10)		(392)
Plan amendments	—		—		(3)		2


Benefit obligation at end of year	6,428		6,292		1,246		1,275
Change in plan assets:
Fair value of plan assets at beginning of year	6,603		8,793		122		185
Actual return on plan assets	612		(1,748)		13		(35)
Employer contributions	20		20		—		—
Benefits paid	(460)		(462)		(33)		(28)

Fair value of plan assets at end of year	6,775		6,603		102		122
Funded status at December 31	$	347	$	311	$	(1,144)	$	(1,153)
Amounts recognized on our consolidated balance sheets:
Other assets	$	506	$	469	$	—	$	—
Other accrued liabilities	(29)		(25)		(65)		(70)
Accrued pension costs	(130)		(133)		—		—

Accrued postretirement health care costs	—		—		(1,079)		(1,083)
	$	347	$	311	$	(1,144)	$	(1,153)

Assumptions used to Determine Benefit Obligations

We used the following assumptions to determine our pension and postretirement benefit obligations at December 31:


	Pension				Postretirement
	2023		2022		2023		2022
Discount rate	5.3	%	5.6	%	5.2	%	5.6	%
Rate of compensation increase - long-term	4.0		4.0		—		—
Health care cost trend rate assumed for next year	—		—		6.5		6.5
Ultimate trend rate	—		—		5.0		5.0
Year that the rate reaches the ultimate trend rate	—		—		2031		2028

Schedule of Net Benefit Costs

Net periodic benefit cost (income) consisted of the following for the years ended December 31:


	Pension						Postretirement
(in millions)	2023		2022		2021		2023		2022		2021
Service cost	$	39	$	64	$	68	$	15	$	23	$	20
Interest cost	333		206		184		65		41		38
Expected return on plan assets	(485)		(493)		(522)		(8)		(13)		(14)
Amortization:
Net loss (gain)	4		96		131		(2)		18		22
Prior service cost (credit)	6		6		5		(40)		(45)		(46)

Net periodic benefit cost (income)	$	(103)	$	(121)	$	(134)	$	30	$	24	$	20

Schedule Of Assumptions To Determine Net Periodic Benefit Cost

The following assumptions were used to determine our net periodic benefit cost (income) for the years ended December 31:


	Pension						Postretirement
	2023		2022		2021		2023		2022		2021
Discount rates:
Service cost	5.7	%	3.2	%	3.1	%	5.7	%	3.2	%	3.1	%
Interest cost	5.5		2.5		2.0		5.5		2.5		2.0
Expected rate of return on plan assets	6.1		6.1		6.6		7.4		7.7		7.7
Rate of compensation increase - long-term	4.0		4.0		4.0		—		—		—
Health care cost trend rate	—		—		—		6.5		6.5		6.5

Schedule of Fair Value of Plan Assets by Asset Category

The actual composition of our plan assets at December 31, 2023 was broadly characterized with the following allocation:


	Pension			Postretirement
Equity securities	18	%		53	%
Corporate bonds	57	%		31	%
U.S. Treasury and foreign government securities and all other investments	25	%	(1)	16	%

(1) Amount includes U.S Treasury and foreign government securities (19%) and asset backed securities and all other investments (6%).

The fair values of our pension plan assets by asset category were as follows at December 31:


	2023				2022
(in millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—	$	1,114	$	1,114	$	—	$	1,098	$	1,098
U.S. municipal bonds	—		81		81		—		82		82
Foreign government and agencies	—		33		33		—		32		32
Corporate debt instruments:
Above investment grade	—		3,160		3,160		—		2,747		2,747
Below investment grade and no rating	—		716		716		—		756		756
Common stock:
International equities	360		—		360		327		—		327
U.S. equities	323		—		323		591		—		591


Asset backed securities	—		279		279		—		161		161


Other, net	47		154		201		(1)		244		243
	$	730	$	5,537	$	6,267	$	917	$	5,120	$	6,037
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds
U.S. large cap					$	388					$	312
U.S. small cap					90						75
International developed markets					55						49
Total investments measured at NAV					$	533					$	436

Other					(25)						130
Fair value of plan assets, net					$	6,775					$	6,603

Level 3 holdings and transactions were immaterial to total plan assets at December 31, 2023 and 2022.

The fair values of our postretirement plan assets were as follows at December 31:


	2023						2022
(in millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—	$	4	$	4	$	—	$	5	$	5

Foreign government and agencies	—		2		2		—		2		2
Corporate debt instruments:
Above investment grade	—		31		31		—		37		37
Below investment grade and no rating	—		4		4		—		7		7
Other, net	1		3		4		—		3		3
	$	1	$	44	$	45	$	—	$	54	$	54
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds:
U.S. large cap					$	44					$	47
International developed markets					11						18
Total investments measured at NAV					$	55					$	65

Other					2						3
Fair value of plan assets, net					$	102					$	122

Estimated Future Benefit Payments

Estimated future benefit payments at December 31, 2023 were as follows:


(in millions)	Pension		Postretirement
2024	$	494	$	96
2025	478		91
2026	478		90
2027	479		90
2028	481		92
2029-2033	2,362		461

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

We recorded the following amounts in accumulated other comprehensive losses at December 31, 2023:


(in millions)	Pension		Post- retirement		Post- employment		Total

Net (loss) gain	$	(2,236)	$	19	$	(39)	$	(2,256)
Prior service (cost) credit	(18)		256		(5)		233
Deferred income taxes	585		(67)		12		530
Amounts recorded in accumulated other comprehensive losses	$	(1,669)	$	208	$	(32)	$	(1,493)

We recorded the following amounts in accumulated other comprehensive losses at December 31, 2022:


(in millions)	Pension		Post- retirement		Post- employment		Total
Net (loss) gain	$	(2,180)	$	1	$	(34)	$	(2,213)
Prior service (cost) credit	(24)		293		(5)		264
Deferred income taxes	571		(68)		10		513
Amounts recorded in accumulated other comprehensive losses	$	(1,633)	$	226	$	(29)	$	(1,436)

Movements in Other Comprehensive Earnings/Losses

The movements in other comprehensive earnings (losses) for the year ended December 31, 2023 were as follows:


(in millions)	Pension		Post- retirement		Post- employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost (income):
Amortization:
Net loss (gain)	$	4	$	(2)	$	6	$	8
Prior service cost (credit)	6		(40)		—		(34)



Deferred income taxes	(2)		11		(1)		8
	$	8	$	(31)	$	5	$	(18)
Other movements during the year:
Net (loss) gain	$	(60)	$	20	$	(11)	$	(51)
Prior service (cost) credit	—		3		—		3
Deferred income taxes	16		(10)		3		9
	$	(44)	$	13	$	(8)	$	(39)
Total movements in other comprehensive earnings (losses)	$	(36)	$	(18)	$	(3)	$	(57)

The movements in other comprehensive earnings (losses) for the year ended December 31, 2022 were as follows:


(in millions)	Pension		Post-retirement		Post-employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost (income):
Amortization:
Net loss (gain)	$	96	$	18	$	13	$	127
Prior service cost (credit)	6		(45)		—		(39)



Deferred income taxes	(26)		7		(3)		(22)
	$	76	$	(20)	$	10	$	66
Other movements during the year:

Net (loss) gain	$	(183)	$	345	$	(15)	$	147
Prior service (cost) credit	—		(2)		—		(2)
Deferred income taxes	48		(87)		4		(35)
	$	(135)	$	256	$	(11)	$	110
Total movements in other comprehensive earnings (losses)	$	(59)	$	236	$	(1)	$	176

The movements in other comprehensive earnings (losses) for the year ended December 31, 2021 were as follows:


(in millions)	Pension		Post- retirement		Post- employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost (income):
Amortization:
Net loss (gain)	$	131	$	22	$	10	$	163
Prior service cost (credit)	5		(46)		—		(41)



Deferred income taxes	(35)		7		(2)		(30)
	$	101	$	(17)	$	8	$	92
Other movements during the year:
Net (loss) gain	$	465	$	157	$	2	$	624
Prior service (cost) credit	(8)		345		—		337
Deferred income taxes	(118)		(127)		—		(245)
	$	339	$	375	$	2	$	716
Total movements in other comprehensive earnings (losses)	$	440	$	358	$	10	$	808