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Retirement and Other Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2024
Fair Values of Pension Plan Assets by Asset Class and Fair Value Hierarchy Level

The fair values of pension plan assets by asset class and fair value hierarchy level are as follows:

 

 

Fair Value Measurements

 

 

 

 

 

 

 

December 31

 

Quoted Prices
in Active
Markets
for Identical
Assets
(Level 1)

 

 

Significant
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

Net Asset
Value

 

 

Total Fair
Value

 

(in millions)

 

2024

 

Equity securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-sized to large cap

 

$

 

 

$

 

 

$

 

 

$

359

 

 

$

359

 

Small cap, international and emerging growth funds

 

 

 

 

 

 

 

 

 

 

 

361

 

 

 

361

 

Debt securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core fixed income

 

 

 

 

 

 

 

 

 

 

 

271

 

 

 

271

 

Real estate

 

 

 

 

 

 

 

 

 

 

 

130

 

 

 

130

 

Private infrastructure

 

 

 

 

 

 

 

 

 

 

 

96

 

 

 

96

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

21

 

Total

 

$

 

 

$

 

 

$

 

 

$

1,238

 

 

$

1,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

Equity securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-sized to large cap

 

$

 

 

$

 

 

$

 

 

$

307

 

 

$

307

 

Small cap, international and emerging growth funds

 

 

 

 

 

 

 

 

 

 

 

320

 

 

 

320

 

Debt securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core fixed income

 

 

 

 

 

 

 

 

 

 

 

319

 

 

 

319

 

Real estate

 

 

 

 

 

 

 

 

 

 

 

137

 

 

 

137

 

Private infrastructure

 

 

 

 

 

 

 

 

 

 

 

90

 

 

 

90

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Total

 

$

 

 

$

 

 

$

 

 

$

1,177

 

 

$

1,177

 

 

1.
These investments are common collective investment trusts valued using the net asset value (NAV) unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund.
Pension  
Schedule of Components of Net Periodic Benefit Cost

The net periodic benefit cost of defined benefit plans includes the following components:

 

years ended December 31
(in millions)

 

2024

 

 

2023

 

 

2022

 

Service cost

 

$

38

 

 

$

33

 

 

$

48

 

Interest cost

 

 

55

 

 

 

51

 

 

 

41

 

Expected return on assets

 

 

(79

)

 

 

(71

)

 

 

(77

)

Amortization of:

 

 

 

 

 

 

 

 

 

Prior service cost

 

 

6

 

 

 

6

 

 

 

4

 

Actuarial loss

 

 

2

 

 

 

1

 

 

 

4

 

Settlement charge

 

 

 

 

 

 

 

 

5

 

Net periodic benefit cost

 

$

22

 

 

$

20

 

 

$

25

 

Schedule of Recognized Pretax Amounts in Comprehensive Earnings

The Company recognized the following pretax amounts in consolidated comprehensive earnings:

 

years ended December 31

 

 

 

 

 

 

 

 

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

Actuarial (gain) loss

 

$

(44

)

 

$

21

 

 

$

(115

)

Prior service cost

 

 

 

 

 

 

 

 

48

 

Amortization of:

 

 

 

 

 

 

 

 

 

Prior service cost

 

 

(6

)

 

 

(6

)

 

 

(4

)

Actuarial loss

 

 

(2

)

 

 

(1

)

 

 

(4

)

Settlement charge

 

 

 

 

 

 

 

 

(5

)

Total

 

$

(52

)

 

$

14

 

 

$

(80

)

Schedule of Net Periodic Benefit Credit or Cost Not Yet Recognized

Accumulated other comprehensive loss includes the following amounts that have not yet been recognized in net periodic benefit cost:

 

December 31

 

2024

 

 

2023

 

(in millions)

 

Gross

 

 

Net of tax

 

 

Gross

 

 

Net of tax

 

Prior service cost

 

$

37

 

 

$

7

 

 

$

42

 

 

$

20

 

Actuarial loss

 

 

17

 

 

 

3

 

 

 

64

 

 

 

30

 

Total

 

$

54

 

 

$

10

 

 

$

106

 

 

$

50

 

 

Schedule of Change in Projected Benefit Obligation

The defined benefit plans’ change in projected benefit obligation is as follows:

 

years ended December 31

 

 

 

 

 

 

(in millions)

 

2024

 

 

2023

 

Net projected benefit obligation at beginning of year

 

$

970

 

 

$

858

 

Service cost

 

 

38

 

 

 

33

 

Interest cost

 

 

55

 

 

 

51

 

Actuarial (gain) loss

 

 

(46

)

 

 

73

 

Gross benefits paid

 

 

(50

)

 

 

(45

)

Net projected benefit obligation at end of year

 

$

967

 

 

$

970

 

Schedule of Change In Plan Assets

The Company’s change in plan assets, funded status and amounts recognized on the Company’s consolidated balance sheets are as follows:

 

years ended December 31

 

 

 

 

 

 

(in millions)

 

2024

 

 

2023

 

Fair value of plan assets at beginning of year

 

$

1,177

 

 

$

1,067

 

Actual return on plan assets, net

 

 

77

 

 

 

123

 

Employer contributions

 

 

34

 

 

 

32

 

Gross benefits paid

 

 

(50

)

 

 

(45

)

Fair value of plan assets at end of year

 

$

1,238

 

 

$

1,177

 

Schedule of Funded Status

December 31

 

 

 

 

 

 

(in millions)

 

2024

 

 

2023

 

Funded status of the plan at end of year

 

$

271

 

 

$

207

 

Accrued benefit credit

 

$

271

 

 

$

207

 

Schedule of Amounts Recognized on Consolidated Balance Sheets

December 31

 

 

 

 

 

 

(in millions)

 

2024

 

 

2023

 

Amounts recognized on consolidated balance sheets consist of:

 

 

 

 

 

 

Noncurrent asset

 

$

371

 

 

$

308

 

Current liability

 

 

(13

)

 

 

(8

)

Noncurrent liability

 

 

(87

)

 

 

(93

)

Net amount recognized at end of year

 

$

271

 

 

$

207

 

Schedule of Accumulated Benefit Obligations in Excess of Plan Assets

Benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets are as follows:

 

December 31

 

 

 

 

 

 

(in millions)

 

2024

 

 

2023

 

Projected benefit obligation

 

$

100

 

 

$

101

 

Accumulated benefit obligation

 

$

90

 

 

$

91

 

Fair value of plan assets

 

$

 

 

$

1

 

Schedule of Weighted-Average Assumptions

Weighted-average assumptions used to determine benefit obligations as of December 31 are:

 

 

 

2024

 

2023

Discount rate

 

6.00%

 

5.58%

Rate of increase in future compensation levels

 

4.50%

 

4.50%

 

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31 are:

 

 

 

2024

 

2023

 

2022

Discount rate

 

5.58%

 

5.88%

 

3.44%

Rate of increase in future compensation levels

 

4.50%

 

4.50%

 

4.50%

Expected long-term rate of return on assets

 

6.75%

 

6.75%

 

6.75%

Schedule of Target Assets Allocation The target allocation for 2024 and the actual pension plan asset allocation by asset class are as follows:

 

 

Percentage of Plan Assets

 

 

2024

 

 

 

 

Target

 

December 31

Asset Class

 

Allocation

 

2024

 

2023

Equity securities

 

56%

 

58%

 

53%

Debt securities

 

28%

 

22%

 

27%

Real estate

 

10%

 

10%

 

12%

Private infrastructure

 

6%

 

8%

 

8%

Cash

 

0%

 

2%

 

0%

Total

 

100%

 

100%

 

100%

Schedule of Expected Benefit Payments

The expected benefit payments to be paid from plan assets for each of the next five years and the five-year period thereafter are as follows:

 

(in millions)

 

 

 

2025

 

$

59

 

2026

 

$

60

 

2027

 

$

63

 

2028

 

$

66

 

2029

 

$

65

 

Years 2030 - 2034

 

$

353