Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Funded status of pension and other postretirement benefit plans

The funded status of the company’s pension and OPEB plans for 2019 and 2018 follows:



	Pension Benefits
	2019						2018						Other Benefits
	U.S.			Int’l.			U.S.			Int’l.			2019			2018
Change in Benefit Obligation
Benefit obligation at January 1	$	11,726		$	4,820		$	13,580		$	5,540		$	2,430		$	2,788
Service cost	406			139			480			141			36			42
Interest cost	397			199			370			206			96			94
Plan participants’ contributions	—			4			—			4			72			71
Plan amendments	—			29			—			23			—			2
Actuarial (gain) loss	2,922			673			(1,051		)	(239		)	125			(272		)
Foreign currency exchange rate changes	—			121			—			(227		)	2			(9		)
Benefits paid	(1,035		)	(302		)	(1,653		)	(432		)	(240		)	(237		)
Divestitures/Acquisitions	49			—			—			(196		)	(1		)	(49		)
Curtailment	—			(3		)	—			—			—			—
Benefit obligation at December 31	14,465			5,680			11,726			4,820			2,520			2,430
Change in Plan Assets
Fair value of plan assets at January 1	8,532			4,142			9,948			4,766			—			—
Actual return on plan assets	1,548			566			(566		)	(9		)	—			—
Foreign currency exchange rate changes	—			115			—			(221		)	—			—
Employer contributions	1,096			266			803			232			168			166
Plan participants’ contributions	—			4			—			4			72			71
Benefits paid	(1,035		)	(302		)	(1,653		)	(432		)	(240		)	(237		)
Divestitures/Acquisitions	36			—			—			(198		)	—			—
Fair value of plan assets at December 31	10,177			4,791			8,532			4,142			—			—
Funded status at December 31	$	(4,288	)	$	(889	)	$	(3,194	)	$	(678	)	$	(2,520	)	$	(2,430	)

Consolidated Balance Sheet for pension and other postretirement benefit plans

Amounts recognized on the Consolidated Balance Sheet for the company’s pension and OPEB plans at December 31, 2019 and 2018, include:



	Pension Benefits
	2019						2018						Other Benefits
	U.S.			Int’l.			U.S.			Int’l.			2019			2018
Deferred charges and other assets	$	23		$	413		$	17		$	412		$	—		$	—
Accrued liabilities	(239		)	(71		)	(180		)	(66		)	(174		)	(175		)
Noncurrent employee benefit plans	(4,072		)	(1,231		)	(3,031		)	(1,024		)	(2,346		)	(2,255		)
Net amount recognized at December 31	$	(4,288	)	$	(889	)	$	(3,194	)	$	(678	)	$	(2,520	)	$	(2,430	)

Before tax basis amount in accumulated other comprehensive loss

Amounts recognized on a before-tax basis in “Accumulated other comprehensive loss” for the company’s pension and OPEB plans were $6,357 and $4,448 at the end of 2019 and 2018, respectively. These amounts consisted of:



	Pension Benefits
	2019				2018				Other Benefits
	U.S.		Int’l.		U.S.		Int’l.		2019			2018
Net actuarial loss	$	5,135	$	1,269	$	3,694	$	955	$	74		$	(56	)
Prior service (credit) costs	5		102		7		104		(228		)	(256		)
Total recognized at December 31	$	5,140	$	1,371	$	3,701	$	1,059	$	(154	)	$	(312	)

Pension plans with accumulated benefit obligation in excess of plan assets

Information for U.S. and international pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2019 and 2018, was:



	Pension Benefits
	2019				2018
	U.S.		Int’l.		U.S.		Int’l.
Projected benefit obligations	$	14,401	$	1,554	$	11,667	$	1,277
Accumulated benefit obligations	12,718		1,268		10,456		1,062
Fair value of plan assets	10,091		278		8,456		198

Components of net periodic benefit cost and amounts recognized in other comprehensive income

The components of net periodic benefit cost and amounts recognized in the Consolidated Statement of Comprehensive Income for 2019, 2018 and 2017 are shown in the table below:



	Pension Benefits
	2019						2018						2017						Other Benefits
	U.S.			Int’l.			U.S.			Int’l.			U.S.			Int’l.			2019			2018			2017
Net Periodic Benefit Cost
Service cost	$	406		$	139		$	480		$	141		$	489		$	151		$	36		$	42		$	32
Interest cost	397			199			370			206			366			219			96			94			95
Expected return on plan assets	(565		)	(231		)	(636		)	(253		)	(597		)	(239		)	—			—			—
Amortization of prior service costs (credits)	2			11			2			10			(5		)	13			(28		)	(28		)	(28		)
Recognized actuarial losses	239			21			304			29			340			44			(3		)	15			(5		)
Settlement losses	259			3			411			33			436			2			—			—			—
Curtailment losses (gains)	—			16			—			3			—			—			—			—			—
Total net periodic benefit cost	738			158			931			169			1,029			190			101			123			94
Changes Recognized in Comprehensive Income
Net actuarial (gain) loss during period	1,939			338			151			12			381			(94		)	128			(248		)	284
Amortization of actuarial loss	(498		)	(24		)	(715		)	(62		)	(776		)	(46		)	3			(15		)	5
Prior service (credits) costs during period	—			29			—			23			—			1			(1		)	3			—
Amortization of prior service (costs) credits	(2		)	(30		)	(2		)	(13		)	5			(13		)	28			28			28
Total changes recognized in other comprehensive income	1,439			313			(566		)	(40		)	(390		)	(152		)	158			(232		)	317
Recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	2,177		$	471		$	365		$	129		$	639		$	38		$	259		$	(109	)	$	411

Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs

The following weighted-average assumptions were used to determine benefit obligations and net periodic benefit costs for years ended December 31:



	Pension Benefits
	2019				2018				2017						Other Benefits
	U.S.		Int’l.		U.S.		Int’l.		U.S.		Int’l.		2019		2018		2017
Assumptions used to determine benefit obligations:
Discount rate	3.1	%	3.2	%	4.2	%	4.4	%	3.5	%	3.9	%	3.2	%	4.4	%	3.8	%
Rate of compensation increase	4.5	%	4.0	%	4.5	%	4.0	%	4.5	%	4.0	%	N/A		N/A		N/A
Assumptions used to determine net periodic benefit cost:
Discount rate for service cost	4.4	%	4.4	%	3.7	%	3.9	%	4.2	%	4.3	%	4.6	%	3.9	%	4.6	%
Discount rate for interest cost	3.7	%	4.4	%	3.0	%	3.9	%	3.0	%	4.3	%	4.2	%	3.5	%	3.8	%
Expected return on plan assets	6.8	%	5.6	%	6.8	%	5.5	%	6.8	%	5.5	%	N/A		N/A		N/A
Rate of compensation increase	4.5	%	4.0	%	4.5	%	4.0	%	4.5	%	4.5	%	N/A		N/A		N/A

Effects of change in the assumed health care cost-trend rates

A 1-percentage-point change in the assumed health care cost-trend rates would have the following effects on worldwide plans:



	1 Percent Increase		1 Percent Decrease
Effect on total service and interest cost components	$	20	$	(15	)
Effect on postretirement benefit obligation	$	224	$	(176	)

Fair value measurements of the Company's pension plans

The fair value measurements of the company’s pension plans for 2019 and 2018 are on the following page:



	U.S.											Int’l.
	Total		Level 1			Level 2		Level 3		NAV		Total		Level 1		Level 2		Level 3		NAV
At December 31, 2018
Equities
U.S.¹	$	1,110	$	1,110		$	—	$	—	$	—	$	520	$	520	$	—	$	—	$	—
International	1,631		1,630			1		—		—		521		520		—		1		—
Collective Trusts/Mutual Funds²	893		21			—		—		872		152		9		—		—		143
Fixed Income
Government	225		—			225		—		—		254		97		157		—		—
Corporate	1,382		—			1,382		—		—		409		—		389		20		—
Bank Loans	119		—			114		5		—		—		—		—		—		—
Mortgage/Asset Backed	1		—			1		—		—		6		—		6		—		—
Collective Trusts/Mutual Funds²	877		—			—		—		877		1,521		15		—		—		1,506
Mixed Funds³	—		—			—		—		—		74		3		71		—		—
Real Estate⁴	1,065		—			—		—		1,065		378		—		—		56		322
Alternative Investments⁵	941		—			—		—		941		—		—		—		—		—
Cash and Cash Equivalents	212		208			4		—		—		287		277		2		—		8
Other⁶	76		(4		)	31		44		5		20		—		17		3		—
Total at December 31, 2018	$	8,532	$	2,965		$	1,758	$	49	$	3,760	$	4,142	$	1,441	$	642	$	80	$	1,979
At December 31, 2019
Equities
U.S.¹	$	1,769	$	1,769		$	—	$	—	$	—	$	471	$	471	$	—	$	—	$	—
International	1,958		1,958			—		—		—		422		421		—		1		—
Collective Trusts/Mutual Funds²	1,079		52			—		—		1,027		184		6		—		—		178
Fixed Income
Government	523		—			523		—		—		265		144		121		—		—
Corporate	1,444		—			1,444		—		—		493		—		490		3		—
Bank Loans	120		—			113		7		—		—		—		—		—		—
Mortgage/Asset Backed	1		—			1		—		—		4		—		4		—		—
Collective Trusts/Mutual Funds²	963		—			—		—		963		2,230		5		—		—		2,225
Mixed Funds³	—		—			—		—		—		84		7		77		—		—
Real Estate⁴	1,089		—			—		—		1,089		277		—		—		55		222
Alternative Investments⁵	924		—			—		—		924		—		—		—		—		—
Cash and Cash Equivalents	235		228			7		—		—		338		334		2		—		2
Other⁶	72		(5		)	29		44		4		23		—		21		2		—
Total at December 31, 2019	$	10,177	$	4,002		$	2,117	$	51	$	4,007	$	4,791	$	1,388	$	715	$	61	$	2,627


¹	U.S. equities include investments in the company’s common stock in the amount of $6 at December 31, 2019, and $9 at December 31, 2018.


²	Collective Trusts/Mutual Funds for U.S. plans are entirely index funds; for International plans, they are mostly unit trust and index funds.


³	Mixed funds are composed of funds that invest in both equity and fixed-income instruments in order to diversify and lower risk.


⁴	The year-end valuations of the U.S. real estate assets are based on third-party appraisals that occur at least once a year for each property in the portfolio.


⁵	Alternative investments focus on market-neutral strategies that have a low expected correlation to traditional asset classes.

⁶

The “Other” asset class includes net payables for securities purchased but not yet settled (Level 1); dividends and interest- and tax-related receivables (Level 2); insurance contracts (Level 3); and investments in private-equity limited partnerships (NAV).

The effect of fair-value measurements using significant unobservable inputs on changes in Level 3 plan assets for the period

The effects of fair value measurements using significant unobservable inputs on changes in Level 3 plan assets are outlined below:



	Equity			Fixed Income
	International			Corporate			Bank Loans			Real Estate			Other			Total
Total at December 31, 2017	$	—		$	30		$	11		$	56		$	46		$	143
Actual Return on Plan Assets:
Assets held at the reporting date	4			(2		)	—			13			—			15
Assets sold during the period	(4		)	—			—			—			—			(4		)
Purchases, Sales and Settlements	—			(7		)	(4		)	(13		)	—			(24		)
Transfers in and/or out of Level 3	1			—			(2		)	—			—			(1		)
Total at December 31, 2018	$	1		$	21		$	5		$	56		$	46		$	129
Actual Return on Plan Assets:
Assets held at the reporting date	(1		)	1			—			—			(1		)	(1		)
Assets sold during the period	—			—			—			—			—			—
Purchases, Sales and Settlements	—			(19		)	—			(1		)	1			(19		)
Transfers in and/or out of Level 3	1			—			2			—			—			3
Total at December 31, 2019	$	1		$	3		$	7		$	55		$	46		$	112

Benefit payments, which include estimated future service that are expected to be paid by the company in the next 10 years

The following benefit payments, which include estimated future service, are expected to be paid by the company in the next 10 years:



	Pension Benefits				Other
	U.S.		Int’l.		Benefits
2020	$	1,262	$	280	$	174
2021	$	1,176	$	602	$	170
2022	$	1,160	$	224	$	165
2023	$	1,150	$	234	$	161
2024	$	1,134	$	255	$	156
2024-2028	$	5,232	$	1,434	$	725