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Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Expense Related to Defined Benefit and Retiree Health Care Benefit Plans
Expenses related to defined benefit and retiree health care benefit plans are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202020192018202020192018202020192018
Service cost$18 $18 $19 $3 $3 $5 $34 $31 $36 
Interest cost31 38 35 13 14 15 38 43 45 
Expected return on plan assets(36)(41)(42)(12)(14)(15)(78)(86)(67)
Amortization of prior service cost (credit)— — — (2)(1)(3)1 1 (1)
Recognized net actuarial loss7 9 17 — — 2 14 29 20 
Net periodic benefit costs20 24 29 2 2 4 9 18 33 
Settlement losses16 10 23 — — — 1 3 3 
Total, including other postretirement losses$36 $34 $52 $2 $2 $4 $10 $21 $36 
Schedule of Changes in the Benefit Obligations and Plan Assets for the Defined Benefit and Retiree Health Care Benefit Plans
Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202020192020201920202019
Change in plan benefit obligation
Benefit obligation at beginning of year:$960 $874 $359 $361 $2,581 $2,411 
Service cost18 18 3 3 34 31 
Interest cost31 38 13 14 38 43 
Participant contributions— — 13 13 7 7 
Benefits paid(12)(11)(39)(41)(95)(103)
Settlements(94)(66)— — (8)(12)
Curtailments— — — — — (1)
Actuarial loss (gain)194 107 40 9 143 193 
Plan amendments— — — — 1 — 
Effects of exchange rate changes— — — — 167 12 
Benefit obligation at end of year$1,097 $960 $389 $359 $2,868 $2,581 
Change in plan assets
Fair value of plan assets at beginning of year:$987 $869 $356 $330 $2,661 $2,410 
Actual return on plan assets164 185 58 53 260 337 
Employer contributions (qualified plans)— — 1 1 11 9 
Employer contributions (non-qualified plans)16 10 — — — — 
Participant contributions— — 13 13 7 7 
Benefits paid(12)(11)(39)(41)(95)(103)
Settlements(94)(66)— — (8)(12)
Effects of exchange rate changes— — — — 172 13 
Fair value of plan assets at end of year$1,061 $987 $389 $356 $3,008 $2,661 
Funded status at end of year$(36)$27 $— $(3)$140 $80 
Schedule of Amounts Recognized in our Balance Sheet
Amounts recognized on our Consolidated Balance Sheets as of December 31, are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined BenefitTotal
2020
Overfunded retirement plans$9 $3 $234 $246 
Accrued expenses and other liabilities & other long-term liabilities(6)— (5)(11)
Underfunded retirement plans(39)(3)(89)(131)
Funded status at end of 2020
$(36)$— $140 $104 
2019
Overfunded retirement plans$73 $— $145 $218 
Accrued expenses and other liabilities & other long-term liabilities(17)— (4)(21)
Underfunded retirement plans(29)(3)(61)(93)
Funded status at end of 2019
$27 $(3)$80 $104 
Schedule of Change in AOCI
The change in AOCI is as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined BenefitTotal
Net Actuarial LossNet Actuarial LossPrior Service CreditNet Actuarial LossPrior Service CreditNet Actuarial LossPrior Service Credit
AOCI balance, net of taxes, December 31, 2019
$91 $(3)$(4)$259 $2 $347 $(2)
Changes in AOCI by category:
Adjustments66 (6)— (16)— 44 — 
Recognized within net income(23)— 2 (15)(1)(38)1 
Tax effect(9)1 — 14 — 6 — 
Total change to AOCI34 (5)2 (17)(1)12 1 
AOCI balance, net of taxes, December 31, 2020
$125 $(8)$(2)$242 $1 $359 $(1)
Schedule of Allocation of Plan Assets The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 6.
December 31, 2020
Level 1Level 2Other (a)Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents$— $— $743 $743 
Equity securities— — 318 318 
Total$— $— $1,061 $1,061 
Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents$29 $— $222 $251 
Equity securities— — 138 138 
Total$29 $— $360 $389 
Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents$69 $146 $2,063 $2,278 
Equity securities43 2 685 730 
Total$112 $148 $2,748 $3,008 
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
December 31, 2019
Level 1Level 2Other (a)Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents$— $— $640 $640 
Equity securities— — 347 347 
Total$— $— $987 $987 
Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents$62 $— $168 $230 
Equity securities— — 126 126 
Total$62 $— $294 $356 
Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents$59 $126 $1,762 $1,947 
Equity securities41 2 671 714 
Total$100 $128 $2,433 $2,661 
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
Fixed income securities and cash equivalents
65% – 80%
65% – 80%
60% – 100%
Equity securities
20% – 35%
20% – 35%
0% – 40%
Weighted average asset allocations as of December 31 are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202020192020201920202019
Fixed income securities and cash equivalents70%65%65%65%76%73%
Equity securities30%35%35%35%24%27%
Schedule of Assumptions Used
Assumptions and investment policies
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202020192020201920202019
Weighted average assumptions used to determine benefit obligations:
Discount rate2.81%3.62%2.74%3.63%1.31%1.46%
Long-term pay progression3.70%3.30%n/an/a3.15%3.06%
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate3.42%4.35%3.63%4.30%1.46%1.85%
Long-term rate of return on plan assets4.00%4.90%3.50%4.40%2.93%3.62%
Long-term pay progression3.30%3.30%n/an/a3.06%3.03%
Schedule of Assumed Future Benefit Payments
The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets.
202120222023202420252026 – 2030
U.S. Defined Benefit$95 $137 $102 $100 $102 $490 
U.S. Retiree Health Care29 28 27 26 25 113 
Non-U.S. Defined Benefit99 102 102 105 106 558 
Schedule of Assumed Health Care Cost Trend Rates for U.S Retiree Health Care Benefit Plan
Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows:
20202019
Assumed health care cost trend rate for next year6.75%7.00%
Ultimate trend rate5.00%5.00%
Year in which ultimate trend rate is reached20282028