PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
|---|
| Pension and other postretirement benefits |
|
| Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets |
The following table summarizes the total accumulated benefit obligation (ABO), the ABO for defined benefit pension plans with ABO in excess of plan assets and the PBO for defined benefit pension plans with PBO in excess of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Qualified and Non-Qualified Pension Plans |
| |
|
U.S. Plans |
|
U.K. Plans |
| In millions |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| Total ABO |
|
$ |
2,986
|
|
|
$ |
3,091 |
|
|
$ |
1,844
|
|
|
$ |
1,954 |
|
| Plans with ABO in excess of plan assets |
|
|
|
|
|
|
|
|
| ABO |
|
424
|
|
|
417 |
|
|
—
|
|
|
— |
|
| Plans with PBO in excess of plan assets |
|
|
|
|
|
|
|
|
| PBO |
|
449
|
|
|
448 |
|
|
—
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
| Pension Plan |
|
| Pension and other postretirement benefits |
|
| Schedule of Net Funded Status |
The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Qualified and Non-Qualified Pension Plans |
|
| |
|
U.S. Plans |
|
U.K. Plans |
|
| In millions |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
| Change in benefit obligation |
|
|
|
|
|
|
|
|
|
| Benefit obligation at the beginning of the year |
|
$ |
3,122
|
|
|
$ |
2,916 |
|
|
$ |
2,050
|
|
|
$ |
1,851 |
|
|
| Service cost |
|
139
|
|
|
133 |
|
|
33
|
|
|
29 |
|
|
| Interest cost |
|
79
|
|
|
95 |
|
|
30
|
|
|
36 |
|
|
| Actuarial (gain) loss |
|
(132) |
|
|
224 |
|
|
(136) |
|
|
136 |
|
|
| Benefits paid from fund |
|
(178) |
|
|
(224) |
|
|
(63) |
|
|
(72) |
|
|
| Benefits paid directly by employer |
|
(18) |
|
|
(22) |
|
|
—
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency translation adjustments |
|
—
|
|
|
— |
|
|
(27) |
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefit obligation at end of year |
|
$ |
3,012
|
|
|
$ |
3,122 |
|
|
$ |
1,887
|
|
|
$ |
2,050 |
|
|
| Change in plan assets |
|
|
|
|
|
|
|
|
|
| Fair value of plan assets at beginning of year |
|
$ |
3,429
|
|
|
$ |
3,357 |
|
|
$ |
2,337
|
|
|
$ |
2,010 |
|
|
| Actual return on plan assets |
|
267
|
|
|
274 |
|
|
118
|
|
|
268 |
|
|
| Employer contributions |
|
30
|
|
|
22 |
|
|
30
|
|
|
48 |
|
|
| Benefits paid from fund |
|
(178) |
|
|
(224) |
|
|
(63) |
|
|
(72) |
|
|
| Foreign currency translation adjustments |
|
—
|
|
|
— |
|
|
(32) |
|
|
83 |
|
|
| Fair value of plan assets at end of year |
|
$ |
3,548
|
|
|
$ |
3,429 |
|
|
$ |
2,390
|
|
|
$ |
2,337 |
|
|
| Funded status (including unfunded plans) at end of year |
|
$ |
536
|
|
|
$ |
307 |
|
|
$ |
503
|
|
|
$ |
287 |
|
|
| Amounts recognized in consolidated balance sheets |
|
|
|
|
|
|
|
|
|
| Pension assets |
|
$ |
985
|
|
|
$ |
755 |
|
|
$ |
503
|
|
|
$ |
287 |
|
|
| Accrued compensation, benefits and retirement costs |
|
(18) |
|
|
(17) |
|
|
—
|
|
|
— |
|
|
| Pension and OPEB |
|
(431) |
|
|
(431) |
|
|
—
|
|
|
— |
|
|
| Net amount recognized |
|
$ |
536
|
|
|
$ |
307 |
|
|
$ |
503
|
|
|
$ |
287 |
|
|
| Amounts recognized in accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
| Net actuarial loss |
|
$ |
467
|
|
|
$ |
714 |
|
|
$ |
61
|
|
|
$ |
250 |
|
|
| Prior service cost |
|
6
|
|
|
6 |
|
|
11
|
|
|
19 |
|
|
| Net amount recognized |
|
$ |
473
|
|
|
$ |
720 |
|
|
$ |
72
|
|
|
$ |
269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Net Benefit Costs |
The following table presents the net periodic pension cost under our plans for the years ended December 31:
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|
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|
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|
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|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
| |
|
Qualified and Non-Qualified Pension Plans |
| |
|
U.S. Plans |
|
U.K. Plans |
| In millions |
|
2021 |
|
2020 |
|
2019 |
|
2021 |
|
2020 |
|
2019 |
| Service cost |
|
$ |
139
|
|
|
$ |
133 |
|
|
$ |
116 |
|
|
$ |
33
|
|
|
$ |
29 |
|
|
$ |
26 |
|
| Interest cost |
|
79
|
|
|
95 |
|
|
108 |
|
|
30
|
|
|
36 |
|
|
43 |
|
| Expected return on plan assets |
|
(199) |
|
|
(195) |
|
|
(189) |
|
|
(85) |
|
|
(74) |
|
|
(70) |
|
| Amortization of prior service cost |
|
1
|
|
|
1 |
|
|
1 |
|
|
2
|
|
|
2 |
|
|
2 |
|
| Recognized net actuarial loss |
|
47
|
|
|
41 |
|
|
17 |
|
|
31
|
|
|
34 |
|
|
11 |
|
| Net periodic pension cost |
|
$ |
67
|
|
|
$ |
75 |
|
|
$ |
53 |
|
|
$ |
11
|
|
|
$ |
27 |
|
|
$ |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Amounts Recognized in Other Comprehensive Income (Loss) |
Other changes in benefit obligations and plan assets recognized in other comprehensive (income) loss for the years ended December 31 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In millions |
|
2021 |
|
2020 |
|
2019 |
| Amortization of prior service cost |
|
$ |
(3) |
|
|
$ |
(3) |
|
|
$ |
(3) |
|
| Recognized net actuarial loss |
|
(78) |
|
|
(75) |
|
|
(28) |
|
|
|
|
|
|
|
|
| Incurred actuarial (gain) loss |
|
(368) |
|
|
85 |
|
|
101 |
|
| Foreign currency translation adjustments |
|
5
|
|
|
19 |
|
|
4 |
|
| Total recognized in other comprehensive (income) loss |
|
$ |
(444) |
|
|
$ |
26 |
|
|
$ |
74 |
|
|
|
|
|
|
|
|
| Total recognized in net periodic pension cost and other comprehensive (income) loss |
|
$ |
(366) |
|
|
$ |
128 |
|
|
$ |
139 |
|
|
|
|
|
|
|
|
|
| Schedule of Assumptions Used |
The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Qualified and Non-Qualified Pension Plans |
| |
|
U.S. Plans |
|
U.K. Plans |
| |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| Discount rate |
|
3.01
|
% |
|
2.62 |
% |
|
1.95
|
% |
|
1.50 |
% |
| Cash balance crediting rate |
|
3.79
|
% |
|
3.74 |
% |
|
—
|
|
|
— |
|
| Compensation increase rate |
|
2.71
|
% |
|
2.73 |
% |
|
3.75
|
% |
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Qualified and Non-Qualified Pension Plans |
| |
|
U.S. Plans |
|
U.K. Plans |
| |
|
2021 |
|
2020 |
|
2019 |
|
2021 |
|
2020 |
|
2019 |
| Discount rate |
|
2.62
|
% |
|
3.36 |
% |
|
4.36 |
% |
|
1.50
|
% |
|
2.00 |
% |
|
2.80 |
% |
| Expected return on plan assets |
|
6.25
|
% |
|
6.25 |
% |
|
6.25 |
% |
|
4.00
|
% |
|
4.00 |
% |
|
4.00 |
% |
| Compensation increase rate |
|
2.72
|
% |
|
2.73 |
% |
|
2.73 |
% |
|
3.75
|
% |
|
3.75 |
% |
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Expected Benefit Payments |
The table below presents expected future benefit payments under our pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Qualified and Non-Qualified Pension Plans |
| In millions |
|
2022 |
|
2023 |
|
2024 |
|
2025 |
|
2026 |
|
2027 - 2031 |
| Expected benefit payments |
|
$ |
274 |
|
|
$ |
261 |
|
|
$ |
268 |
|
|
$ |
271 |
|
|
$ |
277 |
|
|
$ |
1,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Postretirement Benefit Plan |
|
| Pension and other postretirement benefits |
|
| Schedule of Net Funded Status |
The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
| In millions |
|
2021 |
|
2020 |
| Change in benefit obligation |
|
|
|
|
| Benefit obligation at the beginning of the year |
|
$ |
219
|
|
|
$ |
227 |
|
| Interest cost |
|
5
|
|
|
7 |
|
| Plan participants' contributions |
|
14
|
|
|
9 |
|
|
|
|
|
|
| Actuarial (gain) loss |
|
(8) |
|
|
14 |
|
| Benefits paid directly by employer |
|
(38) |
|
|
(38) |
|
| Benefit obligation at end of year |
|
$ |
192
|
|
|
$ |
219 |
|
|
|
|
|
|
| Funded status at end of year |
|
$ |
(192) |
|
|
$ |
(219) |
|
|
|
|
|
|
| Amounts recognized in consolidated balance sheets |
|
|
|
|
| Accrued compensation, benefits and retirement costs |
|
$ |
(19) |
|
|
$ |
(20) |
|
| Pension and OPEB |
|
(173) |
|
|
(199) |
|
| Net amount recognized |
|
$ |
(192) |
|
|
$ |
(219) |
|
|
|
|
|
|
| Amounts recognized in accumulated other comprehensive loss |
|
|
|
|
| Net actuarial gain |
|
$ |
(18) |
|
|
$ |
(10) |
|
| Prior service credit |
|
(4) |
|
|
(4) |
|
| Net amount recognized |
|
$ |
(22) |
|
|
$ |
(14) |
|
|
|
|
|
|
|
| Schedule of Net Benefit Costs |
The following table presents the net periodic OPEB cost under our plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
| In millions |
|
2021 |
|
2020 |
|
2019 |
| Interest cost |
|
$ |
5
|
|
|
$ |
7 |
|
|
$ |
10 |
|
|
|
|
|
|
|
|
| Recognized net actuarial gain |
|
—
|
|
|
(1) |
|
|
— |
|
|
|
|
|
|
|
|
| Net periodic OPEB cost |
|
$ |
5
|
|
|
$ |
6 |
|
|
$ |
10 |
|
|
|
|
|
|
|
|
|
| Schedule of Amounts Recognized in Other Comprehensive Income (Loss) |
Other changes in benefit obligations recognized in other comprehensive (income) loss for the years ended December 31 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
| In millions |
|
2021 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
| Recognized net actuarial gain |
|
$ |
—
|
|
|
$ |
1 |
|
|
$ |
— |
|
| Incurred actuarial (gain) loss |
|
(8) |
|
|
14 |
|
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total recognized in other comprehensive (income) loss |
|
$ |
(8) |
|
|
$ |
15 |
|
|
$ |
(1) |
|
|
|
|
|
|
|
|
| Total recognized in net periodic OPEB cost and other comprehensive (income) loss |
|
$ |
(3) |
|
|
$ |
21 |
|
|
$ |
9 |
|
|
|
|
|
|
|
|
|
| Schedule of Assumptions Used |
The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
| Discount rate |
|
2.75
|
% |
|
2.30 |
% |
|
|
|
|
|
The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
2019 |
| Discount rate |
|
2.30
|
% |
|
3.15 |
% |
|
4.25 |
% |
|
|
|
|
|
|
|
|
| Schedule of Expected Benefit Payments |
The table below presents expected benefit payments under our OPEB plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In millions |
|
2022 |
|
2023 |
|
2024 |
|
2025 |
|
2026 |
|
2027 - 2031 |
| Expected benefit payments |
|
$ |
19 |
|
|
$ |
18 |
|
|
$ |
18 |
|
|
$ |
17 |
|
|
$ |
16 |
|
|
$ |
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UNITED STATES |
|
| Pension and other postretirement benefits |
|
| Schedule of Allocation of Plan Assets |
The primary investment objective is to exceed, on a net-of-fee basis, the rate of return of a policy portfolio comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
| Asset Class |
|
Target |
|
Minimum |
|
Maximum |
| U.S. equities |
|
5.0 |
% |
|
— |
% |
|
10 |
% |
| Non-U.S. equities |
|
1.0 |
% |
|
— |
% |
|
4 |
% |
| Global equities |
|
6.0 |
% |
|
3 |
% |
|
9 |
% |
| Total equities |
|
12.0 |
% |
|
|
|
|
| Real assets |
|
6.0 |
% |
|
— |
% |
|
10 |
% |
| Private equity/venture capital |
|
6.0 |
% |
|
— |
% |
|
10 |
% |
| Opportunistic credit |
|
4.0 |
% |
|
— |
% |
|
10 |
% |
| Fixed income |
|
72.0 |
% |
|
67 |
% |
|
77 |
% |
| Total |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Fair Value, Assets Measured on Recurring Basis |
The fair values of U.S. pension plan assets by asset category were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements at December 31, 2021 |
| In millions |
|
Quoted prices in active
markets for identical assets
(Level 1) |
|
Significant other
observable inputs
(Level 2) |
|
Significant
unobservable inputs
(Level 3) |
|
Total |
| Equities |
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
115
|
|
|
$ |
—
|
|
|
$ |
—
|
|
|
$ |
115
|
|
| Non-U.S. |
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
| Fixed income |
|
|
|
|
|
|
|
|
| Government debt |
|
37
|
|
|
30
|
|
|
—
|
|
|
67
|
|
| Corporate debt |
|
|
|
|
|
|
|
|
| U.S. |
|
—
|
|
|
489
|
|
|
—
|
|
|
489
|
|
| Non-U.S. |
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Net cash equivalents (1)
|
|
270
|
|
|
57
|
|
|
—
|
|
|
327
|
|
|
|
|
|
|
|
|
|
|
Private markets and real assets (2)
|
|
—
|
|
|
—
|
|
|
551
|
|
|
551
|
|
| Net plan assets subject to leveling |
|
$ |
460
|
|
|
$ |
595
|
|
|
$ |
551
|
|
|
$ |
1,606
|
|
| Pending trade/purchases/sales |
|
|
|
|
|
|
|
2
|
|
Accruals (3)
|
|
|
|
|
|
|
|
6
|
|
| Investments measured at net asset value |
|
|
|
|
|
|
|
1,934
|
|
| Net plan assets |
|
|
|
|
|
|
|
$ |
3,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements at December 31, 2020 |
| In millions |
|
Quoted prices in active
markets for identical assets
(Level 1) |
|
Significant other
observable inputs
(Level 2) |
|
Significant
unobservable inputs
(Level 3) |
|
Total |
| Equities |
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
194 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
194 |
|
| Non-U.S. |
|
58 |
|
|
— |
|
|
— |
|
|
58 |
|
| Fixed income |
|
|
|
|
|
|
|
|
| Government debt |
|
78 |
|
|
5 |
|
|
— |
|
|
83 |
|
| Corporate debt |
|
|
|
|
|
|
|
|
| U.S. |
|
— |
|
|
512 |
|
|
— |
|
|
512 |
|
| Non-U.S. |
|
— |
|
|
26 |
|
|
— |
|
|
26 |
|
| Asset/mortgaged backed securities |
|
— |
|
|
3 |
|
|
— |
|
|
3 |
|
Net cash equivalents (1)
|
|
319 |
|
|
37 |
|
|
— |
|
|
356 |
|
|
|
|
|
|
|
|
|
|
Private markets and real assets (2)
|
|
— |
|
|
— |
|
|
431 |
|
|
431 |
|
| Net plan assets subject to leveling |
|
$ |
649 |
|
|
$ |
583 |
|
|
$ |
431 |
|
|
$ |
1,663 |
|
|
|
|
|
|
|
|
|
|
Accruals (3)
|
|
|
|
|
|
|
|
5 |
|
| Investments measured at net asset value |
|
|
|
|
|
|
|
1,761 |
|
| Net plan assets |
|
|
|
|
|
|
|
$ |
3,429 |
|
|
|
|
|
|
|
|
|
|
(1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.
|
(2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure.
|
(3) Accruals include interest or dividends that were not settled at December 31.
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets |
The reconciliation of Level 3 assets was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements
Using Significant Unobservable Inputs (Level 3) |
| In millions |
|
Private Markets |
|
Real Assets |
|
Total |
| Balance at December 31, 2019 |
|
$ |
299 |
|
|
$ |
72 |
|
|
$ |
371 |
|
| Actual return on plan assets |
|
|
|
|
|
|
| Unrealized gains on assets still held at the reporting date |
|
21 |
|
|
2 |
|
|
23 |
|
| Purchases, sales and settlements, net |
|
39 |
|
|
(2) |
|
|
37 |
|
| Balance at December 31, 2020 |
|
359 |
|
|
72 |
|
|
431 |
|
| Actual return on plan assets |
|
|
|
|
|
|
| Unrealized gains on assets still held at the reporting date |
|
144
|
|
|
11
|
|
|
155
|
|
| Purchases, sales and settlements, net |
|
(32) |
|
|
(3) |
|
|
(35) |
|
| Balance at December 31, 2021 |
|
$ |
471
|
|
|
$ |
80
|
|
|
$ |
551
|
|
|
|
|
|
|
|
|
|
| UNITED KINGDOM |
|
| Pension and other postretirement benefits |
|
| Schedule of Allocation of Plan Assets |
To achieve these objectives we established the following targets:
|
|
|
|
|
|
|
|
|
|
|
| Asset Class |
|
Target |
|
|
| Equities |
|
10.0 |
% |
|
|
| Private markets/secure income assets |
|
12.0 |
% |
|
|
| Credit |
|
16.0 |
% |
|
|
| Diversifying strategies |
|
5.0 |
% |
|
|
|
|
|
|
|
| Fixed income/insurance annuity |
|
56.0 |
% |
|
|
| Cash |
|
1.0 |
% |
|
|
| Total |
|
100.0 |
% |
|
|
|
|
|
|
|
|
| Fair Value, Assets Measured on Recurring Basis |
The fair values of U.K. pension plan assets by asset category were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements at December 31, 2021 |
| In millions |
|
Quoted prices in active
markets for identical assets
(Level 1) |
|
Significant other
observable inputs
(Level 2) |
|
Significant
unobservable inputs
(Level 3) |
|
Total |
| Equities |
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
—
|
|
|
$ |
79
|
|
|
$ |
—
|
|
|
$ |
79
|
|
| Non-U.S. |
|
—
|
|
|
74
|
|
|
—
|
|
|
74
|
|
| Fixed income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash equivalents (1)
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance annuity (2)
|
|
—
|
|
|
—
|
|
|
514
|
|
|
514
|
|
Private markets and real assets (3)
|
|
—
|
|
|
—
|
|
|
389
|
|
|
389
|
|
| Net plan assets subject to leveling |
|
$ |
35
|
|
|
$ |
153
|
|
|
$ |
903
|
|
|
$ |
1,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments measured at net asset value |
|
|
|
|
|
|
|
1,299
|
|
| Net plan assets |
|
|
|
|
|
|
|
$ |
2,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements at December 31, 2020 |
| In millions |
|
Quoted prices in active
markets for identical assets
(Level 1) |
|
Significant other
observable inputs
(Level 2) |
|
Significant
unobservable inputs
(Level 3) |
|
Total |
| Equities |
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
— |
|
|
$ |
56 |
|
|
$ |
— |
|
|
$ |
56 |
|
| Non-U.S. |
|
— |
|
|
69 |
|
|
— |
|
|
69 |
|
| Fixed income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash equivalents (1)
|
|
26 |
|
|
— |
|
|
— |
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance annuity (2)
|
|
— |
|
|
— |
|
|
556 |
|
|
556 |
|
Private markets and real assets (3)
|
|
— |
|
|
— |
|
|
282 |
|
|
282 |
|
| Net plan assets subject to leveling |
|
$ |
26 |
|
|
$ |
125 |
|
|
$ |
838 |
|
|
$ |
989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments measured at net asset value |
|
|
|
|
|
|
|
1,348 |
|
| Net plan assets |
|
|
|
|
|
|
|
$ |
2,337 |
|
|
|
|
|
|
|
|
|
|
(1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.
|
(2) In July 2012, the U.K. pension plan purchased an insurance contract that will guarantee payment of specified pension liabilities. The contract defers payment for 10 years.
|
(3) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure.
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets |
The reconciliation of Level 3 assets was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements
Using Significant Unobservable Inputs (Level 3) |
| In millions |
|
Insurance Annuity |
|
Real Assets |
|
Private Markets |
|
Total |
| Balance at December 31, 2019 |
|
$ |
476 |
|
|
$ |
35 |
|
|
$ |
224 |
|
|
$ |
735 |
|
| Actual return on plan assets |
|
|
|
|
|
|
|
|
| Unrealized gains (losses) on assets still held at the reporting date |
|
80 |
|
|
(2) |
|
|
22 |
|
|
100 |
|
| Purchases, sales and settlements, net |
|
— |
|
|
(2) |
|
|
5 |
|
|
3 |
|
| Balance at December 31, 2020 |
|
556 |
|
|
31 |
|
|
251 |
|
|
838 |
|
| Actual return on plan assets |
|
|
|
|
|
|
|
|
| Unrealized (losses) gains on assets still held at the reporting date |
|
(42) |
|
|
2
|
|
|
114
|
|
|
74
|
|
| Purchases, sales and settlements, net |
|
—
|
|
|
—
|
|
|
(9) |
|
|
(9) |
|
| Balance at December 31, 2021 |
|
$ |
514
|
|
|
$ |
33
|
|
|
$ |
356
|
|
|
$ |
903
|
|
|
|
|
|
|
|
|
|
|
|