Annual report pursuant to Section 13 and 15(d)

COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

v3.22.0.1
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans
Information about net periodic benefit cost for the company-sponsored pension and postretirement defined benefit plans is as follows (in millions):
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2021 2020 2019 2021 2020 2019 2021 2020 2019
Net Periodic Benefit Cost:
Service cost $ 1,897  $ 1,853  $ 1,439  $ 28  $ 29  $ 23  $ 76  $ 67  $ 57 
Interest cost 1,948  1,977  2,067  81  91  108  38  40  47 
Expected return on plan assets (3,327) (3,549) (3,130) (5) (8) (8) (68) (86) (76)
Amortization of prior service cost 139  218  218  7  7  7  2  2  2 
Actuarial (gain) loss (3,284) 6,211  2,296  24  246  37  (12) 27  54 
Net periodic benefit cost $ (2,627) $ 6,710  $ 2,890  $ 135  $ 365  $ 167  $ 36  $ 50  $ 84 
Weighted Average Actuarial Assumptions Used Disclosure
The table below provides the weighted-average actuarial assumptions used to determine the net periodic benefit cost:
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2021 2020 2019 2021 2020 2019 2021 2020 2019
Service cost discount rate 2.90  % 3.60  % 4.50  % 2.88  % 3.59  % 4.51  % 2.38  % 3.01  % 3.58  %
Interest cost discount rate 2.90  % 3.60  % 4.50  % 2.88  % 3.59  % 4.51  % 2.22  % 2.67  % 3.25  %
Rate of compensation increase 4.50  % 4.22  % 4.25  % N/A N/A N/A 2.93  % 3.00  % 3.24  %
Expected return on plan assets 6.50  % 7.77  % 7.75  % 3.65  % 7.20  % 7.20  % 3.68  % 5.55  % 5.69  %
Cash balance interest credit rate 2.50  % 2.50  % 2.98  % N/A N/A N/A 2.74  % 2.59  % 3.17  %
The table below provides the weighted-average actuarial assumptions used to determine the benefit obligations of our plans:
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2021 2020 2021 2020 2021 2020
Discount rate 3.13  % 2.90  % 3.28  % 2.88  % 2.33  % 1.94  %
Rate of compensation increase 4.29  % 4.21  % N/A N/A 3.17  % 2.93  %
Cash balance interest credit rate 2.50  % 2.50  % N/A N/A 2.94  % 2.74  %
Reconciliation of the Changes in the Plans' Benefit Obligations and Fair Value of Plan Assets The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of plan assets as of the respective measurement dates in each year (in millions):
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2021 2020 2021 2020 2021 2020
Benefit Obligations:
Projected benefit obligation at beginning of year $ 65,922  $ 54,039  $ 2,759  $ 2,616  $ 2,177  $ 1,906 
Service cost 1,897  1,853  28  29  76  67 
Interest cost 1,948  1,977  81  91  38  40 
Gross benefits paid (1,906) (1,846) (278) (274) (46) (38)
Plan participants’ contributions —  —  35  32  3  3 
Plan amendments 66  171  —  —  —  1 
Actuarial (gain)/loss (6,390) 9,728  (26) 265  (111) 123 
Foreign currency exchange rate changes —  —  —  —  (32) 80 
Curtailments and settlements (159) —  (7) —  (3) (6)
Other —  —  —  —  4  1 
Projected benefit obligation at end of year $ 61,378  $ 65,922  $ 2,592  $ 2,759  $ 2,106  $ 2,177 
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2021 2020 2021 2020 2021 2020
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year $ 52,997  $ 46,172  $ 49  $ 37  $ 1,835  $ 1,558 
Actual return on plan assets 4,706  5,878  (8) (9) 230  184 
Employer contributions 157  2,793  317  263  102  69 
Plan participants’ contributions —  —  35  32  3  3 
Gross benefits paid (1,906) (1,846) (278) (274) (46) (38)
Foreign currency exchange rate changes —  —  —  —  (15) 62 
Curtailments and settlements —  —  —  —  (3) (3)
Other —  —  —  —  —  — 
Fair value of plan assets at end of year $ 55,954  $ 52,997  $ 115  $ 49  $ 2,106  $ 1,835 
Funded Status as of the Respective Measurement Dates in Each Year and the Amounts Recognized in Balance Sheet
The following table discloses the funded status of our plans and the amounts recognized in our consolidated balance sheets as of December 31 (in millions):
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2021 2020 2021 2020 2021 2020
Funded Status:
Fair value of plan assets $ 55,954  $ 52,997  $ 115  $ 49  $ 2,106  $ 1,835 
Benefit obligation (61,378) (65,922) (2,592) (2,759) (2,106) (2,177)
Funded status $ (5,424) $ (12,925) $ (2,477) $ (2,710) $ —  $ (342)
Funded Status Recognized in our Balance Sheet:
Other non-current assets $ —  $ —  $ —  $ —  $ 295  $ 51 
Other current liabilities (24) (22) (118) (184) (7) (5)
Pension and postretirement benefit obligations (5,400) (12,903) (2,359) (2,526) (288) (388)
Net liability $ (5,424) $ (12,925) $ (2,477) $ (2,710) $ —  $ (342)
Amounts Recognized in AOCI:
Unrecognized net prior service cost $ (682) $ (753) $ (3) $ (9) $ (9) $ (11)
Unrecognized net actuarial gain (loss) (1,949) (6,592) (232) (276) 107  (151)
Gross unrecognized cost (2,631) (7,345) (235) (285) 98  (162)
Deferred tax assets (liabilities) 642  1,770  55  69  (27) 38 
Net unrecognized cost $ (1,989) $ (5,575) $ (180) $ (216) $ 71  $ (124)
Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets for Pension Plans With an Accumulated Benefit Obligation in Excess of Plan Assets
As of December 31, 2021 and 2020, the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with benefit obligations in excess of plan assets were as follows (in millions):
  Projected Benefit Obligation
Exceeds the Fair Value of Plan Assets		 Accumulated Benefit Obligation
Exceeds the Fair Value of Plan Assets
2021 2020 2021 2020
U.S. Pension Benefits:
Projected benefit obligation $ 61,378  $ 65,922  $ 61,378  $ 65,922 
Accumulated benefit obligation 60,769  64,937  60,769  64,937 
Fair value of plan assets 55,954  52,997  55,954  52,997 
International Pension Benefits:
Projected benefit obligation $ 798  $ 845  $ 408  $ 845 
Accumulated benefit obligation 696  728  357  728 
Fair value of plan assets 503  452  132  452 
Fair Values of U.S. Pension and Postretirement Benefit Plan Assets by Asset Category as Well as the Percentage That Each Category Comprises of Total Plan Assets and the Respective Target Allocations
The fair values of U.S. and international pension and postretirement benefit plan assets by asset category as of December 31, 2021 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations:
Total
Assets(1)
Level 1 Level 2 Level 3 Percentage of
Plan Assets 		Target
Allocation
Asset Category (U.S. Plans):
Cash and cash equivalents $ 2,671  $ 2,564  $ 107  $ —  4.8  %
1-7
Equity Securities:
U.S. Large Cap 12,840  8,948  3,892  — 
U.S. Small Cap 484  484  —  — 
Emerging Markets 2,077  1,483  594  — 
Global Equity 3,054  2,901  153  — 
International Equity 4,199  1,972  2,227  — 
Total Equity Securities 22,654  15,788  6,866  —  40.4 
20-45
Fixed Income Securities:
U.S. Government Securities(2)
12,083  25,358  (13,275) — 
Corporate Bonds 6,156  —  6,142  14 
Global Bonds 23  —  23  — 
Municipal Bonds 19  —  19  — 
Total Fixed Income Securities 18,281  25,358  (7,091) 14  32.6 
30-70
Other Investments:
Hedge Funds 4,121  —  2,303  —  7.3 
5-10
Private Equity 4,822  —  —  —  8.6 
1-10
Private Debt 763  —  —  —  1.4 
1-10
Real Estate 2,285  313  106  —  4.1 
1-10
Structured Products(3)
177  —  177  —  0.3 
1-5
Risk Parity Funds 295  —  —  —  0.5 
1-10
Total U.S. Plan Assets $ 56,069  $ 44,023  $ 2,468  $ 14  100.0  %
Asset Category (International Plans):
Cash and cash equivalents $ 184  $ 135  $ 49  $ —  8.7  %
1-10
Equity Securities:
Local Markets Equity 193  —  193  — 
U.S. Equity 53  53  —  — 
Emerging Markets 35  35  —  — 
International / Global Equity 513  195  318  — 
Total Equity Securities 794  283  511  —  37.7 
20-50
Fixed Income Securities:
Local Government Bonds 61  —  61  — 
Corporate Bonds 438  21  417  — 
Global Bonds 136  134  2  — 
Total Fixed Income Securities 635  155  480  —  30.2 
30-50
Other Investments:
Real Estate 172  —  90  24  8.2 
5-10
Other 321  —  247  50  15.2 
1-20
Total International Plan Assets $ 2,106  $ 573  $ 1,377  $ 74  100.0  %
Total Plan Assets $ 58,175  $ 44,596  $ 3,845  $ 88 
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the category totals.
(2) Level 2 U.S. Government Securities includes repurchase and reverse repurchase agreements.
(3) Represents mortgage and asset-backed securities.
The fair values of U.S. and international pension and postretirement benefit plan assets by asset category as of December 31, 2020 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations:
Total
Assets(1)
Level 1 Level 2 Level 3 Percentage of
Plan Assets 		Target
Allocation
Asset Category (U.S. Plans):
Cash and cash equivalents $ 1,593  $ 1,510  $ 83  $ —  3.0  %
1-5
Equity Securities:
U.S. Large Cap 8,294  4,272  4,022  — 
U.S. Small Cap 370  370  —  — 
Emerging Markets 2,106  1,503  603  — 
Global Equity 3,940  3,624  316  — 
International Equity 4,335  2,043  2,292  — 
Total Equity Securities 19,045  11,812  7,233  —  35.9 
25-55
Fixed Income Securities:
U.S. Government Securities 16,145  14,646  1,499  — 
Corporate Bonds 6,146  —  6,143  3 
Global Bonds 42  —  42  — 
Municipal Bonds 27  —  27  — 
Total Fixed Income Securities 22,360  14,646  7,711  3  42.2 
35-55
Other Investments:
Hedge Funds 3,518  —  1,652  —  6.6 
5-15
Private Equity 3,424  —  —  —  6.5 
1-10
Private Debt 695  —  —  —  1.3 
1-10
Real Estate 1,986  244  82  —  3.7 
1-10
Structured Products(2)
161  —  161  —  0.3 
1-5
Risk Parity Funds 264  —  —  —  0.5 
1-10
Total U.S. Plan Assets $ 53,046  $ 28,212  $ 16,922  $ 3  100.0  %
Asset Category (International Plans):
Cash and cash equivalents $ 84  $ 45  $ 39  $ —  4.6  %
1-10
Equity Securities:
Local Markets Equity 214  —  214  — 
U.S. Equity 59  —  59  — 
Emerging Markets 55  41  14  — 
International / Global Equity 534  210  324  — 
Total Equity Securities 862  251  611  —  47.0 
25-55
Fixed Income Securities:
Local Government Bonds 102  —  102  — 
Corporate Bonds 215  22  193  — 
Global Bonds 125  125  —  — 
Total Fixed Income Securities 442  147  295  —  24.1 
20-40
Other Investments:
Real Estate 154  —  80  21  8.3 
5-10
Other 293  —  236  41  16.0 
1-20
Total International Plan Assets 1,835  $ 443  $ 1,261  $ 62  100.0  %
Total Plan Assets $ 54,881  $ 28,655  $ 18,183  $ 65 
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the category totals.
(2) Represents mortgage and asset-backed securities.
Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs (Level 3)
The following table presents the changes in the Level 3 instruments measured on a recurring basis for the years ended December 31, 2021 and 2020 (in millions):
Corporate Bonds Other Total
Balance on January 1, 2020 $ —  $ 12  $ 12 
Actual Return on Assets:
Assets Held at End of Year —  3  3 
Assets Sold During the Year (5) —  (5)
Purchases 10  51  61 
Sales (2) (4) (6)
Transfers Into (Out of) Level 3 —  —  — 
Balance on December 31, 2020 $ 3  $ 62  $ 65 
Actual Return on Assets:
Assets Held at End of Year —  5  5 
Assets Sold During the Year (16) —  (16)
Purchases 33  10  43 
Sales (6) (3) (9)
Transfers Into (Out of) Level 3 —  —  — 
Balance on December 31, 2021 $ 14  $ 74  $ 88 
Expected Cash Flows for Pension and Postretirement Benefit Plans Information about expected cash flows for the pension and postretirement medical benefit plans is as follows (in millions):
U.S.
Pension Benefits		 U.S. Postretirement
Medical Benefits		 International  Pension Benefits
Expected Employer Contributions:
2022 to plan trusts $ 1,887  $ 177  $ 96 
2022 to plan participants 25  49  7 
Expected Benefit Payments:
2022 $ 1,927  $ 229  $ 44 
2023 2,054  219  49 
2024 2,188  208  55 
2025 2,323  199  61 
2026 2,458  189  68 
2027 - 2031 14,160  813  425 
schedule of one basis point change in discount rate on the projected benefit obligation [Table Text Block]
As of December 31, 2021, the impact of each basis point change in the discount rate on the projected benefit obligation of our pension and postretirement medical benefit plans is as follows (in millions):
  Increase (Decrease) in the Projected Benefit Obligation
  Pension Benefits Postretirement Medical Benefits
One basis point increase in discount rate $ (100) $ (2)
One basis point decrease in discount rate $ 106  $ 3