Annual report pursuant to Section 13 and 15(d)

COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

v3.22.4
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2022
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
  2022 2021 2020 2022 2021 2020 2022 2021 2020
Net Periodic Benefit Cost:
Service cost $ 2,024  $ 1,897  $ 1,853  $ 30  $ 28  $ 29  $ 68  $ 76  $ 67 
Interest cost 1,950  1,948  1,977  83  81  91  45  38  40 
Expected return on plan assets (3,280) (3,327) (3,549) (4) (5) (8) (78) (68) (86)
Amortization of prior service cost 93  139  218  —  7  7  1  2  2 
Actuarial (gain) loss (875) (3,284) 6,211  —  24  246  (152) (12) 27 
Curtailment and settlement (gain) loss —  —  —  —  —  —  (34) —  — 
Net periodic benefit cost $ (88) $ (2,627) $ 6,710  $ 109  $ 135  $ 365  $ (150) $ 36  $ 50 
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
  2022 2021 2020 2022 2021 2020 2022 2021 2020
Service cost discount rate 3.13  % 2.90  % 3.60  % 3.28  % 2.88  % 3.59  % 2.78  % 2.38  % 3.01  %
Interest cost discount rate 3.13  % 2.90  % 3.60  % 3.28  % 2.88  % 3.59  % 2.74  % 2.22  % 2.67  %
Rate of compensation increase 4.29  % 4.50  % 4.22  % N/A N/A N/A 3.17  % 2.93  % 3.00  %
Expected return on plan assets 5.90  % 6.50  % 7.77  % 4.77  % 3.65  % 7.20  % 3.87  % 3.68  % 5.55  %
Cash balance interest credit rate 2.50  % 2.50  % 2.50  % N/A N/A N/A 2.94  % 2.74  % 2.59  %
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
  2022 2021 2022 2021 2022 2021
Discount rate 5.79  % 3.13  % 6.06  % 3.28  % 4.63  % 2.33  %
Rate of compensation increase 3.25  % 4.29  % N/A N/A 3.20  % 3.17  %
Cash balance interest credit rate 4.21  % 2.50  % N/A N/A 3.69  % 2.94  %
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
  2022 2021 2022 2021 2022 2021
Benefit Obligations:
Projected benefit obligation at beginning of year $ 61,378  $ 65,922  $ 2,592  $ 2,759  $ 2,106  $ 2,177 
Service cost 2,024  1,897  30  28  68  76 
Interest cost 1,950  1,948  83  81  45  38 
Gross benefits paid (2,151) (1,906) (268) (278) (45) (46)
Plan participants’ contributions —  —  31  35  3  3 
Plan amendments 145  66  —  —  —  — 
Actuarial (gain)/loss (19,842) (6,390) (452) (26) (575) (111)
Foreign currency exchange rate changes —  —  —  —  (150) (32)
Curtailments and settlements —  (159) —  (7) (40) (3)
Other —  —  —  —  4  4 
Projected benefit obligation at end of year $ 43,504  $ 61,378  $ 2,016  $ 2,592  $ 1,416  $ 2,106 
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2022 2021 2022 2021 2022 2021
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year $ 55,954  $ 52,997  $ 115  $ 49  $ 2,106  $ 1,835 
Actual return on plan assets (13,657) 4,706  (15) (8) (349) 230 
Employer contributions 1,912  157  352  317  78  102 
Plan participants’ contributions —  —  31  35  3  3 
Gross benefits paid (2,151) (1,906) (268) (278) (45) (46)
Foreign currency exchange rate changes —  —  —  —  (144) (15)
Curtailments and settlements —  —  —  —  (6) (3)
Other —  —  —  —  —  — 
Fair value of plan assets at end of year $ 42,058  $ 55,954  $ 215  $ 115  $ 1,643  $ 2,106 
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
  2022 2021 2022 2021 2022 2021
Funded Status:
Fair value of plan assets $ 42,058  $ 55,954  $ 215  $ 115  $ 1,643  $ 2,106 
Benefit obligation (43,504) (61,378) (2,016) (2,592) (1,416) (2,106)
Funded status $ (1,446) $ (5,424) $ (1,801) $ (2,477) $ 227  $ — 
Funded Status Recognized in our Balance Sheet:
Other non-current assets $ 1,408  $ —  $ —  $ —  $ 416  $ 295 
Other current liabilities (24) (24) (7) (118) (6) (7)
Pension and postretirement benefit obligations (2,830) (5,400) (1,794) (2,359) (183) (288)
Net asset (liability) $ (1,446) $ (5,424) $ (1,801) $ (2,477) $ 227  $ — 
Amounts Recognized in AOCI(1):
Unrecognized net prior service cost $ (734) $ (682) $ (3) $ (3) $ (8) $ (9)
Unrecognized net actuarial gain (loss) 80  (1,949) 201  (232) 115  107 
Gross unrecognized cost (654) (2,631) 198  (235) 107  98 
Deferred tax assets (liabilities) 168  642  (48) 55  (30) (27)
Net unrecognized cost $ (486) $ (1,989) $ 150  $ (180) $ 77  $ 71 

(1) Accumulated Other Comprehensive Income
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, 2022 and 2021, 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
2022 2021 2022 2021
U.S. Pension Benefits:
Projected benefit obligation $ 24,452  $ 61,378  $ 24,452  $ 61,378 
Accumulated benefit obligation 24,414  60,769  24,414  60,769 
Fair value of plan assets 21,598  55,954  21,598  55,954 
International Pension Benefits:
Projected benefit obligation $ 311  $ 798  $ 274  $ 408 
Accumulated benefit obligation 278  696  246  357 
Fair value of plan assets 121  503  86  132 
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, including derivative assets and liabilities, as of December 31, 2022 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 $ 1,230  $ 870  $ 360  $ —  2.9  %
1-7
Equity Securities:
U.S. Large Cap 6,513  2,511  4,002  — 
U.S. Small Cap 698  698  —  — 
Emerging Markets 1,542  1,171  371  — 
Global Equity 1,168  1,168  —  — 
International Equity 3,610  1,663  1,947  — 
Total Equity Securities 13,531  7,211  6,320  —  32.0 
20-45
Fixed Income Securities:
U.S. Government Securities(2)
7,865  14,628  (6,763) — 
Corporate Bonds 6,145  7  6,138  — 
Global Bonds 702  —  702  — 
Municipal Bonds 6  —  6  — 
Total Fixed Income Securities 14,718  14,635  83  —  34.8 
30-70
Other Investments:
Hedge Funds 4,368  —  2,717  —  10.3 
3-13
Private Equity 5,012  —  —  —  11.9 
3-15
Private Debt 829  —  —  —  2.0 
1-15
Real Estate 2,415  267  69  —  5.7 
3-15
Structured Products(3)
170  —  170  —  0.4 
0-5
Total U.S. Plan Assets $ 42,273  $ 22,983  $ 9,719  $ —  100.0  %
Asset Category (International Plans):
Cash and cash equivalents $ 147  $ 70  $ 77  $ —  8.9  %
1-10
Equity Securities:
Local Markets Equity 138  —  138  — 
U.S. Equity (3) —  (3) — 
Emerging Markets —  —  —  — 
International / Global Equity 298  36  262  — 
Total Equity Securities 433  36  397  —  26.4 
20-50
Fixed Income Securities:
Local Government Bonds 91  59  32  — 
Corporate Bonds 494  —  494  — 
Global Bonds 119  98  21  — 
Total Fixed Income Securities 704  157  547  —  42.8 
35-55
Other Investments:
Real Estate 95  —  48  25  5.8 
1-10
Other 264  —  190  52  16.1 
1-30
Total International Plan Assets $ 1,643  $ 263  $ 1,259  $ 77  100.0  %
Total Plan Assets $ 43,916  $ 23,246  $ 10,978  $ 77 
(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, including derivative assets and liabilities, 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.
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, 2022 and 2021 (in millions):
Corporate Bonds Other Total
Balance as of January 1, 2021 $ 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 as of December 31, 2021 $ 14  $ 74  $ 88 
Actual Return on Assets:
Assets Held at End of Year —  (2) (2)
Assets Sold During the Year (35) —  (35)
Purchases 482  9  491 
Sales (460) (4) (464)
Transfers Into (Out of) Level 3 (1) —  (1)
Balance as of December 31, 2022 $ —  $ 77  $ 77 
Expected Cash Flows for Pension and Postretirement Benefit Plans Information about expected cash flows for our 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:
2023 to plan trust $ 1,180  $ 72  $ 69 
2023 to plan participants 25  46  7 
Expected Benefit Payments:
2023 $ 2,062  $ 223  $ 45 
2024 2,193  212  50 
2025 2,328  203  56 
2026 2,464  194  62 
2027 2,599  186  69 
2028 - 2032 14,834  797  437 
schedule of one basis point change in discount rate on the projected benefit obligation [Table Text Block]
As of December 31, 2022, 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 $ (55) $ (1)
One basis point decrease in discount rate $ 59  $ 2