Annual report pursuant to Section 13 and 15(d)

COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

v3.25.0.1
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2024
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
  2024 2023 2022 2024 2023 2022 2024 2023 2022
Net Periodic Benefit Cost:
Service cost $ 1,240  $ 1,172  $ 2,024  $ 20  $ 20  $ 30  $ 42  $ 43  $ 68 
Interest cost 2,574  2,508  1,950  109  116  83  66  66  45 
Expected return on plan assets (3,085) (2,967) (3,280) (4) (12) (4) (83) (84) (78)
Amortization of prior service cost 152  106  93  1  2  —  1  1  1 
Actuarial (gain) loss 673  393  (875) —  —  —  (8) (42) (152)
Curtailment and settlement (gain) loss —  —  —  —  —  —  —  8  (34)
Net periodic benefit cost $ 1,554  $ 1,212  $ (88) $ 126  $ 126  $ 109  $ 18  $ (8) $ (150)
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
  2024 2023 2022 2024 2023 2022 2024 2023 2022
Service cost discount rate 5.42  % 5.79  % 3.13  % 5.80  % 6.06  % 3.28  % 4.59  % 5.09  % 2.78  %
Interest cost discount rate 5.42  % 5.79  % 3.13  % 5.80  % 6.06  % 3.28  % 4.56  % 5.02  % 2.74  %
Rate of compensation increase 3.25  % 3.25  % 4.29  % N/A N/A N/A 3.19  % 3.20  % 3.17  %
Expected return on plan assets 7.17  % 7.07  % 5.90  % 6.36  % 6.62  % 4.77  % 4.54  % 5.13  % 3.87  %
Cash balance interest credit rate 3.83  % 4.21  % 2.50  % N/A N/A N/A 3.31  % 3.69  % 2.94  %
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
  2024 2023 2024 2023 2024 2023
Discount rate 5.88  % 5.42  % 6.18  % 5.80  % 4.45  % 4.21  %
Rate of compensation increase 3.25  % 3.25  % N/A N/A 3.04  % 3.19  %
Cash balance interest credit rate 4.30  % 3.83  % N/A N/A 3.09  % 3.31  %
Schedule of One Basis Point Change in Discount Rate on the Projected Benefit Obligation
As of December 31, 2024, the impact of each basis point change in the discount rate on the projected benefit obligation of our pension and postretirement medical benefit plans was as follows (in millions):
  Increase (Decrease) in the Projected Benefit Obligation
  Pension Benefits Postretirement Medical Benefits
One basis point increase in discount rate $ (57) $ (1)
One basis point decrease in discount rate $ 60  $ 1 
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
  2024 2023 2024 2023 2024 2023
Funded Status:
Fair value of plan assets $ 41,499  $ 43,491  $ 119  $ 98  $ 1,778  $ 1,893 
Benefit obligation (46,559) (47,712) (1,850) (1,974) (1,500) (1,601)
Funded status recognized at December 31 $ (5,060) $ (4,221) $ (1,731) $ (1,876) $ 278  $ 292 
Funded Status Amounts Recognized in our Balance Sheet:
Other non-current assets $ —  $ —  $ —  $ —  $ 480  $ 510 
Other current liabilities (27) (26) (100) (123) (7) (7)
Pension and postretirement benefit obligations (5,033) (4,195) (1,631) (1,753) (195) (211)
Net liability at December 31 $ (5,060) $ (4,221) $ (1,731) $ (1,876) $ 278  $ 292 
Amounts Recognized in AOCI (1):
Unrecognized net prior service cost $ (1,251) $ (1,326) $ (1) $ (2) $ (5) $ (7)
Unrecognized net actuarial gain (loss) (2,686) (2,097) 131  129  107  99 
Gross unrecognized cost at December 31 (3,937) (3,423) 130  127  102  92 
Deferred tax asset at December 31 956  831  (32) (31) (32) (28)
Net unrecognized cost at December 31 $ (2,981) $ (2,592) $ 98  $ 96  $ 70  $ 64 
(1)    Accumulated Other Comprehensive Income (Loss)
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, 2024 and 2023, 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
2024 2023 2024 2023
U.S. Pension Benefits:
Projected benefit obligation $ 46,559  $ 47,712  $ 46,559  $ 47,712 
Accumulated benefit obligation 46,526  47,674  46,526  47,674 
Fair value of plan assets 41,499  43,491  41,499  43,491 
International Pension Benefits:
Projected benefit obligation $ 337  $ 345  $ 281  $ 315 
Accumulated benefit obligation 301  304  255  281 
Fair value of plan assets 135  127  88  100 
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
  2024 2023 2024 2023 2024 2023
Benefit Obligations:
Projected benefit obligation at beginning of year $ 47,712  $ 43,504  $ 1,974  $ 2,016  $ 1,601  $ 1,416 
Service cost 1,240  1,172  20  20  42  43 
Interest cost 2,574  2,508  109  116  66  66 
Gross benefits paid (2,604) (2,437) (284) (265) (55) (46)
Plan participants’ contributions —  —  39  34  4  4 
Plan amendments(1)
76  699  —  —  —  — 
Actuarial (gain)/loss (2,438) 2,266  (7) 53  (58) 99 
Foreign currency exchange rate changes —  —  —  —  (99) 51 
Curtailments and settlements —  —  —  —  (4) (38)
Other (1) —  (1) —  3  6 
Projected benefit obligation at end of year $ 46,559  $ 47,712  $ 1,850  $ 1,974  $ 1,500  $ 1,601 
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2024 2023 2024 2023 2024 2023
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year $ 43,491  $ 42,058  $ 98  $ 215  $ 1,893  $ 1,643 
Actual return on plan assets (615) 2,664  (2) (8) 41  201 
Employer contributions 1,228  1,206  269  122  27  65 
Plan participants’ contributions —  —  39  34  4  4 
Gross benefits paid (2,604) (2,437) (284) (265) (55) (46)
Foreign currency exchange rate changes —  —  —  —  (118) 64 
Curtailments and settlements —  —  —  —  (4) (38)
Other (1) —  (1) —  (10) — 
Fair value of plan assets at end of year $ 41,499  $ 43,491  $ 119  $ 98  $ 1,778  $ 1,893 
(1)    Plan amendments in 2024 and 2023 were related to collective bargaining agreements with the Teamsters.
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, 2024 and 2023 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations. The asset categories within equity securities, fixed income securities, and alternative and other investments in the table below have been collapsed from prior year presentation to align with the nature, characteristics, and type of underlying risk of those assets. There were no transfers between asset categories.
December 31, 2024
Total
Assets(1)
Level 1 Level 2 Level 3 Percentage of Plan Assets Percentage Target
Allocation
Asset Category (U.S. Plans):
Cash and cash equivalents(3)
$ 5,716  $ 5,450  $ 266  $ —  13.7  %
1-7%
Equity securities
 6,979  3,270  3,709  —  16.8  %
15-45%
Fixed income securities
 19,643  13,375  6,247  21  47.2  %
30-73%
Alternative and other investments(1):
Hedge funds
 2,034  —  538  —  4.9  %
3-13%
Real estate
 2,674  301  77  —  6.4  %
3-15%
Private equity, private debt, and other investments
 6,508  —  195  —  15.6  %
5-29%
Total Alternative and other investments
 11,216  301  810  — 
Derivatives and other instruments, net:
Equity risk
 (392) (99) (294) —  (0.9) %
Interest rate risk
 (1,619) (442) (1,177) —  (3.9) %
Other risk(2)
75  2  73  —  0.2  %
Total Derivatives and other instruments
 (1,936) (539) (1,398) — 
Total U.S. plan assets
 $ 41,618  $ 21,857  $ 9,634  $ 21  100.0  %
Asset Category (International Plans):
Cash and cash equivalents
 $ 127  $ 127  $ —  $ —  7.1  %
1-10%
Equity securities
 165  23  142  —  9.3  %
1-10%
Fixed income securities
 1,202  243  959  —  67.6  %
50-75%
Alternative and other investments(1):
Real estate
 62  —  17  23  3.5  %
1-10%
Private equity, private debt, and other investments
 222  —  189  18  12.5  %
10-35%
Total International plan assets
 $ 1,778  $ 393  $ 1,307  $ 41  100.0  %
Total plan assets
 $ 43,396  $ 22,250  $ 10,941  $ 62 
(1)    Includes certain investments that are measured at NAV per share (or its equivalent).
(2)    Includes credit risk, foreign currency exchange risk and commodity risk.
(3)    Includes $2.7 billion of cash held as collateral for market exposures, which is not subject to the target allocations.
December 31, 2023
Total
Assets(1)
Level 1 Level 2 Level 3 Percentage of
Plan Assets 		Percentage Target
Allocation
Asset Category (U.S. Plans):
Cash and cash equivalents
 $ 1,018  $ 894  $ 124  $ —  2.3  %
1-7%
Equity securities
 10,164  3,448  6,716  —  23.3  %
15-45%
Fixed income securities
 25,673  17,299  8,374  —  58.9  %
30-70%
Alternative and other investments(1):
Hedge funds
 3,959  28  2,194  —  9.1  %
3-13%
Real estate
 2,575  393  77  —  5.9  %
3-15%
Private equity, private debt, and other investments
 6,188  —  169  —  14.2  %
5-35%
Total Alternative and other investments
 12,722  421  2,440  — 
Derivative and other instruments, net:
Equity risk contracts
 (136) 29  (165) —  (0.3) %
Interest rate risk contracts
 (5,877) (20) (5,857) —  (13.5) %
Other risk(2)
25  (1) 26  —  0.1  %
Total Derivative and other instruments
 (5,988) 8  (5,996) — 
Total U.S. plan assets
 $ 43,589  $ 22,070  $ 11,658  $ —  100.0  %
Asset Category (International Plans):
Cash and cash equivalents
 $ 71  $ 77  $ (6) $ —  3.8  %
1-10%
Equity securities
 109  20  89  —  5.8  %
1-10%
Fixed income securities
 1,392  312  1,080  —  73.5  %
50-75%
Alternative and other investments(1):
Real estate
 66  —  18  25  3.5  %
1-10%
Private equity, private debt, and other investments
 255  —  183  55  13.4  %
10-35%
Total International plan assets
 $ 1,893  $ 409  $ 1,364  $ 80  100.0  %
Total plan assets
 $ 45,482  $ 22,479  $ 13,022  $ 80 
(1)    Includes certain investments that are measured at NAV per share (or its equivalent).
(2)    Includes credit risk, foreign currency exchange risk and commodity risk.
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, 2024 and 2023 (in millions):
Fixed Income Securities
Alternative and Other Investments
 Total
Balance as of January 1, 2023
 $ —  $ 77  $ 77 
Actual Return on Assets:
Assets Held at End of Year —  4  4 
Assets Sold During the Year 2  —  2 
Purchases 450  2  452 
Sales (452) (3) (455)
Transfers Into (Out of) Level 3 —  —  — 
Balance as of December 31, 2023
 $ —  $ 80  $ 80 
Actual Return on Assets:
Assets Held at End of Year (1) 1  — 
Assets Sold During the Year 4  (12) (8)
Purchases 38  —  38 
Sales (10) (28) (38)
Transfers Into (Out of) Level 3 (10) —  (10)
Balance as of December 31, 2024
 $ 21  $ 41  $ 62 
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:
2025 to plan trust
 $ 1,170  $ 140  $ 10 
2025 to plan participants
 28  93  7 
Expected Benefit Payments:
2025 $ 2,395  $ 209  $ 55 
2026 2,529  199  61 
2027 2,665  190  67 
2028 2,800  179  74 
2029 2,926  169  79 
2030 - 2034
 16,292  731  469