Annual report pursuant to Section 13 and 15(d)

COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

v3.24.0.1
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2023
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
  2023 2022 2021 2023 2022 2021 2023 2022 2021
Net Periodic Benefit Cost:
Service cost $ 1,172  $ 2,024  $ 1,897  $ 20  $ 30  $ 28  $ 43  $ 68  $ 76 
Interest cost 2,508  1,950  1,948  116  83  81  66  45  38 
Expected return on plan assets (2,967) (3,280) (3,327) (12) (4) (5) (84) (78) (68)
Amortization of prior service cost 106  93  139  2  —  7  1  1  2 
Actuarial (gain) loss 393  (875) (3,284) —  —  24  (42) (152) (12)
Curtailment and settlement (gain) loss —  —  —  —  —  —  8  (34) — 
Net periodic benefit cost $ 1,212  $ (88) $ (2,627) $ 126  $ 109  $ 135  $ (8) $ (150) $ 36 
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
  2023 2022 2021 2023 2022 2021 2023 2022 2021
Service cost discount rate 5.79  % 3.13  % 2.90  % 6.06  % 3.28  % 2.88  % 5.09  % 2.78  % 2.38  %
Interest cost discount rate 5.79  % 3.13  % 2.90  % 6.06  % 3.28  % 2.88  % 5.02  % 2.74  % 2.22  %
Rate of compensation increase 3.25  % 4.29  % 4.50  % N/A N/A N/A 3.20  % 3.17  % 2.93  %
Expected return on plan assets 7.07  % 5.90  % 6.50  % 6.62  % 4.77  % 3.65  % 5.13  % 3.87  % 3.68  %
Cash balance interest credit rate 4.21  % 2.50  % 2.50  % N/A N/A N/A 3.69  % 2.94  % 2.74  %
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
  2023 2022 2023 2022 2023 2022
Discount rate 5.42  % 5.79  % 5.80  % 6.06  % 4.21  % 4.63  %
Rate of compensation increase 3.25  % 3.25  % N/A N/A 3.19  % 3.20  %
Cash balance interest credit rate 3.83  % 4.21  % N/A N/A 3.31  % 3.69  %
Schedule of One Basis Point Change in Discount Rate on the Projected Benefit Obligation
As of December 31, 2023, 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 $ (62) $ (1)
One basis point decrease in discount rate $ 65  $ 2 
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
  2023 2022 2023 2022 2023 2022
Funded Status:
Fair value of plan assets $ 43,491  $ 42,058  $ 98  $ 215  $ 1,893  $ 1,643 
Benefit obligation (47,712) (43,504) (1,974) (2,016) (1,601) (1,416)
Funded status $ (4,221) $ (1,446) $ (1,876) $ (1,801) $ 292  $ 227 
Funded Status Recognized in our Balance Sheet:
Other non-current assets $ —  $ 1,408  $ —  $ —  $ 510  $ 416 
Other current liabilities (26) (24) (123) (7) (7) (6)
Pension and postretirement benefit obligations (4,195) (2,830) (1,753) (1,794) (211) (183)
Net asset (liability) $ (4,221) $ (1,446) $ (1,876) $ (1,801) $ 292  $ 227 
Amounts Recognized in AOCI(1):
Unrecognized net prior service cost $ (1,326) $ (734) $ (2) $ (3) $ (7) $ (8)
Unrecognized net actuarial gain (loss) (2,097) 80  129  201  99  115 
Gross unrecognized cost (3,423) (654) 127  198  92  107 
Deferred tax assets (liabilities) 831  168  (31) (48) (28) (30)
Net unrecognized cost $ (2,592) $ (486) $ 96  $ 150  $ 64  $ 77 
(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, 2023 and 2022, 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
2023 2022 2023 2022
U.S. Pension Benefits:
Projected benefit obligation $ 47,712  $ 24,452  $ 47,712  $ 24,452 
Accumulated benefit obligation 47,674  24,414  47,674  24,414 
Fair value of plan assets 43,491  21,598  43,491  21,598 
International Pension Benefits:
Projected benefit obligation $ 345  $ 311  $ 315  $ 274 
Accumulated benefit obligation 304  278  281  246 
Fair value of plan assets 127  121  100  86 
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
  2023 2022 2023 2022 2023 2022
Benefit Obligations:
Projected benefit obligation at beginning of year $ 43,504  $ 61,378  $ 2,016  $ 2,592  $ 1,416  $ 2,106 
Service cost 1,172  2,024  20  30  43  68 
Interest cost 2,508  1,950  116  83  66  45 
Gross benefits paid (2,437) (2,151) (265) (268) (46) (45)
Plan participants’ contributions —  —  34  31  4  3 
Plan amendments(1)
699  145  —  —  —  — 
Actuarial (gain)/loss 2,266  (19,842) 53  (452) 99  (575)
Foreign currency exchange rate changes —  —  —  —  51  (150)
Curtailments and settlements —  —  —  —  (38) (40)
Other —  —  —  —  6  4 
Projected benefit obligation at end of year $ 47,712  $ 43,504  $ 1,974  $ 2,016  $ 1,601  $ 1,416 
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2023 2022 2023 2022 2023 2022
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year $ 42,058  $ 55,954  $ 215  $ 115  $ 1,643  $ 2,106 
Actual return on plan assets 2,664  (13,657) (8) (15) 201  (349)
Employer contributions 1,206  1,912  122  352  65  78 
Plan participants’ contributions —  —  34  31  4  3 
Gross benefits paid (2,437) (2,151) (265) (268) (46) (45)
Foreign currency exchange rate changes —  —  —  —  64  (144)
Curtailments and settlements —  —  —  —  (38) (6)
Other —  —  —  —  —  — 
Fair value of plan assets at end of year $ 43,491  $ 42,058  $ 98  $ 215  $ 1,893  $ 1,643 
(1)    Plan amendments in 2023 and 2022 were related to collective bargaining agreements with the Teamsters and the Independent Pilots Association, respectively.
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, 2023 and 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. The tables have been updated from prior year presentation to show derivative assets and liabilities separately from other asset categories, primarily U.S. Government Securities, by type of underlying risk.
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:
U.S. Large Cap 5,732  1,457  4,275  — 
U.S. Small Cap 335  335  —  — 
Emerging Markets 970  733  237  — 
Global Equity 62  62  —  — 
International Equity 3,065  861  2,204  — 
Total Equity Securities 10,164  3,448  6,716  —  23.3 
15-45
Fixed Income Securities:
U.S. Government Securities
 18,024  17,236  788  — 
Corporate Bonds 7,041  62  6,979  — 
Global Bonds 602  1  601  — 
Municipal Bonds 6  —  6  — 
Total Fixed Income Securities 25,673  17,299  8,374  —  58.9 
30-70
Other Investments:
Hedge Funds 3,959  28  2,194  —  9.1 
3-13
Private Equity 5,071  —  —  —  11.6 
3-15
Private Debt 948  —  —  —  2.2 
2-15
Real Estate 2,575  393  77  —  5.9 
3-15
Structured Products(2)
169  —  169  —  0.4 
0-5
Total Other Investments 12,722  421  2,440  — 
Derivatives and Other Instruments:
Equity Risk (136) 29  (165) —  (0.3)
Interest Rate Risk (5,877) (20) (5,857) —  (13.5)
Other Risk(3)
25  (1) 26  —  0.1 
Total Derivatives 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:
Local Markets Equity —  —  —  — 
U.S. Equity 89  —  89  — 
Emerging Markets —  —  —  — 
International / Global Equity 20  20  —  — 
Total Equity Securities 109  20  89  —  5.8 
1-10
Fixed Income Securities:
Local Government Bonds 827  175  652  — 
Corporate Bonds 424  —  424  — 
Global Bonds 141  137  4  — 
Total Fixed Income Securities 1,392  312  1,080  —  73.5 
50-75
Other Investments:
Real Estate(1)
66  —  18  25  3.5 
1-10
Other(1)
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)    Represents mortgage and asset-backed securities.
(3)    Includes credit risk, foreign currency exchange risk and commodity risk.
December 31, 2022
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
 $ 1,235  $ 870  $ 365  $ —  2.9  %
1-7%
Equity Securities:
U.S. Large Cap 6,599  2,517  4,082  — 
U.S. Small Cap 698  698  —  — 
Emerging Markets 1,597  1,171  426  — 
Global Equity 1,168  1,168  —  — 
International Equity 3,555  1,663  1,892  — 
Total Equity Securities 13,617  7,217  6,400  —  32.2 
20-45
Fixed Income Securities:
U.S. Government Securities
 15,165  14,633  532  — 
Corporate Bonds 6,129  7  6,122  — 
Global Bonds 670  —  670  — 
Municipal Bonds 9  —  9  — 
Total Fixed Income Securities 21,973  14,640  7,333  —  52.0 
30-70
Other Investments:
Hedge Funds 4,364  —  2,713  —  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(2)
170  —  170  —  0.4 
0-5
Total Other Investments 12,790  267  2,952  — 
Derivative and Other Instruments:
Equity Risk Contracts (87) (6) (81) —  (0.2)
Interest Rate Risk Contracts (7,280) (4) (7,276) —  (17.2)
Other Risk(3)
25  (1) 26  —  — 
Total Derivative and Other Instruments (7,342) (11) (7,331) — 
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(1)
95  —  48  25  5.8 
1-10
Other(1)
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)    Includes certain investments that are measured at NAV per share (or its equivalent).
(2)    Represents mortgage and asset-backed securities.
(3)    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, 2023 and 2022 (in millions):
Corporate Bonds Other Total
Balance as of January 1, 2022 $ 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 
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 
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:
2024 to plan trust $ 1,200  $ 74  $ 37 
2024 to plan participants 27  92  7 
Expected Benefit Payments:
2024 $ 2,238  $ 216  $ 50 
2025 2,371  206  55 
2026 2,506  196  62 
2027 2,643  187  69 
2028 2,777  177  77 
2029 - 2033 15,637  760  473