v3.22.4
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]  
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan
Summarized information on the Corporation's pension and other postretirement benefit plans is as follows:

Change in Projected Benefit Obligations, Plan Assets and Funded Status for All PlansDefined Benefit
Pension Plans		Other Postretirement Benefit Plan
In millions2022202120222021
Change in projected benefit obligations:
Benefit obligations at beginning of year$3,940 $4,229 $174 $220 
Service cost37 26 1 1 
Interest cost91 80 3 3 
Actuarial changes in assumptions and experience(826)(112)(48)(37)
Benefits paid(265)(263)(2)(13)
Curtailments/other 1
(117)(20)— — 
Benefit obligations at end of year$2,860 $3,940 $128 $174 
Change in plan assets:
Fair value of plan assets at beginning of year$3,611 $3,095 $— $— 
Actual return on plan assets(556)236 — — 
Employer contributions3 549 — — 
Asset transfers (8)(8)— — 
Benefits paid(265)(263)— — 
Other 2
(106)2 — — 
Fair value of plan assets at end of year$2,679 $3,611 $— $— 
Funded status at end of year$(181)$(329)$(128)$(174)

Net amounts recognized in the consolidated balance sheets at Dec 31:
Accrued and other current liabilities$(2)$(2)$(12)$(13)
Pension and other postretirement benefits - noncurrent(179)(327)(116)(161)
Net amount recognized$(181)$(329)$(128)$(174)
Pretax amounts recognized in accumulated other comprehensive loss at Dec 31:
Net loss (gain)$1,852 $2,007 $(124)$(84)
Prior service credit— (1)— — 
Pretax balance in accumulated other comprehensive loss at end of year$1,852 $2,006 $(124)$(84)
1.The 2022 impact primarily relates to the transfer of benefit obligations through the purchase of an annuity contract from an insurance company. The 2021 impact primarily relates to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans.
2.The 2022 impact relates to the purchase of an annuity contract associated with the transfer of benefit obligations to an insurance company.
Schedule of Net Benefit Costs
Net Periodic Benefit Cost (Credit) for All Plans for the Year Ended Dec 31Defined Benefit Pension PlansOther Postretirement Benefit Plan
In millions202220212020202220212020
Net Periodic Benefit Cost (Credit):
Service cost$37 $26 $35 $1 $1 $1 
Interest cost91 80 112 3 3 5 
Expected return on plan assets(226)(219)(200)— — — 
Amortization of prior service credit(1)(1)(1)— — — 
Amortization of net (gain) loss108 116 110 (9)(4)(6)
Curtailment gain1
— (7)— — — — 
Net periodic benefit cost (credit)$9 $(5)$56 $(5)$— $— 
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net (gain) loss$(47)$(144)$240 $(49)$(36)$2 
Amortization of prior service credit1 1 1 — — — 
Amortization of net gain (loss)(108)(116)(110)9 4 6 
Curtailment gain1
— 7 — — — — 
Total recognized in other comprehensive (income) loss$(154)$(252)$131 $(40)$(32)$8 
Total recognized in net periodic benefit cost and other comprehensive (income) loss$(145)$(257)$187 $(45)$(32)$8 
1.The 2021 impact relates primarily to the freeze of pensionable compensation and credited service amounts for employees that participate in the UCC Plans.
Schedule of Expected Benefit Payments
The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:

Estimated Future Benefit Payments at Dec 31, 2022Defined Benefit Pension PlansOther Postretirement Benefit Plan
In millions
2023$265 $12 
2024240 12 
2025236 12 
2026233 12 
2027229 12 
2028 through 20321,071 49 
Total$2,274 $109 
Schedule of Allocation of Plan Assets
The weighted-average target allocation for plan assets of the Corporation's pension plan is summarized as follows:

Target Allocation for Plan Assets at Dec 31, 2022
Target Allocation
Asset Category
Equity securities23 %
Fixed income securities45 
Alternative investments27 
Other5 
Total100 %
Schedule of Defined Benefit Plans Disclosures
The following table summarizes the bases used to measure the Corporation’s pension plan assets at fair value for the years ended December 31, 2022 and 2021:

Basis of Fair Value MeasurementsDec 31, 2022Dec 31, 2021
In millionsTotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Cash and cash equivalents$224 $172 $52 $— $289 $251 $38 $— 
Equity securities:
U.S. equity securities $288 $288 $— $— $431 $431 $— $— 
Non - U.S. equity securities255 244 11 — 405 378 26 1 
Total equity securities$543 $532 $11 $— $836 $809 $26 $1 
Fixed income securities:
Debt - government-issued$665 $1 $664 $— $806 $4 $802 $— 
Debt - corporate-issued442 1 441 — 796 146 650 — 
Debt - asset-backed20 — 20 — 17 — 17 — 
Total fixed income securities$1,127 $2 $1,125 $— $1,619 $150 $1,469 $— 
Alternative investments:
Private markets$2 $— $— $2 $2 $— $— $2 
Derivatives - asset position5 — 5 — 30 — 30 — 
Derivatives - liability position(16)— (16)— (12)— (12)— 
Total alternative investments$(9)$— $(11)$2 $20 $— $18 $2 
Other investments $3 $2 $1 $— $1 $1 $— $— 
Subtotal$1,888 $708 $1,178 $2 $2,765 $1,211 $1,551 $3 
Investments measured at net asset value:
Hedge funds$142 $197 
Private markets411 414 
Real estate240 237 
Total investments measured at net asset value$793 $848 
Items to reconcile to fair value of plan assets:
Pension trust receivables 1
$4 $33 
Pension trust payables 2
(6)(35)
Total$2,679 $3,611 
1.Primarily receivables for investment securities sold.
2.Primarily payables for investment securities purchased.
Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Assumptions Used
The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs are provided below:

Pension Plan Assumptions
Benefit Obligations
at Dec 31		Net Periodic Benefit Costs
for the Year Ended
20222021202220212020
Discount rate5.60 %2.94 %2.94 %2.86 %3.29 %
Interest crediting rate for applicable benefits4.50 %4.50 %4.50 %4.50 %4.50 %
Rate of compensation increase4.25 %4.25 %4.25 %4.25 %4.25 %
Expected return on plan assets6.80 %6.80 %6.80 %
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at Dec 31
In millions20222021
Accumulated benefit obligations$2,859 $3,935 
Fair value of plan assets$2,679 $3,611 
Schedule of Projected Benefit Obligations in Excess of Fair Value of Plan Assets
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets at Dec 3120222021
In millions
Projected benefit obligations$2,860 $3,940 
Fair value of plan assets$2,679 $3,611 
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2022 and 2021:

Fair Value Measurement of Level 3 Pension Plan AssetsEquity SecuritiesAlternative InvestmentsTotal
In millions
Balance at Jan 1, 2021$1 $6 $7 
Actual return on plan assets:
Relating to assets held at Dec 31, 2021— (4)(4)
Balance at Dec 31, 2021$1 $2 $3 
Actual return on plan assets:
Relating to assets held at Dec 31, 2022(1)(2)(3)
Purchases, sales and settlements— 2 2 
Balance at Dec 31, 2022$— $2 $2 
Other Postretirement Benefits Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Assumptions Used
The weighted-average assumptions used to determine other postretirement benefit plan obligations and net periodic benefit costs for the plan are provided in the following table:

Other Postretirement Benefit Plan Assumptions
Benefit Obligations
at Dec 31
Net Periodic Benefit Costs
for the Year Ended
20222021202220212020
Discount rate5.56 %2.84 %2.84 %2.34 %3.17 %
Health care cost trend rate assumed for next year6.57 %6.50 %6.50 %6.75 %6.25 %
Rate to which the cost trend rate is assumed to decline (the ultimate health care cost trend rate)5.00 %5.00 %5.00 %5.00 %5.00 %
Year that the rate reaches the ultimate health care cost trend rate20332028202820282025