v3.22.4
Postretirement Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Expense Related to Defined Benefit and Retiree Health Care Benefit Plans Expenses related to defined benefit and retiree health care benefit plans are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202220212020202220212020202220212020
Service cost$15 $21 $18 $3 $$$25 $36 $34 
Interest cost29 30 31 11 10 13 33 37 38 
Expected return on plan assets(27)(31)(36)(12)(9)(12)(66)(81)(78)
Amortization of prior service cost (credit) — — (2)(2)(2)1 
Recognized net actuarial loss3 15  — — 1 14 
Net periodic benefit costs20 35 20  (6)— 
Settlement losses64 13 16  — — 10 
Total, including other postretirement losses$84 $48 $36 $ $$$4 $$10 
Schedule of Changes in the Benefit Obligations and Plan Assets for the Defined Benefit and Retiree Health Care Benefit Plans Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202220212022202120222021
Change in plan benefit obligation
Benefit obligation at beginning of year:$895 $1,097 $360 $389 $2,574 $2,868 
Service cost15 21 3 25 36 
Interest cost29 30 11 10 33 37 
Participant contributions — 15 14 5 
Benefits paid(12)(12)(41)(38)(86)(101)
Settlements(309)(162) — (91)(12)
Curtailments —  — (4)— 
Actuarial loss (gain)(97)(79)(74)(18)(547)(111)
Effects of exchange rate changes —  — (242)(152)
Benefit obligation at end of year$521 $895 $274 $360 $1,667 $2,574 
Change in plan assets
Fair value of plan assets at beginning of year:$934 $1,061 $385 $389 $2,813 $3,008 
Actual return on plan assets(205)37 (80)19 (557)75 
Employer contributions (qualified plans) — 1 9 
Employer contributions (non-qualified plans)13 10  —  — 
Participant contributions — 15 14 5 
Benefits paid(12)(12)(41)(38)(86)(101)
Settlements(309)(162) — (91)(12)
Effects of exchange rate changes —  — (271)(173)
Fair value of plan assets at end of year$421 $934 $280 $385 $1,822 $2,813 
Funded status at end of year$(100)$39 $6 $25 $155 $239 
Schedule of Amounts Recognized in our Balance Sheet Amounts recognized on our Consolidated Balance Sheets as of December 31, are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined BenefitTotal
2022
Overfunded retirement plans$ $8 $180 $188 
Accrued expenses and other liabilities & other long-term liabilities(3) (6)(9)
Underfunded retirement plans(97)(2)(19)(118)
Funded status at end of 2022
$(100)$6 $155 $61 
2021
Overfunded retirement plans$73 $28 $291 $392 
Accrued expenses and other liabilities & other long-term liabilities(5)— (5)(10)
Underfunded retirement plans(29)(3)(47)(79)
Funded status at end of 2021
$39 $25 $239 $303 
Schedule of Change in AOCI The change in AOCI is as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined BenefitTotal
Net Actuarial LossNet Actuarial LossPrior Service CostNet Actuarial LossPrior Service CostNet Actuarial LossPrior Service Cost
AOCI balance, net of taxes, December 31, 2021
$36 $(30)$(1)$149 $$155 $— 
Changes in AOCI by category:
Adjustments137 18  48  203  
Recognized within net income(67) 2 (11)(1)(78)1 
Tax effect(16)(3)(1)(12)1 (31) 
Total change to AOCI54 15 1 25  94 1 
AOCI balance, net of taxes, December 31, 2022
$90 $(15)$ $174 $1 $249 $1 
Schedule of Allocation of Plan Assets The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 6.
December 31, 2022
Level 1Level 2Other (a)Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents$ $ $272 $272 
Equity securities  149 149 
Total$ $ $421 $421 
Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents$7 $ $175 $182 
Equity securities  98 98 
Total$7 $ $273 $280 
Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents$40 $60 $1,282 $1,382 
Equity securities52 1 387 440 
Total$92 $61 $1,669 $1,822 
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
December 31, 2021
Level 1Level 2Other (a)Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents$— $— $655 $655 
Equity securities— — 279 279 
Total$— $— $934 $934 
Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents$10 $— $238 $248 
Equity securities— — 137 137 
Total$10 $— $375 $385 
Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents$71 $104 $2,045 $2,220 
Equity securities49 542 593 
Total$120 $106 $2,587 $2,813 
(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.
The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
Fixed income securities and cash equivalents
65% – 80%
65% – 80%
60% – 100%
Equity securities
20% – 35%
20% – 35%
0% – 40%
Weighted average asset allocations as of December 31 are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202220212022202120222021
Fixed income securities and cash equivalents65%70%65%64%76%79%
Equity securities35%30%35%36%24%21%
Schedule of Assumptions Used Assumptions and investment policies
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
202220212022202120222021
Weighted average assumptions used to determine benefit obligations:
Discount rate5.67%2.74%5.68%3.05%3.45%1.57%
Long-term pay progression3.75%3.70%n/an/a3.03%3.15%
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate3.82%2.95%3.05%2.74%1.57%1.31%
Long-term rate of return on plan assets3.80%3.50%3.40%3.10%2.73%2.82%
Long-term pay progression3.70%3.70%n/an/a3.15%3.15%
Schedule of Assumed Future Benefit Payments The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets.
202320242025202620272028 – 2032
U.S. Defined Benefit$77 $75 $65 $63 $60 $227 
U.S. Retiree Health Care28 27 26 25 24 106 
Non-U.S. Defined Benefit84 87 89 91 92 487 
Schedule of Assumed Health Care Cost Trend Rates for U.S Retiree Health Care Benefit Plan Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows:
20222021
Assumed health care cost trend rate for next year7.00%6.50%
Ultimate trend rate5.00%5.00%
Year in which ultimate trend rate is reached20312028