v3.22.4
PENSION AND OTHER POSTRETIREMENT BENEFIT PROGRAMS (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Reconciliation of Pension and OPEB Plan Obligations, Assets and Funded Status The benefit plan information in the table below pertains to all of our pension and OPEB plans, both in the United States and in other countries.    
Pension benefitsOPEB
as of and for the years ended December 31 (in millions)2022202120222021
Benefit obligations
Beginning of period$4,443 $4,313 $211 $228 
Service cost75 87 1 1 
Interest cost97 72 4 4 
Participant contributions4 4 — — 
Actuarial (gain) loss(1,213)(186)(37)(14)
Benefit payments(124)(103)(19)(19)
Settlements(17)(13)— — 
Curtailment(13)(5)— — 
Acquisitions— 364 — 11 
Plan Amendments1 15 — — 
Foreign exchange and other(107)(105)— — 
End of period3,146 4,443 160 211 
Fair value of plan assets
Beginning of period3,784 3,434 — — 
Actual return on plan assets(1,118)141 — — 
Employer contributions48 73 19 19 
Participant contributions4 4 — — 
Benefit payments(124)(103)(19)(19)
Settlements(17)(13)— — 
Acquisitions— 305 — — 
Foreign exchange and other(76)(57)— — 
End of period2,501 3,784 — — 
Funded status at December 31$(645)$(659)$(160)$(211)
Amounts recognized in the consolidated balance sheets
Noncurrent asset$123 $228 $— $— 
Current liability(31)(29)(18)(17)
Noncurrent liability(737)(858)(142)(194)
Net liability recognized at December 31$(645)$(659)$(160)$(211)
Information Relating to Individual Plans in Funded Status that have ABO in Excess of Plan Assets The following table is information relating to the individual plans in the funded status table above that have an ABO in excess of plan assets.
as of December 31 (in millions)20222021
ABO$2,594 $2,991 
Fair value of plan assets$1,865 $2,209 
Information Relating to Individual Plans in Funded Status that have PBO in Excess of Plan Assets
The following table presents information relating to the individual plans in the funded status table above that have a PBO in excess of plan assets (many of which also have an ABO in excess of assets and are therefore also included in the table directly above).
as of December 31 (in millions)20222021
PBO$2,774 $3,254 
Fair value of plan assets$2,006 $2,366 
Expected Net Pension and OPEB Plan Payments for Next 10 Years
(in millions)Pension benefitsOPEB
2023$138 $18 
2024155 17 
2025167 16 
2026177 15 
2027192 14 
2028 through 20321,059 62 
Total expected net benefit payments for next 10 years$1,888 $142 
Summary of Pre-Tax losses Included in AOCI The following table is a summary of the pre-tax losses included in AOCI at December 31, 2022 and December 31, 2021.
(in millions)Pension benefitsOPEB
Actuarial loss (gain)$509 $(69)
Prior service credit and transition obligation8 (27)
Total pre-tax loss (gain) recognized in AOCI at December 31, 2022$517 $(96)
Actuarial loss (gain)$509 $(37)
Prior service credit and transition obligation8 (36)
Total pre-tax loss (gain) recognized in AOCI at December 31, 2021$517 $(73)
Summary of Net-of-Tax Amounts Recorded in OCI Relating to Pension and OPEB Plans The following table is a summary of the net-of-tax amounts recorded in OCI relating to pension and OPEB plans.
Year ended December 31 (in millions)202220212020
Gain (loss) arising during the year, net of tax of $6 in 2022, $43 in 2021 and $17 in 2020
$(9)$160 $59 
Amortization of loss to earnings, net of tax of $6 in 2022, $17 in 2021 and $12 in 2020
24 65 47 
Settlement charges, net of tax of zero in 2022, zero in 2021 and $11 in 2020
1 2 35 
Pension and other employee benefits$16 $227 $141 
Net Periodic Benefit Cost - Continuing Operations
Year ended December 31 (in millions)202220212020
Pension benefits
Service cost$75 $87 $83 
Interest cost97 72 95 
Expected return on plan assets(157)(143)(163)
Amortization of net losses and other deferred amounts44 91 77 
Curtailment gain(13)— — 
Settlement charges1 2 46 
Other1 (4)— 
Net periodic pension benefit cost$48 $105 $138 
OPEB
Service cost$1 $1 $1 
Interest cost4 4 6 
Amortization of net losses and prior service credit(14)(9)(18)
Net periodic OPEB cost$(9)$(4)$(11)
Weighted-Average Assumptions Used in Determining Benefit Obligations at Measurement Date
Pension benefitsOPEB
2022202120222021
Discount rate
U.S. and Puerto Rico plans5.55 %3.01 %5.46 %2.76 %
International plans4.01 %1.47 %n/an/a
Rate of compensation increase
U.S. and Puerto Rico plans2.93 %3.68 %n/an/a
International plans3.34 %3.11 %n/an/a
Annual rate of increase in the per-capita costn/an/a6.50 %6.25 %
Rate decreased ton/an/a5.00 %5.00 %
by the year endedn/an/a20292027
Pension benefitsOPEB
202220212020202220212020
Discount rate
U.S. and Puerto Rico plans3.01 %2.73 %3.44 %2.76 %2.33 %3.16 %
International plans1.47 %1.00 %1.34 %n/an/an/a
Expected return on plan assets
U.S. and Puerto Rico plans5.00 %5.50 %6.50 %n/an/an/a
International plans3.82 %3.58 %4.23 %n/an/an/a
Rate of compensation increase
U.S. and Puerto Rico plans3.68 %3.68 %3.68 %n/an/an/a
International plans3.11 %3.03 %3.03 %n/an/an/a
Annual rate of increase in the per-capita costn/an/an/a6.50 %6.25 %6.50 %
Rate decreased ton/an/an/a5.00 %5.00 %5.00 %
by the year endedn/an/an/a202920272027
Fair Value of Pension Plan Assets and Liabilities
The following tables summarize our pension plan financial instruments that are measured at fair value on a recurring basis.
Basis of fair value measurement
(in millions)Balance at December 31, 2022Quoted prices
in active
markets for
identical assets
(Level 1)		Significant
other
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)		Measured at NAV (a)
Assets
Fixed income securities
Cash and cash equivalents$371 $74 $297 $— $— 
U.S. government and government agency issues46 — 46 — — 
Corporate bonds310 — 310 — — 
Equity securities
Common stock296 296 — — — 
Mutual funds340 184 156 — —
Common/collective trust funds790 — 251 — 539 
Partnership investments263 — — — 263 
Other holdings85 21 56 8 — 
Fair value of pension plan assets$2,501 $575 $1,116 $8 $802 
(a) Certain assets 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.
Basis of fair value measurement
(in millions)Balance at December 31, 2021Quoted prices
in active
markets for
identical assets
(Level 1)		Significant
other
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)		Measured at NAV (a)
Assets
Fixed income securities
Cash and cash equivalents$368 $50 $318 $— $— 
U.S. government and government agency issues271 — 271 — — 
Corporate bonds573 — 573 — — 
Equity securities
Common stock452 452 — — — 
Mutual funds521 235 286 — —
Common/collective trust funds1,118 — 358 — 760 
Partnership investments329 — — — 329 
Other holdings152 21 122 9 — 
Fair value of pension plan assets$3,784 $758 $1,928 $9 $1,089 
(a) Certain assets 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.
Changes in Fair Value Measurements that Used Significant Unobservable Inputs The following table is a reconciliation of changes in fair value measurements that used significant unobservable inputs (Level 3).
(in millions)Other
holdings
Balance at December 31, 2020$11 
Sales(2)
Balance at December 31, 20219 
Transfers out(1)
Balance at December 31, 2022$8 
Funded Status Percentage of Pension Plans The following table details the funded status percentage of our pension plans as of December 31, 2022, including certain plans that are unfunded in accordance with the guidelines of our funding policy outlined above.
United States and Puerto RicoInternational
as of December 31, 2022 (in millions)Qualified
plans		Nonqualified
plan		Funded
plans		Unfunded
plans		Total
Fair value of plan assets$1,745 n/a$756 n/a$2,501 
PBO1,969 $194 676 $307 3,146 
Funded status percentage89 %n/a112 %n/a79 %