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Pension and Other Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Reconciliation of the Change in Benefit Obligation and Plan Assets and Funded Status
The following tables set forth the reconciliation of the beginning and ending balances of the benefit obligation and plan assets, the funded status and the amounts recognized in these financial statements for the defined benefit and other postretirement plans (in millions):
 
Pension Benefits
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
Accumulated benefit obligation:
$
5,333

 
$
4,448

 
 
 
 
Change in projected benefit obligation:
 
 
 
Projected benefit obligation at beginning of year
$
5,396

 
$
5,852

Service cost
184

 
228

Interest cost
226

 
217

Actuarial (gain) loss
784

 
(601
)
Gross benefits paid and settlements
(200
)
 
(292
)
Other
8

 
(8
)
Projected benefit obligation at end of year
$
6,398

 
$
5,396

 
 
 
 
Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
$
3,827

 
$
3,932

Actual (loss) return on plan assets
684

 
(215
)
Employer contributions
649

 
413

Gross benefits paid and settlements
(200
)
 
(292
)
Other
4

 
(11
)
Fair value of plan assets at end of year
$
4,964

 
$
3,827

Funded status—Net amount recognized
$
(1,434
)
 
$
(1,569
)

 
Pension Benefits
 
December 31, 2019
 
December 31, 2018
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Noncurrent asset
$
14

 
$
13

Current liability
(2
)
 
(6
)
Noncurrent liability
(1,446
)
 
(1,576
)
Total liability
$
(1,434
)
 
$
(1,569
)
 
 
 
 
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
Net actuarial loss
$
(1,652
)
 
$
(1,382
)
Prior service cost
(4
)
 
(5
)
Total accumulated other comprehensive loss
$
(1,656
)
 
$
(1,387
)
 
 
 
 
 
Other Postretirement Benefits
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
1,391

 
$
1,710

Service cost
10

 
12

Interest cost
47

 
61

Plan participants' contributions
67

 
68

Benefits paid
(180
)
 
(181
)
Actuarial loss (gain)
99

 
(285
)
Plan amendments
(597
)
 
—

Other
5

 
6

Benefit obligation at end of year
$
842

 
$
1,391

 
 
 
 
Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
$
53

 
$
54

Actual return on plan assets
1

 
1

Employer contributions
111

 
111

Plan participants' contributions
67

 
68

Benefits paid
(180
)
 
(181
)
Fair value of plan assets at end of year
52

 
53

Funded status—Net amount recognized
$
(790
)
 
$
(1,338
)
Amounts Recognized in Consolidated Balance Sheet and Accumulated Other Comprehensive Income (Loss)
 
Pension Benefits
 
December 31, 2019
 
December 31, 2018
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Noncurrent asset
$
14

 
$
13

Current liability
(2
)
 
(6
)
Noncurrent liability
(1,446
)
 
(1,576
)
Total liability
$
(1,434
)
 
$
(1,569
)
 
 
 
 
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
Net actuarial loss
$
(1,652
)
 
$
(1,382
)
Prior service cost
(4
)
 
(5
)
Total accumulated other comprehensive loss
$
(1,656
)
 
$
(1,387
)
 
 
 
 
 
Other Postretirement Benefits
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
1,391

 
$
1,710

Service cost
10

 
12

Interest cost
47

 
61

Plan participants' contributions
67

 
68

Benefits paid
(180
)
 
(181
)
Actuarial loss (gain)
99

 
(285
)
Plan amendments
(597
)
 
—

Other
5

 
6

Benefit obligation at end of year
$
842

 
$
1,391

 
 
 
 
Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
$
53

 
$
54

Actual return on plan assets
1

 
1

Employer contributions
111

 
111

Plan participants' contributions
67

 
68

Benefits paid
(180
)
 
(181
)
Fair value of plan assets at end of year
52

 
53

Funded status—Net amount recognized
$
(790
)
 
$
(1,338
)

 
Other Postretirement Benefits
 
December 31, 2019
 
December 31, 2018
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
Current liability
$
(1
)
 
$
(43
)
Noncurrent liability
(789
)
 
(1,295
)
Total liability
$
(790
)
 
$
(1,338
)
Amounts recognized in accumulated other comprehensive income consist of:
 
 
 
Net actuarial gain
$
403

 
$
554

Prior service credit
693

 
170

Total accumulated other comprehensive income
$
1,096

 
$
724
Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets
The following information relates to all pension plans with an accumulated benefit obligation and a projected benefit obligation in excess of plan assets at December 31 (in millions):
 
2019
 
2018
Projected benefit obligation
$
6,161

 
$
5,196

Accumulated benefit obligation
5,137

 
4,286

Fair value of plan assets
4,714

 
3,614
Components Of Net Periodic Benefit Cost
Net periodic benefit cost for the years ended December 31 included the following components (in millions):
 
2019
 
2018
 
2017
 
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Other Postretirement Benefits
Service cost
$
184

 
$
10

 
$
228

 
$
12

 
$
195

 
$
13

Interest cost
226

 
47

 
217

 
61

 
220

 
66

Expected return on plan assets
(291
)
 
(1
)
 
(292
)
 
(2
)
 
(243
)
 
(2
)
Amortization of unrecognized actuarial (gain) loss
118

 
(52
)
 
130

 
(32
)
 
128

 
(33
)
Amortization of prior service credits
—

 
(73
)
 
—

 
(37
)
 
—

 
(37
)
Other
5

 
—

 
1

 
—

 
5

 
—

Net periodic benefit cost (credit)
$
242

 
$
(69
)
 
$
284

 
$
2

 
$
305

 
$
7
Assumptions Used for Benefit Plans
The assumptions used for the benefit plans were as follows: 
 
 
Pension Benefits
Assumptions used to determine benefit obligations
 
2019
 
2018
Discount rate
 
3.52
%
 
4.20
%
Rate of compensation increase
 
3.89
%
 
3.89
%
 
 
 
 
 
Assumptions used to determine net expense
 
 
Discount rate
 
4.21
%
 
3.65
%
Expected return on plan assets
 
7.40
%
 
7.31
%
Rate of compensation increase
 
3.89
%
 
3.89
%

 
 
Other Postretirement Benefits
Assumptions used to determine benefit obligations
 
2019
 
2018
Discount rate
 
3.35
%
 
4.30
%
 
 
 
 
 
Assumptions used to determine net expense
 
 
 
 
Discount rate
 
4.30
%
 
3.63
%
Expected return on plan assets
 
3.00
%
 
3.00
%
Health care cost trend rate assumed for next year
 
6.00
%
 
6.00
%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate in 2033)
 
5.00
%
 
5.00
%
Allocation of Plan Assets United's plan assets are allocated within the following guidelines:
 
 Percent of Total
 
Expected Long-Term
Rate of Return
Equity securities
30-45
%
 
10
%
Fixed-income securities
35-50
 
 
5
 
Alternatives
15-25
 
 
7
 
Pension and Other Postretirement Plan Assets
The following tables present information about United's pension and other postretirement plan assets at December 31, (in millions):
 
 
2019
 
 
2018
Pension Plan Assets:
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Assets Measured at NAV(a)
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Assets Measured at NAV(a)
Equity securities funds
 
$
1,957

 
$
47

 
$
117

 
$
71

 
$
1,722

 
 
$
1,457

 
$
254

 
$
106

 
$
63

 
$
1,034

Fixed-income securities
 
1,732

 
—

 
687

 
69

 
976

 
 
1,520

 
—

 
628

 
87

 
805

Alternatives
 
776

 
—

 
—

 
205

 
571

 
 
596

 
—

 
—

 
134

 
462

Other investments
 
499

 
466

 
21

 
12

 
—

 
 
254

 
224

 
17

 
13

 
—

Total
 
$
4,964

 
$
513

 
$
825

 
$
357

 
$
3,269

 
 
$
3,827

 
$
478

 
$
751

 
$
297

 
$
2,301

Other Postretirement Benefit Plan Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit administration fund
 
$
52

 
$
—

 
$
—

 
$
52

 
$
—

 
 
$
53

 
$
—

 
$
—

 
$
53

 
$
—

(a) In accordance with the relevant accounting standards, certain investments that are measured at fair value using the net asset value ("NAV") per share (or its equivalent) have not been classified in the fair value hierarchy. These investments are commingled funds that invest in fixed-income instruments including bonds, debt securities, and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. Redemption periods for these investments range from daily to semiannually.
Defined Benefit Plan Assets Measured at Fair Value Using Unobservable Inputs
The reconciliation of United's benefit plan assets measured at fair value using unobservable inputs (Level 3) for the years ended December 31, 2019 and 2018 is as follows (in millions):
 
2019
 
2018
Balance at beginning of year
$
350

 
$
383

Actual return (loss) on plan assets:
 
 
 
Sold during the year
12

 
10

Held at year end
(1
)
 
(21
)
Purchases, sales, issuances and settlements (net)
48

 
(22
)
Balance at end of year
$
409

 
$
350
Estimated Future Benefit Payments
The estimated future benefit payments, net of expected participant contributions, in United's pension plans and other postretirement benefit plans as of December 31, 2019 are as follows (in millions):
 
Pension
 
Other Postretirement
2020
$
361

 
$
53

2021
386

 
56

2022
399

 
59

2023
410

 
62

2024
399

 
64

Years 2025 – 2029
2,219

 
328
Participation in the IAM National Pension Plan United's participation in the IAM National Pension Plan ("IAM Plan") for the annual period ended December 31, 2019 is outlined in the table below. Except as described in table below, there have been no other changes that affect the comparability of 2019 and 2018 contributions. The risks of participating in these multi-employer plans are different from single-employer plans, as United may be subject to additional risks that others do not meet their obligations, which in certain circumstances could revert to United. The IAM Plan reported $467 million in employers' contributions for the year ended December 31, 2018. For 2018, the Company's contributions to the IAM Plan represented more than 5% of total contributions to the IAM Plan. The 2019 information is not available as Form 5500 is not final for the plan year.
Pension Fund
IAM National Pension Fund
EIN/ Pension Plan Number
51-6031295 - 002
Pension Protection Act Zone Status (2019 and 2018)
Red Zone (2019) and Green Zone (2018). Plans in the Green Zone are at least 80 percent funded. Plans in the Red Zone are less than 65% funded. The IAM National Pension Fund Board of Trustees voluntarily elected to place the fund in the Red Zone for 2019, although the fund was over 80% funded at the time, to protect the fund's participants' core retirement benefits and strengthen the fund's financial health over the long term.
FIP/RP Status Pending/Implemented
A 10-year Rehabilitation Plan effective, January 1, 2022, was adopted on April 17, 2019 that requires the Company to make an additional contribution of 2.5% of the hourly contribution rate, compounded annually for the length of the Rehabilitation Plan, effective June 1, 2019.
United's Contributions
$59 million, $52 million and $50 million in the years ended December 31, 2019, 2018 and 2017, respectively
Surcharge Imposed
No
Expiration Date of Collective Bargaining Agreement
N/A