XML 51 R38.htm IDEA: XBRL DOCUMENT v3.20.4
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2020
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 millions2020201920202019
Change in projected benefit obligations:
Benefit obligations at beginning of year$4,097 $3,786 $220 $215 
Service cost35 34 1 1 
Interest cost112 145 5 7 
Actuarial changes in assumptions and experience393 453 2 12 
Benefits paid(281)(280)(8)(15)
Other 1
(127)(41)— — 
Benefit obligations at end of year$4,229 $4,097 $220 $220 
Change in plan assets:
Fair value of plan assets at beginning of year$3,148 $3,005 $— $— 
Actual return on plan assets344 464 — — 
Employer contributions2 2 — — 
Asset transfers (10)(43)— — 
Benefits paid(281)(280)— — 
Other 2
(108)— — — 
Fair value of plan assets at end of year$3,095 $3,148 $— $— 
Funded status at end of year$(1,134)$(949)$(220)$(220)

Net amounts recognized in the consolidated balance sheets at Dec 31:
Accrued and other current liabilities$(2)$(2)$(15)$(17)
Pension and other postretirement benefits - noncurrent(1,132)(947)(205)(203)
Net amount recognized$(1,134)$(949)$(220)$(220)
Pretax amounts recognized in accumulated other comprehensive loss at Dec 31:
Net loss (gain)$2,267 $2,137 $(52)$(60)
Prior service credit(9)(10)— — 
Pretax balance in accumulated other comprehensive loss at end of year$2,258 $2,127 $(52)$(60)
1.The 2020 impact relates primarily to the transfer of benefit obligations through the purchase of annuity contracts from an insurance company.
2.The 2020 impact relates to the purchase of annuity contracts associated with the transfer of benefit obligations to an insurance company.
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 3120202019
In millions
Projected benefit obligations$4,229 $4,097 
Fair value of plan assets$3,095 $3,148 
Schedule of Net Benefit Costs
Net Periodic Benefit Cost for All Plans for the Year Ended Dec 31Defined Benefit Pension PlansOther Postretirement Benefit Plan
In millions202020192018202020192018
Net Periodic Benefit Cost:
Service cost$35 $34 $39 $1 $1 $1 
Interest cost112 145 128 5 7 6 
Expected return on plan assets(200)(210)(218)— — — 
Amortization of prior service credit(1)(1)(1)— — — 
Amortization of net (gain) loss110 84 95 (6)(8)(9)
Net periodic benefit cost$56 $52 $43 $— $— $(2)
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
Net (gain) loss$240 $202 $31 $2 $11 $(2)
Amortization of prior service credit1 1 1 — — — 
Amortization of net gain (loss)(110)(84)(95)6 8 9 
Total recognized in other comprehensive (income) loss$131 $119 $(63)$8 $19 $7 
Total recognized in net periodic benefit cost and other comprehensive (income) loss$187 $171 $(20)$8 $19 $5 
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, 2020Defined Benefit Pension PlansOther Postretirement Benefit Plan
In millions
2021$287 $15 
2022263 15 
2023260 15 
2024257 16 
2025254 16 
2026 through 20301,190 73 
Total$2,511 $150 
Schedule of Allocation of Plan Assets
The weighted-average target allocation for plan assets of the Corporation's pension plans is summarized as follows:

Target Allocation for Plan Assets at Dec 31, 2020
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, 2020 and 2019:

Basis of Fair Value MeasurementsDec 31, 2020Dec 31, 2019
In millionsTotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Cash and cash equivalents$210 $158 $52 $— $160 $148 $12 $— 
Equity securities:
U.S. equity securities $313 $313 $— $— $346 $344 $2 $— 
Non - U.S. equity securities343 305 37 1 369 325 40 4 
Total equity securities$656 $618 $37 $1 $715 $669 $42 $4 
Fixed income securities:
Debt - government-issued$820 $10 $810 $— $812 $7 $805 $— 
Debt - corporate-issued494 15 479 — 455 9 446 — 
Debt - asset-backed25 — 25 — 13 — 13 — 
Total fixed income securities$1,339 $25 $1,314 $— $1,280 $16 $1,264 $— 
Alternative investments:
Private markets$6 $— $— $6 $5 $— $— $5 
Derivatives - asset position76 — 76 — — — — — 
Derivatives - liability position(38)— (38)— (3)— (3)— 
Total alternative investments$44 $— $38 $6 $2 $— $(3)$5 
Other investments $(5)$4 $(9)$— $2 $5 $(3)$— 
Subtotal$2,244 $805 $1,432 $7 $2,159 $838 $1,312 $9 
Investments measured at net asset value:
Hedge funds$212 $266 
Private markets392 389 
Real estate257 341 
Total investments measured at net asset value$861 $996 
Items to reconcile to fair value of plan assets:
Pension trust payables 1
(10)(7)
Total$3,095 $3,148 
1.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 Costs
for the Year Ended
20202019202020192018
Discount rate2.53 %3.29 %3.29 %4.32 %3.59 %
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 millions20202019
Accumulated benefit obligations$4,200 $4,071 
Fair value of plan assets$3,095 $3,148 
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, 2020 and 2019:

Fair Value Measurement of Level 3 Pension Plan AssetsEquity SecuritiesAlternative InvestmentsTotal
In millions
Balance at Jan 1, 2019$6 $— $6 
Actual return on plan assets:
Relating to assets held at Dec 31, 2019— (5)(5)
Purchases, sales and settlements(2)10 8 
Balance at Dec 31, 2019$4 $5 $9 
Actual return on plan assets:
Relating to assets held at Dec 31, 2020— 3 3 
Relating to assets sold during 2020— (4)(4)
Purchases, sales and settlements(3)2 (1)
Balance at Dec 31, 2020$1 $6 $7 
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 Costs
for the Year Ended
20202019202020192018
Discount rate2.34 %3.17 %3.17 %4.23 %3.51 %
Health care cost trend rate assumed for next year6.75 %6.25 %6.25 %6.50 %6.75 %
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 rate20282025202520252025