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Pension, Retiree Medical and Retiree Savings Plans (Tables)
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Funded status of pension plans
 20222021
Change in benefit obligation:  
Benefit obligation at beginning of year$1,069 $1,133 
Service cost
Interest cost31 32 
Plan amendments
— 
Benefits paid(29)(33)
Settlement payments(59)(67)
Actuarial (gain) loss(264)(5)
Benefit obligation at end of year$755 $1,069 
A significant component of the overall decrease in the Company’s benefit obligation for the year ended December 31, 2022, was due to an actuarial gain, which was primarily due to an increase in the discount rate used to measure our benefit obligation from 3.00% at December 31, 2021 to 5.60% at December 31, 2022.

A significant component of the overall decrease in the Company’s benefit obligation for the year ended December 31, 2021, was due to settlement payments, which were primarily related to a resource optimization program initiated in the third quarter of 2020 (see Note 5).
20222021
Change in plan assets:
Fair value of plan assets at beginning of year$1,010 $1,014 
Actual return on plan assets(272)88 
Employer contributions14 
Benefits paid(29)(33)
Settlement payments(59)(67)
Fair value of plan assets at end of year$664 $1,010 
 Funded status at end of year$(91)$(59)
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 20222021
Accrued benefit asset - non-current$— $43 
Accrued benefit liability - current(6)(7)
Accrued benefit liability - non-current(85)(95)
 $(91)$(59)
Pension plans with an accumulated benefit obligation in excess of pan assets
The table below provides information for those pension plan(s) with an accumulated benefit obligation in excess of plan assets. The pension plan(s) included also have a projected benefit obligation in excess of plan assets.
 20222021
Projected benefit obligation$755 $102 
Accumulated benefit obligation740 98 
Fair value of plan assets644 — 
Components of net periodic benefit cost
Components of net periodic benefit cost:
202220212020
Service cost$$$
Interest cost31 32 35 
Amortization of prior service cost(a)
Expected return on plan assets(46)(43)(43)
Amortization of net loss11 14 14 
Net periodic benefit cost$$17 $19 

Additional (gain) loss recognized due to:

Settlement charges(b)
$$— $— 
Special termination benefits
$— $— $

(a)Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.
Pension losses in accumulated other comprehensive income (loss)
Pension gains (losses) in AOCI:
 20222021
Beginning of year$(43)$(111)
Net actuarial gain (loss)(54)49 
Amortization of net loss11 14 
Amortization of prior service cost
Prior service cost— (1)
Settlement charges— 
End of year$(74)$(43)
Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income
Accumulated pre-tax losses recognized within AOCI:
 20222021
Actuarial net loss$(70)$(33)
Prior service cost(4)(10)
 $(74)$(43)
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost
Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 20222021
Discount rate5.60 %3.00 %
Rate of compensation increase3.00 %3.00 %
Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
2022
2021
2020
Discount rate3.00 %2.80 %3.50 %
Long-term rate of return on plan assets5.40 %5.25 %5.50 %
Rate of compensation increase3.00 %3.00 %3.00 %
Schedule of Changes in Fair Value of Plan Assets
The fair values of our pension plan assets at December 31, 2022 and 2021 by asset category and level within the fair value hierarchy are as follows:

 20222021
Level 1:
Cash$$237 
Cash Equivalents(a)
22 80 
Fixed Income Securities - U.S. Corporate(b)
14 41 
Level 2:  
Fixed Income Securities - U.S. Corporate(c)
22 49 
Fixed Income Securities - U.S. Government and Government Agencies(d)
118 175 
Fixed Income Securities - Other(d)
19 30 
Total assets in the fair value hierarchy196 612 
Investments measured at net asset value(e)
Fixed Income146 — 
Equity Securities179 456 
Real Assets192 — 
Total fair value of plan assets(f)
$713 $1,068 

(a)Short-term investments in money market funds.

(b)Securities held in common or collective trusts.
(c)Investments held directly by the Plan.
(d)Includes securities held in common or collective trusts and investments held directly by the Plan.

(e)Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.

(f)2022 and 2021 exclude net unsettled trade payables of $49 million and $58 million, respectively.
Fair values of pension plan assets As of December 31, 2022, the Plan’s assets consist of the weighted-average target allocation summarized as follows:
Asset CategoryTarget Allocation
Fixed income49 %
Equity securities32 %
Real assets19 %
Expected benefit payments
The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:

Year ended:
2023$48 
202449 
202553 
202657 
202755 
2028 - 2032281