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PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
We have funded and unfunded defined benefit pension plans that cover certain employees in North America, Europe, Asia and Brazil. The United States plans comprise the majority of our obligation. All but one of these plans are frozen for all participants. The primary formula for United States salaried employees covered under the qualified defined benefit plan and the unfunded, nonqualifed Retirement Benefits Restoration Plan was based on years of service and final average salary, while the primary formula for United States hourly employees covered under the defined benefit plans was based on specific dollar amounts for each year of service. There were multiple formulas for employees covered under the qualified and nonqualified defined benefit plans that were sponsored by Maytag, including a cash balance formula. We have foreign pension plans that accrue benefits. The plans generally provide benefit payments using a formula that is based upon employee compensation and length of service.
In addition, we sponsor an unfunded Supplemental Executive Retirement Plan that remains open to new participants and additional benefit accruals. This plan is nonqualified and provides certain key employees additional defined pension benefits that supplement those provided by the Company's other retirement plans.
A defined contribution plan is provided to all United States employees and is not classified within the net periodic benefit cost. The Company provides annual match and automatic company contributions, in cash or Company stock, of up to 7% of employees' eligible pay. Our contributions during 2021, 2020 and 2019 were $91 million, $83 million and $84 million, respectively. $48 million
of our Company matching contributions to our defined contribution plan during 2020 were made in Company stock from May 2020 to December 2020.
We provide postretirement health care benefits for eligible retired employees in the United States, Canada and Brazil. For our United States plan, which comprises the majority of our obligation, eligible retirees include those who were full-time employees with 10 years of service who attained age 55 while in service with us and those union retirees who met the eligibility requirements of their collective bargaining agreements. In general, the postretirement health and welfare benefit plans include cost-sharing provisions that limit our exposure for recent and future retirees and are contributory, with participants' contributions adjusted annually. In the United States, benefits for certain retiree populations follow a defined contribution model that allocates certain monthly or annual amounts to a retiree's account under the plan.
During the third quarter of 2020, the Company announced changes to a postretirement medical benefit program for certain groups of retirees. These plan amendments were effective January 1, 2021 and reduced reimbursement amounts available under certain postretirement medical benefit programs and eliminated these benefits effective January 1, 2024 for these same retiree groups.
During the second quarter of 2020, the Company announced changes to a postretirement medical benefit program for certain groups of active employees. These plan amendments were effective July 1, 2020 and reduced medical benefits for these pre-Medicare eligible and Medicare-eligible active employees who retire on or after July 1, 2020 and eliminate certain benefits effective January 1, 2024.
These plan amendments resulted in a reduction in the accumulated postretirement benefit obligation of approximately $156 million with a corresponding adjustment of $118 million in other comprehensive income, net of $39 million in deferred taxes for the nine months ended September 30, 2020. This amount is being amortized as a reduction of future net periodic cost over approximately 3.4 years, which represents the future remaining service period of eligible active employees. The interim plan remeasurement associated with these amendments resulted in an actuarial loss of $12 million recorded in the Other Comprehensive Income (Loss).
For additional information, see Note 12 to the Consolidated Financial Statements.
The postretirement medical benefit programs are unfunded. We reserve the right to modify these benefits in the future.
Defined Benefit - Pensions and Other Postretirement Benefit Plans
Obligations and Funded Status at End of Year
 United States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement
Benefits
Millions of dollars202120202021202020212020
Funded status
Fair value of plan assets$2,904 $3,103 $665 $632 $— $— 
Benefit obligations2,968 3,237 924 1,029 166 191 
Funded status$(64)$(134)$(259)$(397)$(166)$(191)
Amounts recognized in the consolidated balance sheets
Noncurrent asset$56 $37 $20 $14 $— $— 
Current liability(9)(18)(12)(12)(24)(25)
Noncurrent liability(111)(153)(267)(399)(142)(166)
Amount recognized$(64)$(134)$(259)$(397)$(166)$(191)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
Net actuarial loss$1,180 $1,227 $184 $279 $14 $23 
Prior service (credit) cost1 1 3 3 (93)(140)
Amount recognized$1,181 $1,228 $187 $282 $(79)$(117)
Change in Benefit Obligation
 United States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement
Benefits
Millions of dollars202120202021202020212020
Benefit obligation, beginning of year$3,237 $3,141 $1,029 $941 $191 $355 
Service cost3 3 5 6 — 4 
Interest cost77 94 14 17 5 8 
Plan participants' contributions— — 1 1 — — 
Actuarial (gain) loss (99)282 (45)96 (8)9 
Benefits paid(234)(186)(29)(33)(21)(24)
Plan amendments— — — — — (156)
Transfer of liabilities— — (23)— — — 
Other adjustments— — — — — — 
Special termination benefit— — — — — — 
Settlements / curtailment (gain)(16)(97)(18)(37)— — 
Foreign currency exchange rates— — (10)38 (1)(5)
Reclassification of obligation to held for sale— — — — — — 
Benefit obligation, end of year$2,968 $3,237 $924 $1,029 $166 $191 
Accumulated benefit obligation, end of year$2,955 $3,222 $891 $987 N/AN/A
The actuarial (gain) loss for all pension and other postretirement benefit plans in 2021 and 2020 was primarily related to a change in the discount rate used to measure the benefit obligation of those plans.
Change in Plan Assets
 United States Pension BenefitsForeign
Pension Benefits		Other Postretirement
Benefits
Millions of dollars202120202021202020212020
Fair value of plan assets, beginning of year$3,103 $2,934 $632 $593 $— $— 
Actual return on plan assets31 447 56 58 — — 
Employer contribution20 5 30 29 21 24 
Plan participants' contributions— — 1 1 — — 
Benefits paid(234)(186)(29)(33)(21)(24)
Transfer of plan assets— — — — — — 
Other adjustments— — — — — — 
Settlements(16)(97)(17)(37)— — 
Foreign currency exchange rates— — (8)21 — — 
Reclassification of plan assets to held for sale— — — — — — 
Fair value of plan assets, end of year$2,904 $3,103 $665 $632 $— $— 
Components of Net Periodic Benefit Cost
 United States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement
Benefits
Millions of dollars202120202019202120202019202120202019
Service cost$3 $3 $2 $5 $6 $6 $— $4 $6 
Interest cost77 94 123 14 17 23 5 8 16 
Expected return on plan assets(158)(165)$(177)(34)(30)(29)— — — 
Amortization:
Actuarial loss69 62 $47 19 12 8 — — 1 
Prior service cost (credit)— — (2)— — — (46)(28)(16)
Special termination benefit— — $— — — — — — — 
Curtailment (gain) / loss— — — — — — — (3)— 
Settlement loss5 39 9 2 11 2 — — — 
Net periodic benefit cost$(4)$33 $2 $6 $16 $10 $(41)$(19)$7 
The following table summarizes the net periodic cost recognized in operating profit and interest and sundry (income) expense for the years ending December 31, 2021, 2020 and 2019:
 United States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement
Benefits
Millions of dollars202120202019202120202019202120202019
Operating profit (loss)$3 $3 $2 $5 $6 $6 $— $4 $6 
Interest and sundry (income) expense(7)30 — 1 10 4 (41)(23)1 
Net periodic benefit cost$(4)$33 $2 $6 $16 $10 $(41)$(19)$7 
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Pre-Tax) in 2021
Millions of dollarsUnited States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement
Benefits
Current year actuarial loss / (gain)$27 $(74)$(9)
Actuarial (loss) recognized during the year(74)(21)— 
Current year prior service cost (credit)— — — 
Prior service credit (cost) recognized during the year— — 47 
Total recognized in other comprehensive income (loss) (pre-tax)$(47)$(95)$38 
Total recognized in net periodic benefit costs and other comprehensive income (loss) (pre-tax)$(51)$(89)$(3)
We amortize actuarial losses and prior service costs (credits) over a period of up to 21 years and 13 years, respectively.
Assumptions
Weighted-Average Assumptions used to Determine Benefit Obligation at End of Year
 United States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement
Benefits
 202120202021202020212020
Discount rate2.85 %2.50 %1.89 %1.55 %3.41 %2.98 %
Rate of compensation increase4.50 %4.50 %3.59 %3.47 %N/AN/A
Interest crediting rate for cash balance plans1.60 %1.25 %2.36 %1.99 %N/AN/A
Weighted-Average Assumptions used to Determine Net Periodic Cost
 United States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement
Benefits
 202120202019202120202019202120202019
Discount rate2.50%3.13%4.30%1.55%2.04%2.90%3.66%3.35%4.80%
Expected long-term rate of return on plan assets6.00%6.25%6.50%5.48%5.39%5.56%N/AN/AN/A
Rate of compensation increase4.50%4.50%4.50%3.47%3.10%3.29%N/AN/AN/A
Interest crediting rate for cash balance plans1.25%2.05%3.05%1.99%1.80%2.19%N/AN/AN/A
Health care cost trend rate
Initial rateN/AN/AN/AN/AN/AN/A6.00%6.25%6.50%
Ultimate rateN/AN/AN/AN/AN/AN/A5.00%5.00%5.00%
Year that ultimate rate will be reachedN/AN/AN/AN/AN/AN/A202520252025
Discount Rate
For our United States pension and postretirement benefit plans, the discount rate was selected using a hypothetical portfolio of high quality bonds outstanding at December 31 that would provide the necessary cash flows to match our projected benefit payments. For our foreign pension and postretirement benefit plans, the discount rate was primarily selected using high quality bond yields for the respective country or region covered by the plan.
Expected Return on Plan Assets
In the United States, the expected return on plan assets is developed considering asset mix, historical asset class data and long-term expectations. The resulting weighted-average return was rounded to the nearest quarter of one percent and applied to the fair value of plan assets at December 31, 2021.
For foreign pension plans, the expected rate of return on plan assets was primarily determined by observing historical returns in the local fixed income and equity markets and computing the weighted average returns with the weights being the asset allocation of each plan.
Cash Flows
Funding Policy
Our funding policy is to contribute to our qualified United States pension plans amounts sufficient to meet the minimum funding requirement as defined by employee benefit and tax laws, plus additional amounts which we may determine to be appropriate. In certain countries other than the United States, the funding of pension plans is not common practice. Contributions to our United States pension plans may be made in the form of cash or, in the case of our defined contribution plan in our discretion, company stock. We pay for retiree medical benefits as they are incurred.
There have been no contributions to the pension trust for our U.S. defined benefit plans during the twelve months ended December 31, 2021 and 2020.
Expected Employer Contributions to Funded Plans
Millions of dollarsUnited States
Pension Benefits		Foreign
Pension Benefits
2022$— $19 
Expected Benefit Payments
Millions of dollarsUnited States
Pension Benefits		Foreign
Pension Benefits		Other Postretirement Benefits
2022$291 $36 $24 
20232353624
20242313612
20252204010
2026215389
2027-2031$950 $209 $41 
Plan Assets
Our overall investment strategy is to achieve an appropriate mix of investments for long-term growth and for near-term benefit payments with a wide diversification of asset types, fund strategies, and investment fund managers. The target allocation for our plans is approximately 20% in growth assets and 80% in immunizing fixed income securities, with exceptions for foreign pension plans. The fixed income securities duration is intended to match that of our United States pension liabilities.
Plan assets are reported at fair value based on an exit price, representing the amount that would be received to sell an asset in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset. As a basis for considering such assumptions, a three-tiered fair value hierarchy is established, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets that are observable, either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Certain investments are valued based on net asset value (NAV), which approximates fair value. Such basis is determined by referencing the respective fund's underlying assets. There are no unfunded commitments or other restrictions associated with these investments. We manage the process and approve the results of a third-party pricing service to value the majority of our securities and to determine the appropriate level in the fair value hierarchy.
The fair values of our pension plan assets at December 31, 2021 and 2020, by asset category were as follows:
December 31,
Quoted prices
(Level 1)		Other significant
observable inputs
(Level 2)		Significant
unobservable inputs
(Level 3)		Net Asset ValueTotal
Millions of dollars2021202020212020202120202021202020212020
Cash and cash equivalents$— $— $162 $281 $— $— $— $— $162 $281 
Government and government agency securities (1)
U.S. securities— — 264 182 — — — — 264 182 
International securities— — 92 99 — — — — 92 99 
Corporate bonds and notes (1)
U.S. companies— — 1,585 1,691 — — — — 1,585 1,691 
International companies— — 286 279 — — — — 286 279 
Equity securities (2)
U.S. companies— — — — — — — — — — 
International companies36 47 — — — — — — 36 47 
Mutual funds (3)
— — 103 108 — — — — 103 108 
Investments at net asset value
U.S. equity securities (4)
— — — — — — 308 448 308 448 
International equity securities (4)
— — — — — — 177 180 177 180 
Short-term investment fund (4)
— — — — — — 43 24 43 24 
International debt securities (5)
— — — — — — 178 208 178 208 
International equity securities (5)
— — — — — — 62 53 62 53 
Real estate (6)
— — — — — — 55 13 55 13 
Limited partnerships (7)
U.S. private equity investments— — — — 26 38 — — 26 38 
Diversified fund of funds— — — — 3 3 — — 3 3 
Emerging growth— — — — 3 3 — — 3 3 
All other investments— — 29 48 — — 157 30 186 78 
$36 $47 $2,521 $2,688 $32 $44 $980 $956 $3,569 $3,735 
(1)Valued using pricing vendors who use proprietary models to estimate the price a dealer would pay to buy a security using significant observable inputs, such as interest rates, yield curves, and credit risk.
(2)Valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year.
(3)Valued using the net asset value (NAV) of the fund, which is based on the fair value of underlying securities. The fund primarily invests in a diversified portfolio of equity securities, fixed income debt securities and real estate issued by non-U.S. companies.
(4)Common and collective trust funds valued using the NAV of the fund, which is based on the fair value of underlying securities.
(5)Fund of funds valued using the NAV of the fund, which is based on the fair value of underlying securities. International debt securities includes corporate bonds and notes and government and government agency securities.
(6)Valued using the NAV of the fund, which is based on the fair value of underlying assets.
(7)Valued at estimated fair value based on the proportionate share of the limited partnership's fair value, as determined by the general partner.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Millions of dollarsLimited
Partnerships
Balance, December 31, 2020
$44 
Realized gain / (loss) (net)13 
Unrealized gain / (loss) (net)2 
Purchases— 
Settlements(27)
Balance, December 31, 2021
$32 
Additional Information
The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2021 and 2020 were as follows:
 United States
Pension Benefits		Foreign
Pension Benefits
Millions of dollars2021202020212020
Projected benefit obligation$2,507 $2,718 $851 $951 
Fair value of plan assets$2,386 $2,547 $578 $546 
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2021 and 2020 were as follows:
 United States
Pension Benefits		Foreign
Pension Benefits
Millions of dollars 2021202020212020
Projected benefit obligation$2,507 $2,718 $851 $951 
Accumulated benefit obligation2,494 2,703 831 921 
Fair value of plan assets$2,386 $2,547 $578 $546