PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2019

The net periodic benefit cost/(credit) of defined benefit pension plans includes:



	Year Ended December 31,
Dollars in Millions	2019			2018			2017
Service cost — benefits earned during the year	$	26		$	26		$	25
Interest cost on projected benefit obligation	115			193			188
Expected return on plan assets	(200		)	(386		)	(411		)
Amortization of prior service credits	(4		)	(4		)	(4		)
Amortization of net actuarial loss	59			74			82
Settlements and Curtailments	1,640			121			159
Special termination benefits	—			—			3
Net periodic pension benefit cost/(credit)	$	1,636		$	24		$	42

Changes in defined benefit pension plan obligations, assets, funded status and amounts recognized in the consolidated balance sheets were as follows:



	Year Ended December 31,
Dollars in Millions	2019			2018
Benefit obligations at beginning of year	$	5,966		$	6,749
Service cost—benefits earned during the year	26			26
Interest cost	115			193
Settlements and Curtailments	(4,105		)	(278		)
Actuarial losses/(gains)	777			(523		)
Benefits paid	(109		)	(123		)
Acquisition/Divestiture	262			—
Foreign currency and other	8			(78		)
Benefit obligations at end of year	$	2,940		$	5,966

Fair value of plan assets at beginning of year	$	6,129		$	6,749
Actual return on plan assets	804			(203		)
Employer contributions	63			71
Settlements	(4,104		)	(276		)
Benefits paid	(109		)	(123		)
Asset transfer	(424		)	—
Acquisition/Divestiture	164			—
Foreign currency and other	13			(89		)
Fair value of plan assets at end of year	$	2,536		$	6,129

(Unfunded)/Funded status	$	(404	)	$	163

Assets/(Liabilities) recognized:
Other non-current assets	$	192		$	622
Other current liabilities	(27		)	(32		)
Other non-current liabilities	(569		)	(427		)
Funded status	$	(404	)	$	163

Recognized in Accumulated other comprehensive loss:
Net actuarial losses	$	1,192		$	2,717
Prior service credit	(26		)	(30		)
Total	$	1,166		$	2,687

Additional information related to pension plans was as follows:



	December 31,
Dollars in Millions	2019		2018
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation	$	1,652	$	1,275
Fair value of plan assets	1,056		817
Pension plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation	1,417		1,181
Fair value of plan assets	875		757

Weighted-average assumptions used to determine defined benefit pension plan obligations were as follows:



	December 31,
	2019		2018
Discount rate	1.6	%	3.5	%
Rate of compensation increase	1.3	%	0.5	%

Weighted-average actuarial assumptions used to determine defined benefit pension plan net periodic benefit cost/(credit) were as follows:



	Year Ended December 31,
	2019		2018		2017
Discount rate	3.2	%	3.1	%	3.5	%
Expected long-term return on plan assets	4.5	%	6.2	%	7.0	%
Rate of compensation increase	0.5	%	0.5	%	0.5	%

The fair value of pension and postretirement plan assets by asset category at December 31, 2019 and 2018 was as follows:



	December 31, 2019								December 31, 2018
Dollars in Millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Plan Assets
Equity securities	$	87	$	—	$	—	$	87	$	124	$	—	$	—	$	124
Equity funds	4		544		—		548		2		475		—		477
Fixed income funds	—		769		—		769		—		606		—		606
Corporate debt securities	—		764		—		764		—		3,865		—		3,865
U.S. Treasury and agency securities	—		168		—		168		—		553		—		553
Short-term investment funds	—		—		—		—		—		55		—		55
Insurance contracts	—		—		128		128		—		—		134		134
Cash and cash equivalents	24		—		—		24		311		—		—		311
Other	—		111		33		144		—		105		19		124
Plan assets subject to leveling	$	115	$	2,356	$	161	$	2,632	$	437	$	5,659	$	153	$	6,249

Plan assets measured at NAV as a practical expedient
Venture capital and limited partnerships							$	1							$	121
Other							301								91
Total plan assets measured at NAV as a practical expedient							302								212
Net plan assets							$	2,934							$	6,461