Pension and Other Postretirement Benefits (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
Retirement Benefits [Abstract] |
|
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan |
The following tables provide certain information regarding the Company's pension, postretirement and supplemental retirement plans as of December 31, 2021 and 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | (Dollars in millions) | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | Change in benefit obligation: | | | | | | | | | | | | Benefit obligation at beginning of year | $ | 226 | | $ | 261 | | $ | 2 | | $ | 3 | | $ | 23 | | $ | 24 | Service cost | — | | — | | — | | — | | — | | — | Interest cost | 5 | | 7 | | — | | — | | 1 | | 1 | Plan participants' contributions | — | | — | | — | | — | | — | | — | Actuarial (gain) loss | (3) | | (10) | | — | | (1) | | (1) | | (1) | Benefits paid | (13) | | (10) | | — | | — | | (1) | | (1) | (Gain) loss due to settlement | — | | (21) | | — | | — | | — | | — | Plan amendments | — | | — | | — | | — | | — | | — | Exchange rate differences and other | — | | (1) | | — | | — | | — | | — | Benefit obligation at end of year | $ | 215 | | $ | 226 | | $ | 2 | | $ | 2 | | $ | 22 | | $ | 23 | Change in plan assets: | | | | | | | | | | | | Fair value of plan assets at beginning of year | $ | 151 | | $ | 158 | | $ | 1 | | $ | 1 | | $ | 11 | | $ | 10 | Actual return on plan assets | 15 | | 19 | | — | | — | | 1 | | 1 | Plan participants' contributions | — | | — | | — | | — | | — | | — | Employer contributions | 13 | | 6 | | — | | — | | 1 | | 1 | Benefits paid | (13) | | (10) | | — | | — | | (1) | | (1) | (Loss) gain due to settlement | — | | (21) | | — | | — | | — | | — | Exchange rate differences and other | — | | (1) | | — | | — | | — | | — | Fair value of plan assets at end of year | 166 | | 151 | | 1 | | 1 | | 12 | | 11 | Contributions between measurement date and year end | — | | — | | — | | — | | — | | — | Funded status of the plans at year end | $ | (49) | | $ | (75) | | $ | (1) | | $ | (1) | | $ | (10) | | $ | (12) |
|
Schedule of Amounts Recognized in Balance Sheet |
The amounts recognized in the Consolidated Balance Sheet, as of December 31, 2021 and 2020 consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | (Dollars in millions) | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | Noncurrent assets | $ | — | | $ | — | | $ | 1 | | $ | 1 | | $ | — | | $ | — | Current liabilities | — | | — | | — | | — | | — | | — | Noncurrent liabilities | (49) | | (75) | | (2) | | (2) | | (10) | | (11) | Net liability recognized | $ | (49) | | $ | (75) | | $ | (1) | | $ | (1) | | $ | (10) | | $ | (11) |
|
Schedule of Amounts Recognized in Other Comprehensive Earnings |
Amounts recognized in accumulated other comprehensive income (before taxes) at December 31, 2021 and 2020 consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | (Dollars in millions) | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | Prior service cost | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Net actuarial loss (gain) | 40 | | 52 | | (1) | | (2) | | 6 | | 7 | Total amount recognized in accumulated other comprehensive losses (earnings) | $ | 40 | | $ | 52 | | $ | (1) | | $ | (2) | | $ | 6 | | $ | 7 |
|
Schedule of Pension Plans with ABO and PBO in Excess of the Fair Value of Plan Assets |
The table below presents information for the pension plans with an ABO and PBO in excess of the fair value of plan assets at December 31, 2021 and 2020. | | | | | | | | | | | | (Dollars in millions) | December 31, 2021 | | December 31, 2020 | Projected benefit obligation | $ | 237 | | | $ | 249 | | Accumulated benefit obligation | 237 | | | 249 | | Fair value of plan assets | 178 | | | 162 | |
|
Defined Benefit Plan, Assumptions |
The following table summarizes the weighted average actuarial assumptions used to determine our benefit obligations at December 31, 2021 and 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | | 2021 | | 2020 | | 2021 | | 2020 | | 2021 | | 2020 | Rate assumptions | | | | | | | | | | | | Discount rate | 2.8 | % | | 2.4 | % | | 2.6 | % | | 4.3 | % | | 2.8 | % | | 2.5 | % | Increase in future compensation levels | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | Expected long-term return on plan assets | 5.9 | % | | 6.4 | % | | 5.9 | % | | 6.4 | % | | N/A | | N/A | Health care trend rate assumed for next year | N/A | | N/A | | 4.6 | % | | 5.4 | % | | N/A | | N/A | Ultimate health care trend rate | N/A | | N/A | | 4.3 | % | | 4.3 | % | | N/A | | N/A | Year rate reaches ultimate trend rate | N/A | | N/A | | 2031 | | 2031 | | N/A | | N/A |
The following table summarizes the weighted average actuarial assumptions used to determine our net periodic cost of the plans for the years ended December 31, 2021, 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | | 2021 | | 2020 | | 2019 | | 2021 | | 2020 | | 2019 | | 2021 | | 2020 | | 2019 | Rate assumptions | | | | | | | | | | | | | | | | | | Discount rate | 2.8 | % | | 2.7 | % | | 3.6 | % | | 2.1 | % | | 2.8 | % | | 3.3 | % | | 2.4 | % | | 2.4 | % | | 3.5 | % | Expected long - term return on plan assets | 6.4 | % | | 6.3 | % | | 6.9 | % | | 6.4 | % | | 5.8 | % | | 5.7 | % | | N/A | | N/A | | N/A | Increase in future compensation levels | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | Health care trend rate assumed for next year | N/A | | N/A | | N/A | | 5.8 | % | | 6.0 | % | | 6.5 | % | | N/A | | N/A | | N/A | Ultimate health care trend rate | N/A | | N/A | | N/A | | 4.5 | % | | 4.5 | % | | 4.5 | % | | N/A | | N/A | | N/A | Year rate reaches ultimate trend rate | N/A | | N/A | | N/A | | 2030 | | 2029 | | 2027 | | N/A | | N/A | | N/A |
|
Schedule of Net Benefit Costs |
The following table summarizes the components of net periodic benefit cost for the Company's pension, postretirement and supplemental retirement plans for the years ended December 31, 2021 and 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | (Dollars in millions) | 2021 | | 2020 | | 2019 | | 2021 | | 2020 | | 2019 | | 2021 | | 2020 | | 2019 | Service cost | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | Interest cost | $ | 5 | | | $ | 7 | | | $ | 7 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1 | | | $ | 1 | | | $ | 1 | | Expected return on plan assets | $ | (7) | | | $ | (8) | | | $ | (7) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | Amortization of net actuarial loss (gain) | $ | 2 | | | $ | 3 | | | $ | 2 | | | $ | (1) | | | $ | (1) | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | Amortization of prior service cost | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | Settlement expense (income) | $ | — | | | $ | 3 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | $ | — | | | $ | — | | Net periodic benefit cost | $ | — | | | $ | 5 | | | $ | 2 | | | $ | (1) | | | $ | (1) | | | $ | — | | | $ | 1 | | | $ | 1 | | | $ | 1 | |
|
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income |
The following table summarizes the other changes in plan assets and benefit obligations recognized in other comprehensive earnings for the Company's pension, postretirement and supplemental retirement benefit plans for the years ended December 31, 2021 and 2020 and 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | (Dollars in millions) | 2021 | | 2020 | | 2019 | | 2021 | | 2020 | | 2019 | | 2021 | | 2020 | | 2019 | Net actuarial (gain) loss | $ | (11) | | | $ | (21) | | | $ | 19 | | | $ | — | | | $ | (1) | | | $ | (1) | | | $ | (1) | | | $ | (1) | | | $ | 4 | | Prior service cost | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Amortization of net actuarial (loss) gain from prior years | (2) | | | (6) | | | (2) | | | 1 | | | 1 | | | — | | | — | | | — | | | — | | Amortization of prior service cost | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Other(1) | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total recognized in other comprehensive income | $ | (13) | | | $ | (27) | | | $ | 17 | | | $ | 1 | | | $ | — | | | $ | (1) | | | $ | (1) | | | $ | (1) | | | $ | 4 | |
________________ (1) Includes foreign exchange translation.
|
Schedule of Allocation of Plan Assets |
The table below represents all of the Company's funded pension plans' and postretirement benefit plans' weighted-average asset allocation at December 31, 2021 and 2020 by asset category: | | | | | | | | | | | | | Asset Allocation | | 2021 | | 2020 | Asset Category | | | | Equity securities | 41 | % | | 55 | % | Debt securities | 47 | % | | 33 | % | Real estate | 6 | % | | 6 | % | Other, primarily cash and cash equivalents, and hedge funds | 6 | % | | 6 | % |
The table below presents the target allocation ranges for each major asset category for the Company's benefit plans for the years ended December 31, 2021 and 2020. | | | | | | | | | | | | | Target Asset Allocation Range | | 2021 | | 2020 | Asset Category | | | | Equity securities | 40% - 60% | | 40% - 60% | Debt securities | 30% - 50% | | 40% - 50% | Real estate | 5% - 10% | | 5% - 10% | Other, primarily cash and cash equivalents and hedge funds | 5% - 10% | | 5% - 10% |
|
Schedule of Fair Value of Category of Plan Assets |
The following tables provides the fair value of plan assets held by our defined benefit plan by asset category and by fair value hierarchy level. Certain investments are measured at their NAV per share and do not have readily determined fair values. As such, these investments are not subject to leveling in the fair value hierarchy. | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | (Dollars in millions) | Level 1 | | Level 2 | | Level 3 | | Total | Asset category | | | | | | | | Investments measured at fair value: | $ | — | | | $ | — | | | $ | — | | | $ | — | | Cash and cash equivalents | $ | 11 | | | $ | — | | | $ | — | | | $ | 11 | | Equity securities | 6 | | | — | | | — | | | 6 | | Debt securities | — | | | — | | | — | | | — | | Total | $ | 17 | | | $ | — | | | $ | — | | | $ | 17 | | Investments measured at NAV: | | | | | | | | Collective trust funds | — | | | — | | | — | | | 162 | | Equity and fixed income funds | — | | | — | | | — | | | — | | Total | $ | 17 | | | $ | — | | | $ | — | | | $ | 179 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | (Dollars in millions) | Level 1 | | Level 2 | | Level 3 | | Total | Asset category | | | | | | | | Investments measured at fair value: | | | | | | | | Cash and cash equivalents | $ | 9 | | | $ | — | | | $ | — | | | $ | 9 | | Equity securities | 6 | | | — | | | — | | | 6 | | Debt securities | — | | | — | | | — | | | — | | Total | $ | 15 | | | $ | — | | | $ | — | | | $ | 15 | | Investments measured at NAV: | | | | | | | | Collective trust funds | — | | | — | | | — | | | 148 | | Equity and fixed income funds | — | | | — | | | — | | | — | | Total | $ | 15 | | | $ | — | | | $ | — | | | $ | 163 | |
|
Schedule of Expected Benefit Payments |
The following table presents expected pension and postretirement benefit payments over the next 10 years: | | | | | | | | | | | | | | | | | | (Dollars in millions) | Defined Benefit Pension Plans | | Postretirement Benefit Plans | | Supplemental Retirement Plans | Year Ending December 31, | | | | | | 2022 | $ | 12 | | | $ | — | | | $ | 1 | | 2023 | 12 | | — | | 1 | 2024 | 13 | | — | | 1 | 2025 | 13 | | — | | 1 | 2026 | 13 | | — | | 1 | 2027-2031 | 63 | | — | | 6 |
|