XML 68 R45.htm IDEA: XBRL DOCUMENT v3.22.0.1
Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Schedule of estimated future benefit payments
The Combined Pension Plan payments, post-retirement health care benefit payments and premiums, and life insurance premium payments are either distributed from plan assets or paid by us. The estimated benefit payments provided below are based on actuarial assumptions using the demographics of the employee and retiree populations and have been reduced by estimated participant contributions.
Combined Pension PlanPost-Retirement
Benefit Plans		Medicare Part D
Subsidy Receipts
 (Dollars in millions)
Estimated future benefit payments:   
2022$850 220 (3)
2023729 216 (3)
2024706 211 (3)
2025686 206 (3)
2026664 200 (3)
2027 - 20312,978 899 (10)
Schedule of actuarial assumptions used to compute net periodic benefit expense
The actuarial assumptions used to compute the net periodic benefit expense for our Combined Pension Plan and post-retirement benefit plans are based upon information available as of the beginning of the year, as presented in the following table.
 Combined Pension PlanPost-Retirement Benefit Plans
 202120202019202120202019
Actuarial assumptions at beginning of year:      
Discount rate
1.70% - 2.88%
2.79% - 3.55%
3.94% - 4.44%
1.58% - 2.60%
1.69% - 3.35%
3.84% - 4.38%
Rate of compensation increase3.25 %3.25 %3.25 %N/AN/AN/A
Expected long-term rate of return on plan assets(1)
5.50 %6.50 %6.50 %4.00 %4.00 %4.00 %
Initial health care cost trend rateN/AN/AN/A
6.25% / 5.00%
6.50% / 5.00%
6.50% / 5.00%
Ultimate health care cost trend rateN/AN/AN/A4.50 %4.50 %4.50 %
Year ultimate trend rate is reachedN/AN/AN/A202520252025
_______________________________________________________________________________
N/A - Not applicable
(1)Rates are presented net of projected fees and administrative costs.
Schedule of components of net periodic pension income and post-retirement benefit expense
Net periodic benefit expense (income) for our Combined Pension Plan includes the following components:
 Combined Pension Plan
Years Ended December 31,
 202120202019
 (Dollars in millions)
Service cost$56 59 56 
Interest cost201 324 436 
Expected return on plan assets(535)(593)(618)
Settlement charges383 — — 
Special termination benefits charge6 13 6 
Recognition of prior service credit(9)(9)(8)
Recognition of actuarial loss184 202 223 
Net periodic pension expense (income)$286 (4)95 

Net periodic benefit expense for our post-retirement benefit plans includes the following components:
 Post-Retirement Plans
Years Ended December 31,
 202120202019
 (Dollars in millions)
Service cost$14 14 15 
Interest cost47 69 110 
Expected return on plan assets— (1)(1)
Recognition of prior service cost15 16 16 
Recognition of actuarial loss4 — — 
Curtailment loss— 8 — 
Net periodic post-retirement benefit expense$80 106 140 
Schedule of actuarial assumptions used to compute the funded status for the plans
The actuarial assumptions used to compute the funded status for the plans are based upon information available as of December 31, 2021 and 2020 and are as follows:
 Combined Pension PlanPost-Retirement Benefit Plans
 December 31,December 31,
 2021202020212020
Actuarial assumptions at end of year:    
Discount rate2.85 %2.43 %2.84 %2.40 %
Rate of compensation increase3.25 %3.25 %N/AN/A
Initial health care cost trend rateN/AN/A
5.75% / 5.00%
6.25% / 5.00%
Ultimate health care cost trend rateN/AN/A4.50 %4.50 %
Year ultimate trend rate is reachedN/AN/A20252025
_______________________________________________________________________________
N/A - Not applicable
Schedule of change in benefit obligation
The following tables summarize the change in the benefit obligations for the Combined Pension Plan and post-retirement benefit plans:
 Combined Pension Plan
Years Ended December 31,
 202120202019
 (Dollars in millions)
Change in benefit obligation   
Benefit obligation at beginning of year$12,202 12,217 11,594 
Service cost56 59 56 
Interest cost201 324 436 
Plan amendments(13)(3)(9)
Special termination benefits charge6 13 6 
Actuarial (gain) loss(337)749 1,249 
Benefits paid from plan assets(766)(1,157)(1,115)
Settlement payments and annuity purchase(1,671)— — 
Benefit obligation at end of year$9,678 12,202 12,217 
 Post-Retirement Benefit Plans
Years Ended December 31,
 202120202019
 (Dollars in millions)
Change in benefit obligation   
Benefit obligation at beginning of year$3,048 3,037 2,977 
Service cost14 14 15 
Interest cost47 69 110 
Participant contributions41 46 52 
Direct subsidy receipts3 6 7 
Actuarial (gain) loss(125)134 180 
Curtailment loss— 4 — 
Benefits paid by company(247)(255)(300)
Benefits paid from plan assets— (7)(4)
Benefit obligation at end of year$2,781 3,048 3,037 
Schedule of change in plan assets
The following table summarizes the change in the fair value of plan assets for the Combined Pension Plan:

 Combined Pension Plan
Years Ended December 31,
 202120202019
 (Dollars in millions)
Change in plan assets   
Fair value of plan assets at beginning of year$10,546 10,493 10,033 
Return on plan assets422 1,210 1,575 
Benefits paid from plan assets(766)(1,157)(1,115)
Settlement payments and annuity purchase(1,671)— — 
Fair value of plan assets at end of year$8,531 10,546 10,493 
Schedule of fair value of the plans' assets by asset category
The table below present the fair value of plan assets by category and the input levels used to determine those fair values at December 31, 2021. It is important to note that the asset allocations do not include market exposures that are gained with derivatives. Investments include dividend and interest receivables, pending trades and accrued expenses.
 Fair Value of Combined Pension Plan Assets at December 31, 2021
 Level 1Level 2Level 3Total
 (Dollars in millions)
Assets
Investment grade bonds (a)$862 3,744 — 4,606 
High yield bonds (b)— 172 6 178 
Emerging market bonds (c)64 169 — 233 
U.S. stocks (d)330 3 5 338 
Non-U.S. stocks (e)256 — — 256 
Multi-asset strategies (l)41 — — 41 
Derivatives (m)— 1 — 1 
Cash equivalents and short-term investments (o)2 379 — 381 
Total investments, excluding investments valued at NAV$1,555 4,468 11 6,034 
Liabilities
Repurchase agreements (n)$— (193)— (193)
Investments valued at NAV2,690 
Total pension plan assets   $8,531 
The table below present the fair value of plan assets by category and the input levels used to determine those fair values at December 31, 2020. It is important to note that the asset allocations do not include market exposures that are gained with derivatives. Investments include dividend and interest receivable, pending trades and accrued expenses.
 Fair Value of Combined Pension Plan Assets at December 31, 2020
 Level 1Level 2Level 3Total
 (Dollars in millions)
Assets
Investment grade bonds (a)$726 4,066 — 4,792 
High yield bonds (b)— 262 6 268 
Emerging market bonds (c)218 172 — 390 
U.S. stocks (d)653 — 2 655 
Non-U.S. stocks (e)593 1 — 594 
Multi-asset strategies (l)199 — — 199 
Cash equivalents and short-term investments (o)— 281 — 281 
Total investments, excluding investments valued at NAV$2,389 4,782 8 7,179 
Liabilities
Derivatives (m)$— (1)— (1)
Investments valued at NAV3,368 
Total pension plan assets   $10,546 

The table below presents the fair value of plan assets valued at NAV by category for our Combined Pension Plan at December 31, 2021 and 2020.
 Fair Value of Plan Assets Valued at NAV
 Combined Pension Plan at
December 31,
20212020
 (Dollars in millions)
Investment grade bonds (a)$127 352 
High yield bonds (b)70 25 
U.S. stocks (d)71 192 
Non-U.S. stocks (e)398 308 
Emerging market stocks (f)11 81 
Private equity (g)348 283 
Private debt (h)495 505 
Market neutral hedge funds (i)141 222 
Directional hedge funds (j)241 254 
Real estate (k)420 543 
Multi-asset strategies (l)38 375 
Cash equivalents and short-term investments (o)330 228 
Total investments valued at NAV$2,690 3,368 
Schedule of gross notional exposure of the derivative instruments directly held by the plans
 Gross Notional Exposure
 Combined Pension Plan
Years Ended December 31,
 20212020
 (Dollars in millions)
Derivative instruments:  
Exchange-traded U.S. equity futures$108 84 
Exchange-traded Treasury and other interest rate futures1,688 1,033 
Exchange-traded Foreign currency futures11 12 
Exchange-traded EURO futures5 6 
Interest rate swaps127 124 
Credit default swaps132 43 
Index swaps1,036 1,297 
Foreign exchange forwards93 769 
Options654 222 
Summary of changes in fair value of defined benefit plans' Level 3 assets
The table below presents a rollforward of the Combined Pension Plan assets valued using Level 3 inputs:
 Combined Pension Plan Assets Valued Using Level 3 Inputs
 High
Yield
Bonds		U.S. StocksPrivate DebtTotal
 (Dollars in millions)
Balance at December 31, 2019$5 1 16 22 
Acquisitions (dispositions)1 — (17)(16)
Actual return on plan assets— 1 1 2 
Balance at December 31, 20206 2 — 8 
Actual return on plan assets— 3 — 3 
Balance at December 31, 2021$6 5 — 11 
Schedule of the unfunded status of the benefit plans
The following table presents the unfunded status of the Combined Pension Plan and post-retirement benefit plans:
 Combined Pension PlanPost-Retirement
Benefit Plans
 Years Ended December 31,Years Ended December 31,
 2021202020212020
 (Dollars in millions)
Benefit obligation$(9,678)(12,202)(2,781)(3,048)
Fair value of plan assets8,531 10,546 5 5 
Unfunded status(1,147)(1,656)(2,776)(3,043)
Current portion of unfunded status— — (212)(228)
Non-current portion of unfunded status$(1,147)(1,656)(2,564)(2,815)
Schedule of items not recognized as a component of net periodic benefits expense
The following table presents cumulative items not recognized as a component of net periodic benefits expense as of December 31, 2020, items recognized as a component of net periodic benefits expense in 2021, additional items deferred during 2021 and cumulative items not recognized as a component of net periodic benefits expense as of December 31, 2021. The items not recognized as a component of net periodic benefits expense have been recorded on our consolidated balance sheets in accumulated other comprehensive loss:

 As of and for the Years Ended December 31,
 2020Recognition
of Net
Periodic
Benefits
Expense		DeferralsNet
Change in
AOCL		2021
 (Dollars in millions)
Accumulated other comprehensive (loss) income     
Pension plans:     
Net actuarial (loss) gain$(2,993)186 243 429 (2,564)
Settlement charge— 383 — 383 383 
Prior service benefit (cost)41 (9)13 4 45 
Deferred income tax benefit (expense)755 (137)(59)(196)559 
Total pension plans(2,197)423 197 620 (1,577)
Post-retirement benefit plans:     
Net actuarial (loss) gain(346)4 125 129 (217)
Prior service (cost) benefit(20)15 — 15 (5)
Curtailment loss4 — — — 4 
Deferred income tax benefit (expense)90 (5)(31)(36)54 
Total post-retirement benefit plans(272)14 94 108 (164)
Total accumulated other comprehensive (loss) income$(2,469)437 291 728 (1,741)
The following table presents cumulative items not recognized as a component of net periodic benefits expense as of December 31, 2019, items recognized as a component of net periodic benefits expense in 2020, additional items deferred during 2020 and cumulative items not recognized as a component of net periodic benefits expense as of December 31, 2019. The items not recognized as a component of net periodic benefits expense have been recorded on our consolidated balance sheets in accumulated other comprehensive loss:

 As of and for the Years Ended December 31,
 2019Recognition
of Net
Periodic
Benefits
Expense		DeferralsNet
Change in
AOCL		2020
 (Dollars in millions)
Accumulated other comprehensive (loss) income     
Pension plans:     
Net actuarial (loss) gain$(3,046)203 (150)53 (2,993)
Prior service benefit (cost)47 (9)3 (6)41 
Deferred income tax benefit (expense)770 (47)32 (15)755 
Total pension plans(2,229)147 (115)32 (2,197)
Post-retirement benefit plans:     
Net actuarial (loss) gain(175)— (171)(171)(346)
Prior service (cost) benefit(71)16 35 51 (20)
Curtailment loss— 4 — 4 4 
Deferred income tax benefit (expense)62 (5)33 28 90 
Total post-retirement benefit plans(184)15 (103)(88)(272)
Total accumulated other comprehensive (loss) income$(2,413)162 (218)(56)(2,469)