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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Summary of Changes in Projected Benefit Obligation, Plan Assets, Funded Status, Amounts Recognized in Consolidated Balance Sheet and Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in benefit obligations and plan assets for the years ended December 31, and the funded status and amounts recognized in the Consolidated Balance Sheet at December 31 for the retirement plans:
 
    Pension Plans        Postretirement
Welfare Plan		  
(Dollars in Millions)   2020        2019        2020        2019  
         
Change In Projected Benefit Obligation
(a)
                 
 
                      
Benefit obligation at beginning of measurement period
   $ 6,829        $ 5,507        $ 47        $ 54  
Service cost
     235          192          –          –  
Interest cost
     235          249          1          2  
Participants’ contributions
     –          –          6          7  
Plan amendments
     (18 )         –          –          –  
Actuarial loss (gain)
     754          1,100          (4 )         (4 ) 
Lump sum settlements
     (55 )         (56 )         –          –  
Benefit payments
     (175 )         (163 )         (13 )         (13 ) 
Federal subsidy on benefits paid
     –          –          1          1  
Benefit obligation at end of measurement period
(b)
   $ 7,805        $ 6,829        $ 38        $ 47  
Change In Fair Value Of Plan Assets
                 
 
                      
Fair value at beginning of measurement period
   $ 5,838        $ 4,936        $ 84        $ 81  
Actual return on plan assets
     737          1,095          1          6  
Employer contributions
     1,153          26          5          4  
Participants’ contributions
     –          –          6          6  
Lump sum settlements
     (55 )         (56 )         –          –  
Benefit payments
     (175 )         (163 )         (13 )         (13 ) 
Other changes
(c)
     –          –          (83 )         –  
Fair value at end of measurement period
   $ 7,498        $ 5,838        $ –        $ 84  
Funded (Unfunded) Status
   $ (307 )       $ (991 )       $ (38 )       $ 37  
Components Of The Consolidated Balance Sheet
                 
 
                      
Noncurrent benefit asset
   $ 369        $ –        $ –        $ 37  
Current benefit liability
     (27 )         (25 )         (5 )         –  
Noncurrent benefit liability
     (649 )         (966 )         (33 )         –  
Recognized amount
   $ (307 )       $ (991 )       $ (38 )       $ 37  
Accumulated Other Comprehensive Income (Loss), Pretax
                 
 
                      
Net actuarial gain (loss)
   $ (2,557 )       $ (2,271 )       $ 63        $ 68  
Net prior service credit (cost)
     18          –          11          14  
Recognized amount
   $ (2,539 )       $ (2,271 )       $ 74        $ 82  
(a)
The increases in the projected benefit obligation for 2020 and 2019 were primarily due to decreases in the discount rate.
(b)
At December 31, 2020 and 2019, the accumulated benefit obligation for all pension plans was $7.1 billion and $6.2 billion, respectively.
(c)
The fair value of postretirement welfare plan assets decreased in 2020 due to the dissolution of the VEBA trust. Prior to dissolution, the remaining assets in the VEBA trust were used to pay benefits under other programs of the Company’s health and welfare plan, as permitted by the VEBA trust agreement. The postreirement welfare plan now operates as an unfunded plan.
Pension Plans with Benefit Obligations in Excess of Plan Assets
The following table provides information for pension plans with benefit obligations in excess of plan assets at December 31:
 
(Dollars in Millions)      2020        2019  
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
                      
Projected benefit obligation
      $ 676        $ 6,829  
Fair value of plan assets
        –          5,838  
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
                      
Accumulated benefit obligation
      $ 628        $ 553  
Fair value of plan assets
        –          –  
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
The following table sets forth the components of net periodic benefit cost and other amounts recognized in accumulated other comprehensive income (loss) for the years ended December 31 for the retirement plans:
 
    Pension Plans        Postretirement Welfare Plan  
(Dollars in Millions)   2020        2019        2018        2020        2019        2018  
             
Components Of Net Periodic Benefit Cost
                            
 
                                 
Service cost
   $ 235        $ 192        $ 208        $ –        $ –        $ –  
Interest cost
     235          249          224          1          2          2  
Expected return on plan assets
     (403 )         (383 )         (379 )         (3 )         (3 )         (3 ) 
Prior service cost (credit) and transition obligation (asset) amortization
     –          –          –          (3 )         (3 )         (3 ) 
Actuarial loss (gain) amortization
     134          98          146          (6 )         (6 )         (6 ) 
Net periodic benefit cost
   $ 201        $ 156        $ 199        $ (11 )       $ (10 )       $ (10 ) 
Other Changes In Plan Assets And Benefit Obligations
                            
 
                                 
Recognized In Other Comprehensive Income (Loss)
                            
 
                                 
Net actuarial gain (loss) arising during the year
   $ (420 )       $ (388 )       $ (305 )       $ 1        $ 7        $ 3  
Net actuarial loss (gain) amortized during the year
     134          98          146          (6 )         (6 )         (6 ) 
Net prior service (cost) credit and transition (obligation) asset arising during the year
     18          –          –          –          –          –  
Net prior service cost (credit) and transition obligation (asset) amortized during the year
     –          –          –          (3 )         (3 )         (3 ) 
Total recognized in other comprehensive income (loss)
   $ (268 )       $ (290 )       $ (159 )       $ (8 )       $ (2 )       $ (6 ) 
Total recognized in net periodic benefit cost and other comprehensive income (loss)
   $ (469 )       $ (446 )       $ (358 )       $ 3        $ 8        $ 4  
Weighted Average Assumptions to Determine Projected Benefit Obligations
The following table sets forth weighted average assumptions used to determine the projected benefit obligations at December 31:
 
    Pension Plans        Postretirement
Welfare Plan		  
(Dollars in Millions)   2020      2019        2020      2019  
Discount rate
(a)
     2.75 %       3.40 %         1.82 %       2.80 % 
Cash balance interest crediting rate
     3.00        3.00          *        *  
Rate of compensation increase
(b)
     3.56        3.56          *        *  
Health care cost trend rate
(c)
                                     
Prior to age 65
                         6.00 %       6.25 % 
After age 65
  
 
 
 
   
 
 
 
        6.00 %       6.25 % 
(a)
The discount rates were developed using a cash flow matching bond model with a modified duration for the qualified pension plan, legacy pension plan,
non-qualified
pension plan and postretirement welfare plan of 18.6, 12.9, 12.5
 
and 6.1 years, respectively, for 2020, and for the qualified pension plan,
non-qualified
pension plan and postretirement welfare plan of 15.8, 12.3 and 6.1 years, respectively, for 2019.
(b)
Determined on an active liability-weighted basis.
(c)
The 2020 and 2019
pre-65
and
post-65
rates are both assumed to decrease gradually to 5.00 percent by 2025 and remain at this level thereafter.
*
Not applicable
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost
The following table sets forth weighted average assumptions used to determine net periodic benefit cost for the years ended December 31:
 
    Pension Plans        Postretirement Welfare Plan  
(Dollars in Millions)   2020      2019      2018        2020      2019      2018  
Discount rate
(a)
     3.40 %       4.45 %       3.84 %         2.80 %       4.05 %       3.34 % 
Cash balance interest crediting rate
     3.00        3.00        3.00          *        *        *  
Expected return on plan assets
(b)
     7.25        7.25        7.25          3.50        3.50        3.50  
Rate of compensation increase
(c)
     3.56        3.52        3.56          *        *        *  
Health care cost trend rate
(d)
                                                       
Prior to age 65
                                  6.25 %       6.50 %       6.75 % 
After age 65
  
 
 
 
   
 
 
 
   
 
 
 
        6.25        10.00        6.75  
(a)
The discount rates were developed using a cash flow matching bond model with a modified duration for the qualified pension plan,
non-qualified
pension plan and postretirement welfare plan of 15.8, 12.3, and 6.1 years, respectively, for 2020, and 14.7, 11.5 and 5.9
 
years, respectively, for 2019.
(b)
With the help of an independent pension consultant, the Company considers several sources when developing its expected long-term rates of return on plan assets assumptions, including, but not limited to, past returns and estimates of future returns given the plans’ asset allocation, economic conditions, and peer group LTROR information. The Company determines its expected long-term rates of return reflecting current economic conditions and plan assets.
(c)
Determined on an active liability weighted basis.
(d)
The 2020, 2019 and 2018
pre-65
and
post-65
rates are both assumed to decrease gradually to 5.00 percent by 2025 and remain at that level thereafter.
*
Not applicable
Summary of Plan Investment Assets Measured at Fair Value
The following table summarizes plan investment assets measured at fair value at December 31:
 
    Qualified Pension Plan
s
     
Postretirement
Welfare Plan
  
    2020      2019      2020      2019  
(Dollars in Millions)   Level 1     Level 2      Level 3      Total      Level 1      Level 2      Level 3      Total      Level 1      Level 1  
Cash and cash equivalents
   $ 975
(a)
 		   $ –      $ –      $ 975      $ 58      $ –      $ –      $ 58      $ –      $ 40  
Debt securities
     894       1,224        –        2,118        727        1,073        –        1,800        –        –  
Mutual funds
                                
 
                                                      
Debt securities
     –       371        –        371        –        304        –        304        –        –  
Emerging markets equity securities
     –       174        –        174        –        136        –        136        –        –  
Other
     –       –        6        6        –        –        3        3        –        –  
    $ 1,869     $ 1,769      $ 6        3,644      $ 785      $ 1,513      $ 3        2,301        –        40  
Plan investment assets not classified in fair value hierarchy
(b)
:
                                
 
                                                      
Collective investment funds
                                
 
                                                      
Domestic equity securities
                               1,515                                   1,328        –        27  
Mid-small
cap equity securities
(c)
                               431                                   323        –        –  
International equity securities
                               718                                   752        –        17  
Domestic real estate securities
                               520                                   547        –        –  
Hedge funds
(d)
                               251                                   283        –        –  
Private equity funds
(e)
                               419                                   304        –        –  
Total plan investment assets at fair value
  
 
 
 
  
 
 
 
   
 
 
 
    $ 7,498     
 
 
 
   
 
 
 
   
 
 
 
    $ 5,838      $ –      $ 84  
(a)
Includes an employer contribution made in late 2020, which was invested consistently with the plan’s target asset allocation subsequent to December 31, 2020.
(b)
These investments are valued based on net asset value per share as a practical expedient; fair values are provided to reconcile to total investment assets of the plans at fair value.
(c)
At December 31, 2020 and 2019, securities included $431 million and $323 million in domestic equities, respectively.
(d)
This category consists of several investment strategies diversified across several hedge fund managers.
(e)
This category consists of several investment strategies diversified across several private equity fund managers.
Summarizes the Changes for Qualified Pension Plan Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3)
The following table summarizes the changes in fair value for qualified pension plans investment assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31:
 
    2020        2019        2018  
(Dollars in Millions)   Other        Other        Other  
Balance at beginning of period
   $ 3        $ 3        $ 2  
Unrealized gains (losses) relating to assets still held at end of year
     3          –          –  
Purchases, sales, and settlements, net
     –          –          1  
Balance at end of period
   $ 6        $ 3        $ 3  
Expected Future Benefit Payments
The following benefit payments are expected to be paid from the retirement plans for the years ended December 31:
 
(Dollars in Millions)   Pension
Plans		        Postretirement
Welfare Plan
(a)
  
2021
   $ 250        $ 5  
2022
     266          4  
2023
     292          4  
2024
     312          4  
2025
     362          3  
2026-2030
     1,880          12  
(a)
Net of expected retiree contributions and before Medicare Part D subsidy.