XML 132 R59.htm IDEA: XBRL DOCUMENT v3.20.4
EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]  
Schedule of funded status of the plans reconciled to the amount reported in the balance sheets

As of or for the Years Ended

 

Pension

 

Postretirement

December 31,

 

U.S. Plans(a)

 

Non-U.S. Plans(a)

 

U.S. Plans

 

Non-U.S. Plans

(in millions)

 

2020

 

2019

 

 

2020

 

2019

 

2020

 

2019

 

 

2020

 

2019

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation, beginning of year

$

4,972

$

4,553

 

$

1,174

$

1,138

$

181

$

172

 

$

61

$

50

Service cost

 

5

 

5

 

 

21

 

21

 

1

 

1

 

 

1

 

1

Interest cost

 

134

 

176

 

 

10

 

15

 

5

 

6

 

 

2

 

2

Actuarial loss

 

612

 

536

 

 

1

 

91

 

17

 

15

 

 

8

 

8

Benefits paid:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AIG assets

 

(17)

 

(18)

 

 

(9)

 

(8)

 

(13)

 

(13)

 

 

(1)

 

(1)

Plan assets

 

(294)

 

(279)

 

 

(21)

 

(33)

 

-

 

-

 

 

-

 

-

Plan amendment

 

-

 

-

 

 

18

 

-

 

-

 

-

 

 

-

 

-

Curtailments

 

-

 

-

 

 

-

 

(2)

 

-

 

-

 

 

-

 

-

Settlements

 

-

 

-

 

 

(24)

 

(67)

 

-

 

-

 

 

-

 

-

Foreign exchange effect

 

-

 

-

 

 

60

 

18

 

-

 

-

 

 

-

 

1

Other

 

(2)

 

(1)

 

 

1

 

1

 

-

 

-

 

 

-

 

-

Projected benefit obligation, end of year

$

5,410

$

4,972

 

$

1,231

$

1,174

$

191

$

181

 

$

71

$

61

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of year

$

4,465

$

3,840

 

$

899

$

861

$

-

$

-

 

$

-

$

-

Actual return on plan assets, net of expenses

 

760

 

744

 

 

37

 

64

 

-

 

-

 

 

-

 

-

AIG contributions

 

17

 

178

 

 

49

 

63

 

13

 

13

 

 

1

 

1

Benefits paid:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AIG assets

 

(17)

 

(18)

 

 

(9)

 

(8)

 

(13)

 

(13)

 

 

(1)

 

(1)

Plan assets

 

(294)

 

(279)

 

 

(21)

 

(33)

 

-

 

-

 

 

-

 

-

Settlements

 

-

 

-

 

 

(24)

 

(67)

 

-

 

-

 

 

-

 

-

Foreign exchange effect

 

-

 

-

 

 

46

 

19

 

-

 

-

 

 

-

 

-

Fair value of plan assets, end of year

$

4,931

$

4,465

 

$

977

$

899

$

-

$

-

 

$

-

$

-

Funded status, end of year

$

(479)

$

(507)

 

$

(254)

$

(275)

$

(191)

$

(181)

 

$

(71)

$

(61)

Amounts recognized in the balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

-

$

-

 

$

73

$

65

$

-

$

-

 

$

-

$

-

Liabilities

 

(479)

 

(507)

 

 

(327)

 

(340)

 

(191)

 

(181)

 

 

(71)

 

(61)

Total amounts recognized

$

(479)

$

(507)

 

$

(254)

$

(275)

$

(191)

$

(181)

 

$

(71)

$

(61)

Pre-tax amounts recognized in Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss)

$

(1,493)

$

(1,436)

 

$

(178)

$

(195)

$

(7)

$

10

 

$

(14)

$

(6)

Prior service (cost) credit

 

-

 

-

 

 

(40)

 

(22)

 

-

 

-

 

 

-

 

1

Total amounts recognized

$

(1,493)

$

(1,436)

 

$

(218)

$

(217)

$

(7)

$

10

 

$

(14)

$

(5)

(a)Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $282 million and $261 million for the U.S. at December 31, 2020 and 2019, respectively, and $243 million and $225 million for the non-U.S. at December 31, 2020 and 2019, respectively.
Schedule of accumulated benefit obligations

At December 31,

 

 

 

 

(in millions)

 

2020

 

2019

U.S. pension benefit plans

$

5,410

$

4,972

Non-U.S. pension benefit plans

$

1,213

$

1,159
Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets

At December 31,

PBO Exceeds Fair Value of Plan Assets

ABO Exceeds Fair Value of Plan Assets

 

 

U.S. Plans

 

Non-U.S. Plans

 

U.S. Plans

 

Non-U.S. Plans

(in millions)

 

2020

 

2019

 

2020

 

2019

 

2020

 

2019

 

2020

 

2019

Projected benefit obligation

$

5,410

$

4,972

$

1,019

$

1,005

$

-

$

-

$

-

$

-

Accumulated benefit obligation

 

-

 

-

 

-

 

-

 

5,410

 

4,972

 

931

 

931

Fair value of plan assets

 

4,931

 

4,465

 

620

 

605

 

4,931

 

4,465

 

620

 

605
Schedule of components of net periodic benefit cost

Years Ended December 31,

Pension

 

Postretirement

 

U.S. Plans

 

Non-U.S. Plans

 

U.S. Plans

 

Non-U.S. Plans

(in millions)

 

2020

 

2019

 

2018

 

 

2020

 

2019

 

2018

 

 

2020

 

2019

 

2018

 

 

2020

 

2019

 

2018

Components of net periodic benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost*

$

5

$

5

$

5

 

$

21

$

21

$

22

 

$

1

$

1

$

1

 

$

1

$

1

$

1

Interest cost

 

134

 

176

 

162

 

 

10

 

15

 

16

 

 

5

 

6

 

6

 

 

2

 

2

 

2

Expected return on assets

 

(239)

 

(229)

 

(283)

 

 

(21)

 

(21)

 

(25)

 

 

-

 

-

 

-

 

 

-

 

-

 

-

Amortization of prior service cost (credit)

 

-

 

-

 

-

 

 

2

 

2

 

2

 

 

-

 

-

 

(1)

 

 

(1)

 

(2)

 

(2)

Amortization of net (gain) loss

 

33

 

35

 

28

 

 

8

 

5

 

7

 

 

-

 

(1)

 

-

 

 

-

 

-

 

1

Net periodic benefit cost (credit)

 

(67)

 

(13)

 

(88)

 

 

20

 

22

-

22

 

 

6

 

6

 

6

 

 

2

 

1

 

2

Settlement (credit) charges

 

-

 

-

 

-

 

 

3

 

(2)

 

-

 

 

-

 

-

 

-

 

 

-

 

-

 

-

Net benefit cost (credit)

$

(67)

$

(13)

$

(88)

 

$

23

$

20

$

22

 

$

6

$

6

$

6

 

$

2

$

1

$

2

Total recognized in Accumulated other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

comprehensive income (loss)

$

(57)

$

14

$

(77)

 

$

(1)

$

(45)

$

20

 

$

(17)

$

(17)

$

9

 

$

(9)

$

(10)

$

12

Total recognized in net periodic benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

cost and other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income (loss)

$

10

$

27

$

11

 

$

(24)

$

(65)

$

(2)

 

$

(23)

$

(23)

$

3

 

$

(11)

$

(11)

$

10

*Reflects administrative fees for the U.S. pension plans.
Schedule of weighted average assumptions used to determine the benefit obligations

 

Pension

 

Postretirement

 

U.S. Plans

 

 

Non-U.S. Plans

(a)

 

U.S. Plans

 

Non-U.S. Plans(a)

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

2.28

%

 

 

 

1.00

%

 

2.25

%

 

 

2.33

%

Interest crediting rate

1.57

%

 

 

 

0.72

%(b)

 

N/A

 

 

 

N/A

 

Rate of compensation increase

N/A

(c)

 

 

 

2.28

%

 

N/A

 

 

 

N/A

%

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

3.16

%

 

 

 

1.09

%

 

3.14

%

 

 

3.18

%

Interest crediting rate

2.19

%

 

 

 

0.44

%(b)

 

N/A

 

 

 

N/A

 

Rate of compensation increase

N/A

(c)

 

 

 

2.22

%

 

N/A

 

 

 

3.00

%

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b) Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.

(c) Compensation increases are no longer applicable as the plan is frozen effective January 1, 2016.
Schedule of assumed health care cost trend rates

At December 31,

2020

2019

Following year:

 

 

Medical (before age 65)

5.55%

5.74%

Medical (age 65 and older)

5.00%

5.00%

Ultimate rate to which cost increase is assumed to decline

4.50%

4.50%

Year in which the ultimate trend rate is reached:

 

 

Medical (before age 65)

2038

2038

Medical (age 65 and older)

2038

2038
Schedule of weighted average assumptions used to determine the net periodic benefit costs

 

Pension

 

Postretirement

 

U.S. Plans

 

Non-U.S. Plans(a)

 

 

U.S. Plans

 

Non-U.S. Plans(a)

 

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

3.16

%

 

 

1.09

%

 

3.14

%

 

 

3.18

%

Interest crediting rate

2.19

%

 

 

0.44

%(b)

 

N/A

 

 

 

N/A

 

Rate of compensation increase

N/A

 

 

 

2.22

%

 

N/A

 

 

 

3.00

%

Expected return on assets

5.55

%

 

 

2.32

%

 

N/A

 

 

 

N/A

 

For the Year Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

4.22

%

 

 

1.71

%

 

4.17

%

 

 

4.12

%

Interest crediting rate

3.34

%

 

 

0.74

%(b)

 

N/A

 

 

 

N/A

 

Rate of compensation increase

N/A

 

 

 

2.27

%

 

N/A

 

 

 

3.00

%

Expected return on assets

6.20

%

 

 

2.51

%

 

N/A

 

 

 

N/A

 

For the Year Ended December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

3.61

%

 

 

1.60

%

 

3.53

%

 

 

3.59

%

Interest crediting rate

2.88

%

 

 

0.70

%(b)

 

N/A

 

 

 

N/A

 

Rate of compensation increase

N/A

 

 

 

2.27

%

 

N/A

 

 

 

3.00

%

Expected return on assets

6.75

%

 

 

2.78

%

 

N/A

 

 

 

N/A

 

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b) Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.
Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls

 

U.S. Plans

 

Non-U.S. Plans

 

(in millions)

Level 1

Level 2

Level 3

Total

 

Level 1

Level 2

Level 3

Total

 

At December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

247

$

-

$

-

$

247

 

$

83

$

-

$

-

$

83

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(a)

 

459

 

-

 

-

 

459

 

 

-

 

-

 

-

 

-

 

International(b)

 

183

 

-

 

-

 

183

 

 

155

 

58

 

-

 

213

 

Fixed maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. investment grade(c)

 

-

 

2,217

 

10

 

2,227

 

 

-

 

-

 

-

 

-

 

International investment grade(c)

 

-

 

237

 

-

 

237

 

 

-

 

174

 

-

 

174

 

U.S. and international high yield(d)

 

-

 

282

 

-

 

282

 

 

-

 

269

 

-

 

269

 

Mortgage and other asset-backed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

-

 

49

 

-

 

49

 

 

-

 

-

 

-

 

-

 

Other investment types(e):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Futures

 

3

 

(7)

 

-

 

(4)

 

 

-

 

-

 

-

 

-

 

Direct private equity(f)

 

-

 

-

 

6

 

6

 

 

-

 

-

 

-

 

-

 

Insurance contracts

 

-

 

13

 

-

 

13

 

 

-

 

-

 

179

 

179

 

Mutual funds(g)

 

-

 

-

 

-

 

-

 

 

-

 

59

 

-

 

59

 

Total

$

892

$

2,791

$

16

$

3,699

 

$

238

$

560

$

179

$

977

 

At December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

133

$

-

$

-

$

133

 

$

90

$

-

$

-

$

90

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(a)

 

278

 

-

 

-

 

278

 

 

-

 

-

 

-

 

-

 

International(b)

 

161

 

25

 

-

 

186

 

 

156

 

49

 

-

 

205

 

Fixed maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. investment grade(c)

 

-

 

2,200

 

9

 

2,209

 

 

-

 

-

 

-

 

-

 

International investment grade(c)

 

-

 

203

 

-

 

203

 

 

-

 

158

 

-

 

158

 

U.S. and international high yield(d)

 

-

 

106

 

-

 

106

 

 

-

 

229

 

-

 

229

 

Mortgage and other asset-backed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

-

 

48

 

-

 

48

 

 

-

 

-

 

-

 

-

 

Other investment types(e):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Futures

 

(17)

 

-

 

-

 

(17)

 

 

-

 

-

 

-

 

-

 

Direct private equity(f)

 

-

 

-

 

11

 

11

 

 

-

 

-

 

-

 

-

 

Insurance contracts

 

-

 

14

 

-

 

14

 

 

-

 

-

 

160

 

160

 

Mutual funds(g)

 

-

 

-

 

-

 

-

 

 

-

 

57

 

-

 

57

 

Total

$

555

$

2,596

$

20

$

3,171

 

$

246

$

493

$

160

$

899

 

(a) Includes passive and active U.S. equity strategies.

(b) Includes passive and active international equity strategies.

(c) Includes investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.

(e) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $1,232 million and $1,294 million at December 31, 2020 and 2019, respectively.

(f) Comprised of private capital financing including private debt and private equity securities.

(g) Comprised of mutual fund investing in variety of equity, derivatives, and bonds.
Schedule of changes in Level 3 plan assets measured at fair value

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in

Changes in Unrealized

 

 

 

 

Realized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

Gains (Losses) Included

 

 

 

 

and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (Losses)

in Other Comprehensive

 

 

Balance

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance

 

on Instruments

Income (Loss) for Recurring

At December 31, 2020

 

Beginning

 

Gains

 

 

 

 

 

 

 

 

 

Transfers

 

Transfers

 

at End

Held at

Level 3 Instruments

(in millions)

 

of Year

 

(Losses)

 

Purchases

 

Sales

Issuances

Settlements

 

In

 

Out

 

of Year

 

End of Year

Held at End of Year

U.S. Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. investment grade

$

9

$

1

$

-

$

-

$

-

$

-

$

-

$

-

$

10

$

-

$

-

Direct private equity

 

11

 

(3)

 

-

 

(2)

 

-

 

-

 

-

 

-

 

6

 

(3)

 

-

Total

$

20

$

(2)

$

-

$

(2)

$

-

$

-

$

-

$

-

$

16

$

(3)

$

-

Non-U.S. Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance contracts

$

160

$

18

$

1

$

-

$

-

$

-

$

-

$

-

$

179

$

-

$

-

Total

$

160

$

18

$

1

$

-

$

-

$

-

$

-

$

-

$

179

$

-

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized Gains

 

 

Balance

 

Realized and

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance

 

(Losses) on

At December 31, 2019

 

Beginning

 

Unrealized

 

 

 

 

 

 

 

 

 

Transfers

 

Transfers

 

at End

 

Instruments Held

(in millions)

 

of year

 

Gains (Losses)

 

Purchases

 

Sales

 

Issuances

 

Settlements

 

In

 

Out

 

of year

 

at End of year

U.S. Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. investment grade

$

13

$

3

$

-

$

(3)

$

-

$

-

$

-

$

(4)

$

9

$

3

Direct private equity

 

14

 

(3)

 

2

 

(2)

 

-

 

-

 

-

 

-

 

11

 

2

Total

$

27

$

-

$

2

$

(5)

$

-

$

-

$

-

$

(4)

$

20

$

5

Non-U.S. Plan Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance contracts

$

145

$

16

$

(1)

$

-

$

-

$

-

$

-

$

-

$

160

$

-

Total

$

145

$

16

$

(1)

$

-

$

-

$

-

$

-

$

-

$

160

$

-
Schedule of expected future benefit payments, net of participants' contributions

 

 

Pension

 

Postretirement

 

 

U.S.

 

Non-U.S.

 

 

U.S.

 

Non-U.S.

(in millions)

 

Plans

 

Plans

 

 

Plans

 

Plans

2021

$

338

$

44

 

$

13

$

1

2022

 

334

 

45

 

 

12

 

2

2023

 

332

 

46

 

 

12

 

2

2024

 

334

 

53

 

 

12

 

2

2025

 

317

 

54

 

 

11

 

2

2026-2030

 

1,485

 

298

 

 

47

 

11
U.S.  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of asset allocation percentage by major asset class and target allocation

 

Target

 

Actual

 

Actual

 

At December 31,

2021

 

2020

 

2019

 

Asset class:

 

 

 

 

 

 

Equity securities

27

%

25

%

25

%

Fixed maturity securities

61

%

57

%

59

%

Other investments

12

%

18

%

16

%

Total

100

%

100

%

100

%
Non U.S. Plans  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of asset allocation percentage by major asset class and target allocation

 

Target

 

Actual

 

Actual

 

At December 31,

2021

 

2020

 

2019

 

Asset class:

 

 

 

 

 

 

Equity securities

26

%

22

%

23

%

Fixed maturity securities

50

%

45

%

43

%

Other investments

21

%

24

%

24

%

Cash and cash equivalents

3

%

9

%

10

%

Total

100

%

100

%

100

%