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EMPLOYEE RETIREMENT PLANS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
EMPLOYEE RETIREMENT PLANS
M. EMPLOYEE RETIREMENT PLANS

Substantially all salaried employees participate in non-contributory defined-contribution retirement plans, to which payments are determined annually by the Compensation Committee. We also sponsor qualified defined-benefit and non-qualified defined-benefit pension plans covering certain employees and former employees.
Pre-tax expense included in income before income taxes related to our retirement plans was as follows, in millions:
Year Ended December 31,
 202320222021
Defined-contribution plans$68 $39 $57 
Defined-benefit pension plans9 12 435 
$78 $51 $492 

As of January 1, 2010, substantially all our domestic and foreign qualified and domestic non-qualified defined-benefit pension plans were frozen to future benefit accruals. In December 2019, our Board of Directors approved a resolution to terminate our qualified domestic defined-benefit pension plans. In the second quarter of 2021, we settled these plans and made a final contribution of $101 million. The settlement loss included $447 million of pre-tax actuarial losses that were reclassified out of accumulated other comprehensive income for the year ended December 31, 2021. In the fourth quarter of 2021, we recognized a $7 million reduction in pension expense related to the reversion of excess pension plan assets for the settlement of such plans.
Changes in the projected benefit obligation and fair value of plan assets, and the funded status of our defined-benefit pension plans were as follows, in millions:
At Year Ended December 31,
 20232022
 QualifiedNon-QualifiedQualifiedNon-Qualified
Changes in projected benefit obligation:    
Projected benefit obligation at January 1$115 $112 $178 $148 
Service cost2 — 3 — 
Interest cost4 6 2 3 
Actuarial loss (gain), net15 2 (54)(27)
Foreign currency exchange4 — (11)— 
Benefit payments(4)(12)(3)(12)
Projected benefit obligation at December 31$136 $108 $115 $112 
Changes in fair value of plan assets:    
Fair value of plan assets at January 1$78 $— $99 $— 
Actual return on plan assets9 — (15)— 
Foreign currency exchange3 — (6)— 
Company contributions4 12 3 12 
Benefit payments(4)(12)(3)(12)
Fair value of plan assets at December 31$90 $— $78 $— 
Funded status at December 31$(46)$(108)$(37)$(112)
M. EMPLOYEE RETIREMENT PLANS (Continued)

Amounts in our consolidated balance sheets were as follows, in millions:
At December 31,
 20232022
 QualifiedNon-QualifiedQualifiedNon-Qualified
Other assets$2 $— $2 $— 
Accrued liabilities— (12)— (12)
Other liabilities(48)(97)(39)(100)
Total net liability$(46)$(108)$(37)$(112)
Unrealized loss included in accumulated other comprehensive income before income taxes was as follows, in millions:
At December 31,
 20232022
 QualifiedNon-QualifiedQualifiedNon-Qualified
Net loss$25 $26 $16 $24 
Net prior service cost2 — 2 — 
Total$27 $26 $18 $24 
Information for defined-benefit pension plans with an accumulated benefit obligation in excess of plan assets was as follows, in millions:
At December 31,
20232022
QualifiedNon-QualifiedQualifiedNon-Qualified
Projected benefit obligation$133 $108 $112 $112 
Accumulated benefit obligation133 108 112 112 
Fair value of plan assets85 — 73 — 
The projected benefit obligation was in excess of plan assets for all of our qualified defined-benefit pension plans at December 31, 2023 and 2022 which had an accumulated benefit obligation in excess of plan assets.
Net periodic pension cost for our defined-benefit pension plans, with the exception of service cost, is recorded in other, net, in our consolidated statements of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions:
Year Ended December 31,
 202320222021
 QualifiedNon-QualifiedQualifiedNon-QualifiedQualifiedNon-Qualified
Service cost$2 $— $3 $— $4 $— 
Interest cost4 6 2 3 15 4 
Expected return on plan assets(4)— (3)— (9)— 
Settlement loss— — — — 404 — 
Recognized net loss— 1 3 3 14 2 
Recognized prior service cost— — 1 — 1 — 
Net periodic pension cost$3 $7 $6 $6 $429 $6 
M. EMPLOYEE RETIREMENT PLANS (Continued)

We expect to recognize $4 million of pre-tax net loss from accumulated other comprehensive income into net periodic pension cost in 2024 related to our defined-benefit pension plans. For plans in which almost all of the plan's participants are inactive, pre-tax net loss within accumulated other comprehensive income is amortized using the straight-line method over the remaining life expectancy of the inactive plan participants. For plans which do not have almost all inactive participants, pre-tax net loss within accumulated other comprehensive income is amortized using the straight-line method over the average remaining service period of the active employees expected to receive benefits from the plan.
Plan Assets.    Our qualified defined-benefit pension plan weighted average asset allocation, which is based upon fair value, was as follows:
At December 31,
 20232022
Equity securities28 %30 %
Debt securities29 %38 %
Other43 %32 %
Total100 %100 %
For our qualified defined-benefit pension plans, we have adopted accounting guidance that defines fair value, establishes a framework for measuring fair value and prescribes disclosures about fair value measurements. Accounting guidance defines fair value as "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2023 compared to December 31, 2022.
Common and preferred stocks and short-term and other investments: Valued at the closing price reported on the active market on which the individual securities are traded. Other investments include liability-driven investments in interest rate swap funds that are priced daily based on the use of observable inputs.
Corporate, government and other debt securities: Valued based on using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings.
Real estate: Real estate consists of Real Estate Investment Trusts and property funds. Real Estate Investment Trusts are valued at the closing price reported on the active market on which the individual securities are traded. Real estate property funds are valued based on the underlying investments, which include inputs such as cost, discounted future cash flows, independent appraisals and market based comparable data. There is no active trading market for these investments, and they are generally illiquid. Due to the significant unobservable inputs, the fair value measurements used to estimate fair value are a Level 3 input.
Buy-in annuity: Valued based on the associated benefit obligation for which the buy-in annuity covers the benefits, which approximates fair value. Such basis is determined based on various assumptions, including the discount rate and mortality rate.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
M. EMPLOYEE RETIREMENT PLANS (Continued)

The following tables set forth, by level within the fair value hierarchy, the qualified defined-benefit pension plan assets at fair value as of December 31, 2023 and 2022, in millions.
 At December 31, 2023
 Level 1Level 2Level 3Total
Plan Assets
Common and preferred stocks:
United States$17 $— $— $17 
International8 — — 8 
Corporate debt securities:
United States— 4 — 4 
International— 14 — 14 
Government and other debt securities:
United States— 1 — 1 
International— 7 — 7 
Real estate:
United States3 — — 3 
International2 — 12 14 
Buy-in annuity:
International— 3 — 3 
Short-term and other investments:
International2 17 — 19 
Total plan assets
$32 $46 $12 $90 

 At December 31, 2022
 Level 1Level 2Level 3Total
Plan Assets
Common and preferred stocks:
United States$15 $— $— $15 
International8 — — 8 
Corporate debt securities:
United States— 3 — 3 
International— 3 — 3 
Government and other debt securities:
United States— 2 — 2 
International— 22 — 22 
Real estate:
United States3 — — 3 
International2 — 12 14 
Short-term and other investments:
International1 7 — 8 
Total plan assets$29 $37 $12 $78 
M. EMPLOYEE RETIREMENT PLANS (Continued)

Changes in the fair value of the qualified defined-benefit pension plan Level 3 assets were as follows, in millions:
Year Ended December 31,
 20232022
Fair value, January 1$12 $6 
Purchases— 6 
Fair value, December 31$12 $12 
Assumptions.    Weighted average major assumptions used in accounting for our defined-benefit pension plans were as follows:
At December 31,
202320222021
Discount rate for obligations4.00 %4.50 %1.80 %
Expected return on plan assets5.50 %4.50 %3.00 %
Rate of compensation increase— %— %— %
Discount rate for net periodic pension cost4.50 %1.80 %1.70 %
The discount rate for obligations for 2023, 2022 and 2021 is based primarily upon the expected duration of each defined-benefit pension plan's liabilities matched to the December 31, 2023, 2022 and 2021 Willis Towers Watson Rate Link Curve. At December 31, 2023, such rates for our defined-benefit pension plans ranged from 1.9 percent to 5.0 percent, with the most significant portion of the liabilities having a discount rate for obligations of 3.2 percent or higher. At December 31, 2022, such rates for our defined-benefit pension plans ranged from 0.8 percent to 5.3 percent, with the most significant portion of the liabilities having a discount rate for obligations of 3.7 percent or higher. At December 31, 2021, such rates for our defined‑benefit pension plans ranged from 0.8 percent to 2.6 percent, with the most significant portion of the liabilities having a discount rate for obligations of 1.2 percent or higher. The decrease in the weighted average discount rate from 2022 to 2023 is principally due to lower long-term interest rates in the bond markets. The increase in the weighted average discount rate from 2021 to 2022 is principally due to higher long-term interest rates in the bond markets.
Our weighted average projected long-term rate of return on plan assets for the foreign qualified defined-benefit pension plans was 5.5 percent, 4.5 percent and 3.0 percent for 2023, 2022 and 2021, respectively.
The asset allocation of the investment portfolio was developed with the objective of achieving our expected rate of return and reducing volatility of asset returns, and considered the freezing of future benefits. The fixed-income portfolio is invested in corporate bonds, bond index funds and U.S. Treasury securities. Although we would expect alternative investments to yield a higher rate of return than the targeted overall long-term return, these investments are subject to greater volatility and would be less liquid than financial instruments that trade on public markets.
The fair value of our plan assets is subject to risk including significant concentrations of risk in our plan assets related to equity, interest rate and operating risk. In order to ensure plan assets are sufficient to pay benefits, a portion of our foreign qualified plans' assets are allocated to equity investments and real assets that are expected, over time, to earn higher returns with more volatility than fixed-income investments which more closely match pension liabilities. Within equity, risk is mitigated by targeting a portfolio that is broadly diversified by geography, market capitalization, manager mandate size, investment style and process.
In order to minimize asset volatility relative to the liabilities, a significant portion of plan assets are allocated to fixed-income investments that are exposed to interest rate risk. Rate increases generally will result in a decline in fixed-income assets, while reducing the present value of the liabilities. Conversely, rate decreases will increase fixed income assets, partially offsetting the related increase in the liabilities.
M. EMPLOYEE RETIREMENT PLANS (Concluded)

Potential events or circumstances that could have a negative effect on estimated fair value include the risks of inadequate diversification and other operating risks. To mitigate these risks, investments are diversified across and within asset classes in support of investment objectives. Policies and practices to address operating risks include ongoing manager oversight, plan and asset class investment guidelines and instructions that are communicated to managers, and periodic compliance and audit reviews to ensure adherence to these policies. In addition, we periodically seek the input of our independent advisor to ensure the investment policy is appropriate.
Other.    We sponsor certain post-retirement benefit plans that provide medical, dental and life insurance coverage for eligible retirees and dependents based upon age and length of service. Substantially all of these plans were frozen as of January 1, 2010. The aggregate present value of the unfunded accumulated post-retirement benefit obligation was $7 million at both December 31, 2023 and 2022.
Cash Flows.    At December 31, 2023, we expect to contribute approximately $12 million in 2024 to our non-qualified (domestic) defined-benefit pension plans.
At December 31, 2023, the benefits expected to be paid in each of the next five years, and in aggregate for the five years thereafter, relating to our defined-benefit pension plans, were as follows, in millions:
Qualified
Plans		Non-Qualified
Plans
2024$7 $12 
20255 11 
20265 11 
20275 10 
20286 10 
2029 - 203332 43