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Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures The Pension and Postretirement Plans table summarizes the changes in the fair value of plan assets, changes in the projected benefit obligation (PBO), the funded status of both the accumulated benefit obligation (ABO) and the PBO, and the weighted-average assumptions used to determine benefit obligations for the pension plans and postretirement plans at December 31, 2020 and 2019. The estimate of the Corporation’s PBO associated with these plans considers various actuarial assumptions, including assumptions for mortality rates and discount rates. The discount rate assumptions are derived from a cash flow matching technique that utilizes rates that are based on Aa-rated corporate bonds with cash flows that match estimated benefit payments of each of the plans. The decreases in the weighted-average discount rates in 2020 and 2019 resulted in increases to the PBO of approximately $1.9 billion and $2.2 billion at December 31, 2020 and 2019. Significant gains and losses related to changes in the PBO for 2020 and 2019 primarily resulted from changes in the discount rate.
Pension and Postretirement Plans (1)
Qualified
Pension Plan
Non-U.S.
Pension Plans
Nonqualified and Other
Pension Plans
Postretirement
Health and Life Plans
(Dollars in millions)20202019202020192020201920202019
Fair value, January 1$20,275 $18,178 $2,696 $2,461 $2,666 $2,584 $199 $252 
Actual return on plan assets2,468 3,187 379 273 285 228 1 
Company contributions — 23 20 86 91 6 24 
Plan participant contributions — 1  — 110 103 
Settlements and curtailments — (61)(42) —  — 
Benefits paid(967)(1,090)(57)(108)(248)(237)(174)(185)
Federal subsidy on benefits paid n/an/a n/a n/a n/a n/a1 — 
Foreign currency exchange rate changes n/an/a97 91  n/a n/a n/a n/a
Fair value, December 31$21,776 $20,275 $3,078 $2,696 $2,789 $2,666 $143 $199 
Change in projected benefit obligation        
Projected benefit obligation, January 1$15,361 $14,144 $2,887 $2,589 $2,919 $2,779 $989 $928 
Service cost — 20 17 1 5 
Interest cost500 593 49 65 90 113 32 38 
Plan participant contributions — 1  — 110 103 
Plan amendments — 3  —  — 
Settlements and curtailments — (61)(42) —  — 
Actuarial loss 1,533 1,714 396 288 243 263 43 99 
Benefits paid(967)(1,090)(57)(108)(248)(237)(173)(185)
Federal subsidy on benefits paid n/a n/a n/a n/a n/a n/a1 — 
Foreign currency exchange rate changes n/a n/a102 75  n/a n/a 
Projected benefit obligation, December 31$16,427 $15,361 $3,340 $2,887 $3,005 $2,919 $1,007 $989 
Amounts recognized on Consolidated Balance Sheet
Other assets$5,349 $4,914 $428 $364 $812 $733 $ $— 
Accrued expenses and other liabilities — (690)(555)(1,028)(986)(864)(790)
Net amount recognized, December 31$5,349 $4,914 $(262)$(191)$(216)$(253)$(864)$(790)
Funded status, December 31        
Accumulated benefit obligation$16,427 $15,361 $3,253 $2,841 $3,005 $2,919  n/an/a
Overfunded (unfunded) status of ABO5,349 4,914 (175)(145)(216)(253) n/an/a
Provision for future salaries — 87 46  —  n/an/a
Projected benefit obligation16,427 15,361 3,340 2,887 3,005 2,919 $1,007 $989 
Weighted-average assumptions, December 31        
Discount rate2.57 %3.32 %1.37 %1.81 %2.33 %3.20 %2.48 %3.27 %
Rate of compensation increasen/an/a4.11 4.10 4.00 4.00  n/an/a
Interest-crediting rate5.02 %5.06 %1.58 1.53 4.49 4.52  n/an/a
(1)The measurement date for all of the above plans was December 31 of each year reported.
n/a = not applicable
Schedule of Amounts Recognized in Balance Sheet The Pension and Postretirement Plans table summarizes the changes in the fair value of plan assets, changes in the projected benefit obligation (PBO), the funded status of both the accumulated benefit obligation (ABO) and the PBO, and the weighted-average assumptions used to determine benefit obligations for the pension plans and postretirement plans at December 31, 2020 and 2019. The estimate of the Corporation’s PBO associated with these plans considers various actuarial assumptions, including assumptions for mortality rates and discount rates. The discount rate assumptions are derived from a cash flow matching technique that utilizes rates that are based on Aa-rated corporate bonds with cash flows that match estimated benefit payments of each of the plans. The decreases in the weighted-average discount rates in 2020 and 2019 resulted in increases to the PBO of approximately $1.9 billion and $2.2 billion at December 31, 2020 and 2019. Significant gains and losses related to changes in the PBO for 2020 and 2019 primarily resulted from changes in the discount rate.
Pension and Postretirement Plans (1)
Qualified
Pension Plan
Non-U.S.
Pension Plans
Nonqualified and Other
Pension Plans
Postretirement
Health and Life Plans
(Dollars in millions)20202019202020192020201920202019
Fair value, January 1$20,275 $18,178 $2,696 $2,461 $2,666 $2,584 $199 $252 
Actual return on plan assets2,468 3,187 379 273 285 228 1 
Company contributions — 23 20 86 91 6 24 
Plan participant contributions — 1  — 110 103 
Settlements and curtailments — (61)(42) —  — 
Benefits paid(967)(1,090)(57)(108)(248)(237)(174)(185)
Federal subsidy on benefits paid n/an/a n/a n/a n/a n/a1 — 
Foreign currency exchange rate changes n/an/a97 91  n/a n/a n/a n/a
Fair value, December 31$21,776 $20,275 $3,078 $2,696 $2,789 $2,666 $143 $199 
Change in projected benefit obligation        
Projected benefit obligation, January 1$15,361 $14,144 $2,887 $2,589 $2,919 $2,779 $989 $928 
Service cost — 20 17 1 5 
Interest cost500 593 49 65 90 113 32 38 
Plan participant contributions — 1  — 110 103 
Plan amendments — 3  —  — 
Settlements and curtailments — (61)(42) —  — 
Actuarial loss 1,533 1,714 396 288 243 263 43 99 
Benefits paid(967)(1,090)(57)(108)(248)(237)(173)(185)
Federal subsidy on benefits paid n/a n/a n/a n/a n/a n/a1 — 
Foreign currency exchange rate changes n/a n/a102 75  n/a n/a 
Projected benefit obligation, December 31$16,427 $15,361 $3,340 $2,887 $3,005 $2,919 $1,007 $989 
Amounts recognized on Consolidated Balance Sheet
Other assets$5,349 $4,914 $428 $364 $812 $733 $ $— 
Accrued expenses and other liabilities — (690)(555)(1,028)(986)(864)(790)
Net amount recognized, December 31$5,349 $4,914 $(262)$(191)$(216)$(253)$(864)$(790)
Funded status, December 31        
Accumulated benefit obligation$16,427 $15,361 $3,253 $2,841 $3,005 $2,919  n/an/a
Overfunded (unfunded) status of ABO5,349 4,914 (175)(145)(216)(253) n/an/a
Provision for future salaries — 87 46  —  n/an/a
Projected benefit obligation16,427 15,361 3,340 2,887 3,005 2,919 $1,007 $989 
Weighted-average assumptions, December 31        
Discount rate2.57 %3.32 %1.37 %1.81 %2.33 %3.20 %2.48 %3.27 %
Rate of compensation increasen/an/a4.11 4.10 4.00 4.00  n/an/a
Interest-crediting rate5.02 %5.06 %1.58 1.53 4.49 4.52  n/an/a
(1)The measurement date for all of the above plans was December 31 of each year reported.
n/a = not applicable
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets Pension Plans with ABO and PBO in excess of plan assets as of December 31, 2020 and 2019 are presented in the table below. For these plans, funding strategies vary due to legal requirements and local practices.
Plans with ABO and PBO in Excess of Plan Assets
Non-U.S.
Pension Plans
Nonqualified
and Other
Pension Plans
(Dollars in millions)2020201920202019
PBO$900 $744 $1,028 $988 
ABO841 720 1,028 988 
Fair value of plan assets211 191 1 
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets Pension Plans with ABO and PBO in excess of plan assets as of December 31, 2020 and 2019 are presented in the table below. For these plans, funding strategies vary due to legal requirements and local practices.
Plans with ABO and PBO in Excess of Plan Assets
Non-U.S.
Pension Plans
Nonqualified
and Other
Pension Plans
(Dollars in millions)2020201920202019
PBO$900 $744 $1,028 $988 
ABO841 720 1,028 988 
Fair value of plan assets211 191 1 
Schedule of Net Benefit Costs
Components of Net Periodic Benefit Cost
 Qualified Pension PlanNon-U.S. Pension Plans
(Dollars in millions)202020192018202020192018
Components of net periodic benefit cost (income)
Service cost$ $— $— $20 $17 $19 
Interest cost500 593 563 49 65 65 
Expected return on plan assets(1,154)(1,088)(1,136)(66)(99)(126)
Amortization of net actuarial loss173 135 147 9 10 
Other — — 8 12 
Net periodic benefit cost (income)$(481)$(360)$(426)$20 $(7)$(20)
Weighted-average assumptions used to determine net cost for years ended December 31
      
Discount rate3.32 %4.32 %3.68 %1.81 %2.60 %2.39 %
Expected return on plan assets6.00 6.00 6.00 2.57 4.13 4.37 
Rate of compensation increase n/an/an/a4.10 4.49 4.31 
Nonqualified and
Other Pension Plans
Postretirement Health
and Life Plans
(Dollars in millions)202020192018202020192018
Components of net periodic benefit cost (income)
Service cost$1 $$$5 $$
Interest cost90 113 105 32 38 36 
Expected return on plan assets(71)(95)(84)(4)(5)(6)
Amortization of net actuarial loss (gain)50 34 43 29 (24)(27)
Other — — (2)(2)(3)
Net periodic benefit cost (income)$70 $53 $65 $60 $12 $
Weighted-average assumptions used to determine net cost for years ended December 31
      
Discount rate3.20 %4.26 %3.58 %3.27 %4.25 %3.58 %
Expected return on plan assets2.77 3.73 3.19 2.00 2.00 2.00 
Rate of compensation increase4.00 4.00 4.00   n/a n/an/a
n/a = not applicable
Schedule of Pretax Amounts Included in Accumulated OCI
Pretax Amounts included in Accumulated OCI and OCI
 Qualified
Pension Plan
Non-U.S.
Pension Plans
Nonqualified
and Other
Pension Plans
Postretirement
Health and
Life Plans
Total
(Dollars in millions)2020201920202019202020192020201920202019
Net actuarial loss (gain)$3,912 $3,865 $628 $559 $987 $1,008 $66 $48 $5,593 $5,480 
Prior service cost (credits) — 18 18  — (4)(6)14 12 
Amounts recognized in accumulated OCI$3,912 $3,865 $646 $577 $987 $1,008 $62 $42 $5,607 $5,492 
Current year actuarial loss (gain)$219 $(385)$79 $110 $29 $130 $47 $99 $374 $(46)
Amortization of actuarial gain (loss) and
prior service cost
(173)(135)(12)(7)(50)(34)(27)26 (262)(150)
Current year prior service cost (credit)  — 3  —  — 3 
Amounts recognized in OCI$46 $(520)$70 $105 $(21)$96 $20 $125 $115 $(194)
Schedule of Pretax Amounts Recognized in OCI
Pretax Amounts included in Accumulated OCI and OCI
 Qualified
Pension Plan
Non-U.S.
Pension Plans
Nonqualified
and Other
Pension Plans
Postretirement
Health and
Life Plans
Total
(Dollars in millions)2020201920202019202020192020201920202019
Net actuarial loss (gain)$3,912 $3,865 $628 $559 $987 $1,008 $66 $48 $5,593 $5,480 
Prior service cost (credits) — 18 18  — (4)(6)14 12 
Amounts recognized in accumulated OCI$3,912 $3,865 $646 $577 $987 $1,008 $62 $42 $5,607 $5,492 
Current year actuarial loss (gain)$219 $(385)$79 $110 $29 $130 $47 $99 $374 $(46)
Amortization of actuarial gain (loss) and
prior service cost
(173)(135)(12)(7)(50)(34)(27)26 (262)(150)
Current year prior service cost (credit)  — 3  —  — 3 
Amounts recognized in OCI$46 $(520)$70 $105 $(21)$96 $20 $125 $115 $(194)
Schedule of Allocation of Plan Assets The target allocations for 2021 by asset category for the Qualified Pension Plan, Non-U.S. Pension Plans, and Nonqualified and Other Pension Plans are presented in the following table. Equity securities for the Qualified Pension Plan include common stock of the Corporation in the amounts of $274 million (1.26 percent of total plan assets) and $315 million (1.55 percent of total plan assets) at December 31, 2020 and 2019.
2021 Target Allocation
Percentage
Asset CategoryQualified
Pension Plan
Non-U.S.
Pension Plans
Nonqualified
and Other
Pension Plans
Equity securities
15 - 50%
0 - 25%
0 - 5%
Debt securities
45 - 80%
40 - 70%
95 - 100%
Real estate
0 - 10%
0 - 15%
0 - 5%
Other
0 - 5%
10 - 40%
0 - 5%
Schedule of Changes in Fair Value of Plan Assets Combined plan investment assets measured at fair value by level and in total at December 31, 2020 and 2019 are summarized in the Fair Value Measurements table.
Fair Value Measurements
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
(Dollars in millions)December 31, 2020December 31, 2019
Cash and short-term investments    
Money market and interest-bearing cash$1,380 $ $ $1,380 $1,426 $— $— $1,426 
Cash and cash equivalent commingled/mutual funds 383  383 — 250 — 250 
Fixed income       
U.S. government and agency securities4,590 1,238 7 5,835 4,403 890 5,301 
Corporate debt securities 5,021  5,021 — 3,676 — 3,676 
Asset-backed securities 1,967  1,967 — 2,684 — 2,684 
Non-U.S. debt securities1,021 1,122  2,143 748 1,015 — 1,763 
Fixed income commingled/mutual funds1,224 1,319  2,543 804 1,439 — 2,243 
Equity       
Common and preferred equity securities4,438   4,438 4,655 — — 4,655 
Equity commingled/mutual funds134 1,542  1,676 147 1,355 — 1,502 
Public real estate investment trusts73   73 91 — — 91 
Real estate       
Real estate commingled/mutual funds 20 943 963 — 18 927 945 
Limited partnerships 184 83 267 — 173 90 263 
Other investments (1)
5 401 691 1,097 11 390 636 1,037 
Total plan investment assets, at fair value$12,865 $13,197 $1,724 $27,786 $12,285 $11,890 $1,661 $25,836 
(1)Other investments include commodity and balanced funds of $246 million and $233 million, insurance annuity contracts of $664 million and $614 million and other various investments of $187 million and $190 million at December 31, 2020 and 2019.
The Level 3 Fair Value Measurements table presents a reconciliation of all plan investment assets measured at fair value using significant unobservable inputs (Level 3) during 2020, 2019 and 2018.
Level 3 Fair Value Measurements
 Balance
January 1
Actual Return on
Plan Assets Still
Held at the
Reporting Date
Purchases, Sales and SettlementsBalance
December 31
(Dollars in millions)2020
Fixed income    
U.S. government and agency securities$8 $ $(1)$7 
Real estate 
Real estate commingled/mutual funds927 (4)20 943 
Limited partnerships90 2 (9)83 
Other investments636 6 49 691 
Total$1,661 $4 $59 $1,724 
 2019
Fixed income    
U.S. government and agency securities$$— $(1)$
Real estate 
Private real estate— (5)— 
Real estate commingled/mutual funds885 33 927 
Limited partnerships82 — 90 
Other investments588 42 636 
Total$1,569 $39 $53 $1,661 
2018
Fixed income
U.S. government and agency securities$$— $— $
Real estate  
Private real estate93 (7)(81)
Real estate commingled/mutual funds831 52 885 
Limited partnerships85 (12)82 
Other investments74 — 514 588 
Total$1,092 $33 $444 $1,569 
Schedule of Expected Benefit Payments Benefit payments projected to be made from the Qualified Pension Plan, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans are presented in the table below.
Projected Benefit Payments
(Dollars in millions)
Qualified
Pension Plan (1)
Non-U.S.
Pension Plans (2)
Nonqualified
and Other
Pension Plans (2)
Postretirement Health and Life Plans (3)
2021$856 $127 $244 $79 
2022943 134 245 76 
2023939 143 229 74 
2024943 135 224 70 
2025934 140 221 67 
2026 - 20304,474 675 977 290 
(1)Benefit payments expected to be made from the plan’s assets.
(2)Benefit payments expected to be made from a combination of the plans’ and the Corporation’s assets.
(3)Benefit payments (net of retiree contributions) expected to be made from a combination of the plans’ and the Corporation’s assets.