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)	2020			2019			2020		2019			2020		2019			2020		2019
Fair value, January 1	$	20,275		$	18,178		$	2,696	$	2,461		$	2,666	$	2,584		$	199	$	252
Actual return on plan assets	2,468			3,187			379		273			285		228			1		5
Company contributions	—			—			23		20			86		91			6		24
Plan participant contributions	—			—			1		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/a			n/a			n/a		n/a			n/a		n/a			1		—
Foreign currency exchange rate changes	n/a			n/a			97		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		1			5		5
Interest cost	500			593			49		65			90		113			32		38
Plan participant contributions	—			—			1		1			—		—			110		103
Plan amendments	—			—			3		2			—		—			—		—
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/a			1		—
Foreign currency exchange rate changes	n/a			n/a			102		75			n/a		n/a			—		1
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/a		n/a
Overfunded (unfunded) status of ABO	5,349			4,914			(175)		(145)			(216)		(253)			n/a		n/a
Provision for future salaries	—			—			87		46			—		—			n/a		n/a
Projected benefit obligation	16,427			15,361			3,340		2,887			3,005		2,919			$	1,007	$	989
Weighted-average assumptions, December 31
Discount rate	2.57 %			3.32		%	1.37 %		1.81		%	2.33 %		3.20		%	2.48 %		3.27		%
Rate of compensation increase	n/a			n/a			4.11		4.10			4.00		4.00			n/a		n/a
Interest-crediting rate	5.02		%	5.06		%	1.58		1.53			4.49		4.52			n/a		n/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)	2020			2019			2020		2019			2020		2019			2020		2019
Fair value, January 1	$	20,275		$	18,178		$	2,696	$	2,461		$	2,666	$	2,584		$	199	$	252
Actual return on plan assets	2,468			3,187			379		273			285		228			1		5
Company contributions	—			—			23		20			86		91			6		24
Plan participant contributions	—			—			1		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/a			n/a			n/a		n/a			n/a		n/a			1		—
Foreign currency exchange rate changes	n/a			n/a			97		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		1			5		5
Interest cost	500			593			49		65			90		113			32		38
Plan participant contributions	—			—			1		1			—		—			110		103
Plan amendments	—			—			3		2			—		—			—		—
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/a			1		—
Foreign currency exchange rate changes	n/a			n/a			102		75			n/a		n/a			—		1
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/a		n/a
Overfunded (unfunded) status of ABO	5,349			4,914			(175)		(145)			(216)		(253)			n/a		n/a
Provision for future salaries	—			—			87		46			—		—			n/a		n/a
Projected benefit obligation	16,427			15,361			3,340		2,887			3,005		2,919			$	1,007	$	989
Weighted-average assumptions, December 31
Discount rate	2.57 %			3.32		%	1.37 %		1.81		%	2.33 %		3.20		%	2.48 %		3.27		%
Rate of compensation increase	n/a			n/a			4.11		4.10			4.00		4.00			n/a		n/a
Interest-crediting rate	5.02		%	5.06		%	1.58		1.53			4.49		4.52			n/a		n/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)	2020		2019		2020		2019
PBO	$	900	$	744	$	1,028	$	988
ABO	841		720		1,028		988
Fair value of plan assets	211		191		1		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)	2020		2019		2020		2019
PBO	$	900	$	744	$	1,028	$	988
ABO	841		720		1,028		988
Fair value of plan assets	211		191		1		1

Schedule of Net Benefit Costs

Components of Net Periodic Benefit Cost
	Qualified Pension Plan								Non-U.S. Pension Plans
(Dollars in millions)	2020		2019			2018			2020		2019			2018
Components of net periodic benefit cost (income)
Service cost	$	—	$	—		$	—		$	20	$	17		$	19
Interest cost	500		593			563			49		65			65
Expected return on plan assets	(1,154)		(1,088)			(1,136)			(66)		(99)			(126)
Amortization of net actuarial loss	173		135			147			9		6			10
Other	—		—			—			8		4			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 rate	3.32 %		4.32		%	3.68		%	1.81 %		2.60		%	2.39		%
Expected return on plan assets	6.00		6.00			6.00			2.57		4.13			4.37
Rate of compensation increase	n/a		n/a			n/a			4.10		4.49			4.31
	Nonqualified and Other Pension Plans								Postretirement Health and Life Plans
(Dollars in millions)	2020		2019			2018			2020		2019			2018
Components of net periodic benefit cost (income)
Service cost	$	1	$	1		$	1		$	5	$	5		$	6
Interest cost	90		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		$	6
Weighted-average assumptions used to determine net cost for years ended December 31
Discount rate	3.20 %		4.26		%	3.58		%	3.27 %		4.25		%	3.58		%
Expected return on plan assets	2.77		3.73			3.19			2.00		2.00			2.00
Rate of compensation increase	4.00		4.00			4.00			n/a		n/a			n/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)	2020		2019		2020		2019		2020		2019		2020		2019		2020		2019
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		2		—		—		—		—		3		2
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)	2020		2019		2020		2019		2020		2019		2020		2019		2020		2019
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		2		—		—		—		—		3		2
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 Category	Qualified 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 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(Dollars in millions)	December 31, 2020								December 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 securities	4,590		1,238		7		5,835		4,403		890		8		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 securities	1,021		1,122		—		2,143		748		1,015		—		1,763
Fixed income commingled/mutual funds	1,224		1,319		—		2,543		804		1,439		—		2,243
Equity
Common and preferred equity securities	4,438		—		—		4,438		4,655		—		—		4,655
Equity commingled/mutual funds	134		1,542		—		1,676		147		1,355		—		1,502
Public real estate investment trusts	73		—		—		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 Settlements		Balance December 31
(Dollars in millions)	2020
Fixed income
U.S. government and agency securities	$	8	$	—	$	(1)	$	7
Real estate
Real estate commingled/mutual funds	927		(4)		20		943
Limited partnerships	90		2		(9)		83
Other investments	636		6		49		691
Total	$	1,661	$	4	$	59	$	1,724
	2019
Fixed income
U.S. government and agency securities	$	9	$	—	$	(1)	$	8
Real estate
Private real estate	5		—		(5)		—
Real estate commingled/mutual funds	885		33		9		927
Limited partnerships	82		—		8		90
Other investments	588		6		42		636
Total	$	1,569	$	39	$	53	$	1,661
	2018
Fixed income
U.S. government and agency securities	$	9	$	—	$	—	$	9
Real estate
Private real estate	93		(7)		(81)		5
Real estate commingled/mutual funds	831		52		2		885
Limited partnerships	85		(12)		9		82
Other investments	74		—		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
2022	943		134		245		76
2023	939		143		229		74
2024	943		135		224		70
2025	934		140		221		67
2026 - 2030	4,474		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.