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PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2021
Postemployment Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The following tables and information provide additional disclosures:
(In Millions)
Pension BenefitsOPEB
Change in benefit obligations:2021202020212020
Benefit obligations — beginning of year$6,565 $1,021 $3,757 $255 
Service cost56 23 51 8 
Interest cost103 64 74 19 
Plan amendments— — 8 — 
Actuarial loss (gain)(131)162 (456)14 
Benefits paid(456)(146)(227)(89)
Participant contributions— — 47 22 
Acquired through business combinations— 5,535 — 3,528 
Effect of settlement(101)(94)— — 
Benefit obligations — end of year$6,036 $6,565 $3,254 $3,757 
Change in plan assets:
Fair value of plan assets — beginning of year$5,332 $749 $783 $260 
Actual return on plan assets668 472 29 45 
Participant contributions— — 26 17 
Employer contributions155 50 139 30 
Benefits paid(454)(146)(165)(88)
Acquired through business combinations— 4,301 — 519 
Effect of settlement(95)(94)— — 
Fair value of plan assets — end of year$5,606 $5,332 $812 $783 
Funded status$(430)$(1,233)$(2,442)$(2,974)
Amounts recognized in Statements of Financial Position:
Non-current assets$153 $3 $71 $54 
Current liabilities(5)(12)(130)(139)
Non-current liabilities(578)(1,224)(2,383)(2,889)
Total amount recognized$(430)$(1,233)$(2,442)$(2,974)
Amounts recognized in accumulated other comprehensive loss (income):
Net actuarial loss (gain)$(286)$164 $(392)$56 
Prior service cost (credit)5 6 4 (6)
Net amount recognized$(281)$170 $(388)$50 
Annual contributions to the pension plans are made within income tax deductibility restrictions in accordance with statutory regulations. OPEB plans are not subject to minimum regulatory funding requirements, but rather amounts are contributed pursuant to bargaining agreements.
(In Millions)
Pension
Benefits1
Other Benefits2
Company Contributions & PaymentsVEBADirect
Payments		Total
2020$50 $— $25 $25 
2021163 67 113 180 
2022 (Expected)4 28 110 138 
1 The 2021 pension contributions include $118 million in deferred 2020 pension contributions in connection with the CARES Act that were paid on January 4, 2021.
2 Pursuant to the applicable bargaining agreements, benefits can be paid from certain VEBAs that are at least 70% funded (all VEBAs were over 70% funded at December 31, 2021). Certain agreements with plans holding VEBA assets have capped healthcare costs. For the Cleveland-Cliffs Steel LLC VEBA, we are required to make contributions based on earnings, and we may withdraw money from the VEBA plan to the extent funds are available for costs in excess of the cap. VEBA withdrawals are represented net of direct payments. The amount expected for 2022 in the VEBA column reflects the contribution to be made in February 2022 for earnings in the quarter ended December 31, 2021. We do not include an estimate for contributions beyond that due to the variability of the calculation.
Components Of Net Periodic Benefit Cost
Components of Net Periodic Benefit Cost (Credit)
(In Millions)
Pension BenefitsOPEB
202120202019202120202019
Service cost$56 $23 $17 $51 $8 $2 
Interest cost103 64 35 74 19 10 
Expected return on plan assets(359)(140)(55)(40)(20)(17)
Amortization:
Net actuarial loss32 27 24 3 3 5 
Prior service costs (credits)1 1 1 (2)(2)(2)
Settlements(22)(6)— — — — 
Net periodic benefit cost (credit)$(189)$(31)$22 $86 $8 $(2)
For 2022, we estimate net periodic benefit cost (credit) as follows:
(In Millions)
Defined benefit pension plans$(179)
OPEB plans72 
Total$(107)
Components of Accumulated Other Comprehensive Income (Loss)
The following includes details on the significant actuarial losses (gains) impacting the benefit obligation:
(In Millions)
Pension BenefitsOPEB
2021202020212020
Discount rates$(224)$181 $(117)$44 
Demographic updates76 (3)3 (11)
Mortality19 (16)13 (4)
Per capita health care costs— — (350)(10)
Other(2)— (5)(5)
Actuarial loss (gain) on benefit obligation(131)162 (456)14 
Actual returns on assets under (over) expected(309)(332)11 (26)
Amortization of net actuarial gain (loss)(32)(27)2 (3)
Amortization of prior service credits (costs)(1)(1)(3)2 
Settlements22 6 — — 
Other— (27)8 (2)
Total recognized in accumulated other comprehensive income$(451)$(219)$(438)$(15)
Estimated Future Benefit Payments
Estimated Future Benefit Payments
(In Millions)
Pension
Benefits		OPEB
2022$475 $180 
2023477 171 
2024451 167 
2025428 163 
2026424 163 
2027-20311,879 823 
Defined Benefit Plan, Assumptions
The following represents weighted-average assumptions used to determine benefit obligations:
Pension BenefitsOPEB
December 31,December 31,
2021202020212020
Discount rate2.75%2.34%3.01%2.71%
Interest crediting rate5.355.25N/AN/A
Compensation rate increase2.522.563.003.00
The following represents weighted-average assumptions used to determine net benefit cost:
Pension BenefitsOPEB
December 31,December 31,
202120202019202120202019
Obligation discount rate2.32 %3.02 %4.27 %2.46 %3.28 %4.29 %
Service cost discount rate2.78 3.34 4.35 3.28 3.35 4.49 
Interest cost discount rate1.64 2.53 3.92 2.04 2.51 3.94 
Interest crediting rate5.35 5.50 6.00 N/AN/AN/A
Expected return on plan assets6.84 7.69 8.25 5.20 6.82 7.00 
Compensation rate increase2.54 2.56 2.53 3.00 3.00 3.00 
Assumed Health Care Cost Trend Rates
The following represents assumed weighted-average health care cost trend rates:
December 31,
20212020
Health care cost trend rate assumed for next year2.36 %6.05 %
Ultimate health care cost trend rate4.50 4.59 
Year that the ultimate rate is reached20312031
Plan Assets and Asset Allocation The following table reflects the actual asset allocations for pension and VEBA assets as of December 31, 2021 and 2020, as well as the 2022 weighted average target asset allocations. Equity investments include securities in large-cap, mid-cap and small-cap companies located in the U.S. and worldwide. Fixed income investments primarily include corporate bonds and government debt securities.
Pension AssetsVEBA Assets
Asset Category2022
Target
Allocation		Percentage of
Plan Assets at
December 31,		2022
Target
Allocation		Percentage of
Plan Assets at
December 31,
2021202020212020
Equity securities46.3 %47.6 %51.8 %21.2 %22.5 %22.2 %
Fixed income34.6 34.6 33.8 68.5 66.4 66.4 
Hedge funds2.2 2.2 2.2 1.4 1.8 1.8 
Private equity5.0 2.7 2.1 1.1 — 0.4 
Structured credit5.2 5.6 5.0 1.0 1.2 0.9 
Real estate5.2 5.6 3.3 1.0 2.1 1.8 
Absolute return fixed income1.5 1.7 1.8 5.8 6.0 6.5 
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Fair Value of Pension Assets by Asset Category
The fair value of our pension assets by asset category is as follows:
(In Millions)
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)		Significant  Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Investments Measured at Net Asset ValueTotal
Asset Category2021202020212020202120202021202020212020
Equity securities:
U.S. equities$1,157 $1,163 $— $— $— $— $775 $787 $1,932 $1,950 
Global equities617 615 — — — — 117 195 734 810 
Fixed income:
U.S. government securities1
140 141 310 295 — — 50 40 500 476 
U.S. corporate bonds502 512 371 466 — — 503 303 1,376 1,281 
Non U.S. and other bonds— — 66 46 — — — — 66 46 
Hedge funds— — — — 125 118 — — 125 118 
Private equity— — — — 151 114 — — 151 114 
Structured credit— — — — 315 264 — — 315 264 
Real estate— — — — 313 174 — — 313 174 
Absolute return fixed income— — — — — — 94 99 94 99 
Total$2,416 $2,431 $747 $807 $904 $670 $1,539 $1,424 $5,606 $5,332 
1 Includes cash equivalents.
The fair value of our other benefit plan assets by asset category is as follows:
(In Millions)
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)		Significant  Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Investments Measured at Net Asset ValueTotal
Asset Category2021202020212020202120202021202020212020
Equity securities:
U.S. equities$26 $26 $— $— $— $— $103 $93 $129 $119 
Global equities6 6 — — — — 48 49 54 55 
Fixed income:
U.S. government securities1
111 62 80 94 — — — — 191 156 
U.S. corporate bonds219 237 129 127 — — — — 348 364 
Hedge funds— — — — 15 14 — — 15 14 
Private equity— — — — — 3 — — — 3 
Structured credit— — — — 10 7 — — 10 7 
Real estate— — — — 17 14 — — 17 14 
Absolute return fixed income— — — — — — 48 51 48 51 
Total$362 $331 $209 $221 $42 $38 $199 $193 $812 $783 
1 Includes cash equivalents.
Effect of Fair Value Measurements Using Significant Unobservable Inputs on Changes in Plan Assets
The following represents the fair value measurements of changes in plan assets using significant unobservable inputs (Level 3):
(In Millions)
Pension AssetsVEBA Assets
2021202020212020
Beginning balance — January 1$670 $212 $38 $34 
Actual return on plan assets:
Relating to assets still held at the reporting date124 8 6 2 
Relating to assets sold during the period8 6 — 1 
Purchases142 195 — — 
Sales(40)(13)(2)(1)
Acquired through business combinations— 262 — 2 
Ending balance — December 31$904 $670 $42 $38 
Multiemployer Plan
Information with respect to multiemployer plans in which we participate follows:
Pension FundEIN/Pension Plan NumberPension Protection Act Zone Status (a)FIP/RP Status Pending/Implemented (b)ContributionsSurcharge Imposed (c)Expiration Date of Collective Bargaining Agreement (d)
20212020202120202019
Steelworkers Pension Trust
23-6648508/499
GreenGreenNo$88 $14 $4 No
9/1/2022 to 09/1/2025
IAM National Pension Fund’s National Pension Plan
51-6031295/002
RedRedYes16 16 — Yes
5/31/2022 to 5/15/2023
Other Plans(e)
— — — 
Total$104 $30 $4 
(a) The most recent Pension Protection Act zone status available in 2021 and 2020 is for each plan's year-end at December 31, 2020 and 2019. The plan's actuary certifies the zone status. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The IAM National Pension Fund's National Pension Plan voluntarily elected to place itself in the "Red Zone" in April 2019 and has implemented a rehabilitation plan to address its underfunded status. Additional contributions will be required as part of the rehabilitation plan until the plan exits the "Red Zone".
(b) The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented, as defined by ERISA.
(c) The surcharge represents an additional required contribution due as a result of the critical funding status of the plan.
(d) We are a party to five collective bargaining agreements that require contributions to the Steelworkers Pension Trust and three collective bargaining agreements that require contributions to the IAM National Pension Fund's National Pension Plan.
(e) Plans that are not individually significant to our Company are presented in aggregate.