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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2022

Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans

Benefit obligations, plan assets and funded status for our pension and postretirement plans were as follows at December 31:


	Pension					Postretirement
(in millions)	2022		2021			2022		2021
Change in benefit obligation:
Benefit obligation at beginning of year	$	8,544	$	9,465		$	1,688	$	2,229
Service cost	64		68			23		20
Interest cost	206		184			41		38
Benefits paid	(462)		(465)			(87)		(104)
Actuarial (gains) losses	(2,060)		(523)			(392)		(150)
Plan amendments	—		8			2		(345)
Divestiture	—		(193)		(1)	—		—

Benefit obligation at end of year	6,292		8,544			1,275		1,688
Change in plan assets:
Fair value of plan assets at beginning of year	8,793		8,911			185		201
Actual return on plan assets	(1,748)		466			(35)		21
Employer contributions	20		26			—		—
Benefits paid	(462)		(465)			(28)		(37)
Divestiture	—		(145)		(1)	—		—
Fair value of plan assets at end of year	6,603		8,793			122		185
Funded status at December 31	$	311	$	249		$	(1,153)	$	(1,503)
Amounts recognized on our consolidated balance sheets were as follows:
Other assets	$	469	$	476		$	—	$	—
Other accrued liabilities	(25)		(27)			(70)		(67)
Accrued pension costs	(133)		(200)			—		—

Accrued postretirement health care costs	—		—			(1,083)		(1,436)
	$	311	$	249		$	(1,153)	$	(1,503)

(1) Divestiture of benefit obligations and plan assets related to the Ste. Michelle Transaction.

Net Pension Liability Recognized in Consolidated Balance Sheets

Benefit obligations, plan assets and funded status for our pension and postretirement plans were as follows at December 31:


	Pension					Postretirement
(in millions)	2022		2021			2022		2021
Change in benefit obligation:
Benefit obligation at beginning of year	$	8,544	$	9,465		$	1,688	$	2,229
Service cost	64		68			23		20
Interest cost	206		184			41		38
Benefits paid	(462)		(465)			(87)		(104)
Actuarial (gains) losses	(2,060)		(523)			(392)		(150)
Plan amendments	—		8			2		(345)
Divestiture	—		(193)		(1)	—		—

Benefit obligation at end of year	6,292		8,544			1,275		1,688
Change in plan assets:
Fair value of plan assets at beginning of year	8,793		8,911			185		201
Actual return on plan assets	(1,748)		466			(35)		21
Employer contributions	20		26			—		—
Benefits paid	(462)		(465)			(28)		(37)
Divestiture	—		(145)		(1)	—		—
Fair value of plan assets at end of year	6,603		8,793			122		185
Funded status at December 31	$	311	$	249		$	(1,153)	$	(1,503)
Amounts recognized on our consolidated balance sheets were as follows:
Other assets	$	469	$	476		$	—	$	—
Other accrued liabilities	(25)		(27)			(70)		(67)
Accrued pension costs	(133)		(200)			—		—

Accrued postretirement health care costs	—		—			(1,083)		(1,436)
	$	311	$	249		$	(1,153)	$	(1,503)

(1) Divestiture of benefit obligations and plan assets related to the Ste. Michelle Transaction.

Assumptions used to Determine Benefit Obligations

We used the following assumptions to determine our pension and postretirement benefit obligations at December 31:


	Pension				Postretirement
	2022		2021		2022		2021
Discount rate	5.6	%	3.0	%	5.6	%	2.9	%
Rate of compensation increase - long-term	4.0		4.0		—		—
Health care cost trend rate assumed for next year	—		—		6.5		6.5
Ultimate trend rate	—		—		5.0		5.0
Year that the rate reaches the ultimate trend rate	—		—		2028		2027

Schedule of Net Benefit Costs

Net periodic benefit cost (income) consisted of the following for the years ended December 31:


	Pension						Postretirement
(in millions)	2022		2021		2020		2022		2021		2020
Service cost	$	64	$	68	$	74	$	23	$	20	$	16
Interest cost	206		184		251		41		38		59
Expected return on plan assets	(493)		(522)		(502)		(13)		(14)		(14)
Amortization:
Net loss	96		131		134		18		22		10
Prior service cost (credit)	6		5		5		(45)		(46)		(30)
Settlement	—		—		10		—		—		—
Net periodic benefit cost (income)	$	(121)	$	(134)	$	(28)	$	24	$	20	$	41

Schedule Of Assumptions To Determine Net Periodic Benefit Cost

The following assumptions were used to determine our net periodic benefit cost for the years ended December 31:


	Pension						Postretirement
	2022		2021		2020		2022		2021		2020
Discount rates:
Service cost	3.2	%	3.1	%	3.7	%	3.2	%	3.1	%	3.6	%
Interest cost	2.5		2.0		3.0		2.5		2.0		3.0
Expected rate of return on plan assets	6.1		6.6		6.6		7.7		7.7		7.7
Rate of compensation increase - long-term	4.0		4.0		4.0		—		—		—
Health care cost trend rate	—		—		—		6.5		6.5		6.5

Schedule of Fair Value of Plan Assets by Asset Category

The actual composition of our plan assets at December 31, 2022 was broadly characterized with the following allocation:


	Pension		Postretirement
Equity securities	20	%	56	%
Corporate bonds	52	%	33	%
U.S. Treasury and foreign government securities and all other investments (1)	28	%	11	%

(1) Amount includes U.S Treasury and foreign government securities (19%) and asset based securities and all other investments (9%).

The fair values of our pension plan assets by asset category were as follows at December 31:


	2022				2021
(in millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—	$	1,098	$	1,098	$	—	$	1,147	$	1,147
U.S. municipal bonds	—		82		82		—		60		60
Foreign government and agencies	—		32		32		—		88		88
Corporate debt instruments:
Above investment grade	—		2,747		2,747		—		3,442		3,442
Below investment grade and no rating	—		756		756		—		1,032		1,032
Common stock:
International equities	327		—		327		373		—		373
U.S. equities	591		—		591		856		—		856


Asset backed securities	—		161		161		—		89		89


Other, net	(1)		244		243		52		148		200
	$	917	$	5,120	$	6,037	$	1,281	$	6,006	$	7,287
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds
U.S. large cap					$	312					$	873
U.S. small cap					75						462
International developed markets					49						125
Total investments measured at NAV					$	436					$	1,460

Other					130						46
Fair value of plan assets, net					$	6,603					$	8,793

Level 3 holdings and transactions were immaterial to total plan assets at December 31, 2022 and 2021.

The fair values of our postretirement plan assets were as follows at December 31:


	2022						2021
(in millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—	$	5	$	5	$	—	$	5	$	5

Foreign government and agencies	—		2		2		—		3		3
Corporate debt instruments:
Above investment grade	—		37		37		—		55		55
Below investment grade and no rating	—		7		7		—		10		10
Other, net	—		3		3		—		—		—
	$	—	$	54	$	54	$	—	$	73	$	73
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds:
U.S. large cap					$	47					$	84
International developed markets					18						25
Total investments measured at NAV					$	65					$	109

Other					3						3
Fair value of plan assets, net					$	122					$	185

Estimated Future Benefit Payments

Estimated future benefit payments at December 31, 2022 were as follows:


(in millions)	Pension		Postretirement
2023	$	494	$	106
2024	471		100
2025	471		96
2026	472		95
2027	473		95
2028-2032	2,355		477

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

We recorded the following amounts in accumulated other comprehensive losses at December 31, 2022:


(in millions)	Pension		Post- retirement		Post- employment		Total

Net loss	$	(2,180)	$	1	$	(34)	$	(2,213)
Prior service (cost) credit	(24)		293		(5)		264
Deferred income taxes	571		(68)		10		513
Amounts recorded in accumulated other comprehensive losses	$	(1,633)	$	226	$	(29)	$	(1,436)

We recorded the following amounts in accumulated other comprehensive losses at December 31, 2021:


(in millions)	Pension		Post- retirement		Post- employment		Total
Net loss	$	(2,093)	$	(362)	$	(32)	$	(2,487)
Prior service (cost) credit	(30)		340		(5)		305
Deferred income taxes	549		12		9		570
Amounts recorded in accumulated other comprehensive losses	$	(1,574)	$	(10)	$	(28)	$	(1,612)

Movements in Other Comprehensive Earnings/Losses

The movements in other comprehensive earnings/losses for the year ended December 31, 2022 were as follows:


(in millions)	Pension		Post- retirement		Post- employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	96	$	18	$	13	$	127
Prior service cost/credit	6		(45)		—		(39)
Other expense (income):
Net loss	—		—		—		—
Prior service cost/credit	—		—		—		—
Deferred income taxes	(26)		7		(3)		(22)
	$	76	$	(20)	$	10	$	66
Other movements during the year:
Net loss	$	(183)	$	345	$	(15)	$	147
Prior service cost/credit	—		(2)		—		(2)
Deferred income taxes	48		(87)		4		(35)
	$	(135)	$	256	$	(11)	$	110
Total movements in other comprehensive earnings/losses	$	(59)	$	236	$	(1)	$	176

The movements in other comprehensive earnings/losses for the year ended December 31, 2021 were as follows:


(in millions)	Pension		Post-retirement		Post-employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	131	$	22	$	10	$	163
Prior service cost/credit	5		(46)		—		(41)
Other expense (income):
Net loss	—		—		—		—
Prior service cost/credit	—		—		—		—
Deferred income taxes	(35)		7		(2)		(30)
	$	101	$	(17)	$	8	$	92
Other movements during the year:

Net loss	$	465	$	157	$	2	$	624
Prior service cost/credit	(8)		345		—		337
Deferred income taxes	(118)		(127)		—		(245)
	$	339	$	375	$	2	$	716
Total movements in other comprehensive earnings/losses	$	440	$	358	$	10	$	808

The movements in other comprehensive earnings/losses for the year ended December 31, 2020 were as follows:


(in millions)	Pension		Post- retirement		Post- employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost:
Amortization:
Net loss	$	134	$	10	$	19	$	163
Prior service cost/credit	5		(30)		—		(25)
Other expense (income):
Net loss	10		—		—		10
Prior service cost/credit	—		—		—		—
Deferred income taxes	(37)		5		(5)		(37)
	$	112	$	(15)	$	14	$	111
Other movements during the year:
Net loss	$	(268)	$	(162)	$	(18)	$	(448)
Prior service cost/credit	(5)		(1)		—		(6)
Deferred income taxes	69		41		5		115
	$	(204)	$	(122)	$	(13)	$	(339)
Total movements in other comprehensive earnings/losses	$	(92)	$	(137)	$	1	$	(228)