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Pension and Postretirement Benefit Plans and Defined Contribution Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Costs
The following table provides the annual (credit)/cost and changes in Other comprehensive income/(loss) for our benefit plans:
 
 
Year Ended December 31,
 
 
Pension Plans
 
 
 
 
U.S.
Qualified(a)
 
U.S.
Supplemental
(Non-Qualified)
 
International
 
Postretirement
Plans
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2017

 
2019

 
2018

 
2017

 
2019

 
2018

 
2017

 
2019

 
2018

 
2017

Service cost(b)
 
$
—

 
$
—

 
$
269

 
$
—

 
$
—

 
$
24

 
$
125

 
$
136

 
$
171

 
$
37

 
$
39

 
$
42

Interest cost
 
629

 
598

 
634

 
47

 
55

 
54

 
215

 
212

 
204

 
75

 
72

 
90

Expected return on plan assets
 
(890
)
 
(1,040
)
 
(1,005
)
 
—

 
—

 
—

 
(317
)
 
(360
)
 
(345
)
 
(33
)
 
(37
)
 
(36
)
Amortization of:
 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 
Actuarial losses(b)
 
147

 
120

 
393

 
11

 
13

 
50

 
80

 
101

 
116

 
3

 
7

 
31

Prior service cost/(credit)
 
(3
)
 
2

 
3

 
(1
)
 
(1
)
 
(1
)
 
(4
)
 
(4
)
 
(4
)
 
(173
)
 
(178
)
 
(182
)
Curtailments
 
—

 
12

 
13

 
—

 
1

 
1

 
(1
)
 
(4
)
 
—

 
(47
)
 
(17
)
 
(19
)
Settlements
 
230

 
113

 
75

 
27

 
26

 
39

 
16

 
4

 
4

 
(10
)
 
—

 
—

Special termination benefits
 
4

 
6

 
—

 
17

 
10

 
—

 
—

 
—

 
1

 
2

 
2

 
—

Net periodic benefit cost/(credit) reported in income(c)
 
116

 
(189
)
 
382

 
100

 
103

 
166

 
115

 
84

 
147

 
(146
)
 
(111
)
 
(75
)
(Credit)/cost reported in Other comprehensive income/(loss)
 
(246
)
 
361

 
141

 
115

 
(189
)
 
23

 
570

 
84

 
(301
)
 
38

 
105

 
(8
)
(Credit)/cost recognized in Comprehensive income
 
$
(129
)
 
$
171

 
$
523

 
$
215

 
$
(86
)
 
$
189

 
$
685

 
$
168

 
$
(154
)
 
$
(107
)
 
$
(6
)
 
$
(83
)
(a) 
In the second quarter of 2017, we settled the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. We purchased a group annuity contract on behalf of the remaining plan participants with a third-party insurance provider. As a result, we were relieved of the $156 million net pension benefit obligation and recorded a pretax settlement gain of $41 million, partially offset by the recognition of actuarial losses and prior service costs upon plan settlement of approximately $30 million in Other (income)/deductions—net (see Note 3).
(b) 
Effective January 1, 2018, we froze two significant defined benefit pension plans to future benefit accruals in the U.S. and U.K. and as a result, service costs for those plans are eliminated. In addition, due to the plan freeze, the average amortization period for the U.S. qualified plans and U.S. supplemental (non-qualified) plans was extended to the expected life expectancy of the plan participants, whereas the average amortization period in prior years utilized the expected future service period of plan participants.
(c) 
We adopted an accounting standard on January 1, 2018 that requires the net periodic pension and postretirement benefit costs other than service costs be presented in Other (income)/deductions––net on the consolidated statements of income. For additional information, see Note 4.
Schedule of Amounts in Accumulated Other Comprehensive Income/(Loss) Expected to be Amortized into 2014 Net Periodic Benefit Costs
The following table provides the amounts in Accumulated other comprehensive loss expected to be amortized into 2020 net periodic benefit costs:
  
 
Pension Plans
 
  
(MILLIONS OF DOLLARS)
 
U.S.
Qualified
 
U.S. Supplemental
(Non-Qualified)
 
International 
 
Postretirement Plans
Actuarial (losses)/gains(a)
 
$
(127
)
 
$
(14
)
 
$
(124
)
 
$
1

Prior service credits and other
 
3

 
1

 
3

 
172

Total
 
$
(124
)
 
$
(14
)
 
$
(121
)
 
$
172


(a) 
Due to the U.S. Pfizer Consolidated Pension Plan freeze effective for January 1, 2018, the average amortization period for the U.S. qualified plans and U.S. supplemental (non-qualified) plans reflect the expected life expectancy of the plan participants, whereas prior years utilized the expected future service period of plan participants. The average amortization periods to be utilized for 2020 are 24.9 years for our U.S. qualified plans, 24.5 years for our U.S. supplemental (non-qualified) plans, 19.4 years for our international plans, and 9.2 years for our postretirement plans.
Schedule of Assumptions Used
The following table provides the weighted-average actuarial assumptions of our benefit plans:
(PERCENTAGES)
 
2019

 
2018

 
2017

Weighted-average assumptions used to determine benefit obligations
 
 
 
 
 
 
Discount rate:
 
 
 
 
 
 
U.S. qualified pension plans
 
3.3
%
 
4.4
%
 
3.8
%
U.S. non-qualified pension plans
 
3.2
%
 
4.3
%
 
3.7
%
International pension plans
 
1.7
%
 
2.5
%
 
2.3
%
Postretirement plans
 
3.2
%
 
4.3
%
 
3.7
%
Rate of compensation increase:
 
 
 
 
 
 
U.S. qualified pension plans(a)
 
—

 
—

 
2.8
%
U.S. non-qualified pension plans(a)
 
—

 
—

 
2.8
%
International pension plans
 
1.4
%
 
1.4
%
 
2.5
%
Weighted-average assumptions used to determine net periodic benefit cost
 
 
 
 
 
 
Discount rate:
 
 
 
 
 
 
U.S. qualified pension plans
 
4.4
%
 
3.8
%
 
4.3
%
U.S. non-qualified pension plans
 
4.3
%
 
3.7
%
 
4.2
%
International pension plans interest cost
 
2.2
%
 
2.0
%
 
2.1
%
International pension plans service cost
 
2.4
%
 
2.3
%
 
2.3
%
Postretirement plans
 
4.3
%
 
3.7
%
 
4.2
%
Expected return on plan assets:
 
 
 
 
 
 
U.S. qualified pension plans
 
7.2
%
 
7.5
%
 
8.0
%
International pension plans
 
3.9
%
 
4.4
%
 
4.7
%
Postretirement plans
 
7.3
%
 
7.5
%
 
8.0
%
Rate of compensation increase:
 
 
 
 
 
 
U.S. qualified pension plans(a)
 
—

 
2.8
%
 
2.8
%
U.S. non-qualified pension plans(a)
 
—

 
2.8
%
 
2.8
%
International pension plans
 
1.4
%
 
2.5
%
 
2.6
%

(a) 
Effective January 1, 2018, we froze the defined benefit plans to future benefit accruals in the U.S. and members’ accrued benefits to that date no longer increase in line with future compensation increases. The rate of compensation increase is therefore no longer an assumption used to determine the benefit obligation and net periodic benefit cost.
Schedule of Health Care Cost Trend Rates
The following table provides the healthcare cost trend rate assumptions for our U.S. postretirement benefit plans:
 
 
2019

 
2018

Healthcare cost trend rate assumed for next year (up to age 65)
 
5.6
%
 
5.8
%
Healthcare cost trend rate assumed for next year (age 65 and older)
 
6.0
%
 
6.5
%
Rate to which the cost trend rate is assumed to decline
 
4.5
%
 
4.5
%
Year that the rate reaches the ultimate trend rate
 
2037

 
2037


The following table provides the effects as of December 31, 2019 of a one-percentage-point increase or decrease in the healthcare cost trend rate assumed for postretirement benefits:
(MILLIONS OF DOLLARS)
 
Increase

 
Decrease

Effect on total service and interest cost components
 
$
2

 
$
(2
)
Effect on postretirement benefit obligation
 
38

 
(27
)
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates
The following table provides the effects as of December 31, 2019 of a one-percentage-point increase or decrease in the healthcare cost trend rate assumed for postretirement benefits:
(MILLIONS OF DOLLARS)
 
Increase

 
Decrease

Effect on total service and interest cost components
 
$
2

 
$
(2
)
Effect on postretirement benefit obligation
 
38

 
(27
)
Schedule of Analysis of the Changes in the Benefit Obligations, Plan assets and Accounting Funded Status of Pension and Postretirement Benefit Plans
The following table provides an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans:
  
 
Year Ended December 31,
 
 
Pension Plans
 
 
 
 
U.S. Qualified
 
U.S. Supplemental
(Non-Qualified)
 
International
 
Postretirement
Plans
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

Change in benefit obligation(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation, beginning
 
$
15,141

 
$
16,702

 
$
1,280

 
$
1,495

 
$
9,952

 
$
10,607

 
$
1,870

 
$
2,028

Service cost
 
—

 
—

 
—

 
—

 
125

 
136

 
37

 
39

Interest cost
 
629

 
598

 
47

 
55

 
215

 
212

 
75

 
72

Employee contributions
 
—

 
—

 
—

 
—

 
7

 
7

 
84

 
102

Plan amendments
 
—

 
(22
)
 
—

 
—

 
18

 
29

 
(56
)
 
2

Changes in actuarial assumptions and other
 
2,001

 
(1,219
)
 
152

 
(152
)
 
1,224

 
(169
)
 
(87
)
 
(122
)
Foreign exchange impact
 
—

 
—

 
—

 
—

 
(33
)
 
(457
)
 
(1
)
 
(4
)
Acquisitions/divestitures/other, net
 
(4
)
 
—

 
(1
)
 
—

 
(55
)
 
(2
)
 
(36
)
 
—

Curtailments
 
—

 
11

 
—

 
1

 
(2
)
 
(3
)
 
—

 
(1
)
Settlements
 
(692
)
 
(391
)
 
(70
)
 
(72
)
 
(34
)
 
(34
)
 
—

 
—

Special termination benefits
 
4

 
6

 
17

 
10

 
—

 
—

 
2

 
2

Benefits paid
 
(544
)
 
(546
)
 
(74
)
 
(58
)
 
(360
)
 
(373
)
 
(221
)
 
(249
)
Benefit obligation, ending(a)
 
16,535

 
15,141

 
1,351

 
1,280

 
11,059

 
9,952

 
1,667

 
1,870

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets, beginning
 
13,051

 
14,284

 
—

 
—

 
8,215

 
8,863

 
469

 
494

Actual gain/(loss) on plan assets
 
2,760

 
(796
)
 
—

 
—

 
873

 
(77
)
 
50

 
(22
)
Company contributions
 
11

 
500

 
144

 
129

 
230

 
209

 
137

 
145

Employee contributions
 
—

 
—

 
—

 
—

 
7

 
7

 
84

 
102

Foreign exchange impact
 
—

 
—

 
—

 
—

 
42

 
(380
)
 
—

 
—

Acquisitions/divestitures, net
 
—

 
—

 
—

 
—

 
(16
)
 
—

 
—

 
—

Settlements
 
(692
)
 
(391
)
 
(70
)
 
(72
)
 
(34
)
 
(34
)
 
—

 
—

Benefits paid
 
(544
)
 
(546
)
 
(74
)
 
(58
)
 
(360
)
 
(373
)
 
(221
)
 
(249
)
Fair value of plan assets, ending
 
14,586

 
13,051

 
—

 
—

 
8,956

 
8,215

 
519

 
469

Funded status—Plan assets less than benefit obligation
 
$
(1,949
)
 
$
(2,089
)
 
$
(1,351
)
 
$
(1,280
)
 
$
(2,103
)
 
$
(1,738
)
 
$
(1,148
)
 
$
(1,401
)

(a) 
The PBO represents the present value of the benefit obligation earned through the end of the year and factors in future compensation increases. The ABO is similar to the PBO but does not factor in future compensation increases. For the U.S. qualified and supplemental (non-qualified) pension plans, the benefit obligation is the PBO, which is also equal to the ABO. Effective January 1, 2018, we froze the defined benefit plans to future benefit accruals in the U.S. and members’ accrued benefits to that date no longer increase in line with future compensation increases. The rate of compensation increase is therefore no longer an assumption used to determine the benefit obligation and net periodic benefit cost. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $10.6 billion in 2019 and $9.5 billion in 2018. For the postretirement plans, the benefit obligation is the ABO.
Schedule of Amounts Recognized in Balance Sheet
The following table provides information as to how the funded status is recognized in our consolidated balance sheets:
  
 
As of December 31,
 
 
Pension Plans
 
 
 
 
 
 
U.S. Qualified
 
U.S. Supplemental
(Non-Qualified)
 
International
 
Postretirement
Plans
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

Noncurrent assets(a)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
453

 
$
401

 
$
—

 
$
—

Current liabilities(b)
 
—

 
(1
)
 
(189
)
 
(167
)
 
(30
)
 
(28
)
 
(24
)
 
(29
)
Noncurrent liabilities(c)
 
(1,949
)
 
(2,088
)
 
(1,162
)
 
(1,113
)
 
(2,526
)
 
(2,111
)
 
(1,124
)
 
(1,371
)
Funded status
 
$
(1,949
)
 
$
(2,089
)
 
$
(1,351
)
 
$
(1,280
)
 
$
(2,103
)
 
$
(1,738
)
 
$
(1,148
)
 
$
(1,401
)
(a) 
Included in Other noncurrent assets.
(b) 
Included in Accrued compensation and related items.
(c) 
As of December 31, 2019, included in Pension benefit obligations, net and Postretirement benefit obligations, net, as appropriate. In 2018, included in Pension benefit obligations, net and Postretirement benefit obligations, net, as well as in Liabilities held for sale (see Note 2C), as appropriate.
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
The following table provides the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 
 
As of December 31,
 
 
Pension Plans
 
 
 
 
 
 
U.S. Qualified
 
U.S. Supplemental
(Non-Qualified)
 
International
 
Postretirement
Plans
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

Actuarial losses(a)
 
$
(4,812
)
 
$
(5,061
)
 
$
(484
)
 
$
(370
)
 
$
(2,921
)
 
$
(2,372
)
 
$
(76
)
 
$
(202
)
Prior service (costs)/credits
 
(2
)
 
1

 
—

 
1

 
(21
)
 
—

 
830

 
994

Total
 
$
(4,814
)
 
$
(5,060
)
 
$
(485
)
 
$
(370
)
 
$
(2,942
)
 
$
(2,372
)
 
$
754

 
$
792

(a) 
The accumulated actuarial losses primarily represent the impact of changes in discount rates and other assumptions that result in cumulative changes in our PBO, as well as the cumulative difference between the expected return and actual return on plan assets. These accumulated actuarial losses are recognized in Accumulated other comprehensive loss and are amortized into net periodic benefit costs primarily over the average remaining service period for active participants for plans that are not frozen or the average life expectancy of plan participants for frozen plans, primarily using the corridor approach.
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
The following table provides information related to the funded status of selected benefit plans:
 
 
As of December 31,
 
 
Pension Plans
 
 
U.S. Qualified
 
U.S. Supplemental (Non-Qualified)
 
International
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

Pension plans with an ABO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
 
$
14,586

 
$
13,051

 
$
—

 
$
—

 
$
5,843

 
$
4,514

ABO
 
16,535

 
15,141

 
1,351

 
1,280

 
7,960

 
6,286

Pension plans with a PBO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
 
14,586

 
13,051

 
—

 
—

 
5,947

 
5,432

PBO
 
16,535

 
15,141

 
1,351

 
1,280

 
8,503

 
7,571
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The following table provides information related to the funded status of selected benefit plans:
 
 
As of December 31,
 
 
Pension Plans
 
 
U.S. Qualified
 
U.S. Supplemental (Non-Qualified)
 
International
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2019

 
2018

 
2019

 
2018

Pension plans with an ABO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
 
$
14,586

 
$
13,051

 
$
—

 
$
—

 
$
5,843

 
$
4,514

ABO
 
16,535

 
15,141

 
1,351

 
1,280

 
7,960

 
6,286

Pension plans with a PBO in excess of plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
 
14,586

 
13,051

 
—

 
—

 
5,947

 
5,432

PBO
 
16,535

 
15,141

 
1,351

 
1,280

 
8,503

 
7,571
Schedule of Allocation of Plan Assets
The following table provides the long-term target asset allocations ranges and the percentage of the fair value of plan assets for benefit plans:
  
 
As of December 31,
  
 
Target
Allocation Percentage

 
Percentage of Plan Assets
(PERCENTAGES)
 
2019

 
2019

 
2018

U.S. qualified pension plans
 
 
 
 
 
 
Cash and cash equivalents
 
0-10%

 
2.5
%
 
3.4
%
Equity securities
 
35-55%

 
31.8
%
 
31.3
%
Fixed income securities
 
28-53%

 
48.7
%
 
47.1
%
Other investments
 
5-20%

 
17.0
%
 
18.2
%
Total
 
100
%
 
100
%
 
100
%
International pension plans
 
 
 
 
 
 
Cash and cash equivalents
 
0-10%

 
2.5
%
 
3.0
%
Equity securities
 
20-40%

 
21.5
%
 
22.9
%
Fixed income securities
 
35-60%

 
46.9
%
 
46.3
%
Other investments
 
10-35%

 
29.2
%
 
27.9
%
Total
 
100
%
 
100
%
 
100
%
U.S. postretirement plans
 
 
 
 
 
 
Cash and cash equivalents
 
0-5%

 
—

 
—

Other investments
 
95-100%

 
100
%
 
100
%
Total
 
100
%
 
100
%
 
100
%

The following table provides the components of plan assets:
  
 
  
 
Fair Value(a)
 
 
 
  
 
Fair Value(a)
 
 
(MILLIONS OF DOLLARS)
 
As of
December 31,
2019

 
Level 1
 
Level 2
 
Level 3
 
Assets Measured at NAV(b)

 
As of
December 31,
2018

 
Level 1
 
Level 2
 
Level 3
 
Assets Measured at NAV(b)

U.S. qualified pension plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
363

 
$
80

 
$
284

 
$
—

 
$
—

 
$
443

 
$
53

 
$
390

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

Global equity securities
 
3,464

 
3,406

 
57

 
—

 
—

 
3,156

 
3,119

 
37

 
—

 
—

Equity commingled funds
 
1,179

 
—

 
819

 
—

 
360

 
933

 
—

 
634

 
—

 
299

Fixed income securities:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

Corporate debt securities
 
5,292

 
10

 
5,281

 
1

 
—

 
4,654

 
1

 
4,650

 
3

 
—

Government and agency obligations
 
1,799

 
—

 
1,799

 
—

 
—

 
1,391

 
—

 
1,391

 
—

 
—

Fixed income commingled funds
 
6

 
—

 
6

 
—

 
—

 
96

 
—

 
—

 
—

 
96

Other investments:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

Partnership investments(c)
 
1,212

 
—

 
—

 
—

 
1,212

 
1,165

 
—

 
—

 
—

 
1,165

Insurance contracts
 
196

 
—

 
196

 
—

 
—

 
192

 
—

 
192

 
—

 
—

Other commingled funds(d)
 
1,075

 
—

 
9

 
—

 
1,066

 
1,021

 
—

 
—

 
—

 
1,021

Total
 
$
14,586

 
$
3,496

 
$
8,451

 
$
1

 
$
2,638

 
$
13,051

 
$
3,173

 
$
7,294

 
$
3

 
$
2,581

International pension plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
221

 
$
33

 
$
187

 
$
—

 
$
—

 
$
246

 
$
39

 
$
208

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

Global equity securities
 
—

 
—

 
—

 
—

 
—

 
2

 
2

 
—

 
—

 
—

Equity commingled funds
 
1,922

 
—

 
1,548

 
—

 
374

 
1,876

 
—

 
1,413

 
—

 
463

Fixed income securities:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

Corporate debt securities
 
796

 
—

 
796

 
—

 
—

 
727

 
—

 
727

 
—

 
—

Government and agency obligations(e)
 
1,200

 
—

 
1,200

 
—

 
—

 
1,305

 
—

 
1,305

 
—

 
—

Fixed income commingled funds
 
2,201

 
—

 
1,031

 
—

 
1,171

 
1,770

 
—

 
1,007

 
—

 
762

Other investments:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 

Partnership investments(c)
 
66

 
—

 
3

 
—

 
63

 
57

 
—

 
4

 
—

 
53

Insurance contracts(f)
 
1,027

 
—

 
82

 
944

 
1

 
759

 
—

 
74

 
684

 
1

Other(d), (f)
 
1,524

 
—

 
82

 
398

 
1,043

 
1,473

 
—

 
71

 
382

 
1,020

Total
 
$
8,956

 
$
33

 
$
4,929

 
$
1,342

 
$
2,652

 
$
8,215

 
$
40

 
$
4,809

 
$
1,065

 
$
2,300

U.S. postretirement plans(g)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance contracts
 
$
519

 
$
—

 
$
519

 
$
—

 
$
—

 
$
469

 
$
—

 
$
469

 
$
—

 
$
—

(a)
Fair values are determined based on valuation inputs categorized as Level 1, 2 or 3 (see Note 1E).
(b)
Certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The NAV amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(c) 
Mainly includes investments in private equity, private debt, public equity limited partnerships, and, to a lesser extent, real estate and venture capital.
(d) 
Mostly includes, for U.S. plan assets, investments in hedge funds and, to a lesser extent, real estate and, for international plan assets, investments in real estate and hedge funds.
(e) 
Government and agency obligations are inclusive of repurchase agreements.
(f) 
See below for a tabular analysis of the changes in Level 3 investments valued using significant unobservable inputs.
(g) 
Reflects postretirement plan assets, which support a portion of our U.S. retiree medical plans.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The following table provides an analysis of the changes in our more significant investments valued using significant unobservable inputs:
 
 
Year Ended December 31,
 
 
International Pension Plans
 
 
Insurance contracts
 
Other
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2019

 
2018

Fair value, beginning
 
$
684

 
$
420

 
$
382

 
$
468

Actual return on plan assets:
 
 
 

 


 

Assets held, ending
 
50

 
1

 
6

 
15

Purchases, sales, and settlements, net
 
(40
)
 
188

 
6

 
(31
)
Transfer into/(out of) Level 3
 
247

 
107

 
—

 
(51
)
Exchange rate changes
 
2

 
(31
)
 
4

 
(20
)
Fair value, ending
 
$
944

 
$
684

 
$
398

 
$
382
Schedule of Expected Future Cash Flow Information
The following table provides the expected future cash flow information related to our benefit plans:
  
 
Pension Plans
 
 
(MILLIONS OF DOLLARS)
 
U.S. Qualified
 
U.S. Supplemental
(Non-Qualified)
 
International
 
Postretirement Plans
Expected employer contributions:
 
 
 
 
 
 
 
 
2020(a)
 
$
1,276

 
$
189

 
$
172

 
$
147

Expected benefit payments:
 
 
 
 
 
 
 
 
2020
 
$
1,477

 
$
189

 
$
355

 
$
153

2021
 
1,089

 
113

 
358

 
137

2022
 
1,048

 
115

 
364

 
137

2023
 
1,046

 
110

 
366

 
136

2024
 
1,028

 
103

 
375

 
134

2025–2029
 
4,759

 
435

 
1,992

 
642


(a) 
For the U.S. qualified plans, we plan to make a $1.25 billion voluntary contribution in the second half of 2020.