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Employee Benefit and Retirement Plans (Tables)
 12 Months Ended
Dec. 31, 2020
Schedule of Reconciliation of Benefit Obligations
The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s noncontributory defined benefit pension plans, including the SERP, at December 31, (dollars in millions):
Pension BenefitsPostretirement Benefits
United StatesInternational
Change in benefit obligation:202020192020201920202019
Benefit obligation at beginning of year$1,449 $1,348 $626 $581 $52 $53 
Service cost— 1 4 6 — — 
Interest cost35 49 9 13 1 2 
Actuarial loss133 151 29 45 2 2 
Amendments— — 1 1 — — 
Currency translation— — 29 15 — — 
Benefits paid(95)(100)(21)(22)(4)(5)
Acquisitions and dispositions, net2 — — — — — 
Curtailments, settlements and other(167)— (9)(13)— — 
Benefit obligation at end of year (1)$1,357 $1,449 $668 $626 $51 $52 
Change in plan assets:
Fair value of plan assets at beginning of year1,228 1,105 580 532 — — 
Actual return on plan assets178 213 47 51 — — 
Contributions17 10 8 13 4 — 
Currency translation— — 22 19 — — 
Benefits paid(95)(100)(21)(22)(4)— 
Settlements and other(167)— (9)(13)— — 
Fair value of plan assets at end of year$1,161 $1,228 $627 $580 $— $— 
Funded status at end of year$(196)$(221)$(41)$(46)$(51)$(52)
Amounts recognized in the Consolidated Balance Sheets:
Prepaid benefit cost, included in other assets$— $— $104 $89 $— $— 
Accrued current benefit cost—other accrued liabilities(11)(15)(5)(4)(5)(6)
Accrued noncurrent benefit cost— other noncurrent liabilities(185)(206)(140)(131)(46)(46)
Net amount recognized$(196)$(221)$(41)$(46)$(51)$(52)
Assumptions:
Weighted-average assumptions used to determine benefit obligation:
Discount rate2.16 %3.06 %1.22 %1.79 %1.80 %2.80 %
Long-term rate of compensation increase3.00 %3.00 %2.18 %2.31 %— %— %
Current health care cost trend rates— %— %— %— %6.48 %6.74 %
Ultimate health care cost trend rates— %— %— %— %4.50 %4.50 %
(1)The accumulated benefit obligation for all defined benefit pension plans was $2.0 billion and $2.1 billion at December 31, 2020 and 2019, respectively.
Schedule Of Company's Pension Cost And Supplemental Retirement Plans
The components of pension and postretirement benefit expense for the periods indicated are as follows (dollars in millions):
Pension Benefits
United StatesInternational
202020192018202020192018
Service cost$— $1 $1 $4 $6 $6 
Interest cost35 49 46 9 13 13 
Expected return on plan assets(59)(59)(67)(6)(13)(15)
Amortization:
Prior service cost — — — 1 — 1 
Net actuarial loss23 15 21 3 2 2 
Curtailment, settlement and termination costs52 — — 1 1 1 
Total expense$51 $6 $1 $12 $9 $8 
Assumptions
Weighted average assumption used to calculate net periodic cost:
Effective discount rate for benefit obligations3.06 %4.12 %3.48 %1.79 %2.52 %2.24 %
Effective rate for interest on benefit obligations2.65 %3.79 %3.09 %1.55 %2.20 %1.94 %
Effective rate for service cost3.43 %3.93 %3.32 %0.92 %1.89 %2.33 %
Effective rate for interest on service cost3.41 %3.62 %2.98 %0.75 %2.24 %2.27 %
Long-term rate of return on plan assets5.50 %5.25 %5.75 %1.08 %2.47 %2.58 %
Long-term rate of compensation increase3.00 %3.00 %2.54 %2.32 %2.32 %3.47 %
Postretirement Benefits
202020192018
Interest cost$1 $2 $2 
Amortization:
Prior service credit(2)(5)(7)
Net actuarial gain(4)(4)(3)
Total income$(5)$(7)$(8)
Assumptions
Weighted average assumption used to calculate net periodic cost:
Effective discount rate for benefit obligations2.80 %3.90 %3.09 %
Effective rate for interest on benefit obligations2.41 %2.71 %2.71 %
Effective rate for service cost2.52 %2.97 %2.98 %
Effective rate for interest on service cost2.27 %2.78 %2.78 %
Schedule of Expected Benefit Payments
Estimated future benefit payments under the Company’s defined benefit pension plans and postretirement benefit plans are as follows at December 31, 2020 (in millions):
20212022202320242025Thereafter
Pension benefits$114 $112 $112 $110 $109 $530 
Postretirement benefits$5 $5 $5 $5 $5 $16 
Pension Benefits  
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
Summary of under-funded or non-funded pension benefit plans with projected benefit obligations in excess of plan assets at December 31, (in millions):
Pension Benefits
20202019
Projected benefit obligation$1,721 $1,792 
Fair value of plan assets1,380 1,435 
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
Summary of pension plans with accumulated obligations in excess of plan assets at December 31, (in millions):
Pension Benefits
20202019
Accumulated benefit obligation$1,711 $1,784 
Fair value of plan assets1,380 1,435 
Schedule of Allocation of Plan Assets
The composition of domestic pension plan assets at December 31, 2020 and 2019 is as follows (in millions):
Plan Assets — Domestic Plans
December 31, 2020
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$— $— $— $— $273 $273 
Fixed income securities and funds441 — — 441 319 760 
Alternative investments— — — — 104 104 
Cash and other8 15 1 24 — 24 
Total$449 $15 $1 $465 $696 $1,161 
Plan Assets — Domestic Plans
December 31, 2019
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$— $— $— $— $233 $233 
Fixed income securities and funds400 — — 400 330 730 
Alternative investments47 — — 47 192 239 
Cash and other10 15 1 26 — 26 
Total$457 $15 $1 $473 $755 $1,228 
The composition of international pension plan assets at December 31, 2020 and 2019 is as follows (in millions):

Plan Assets — International Plans
December 31, 2020
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$3 $3 $— $6 $— $6 
Fixed income securities and funds262 3 — 265 — 265 
Cash and other4 234 9 247 109 356 
Total$269 $240 $9 $518 $109 $627 
Plan Assets — International Plans
December 31, 2019
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$3 $— $— $3 $2 $5 
Fixed income securities and funds298 — — 298 3 301 
Cash and other8 255 8 271 3 274 
Total$309 $255 $8 $572 $8 $580 
Postretirement Benefits  
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
A reconciliation of the change in fair value of the defined benefit plans’ assets using significant unobservable inputs (Level 3) for 2020 and 2019 is as follows (in millions):
Total
Balance December 31, 2018$10 
Purchases, sales, settlements, and other, net(1)
Balance December 31, 20199 
Unrealized gains1 
Balance December 31, 2020$10