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Pension and Other Postretirement Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans
401(k) Savings Plan and Other Defined Contribution Plans
The company’s 401(k) savings and other defined contribution plans cover the majority of the company’s eligible U.S. and certain non-U.S. employees. Contributions to the plans are made by both the employee and the company. Company contributions are based on the level of employee contributions, and are based on formulas determined by the company. In 2023, 2022 and 2021, the company charged to expense $468 million, $402 million and $299 million, respectively, related to its defined contribution plans.
Defined Benefit Pension Plans
Employees of a number of the company’s non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also maintains postretirement healthcare programs at several acquired businesses where certain employees are eligible to participate. The liabilities and costs associated with the company’s postretirement healthcare programs are generally funded on a self-insured and insured-premium basis and are not material for any period presented.
The company recognizes the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The company is required to recognize as a component of other comprehensive items, net of tax, the actuarial gains/losses and prior service costs/credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive items is adjusted as these amounts are later recognized in income as components of net periodic benefit cost.
When a company with a pension plan is acquired, any excess of projected benefit obligation over the plan assets is recognized as a liability and any excess of plan assets over the projected benefit obligation is recognized as an asset. The recognition of a new liability or a new asset results in the elimination of (a) previously existing unrecognized net gain or loss and (b) unrecognized prior service cost or credits.
The company funds annually, at a minimum, the statutorily required minimum amount as actuarially determined. Contributions to the plans included in the following table are estimated at between $30 million and $50 million for 2024.
The following table provides a reconciliation of benefit obligations and plan assets of the company’s domestic and non-U.S. pension plans:
 Domestic pension benefitsNon-U.S. pension benefits
(In millions)2023202220232022
Accumulated benefit obligation
$1,005 $995 $1,166 $1,016 
Change in projected benefit obligations
Projected benefit obligation at beginning of year
$995 $1,260 $1,069 $1,552 
Acquisitions
— — 15 51 
Service costs
— — 26 34 
Interest costs
47 27 42 20 
Settlements
— — (37)(31)
Plan participants' contributions
— — 9 9 
Actuarial (gains) losses
42 (210)65 (447)
Benefits paid
(79)(82)(25)(19)
Currency translation and other
— — 57 (100)
Projected benefit obligation at end of year
$1,005 $995 $1,221 $1,069 
Change in fair value of plan assets
Fair value of plan assets at beginning of year
$937 $1,226 $868 $1,302 
Acquisitions— — 15 14 
Actual return on plan assets
84 (212)29 (347)
Employer contributions
5 5 36 36 
Settlements
— — (37)(31)
Plan participants' contributions
— — 9 9 
Benefits paid
(79)(82)(25)(19)
Currency translation and other
— — 49 (96)
Fair value of plan assets at end of year$947 $937 $944 $868 
Funded status
$(58)$(58)$(277)$(201)
Amounts recognized in balance sheet
Noncurrent assets
$— $— $65 $81 
Current liability
(6)(6)(11)(11)
Noncurrent liabilities
(52)(52)(331)(271)
Net amount recognized
$(58)$(58)$(277)$(201)
Amounts recognized in accumulated other comprehensive items
Net actuarial loss
$217 $200 $151 $74 
Prior service credits
— — (5)(4)
Net amount recognized
$217 $200 $146 $70 
For domestic pension plans, actuarial losses experienced in 2023 were driven by decreases in the weighted average discount rates used to determine the projected benefit obligation, as well as differences between actual and expected returns on plan assets for certain portions of plan benefits indexed to asset returns. For non-U.S. pension plans, actuarial losses experienced in 2023 were principally driven by decreases in the weighted average discount rates used to determine the projected benefit obligation.
For domestic pension plans, actuarial gains experienced in 2022 were driven by increases in the weighted average discount rates used to determine the projected benefit obligation, as well as differences between actual and expected returns on plan assets for certain portions of plan benefits indexed to asset returns. For non-U.S. pension plans, actuarial gains experienced in 2022 were principally driven by increases in the weighted average discount rates used to determine the projected benefit obligation.
The actuarial assumptions used to compute the funded status for the plans are based upon information available as of December 31, 2023 and 2022 and are as follows:
 Domestic pension benefitsNon-U.S. pension benefits
 2023202220232022
Weighted average assumptions used to determine projected benefit obligations
Discount rate for determining benefit obligation
4.82 %5.01 %3.47 %3.91 %
Interest crediting rate for cash balance plans
4.76 %4.96 %2.06 %2.19 %
Average rate of increase in employee compensation
N/AN/A2.64 %2.78 %
The actuarial assumptions used to compute the net periodic pension benefit cost (income) are based upon information available as of the beginning of the year, as presented in the following table:
 Domestic pension benefitsNon-U.S. pension benefits
 202320222021202320222021
Weighted average assumptions used to determine net benefit cost (income)
Discount rate - service cost
N/AN/AN/A3.62 %1.00 %0.65 %
Discount rate - interest cost
5.01 %2.70 %2.33 %3.95 %1.36 %0.80 %
Average rate of increase in employee compensation
N/AN/AN/A2.77 %2.73 %2.30 %
Expected long-term rate of return on assets
6.25 %4.75 %4.25 %4.33 %2.33 %2.02 %
The discount rate reflects the rate the company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. The discount rate is determined based on a range of factors, including the rates of return on high-quality, fixed-income corporate bonds and the related expected duration of the obligations or, in certain instances, the company has used a hypothetical portfolio of high quality instruments with maturities that mirror the benefit obligation in order to accurately estimate the discount rate relevant to a particular plan.
The company utilizes a full yield curve approach in the estimation of these components by applying the specific spot-rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.
The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, the company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks.
Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements.
The expected rate of compensation increase reflects the long-term average rate of salary increases and is based on historic salary increase experience and management’s expectations of future salary increases.
The projected benefit obligation and fair value of plan assets for the company’s qualified and non-qualified pension plans with projected benefit obligations in excess of plan assets are as follows:
 Pension plans
(In millions)20232022
Pension plans with projected benefit obligations in excess of plan assets
Projected benefit obligation
$1,752 $1,636 
Fair value of plan assets
1,352 1,296 
The accumulated benefit obligation and fair value of plan assets for the company's qualified and non-qualified pension plans with accumulated benefit obligations in excess of plan assets are as follows:
 Pension plans
(In millions)20232022
Pension plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation
$1,695 $1,583 
Fair value of plan assets
1,349 1,294 
The measurement date used to determine benefit information is December 31 for all plan assets and benefit obligations.
The net periodic pension benefit cost (income) includes the following components:
 Domestic pension benefitsNon-U.S. pension benefits
(In millions)202320222021202320222021
Components of net benefit cost (income)
Service cost
$— $— $— $26 $34 $27 
Interest cost on benefit obligation
47 27 23 42 20 11 
Expected return on plan assets
(59)(45)(40)(37)(26)(19)
Amortization of actuarial net loss
— 4 7 2 7 12 
Amortization of prior service cost (benefit)
— — — (1)(1)— 
Settlement/curtailment loss (gain)
— — — 1 (2)— 
Net periodic benefit cost (income)
$(12)$(14)$(10)$33 $32 $31 
Expected benefit payments are estimated using the same assumptions used in determining the company’s benefit obligation at December 31, 2023. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments. Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows:
(In millions)Domestic pension benefitsNon-U.S. pension benefits
Expected benefit payments
2024 $81 $52 
2025 79 55 
2026 80 59 
2027 79 60 
2028 79 65 
2029-2033374 354 
Domestic Pension Plan Assets
The company’s overall objective is to manage the assets in a liability framework where investments are selected that are expected to have similar changes in fair value as the related liabilities will have upon changes in interest rates. The company invests in a portfolio of both return-seeking and liability-hedging assets, primarily through the use of institutional collective funds, to achieve long-term growth and to insulate the funded position from interest rate volatility. The strategic asset allocation uses a combination of risk controlled and index strategies in fixed income and global equities. The target allocations for the investments are approximately 10% to funds investing in U.S. equities, approximately 10% to funds investing in international equities and approximately 80% to funds investing in fixed income securities. The portfolio maintains enough liquidity at all times to meet the near-term benefit payments.
Non-U.S. Pension Plan Assets
The company maintains specific plan assets for many of the individual pension plans outside the U.S. The investment strategy of each plan has been uniquely established based on the country specific standards and characteristics of the plans. Several of the plans have contracts with insurance companies whereby the market risks of the benefit obligations are borne by the insurance companies. When assets are held directly in investments, generally the objective is to invest in a portfolio of diversified assets with a variety of fund managers. The investments may include equity funds, fixed income funds, hedge funds,
multi-asset funds, alternative investments and derivative funds with the target asset allocations ranging from approximately 0% - 25% for equity funds, 30% - 90% for fixed income funds, 0% - 40% for multi-asset funds, 0% - 4% for alternative investments, 0% - 4% for real estate funds and 0% - 45% for funds holding derivatives. The derivatives held by the funds are primarily interest rate swaps intended to match the movements in the plan liabilities. Each plan maintains enough liquidity at all times to meet the near-term benefit payments.
The fair values of the company’s plan assets at December 31, 2023 and 2022, by asset category are as follows:
 December 31,Quoted
prices in
active
markets		Significant
other
observable
inputs		Significant
unobservable
inputs		Not subject to leveling (a)
(In millions)2023(Level 1)(Level 2)(Level 3)
Domestic pension plan assets
U.S. equity funds
$93 $— $— $— $93 
International equity funds
93 — — — 93 
Fixed income funds
739 — — — 739 
Money market funds
22 — — — 22 
Total domestic pension plans
$947 $— $— $— $947 
Non-U.S. pension plan assets
Equity funds
$7 $— $— $— $7 
Fixed income funds
346 9 — — 337 
Multi-asset funds
66 — — — 66 
Derivative funds
184 — — — 184 
Alternative investments
1 — — — 1 
Insurance contracts
333 — 333 — — 
Real estate funds1 — — — 1 
Cash / money market funds
6 4 — — 2 
Total non-U.S. pension plans
$944 $13 $333 $— $598 
(a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
 December 31,Quoted
prices in
active
markets		Significant
other
observable
inputs		Significant
unobservable
inputs		Not subject to leveling (a)
(In millions)2022(Level 1)(Level 2)(Level 3)
Domestic pension plan assets
U.S. equity funds
$89 $— $— $— $89 
International equity funds
91 — — — 91 
Fixed income funds
739 — — — 739 
Money market funds
18 — — — 18 
Total domestic pension plans$937 $— $— $— $937 
Non-U.S. pension plan assets
Equity funds
$8 $— $— $— $8 
Fixed income funds
299 — — — 299 
Multi-asset funds
56 — — — 56 
Derivative funds
190 — — — 190 
Insurance contracts
306 — 306 — — 
Cash / money market funds
9 4 — — 5 
Total non-U.S. pension plans$868 $4 $306 $— $558 
(a) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The tables above present the fair value of the company’s plan assets in accordance with the fair value hierarchy (Note 14). Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts of these investments presented in the above tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. These investments were also redeemable at the balance sheet date or within limited time restrictions.