NAV per share, investment redemption, notice period

  
long-term rate of return assumption of 6.75% for 2022 for its U.S. plan. This expected rate of return reflects the asset allocation of the plan, and is based primarily on broad, publicly-traded equity and fixed-income indices and forward-looking estimates of active portfolio and investment management. Long-term rate of return on asset assumptions for the non-U.S. plans were determined on a plan-by-plan basis based on the composition of assets and ranged from 0.3% to 5.0% in 2021 and 0.5% to 5.0% in 2020, with a weighted average rate of return assumption of 3.3% in 2021 and 3.4% in 2020. Pension Plan AssetsThe U.S. pension plan’s goal is to maintain between 60% and 70% of its assets in equity portfolios, which are invested in individual equity securities or funds that are expected to mirror broad market returns for equity securities or in assets with characteristics similar to equity investments, such as venture capital funds and partnerships. Asset holdings are periodically rebalanced when equity holdings are outside this range. The balance of the U.S. plan asset portfolio is invested in bond funds, real estate funds, various absolute and real return funds and private equity funds. Non-U.S. plan assets are invested in various insurance contracts, equity and debt securities as determined by the administrator of each plan. The value of the plan assets directly affects the funded status of the Company’s pension plans recorded in the Consolidated Financial Statements.The Company has certain investments that are valued using Net Asset Value (“NAV”) as the practical expedient. In addition, certain of the investments valued using NAV as the practical expedient have limits on their redemption to monthly, quarterly, semiannually or annually and require up to 90 days prior written notice. These investments valued using NAV consist of mutual funds, venture capital funds, partnerships, real estate, and other private investments, which allow the Company to allocate investments across a broad array of types of funds and diversify the portfolio. The fair values of the Company’s pension plan assets for both the U.S. and non-U.S. plans as of December 31, 2021 and 2020, by asset category were as follows ($ in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Quoted Prices in Active Market (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total |
|  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020 |
| Cash and equivalents | $ | 85  |  |  | $ | 175  |  |  | $ | —  |  |  | $ | —  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 85  |  |  | $ | 175  |  |
| Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Common stock | 486  |  |  | 503  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 486  |  |  | 503  |  |
| Preferred stock | 2  |  |  | 6  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 2  |  |  | 6  |  |
| Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Corporate bonds | —  |  |  | —  |  |  | 47  |  |  | 42  |  |  | —  |  |  | —  |  |  | 47  |  |  | 42  |  |
| Government issued | —  |  |  | —  |  |  | 46  |  |  | 58  |  |  | —  |  |  | —  |  |  | 46  |  |  | 58  |  |
| Mutual funds | 223  |  |  | 244  |  |  | 248  |  |  | 51  |  |  | —  |  |  | —  |  |  | 471  |  |  | 295  |  |
| Insurance contracts | —  |  |  | —  |  |  | 357  |  |  | 354  |  |  | —  |  |  | —  |  |  | 357  |  |  | 354  |  |
| Total | $ | 796  |  |  | $ | 928  |  |  | $ | 698  |  |  | $ | 505  |  |  | $ | —  |  |  | $ | —  |  |  | 1,494  |  |  | 1,433  |  |
| Investments measured at NAV (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Common/collective trusts |  |  |  |  |  |  |  |  |  |  |  | 1,073  |  |  | 1,198  |  |
| Venture capital, partnerships and other private investments |  |  |  |  |  |  |  |  |  |  |  | 1,096  |  |  | 825  |  |
| Total assets at fair value |  |  |  |  |  |  |  |  |  |  |  | $ | 3,663  |  |  | $ | 3,456  |  |

(a)    The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total plan assets.Preferred stock and common stock traded on an active market, as well as mutual funds are valued at the quoted closing price reported on the active market on which the individual securities are traded. Preferred stock, common stock, corporate bonds, U.S. government securities and mutual funds that are not traded on an active market are valued at quoted prices reported by investment brokers and dealers based on the underlying terms of the security and comparison to similar securities traded on an active market. Insurance contracts are valued based upon the quoted prices of the underlying investments with the insurance company.Common/collective trusts are valued based on the plan’s interest, represented by investment units, in the underlying investments held within the trust that are traded in an active market by the trustee. Venture capital, partnerships and other private investments are valued using the NAV based on the information provided by the asset fund managers, which reflects the plan’s share of the fair value of the net assets of the investment. Depending on the nature of the assets, the underlying investments are valued using a combination of either discounted cash flows, earnings and 101
