Payment for participants

  
The assets and liabilities of our pension plans are valued using the following valuation methods:

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| Investment category | Valuation methodology |
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| Cash and cash equivalents | These largely consist of a short-term investment fund, U.S. dollars and foreign currency. The fair value of the short-term investment fund is based on the net asset value. |
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| U.S. government and government agency issues | Values are based on reputable pricing vendors, who typically use pricing matrices or models that use observable inputs. |
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| Corporate bonds | Values are based on reputable pricing vendors, who typically use pricing matrices or models that use observable inputs. |
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| Common stock | Values are based on the closing prices on the valuation date in an active market on national and international stock exchanges. |
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| Mutual funds | Values are based on the net asset value of the units held in the respective fund which are obtained from national and international exchanges or based on the net asset value of the underlying assets of the fund provided by the fund manager. |
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| Common/collective trust funds | Values are based on the net asset value of the units held at year end. |
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| Partnership investments | Values are based on the net asset value of the participation by us in the investment as determined by the general partner or investment manager of the respective partnership. |
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| Other holdings | The value of these assets vary by investment type, but primarily are determined by reputable pricing vendors, who use pricing matrices or models that use observable inputs. |
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| Collateral held on loaned securities | Values are based on the net asset value per unit of the fund in which the collateral is invested. |
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| Collateral to be paid on loaned securities | Values are based on the fair value of the underlying securities loaned on the valuation date. |

Expected Pension and OPEB Plan FundingOur funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that we may determine to be appropriate considering the funded status of the plans, tax deductibility, the cash flows generated by us, and other factors. Volatility in the global financial markets could have an unfavorable impact on future funding requirements. We have no obligation to fund our principal plans in the United States and Puerto Rico in 2022. We continually reassess the amount and timing of any discretionary contributions. In 2022, we expect to make contributions of at least $41 million to our foreign pension plans. We expect to have net cash outflows relating to our OPEB plans of approximately $19 million in 2022.The following table details the funded status percentage of our pension plans as of December 31, 2021, including certain plans that are unfunded in accordance with the guidelines of our funding policy outlined above.

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|  | United States and Puerto Rico |  | International |  |
| as of December 31, 2021 (in millions) | Qualifiedplans | Nonqualifiedplan |  | Fundedplans | Unfundedplans | Total |
| Fair value of plan assets | $ | 2,700  |  | n/a |  | $ | 1,084  |  | n/a | $ | 3,784  |  |
| PBO | 2,713  |  | $ | 257  |  |  | 1,015  |  | $ | 458  |  | 4,443  |  |
| Funded status percentage | 100  | % | n/a |  | 107  | % | n/a | 85  | % |

Pension Settlement TransactionsIn October 2020, we offered certain former U.S. employees with vested pension benefits a limited-time option to take a lump sum distribution in lieu of future monthly payments. This option expired in November 2020 and approximately 40% of the eligible participants accepted the offer. Payments from plan assets to participants who accepted the offer were made in December 2020 and totaled $252 million. As a result of these transactions, we recognized non-cash pretax pension settlement charges of $43 million in the fourth quarter of 2020. 92
