Plan amendments

[Table of Contents](#ifb4765332bfb410ba6ce53d196f7d99d_7)REITs—REITs are invested in commingled funds. Commingled funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end net asset value. Since the net asset value is not directly observable for the commingled funds, they are categorized as Level 2.Guaranteed annuity contracts—Guaranteed annuity contracts are categorized as Level 3 because the investments are not publicly quoted. Since these market values are determined by the provider, they are not highly observable and have been categorized as Level 3. Exchange-traded future and option positions are reported in accordance with changes in variation margins that are settled daily.Presented in the table below is a rollforward of the changes in the benefit obligation and plan assets for the two most recent years, for all plans combined:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Pension Benefits |  | Other Benefits |
|   | 2021 |  | 2020 |  | 2021 |  | 2020 |
| Change in benefit obligation: |   |  |   |  |   |  |   |
| Benefit obligation as of January 1, | $ | 2,386  |  |  | $ | 2,161  |  |  | $ | 382  |  |  | $ | 374  |  |
| Service cost | 36  |  |  | 31  |  |  | 4  |  |  | 4  |  |
| Interest cost | 64  |  |  | 73  |  |  | 10  |  |  | 12  |  |
| Plan participants' contributions | —  |  |  | —  |  |  | 2  |  |  | 2  |  |
| Plan amendments | —  |  |  | —  |  |  | —  |  |  | 5  |  |
| Actuarial loss (gain) | (46) |  |  | 233  |  |  | (26) |  |  | 13  |  |
| Settlements (a) | (6) |  |  | (3) |  |  | —  |  |  | —  |  |
| Gross benefits paid | (140) |  |  | (109) |  |  | (31) |  |  | (29) |  |
| Federal subsidy | —  |  |  | —  |  |  | 1  |  |  | 1  |  |
| Benefit obligation as of December 31, | $ | 2,294  |  |  | $ | 2,386  |  |  | $ | 342  |  |  | $ | 382  |  |
| Change in plan assets: |   |  |   |  |   |  |   |
| Fair value of plan assets as of January 1, | $ | 1,990  |  |  | $ | 1,747  |  |  | $ | 556  |  |  | $ | 532  |  |
| Actual return on plan assets | 108  |  |  | 314  |  |  | 9  |  |  | 53  |  |
| Employer contributions | 39  |  |  | 41  |  |  | 1  |  |  | (2) |  |
| Plan participants' contributions | —  |  |  | —  |  |  | 2  |  |  | 2  |  |
| Settlements (a) | (6) |  |  | (3) |  |  | —  |  |  | —  |  |
| Benefits paid | (140) |  |  | (109) |  |  | (30) |  |  | (29) |  |
| Fair value of plan assets as of December 31, | $ | 1,991  |  |  | $ | 1,990  |  |  | $ | 538  |  |  | $ | 556  |  |
| Funded value as of December 31, | $ | (303) |  |  | $ | (396) |  |  | $ | 196  |  |  | $ | 174  |  |
| Amounts recognized on the balance sheet: |   |  |   |  |   |  |   |
| Noncurrent asset | $ | —  |  |  | $ | —  |  |  | $ | 193  |  |  | $ | 173  |  |
| Current liability | (2) |  |  | (2) |  |  | —  |  |  | —  |  |
| Noncurrent liability | (285) |  |  | (388) |  |  | (1) |  |  | (1) |  |
| (Liabilities) assets related to assets held for sale (b) | (16) |  |  | (6) |  |  | 4  |  |  | 2  |  |
| Net amount recognized | $ | (303) |  |  | $ | (396) |  |  | $ | 196  |  |  | $ | 174  |  |

(a)The Company paid $6 million and $3 million of lump sum payment distributions from the Company’s New York Water Service Corporation Pension Plan for the years ended December 31, 2021 and 2020, respectively. (b)These balances are related to the sale of the Company’s New York subsidiary, which was completed on January 1, 2022, and are included in assets held for sale and liabilities related to assets held for sale on the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020. See Note 6—Acquisitions and Divestitures for additional information.123
