Settlement losses

  
The assets (liabilities) recognized on the consolidated balance sheets at December 31, 2021 and 2020 for the defined benefit pension plans consisted of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| In millions | 2021 |  | 2020 |
| Noncurrent assets reflected in other assets | $ | 946  |  |  | $ | 744  |  |
| Current liabilities reflected in accrued expenses | (28) |  |  | (76) |  |
| Noncurrent liabilities reflected in other long-term liabilities | (250) |  |  | (285) |  |
| Net assets | $ | 668  |  |  | $ | 383  |  |

  
Net Periodic Benefit Cost (Income)The components of net periodic benefit cost (income) for the years ended December 31, 2021, 2020 and 2019 are shown below:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| In millions | 2021 |  | 2020 |  | 2019 |
| Components of net periodic benefit cost (income): |  |  |  |  |  |
| Interest cost | $ | 110  |  |  | $ | 168  |  |  | $ | 225  |  |
| Expected return on plan assets | (317) |  |  | (388) |  |  | (357) |  |
| Amortization of net actuarial loss | 5  |  |  | 2  |  |  | 1  |  |
| Settlement losses | 16  |  |  | —  |  |  | —  |  |
| Net periodic benefit cost (income) | $ | (186) |  |  | $ | (218) |  |  | $ | (131) |  |

  
Pension Plan AssumptionsThe Company uses a series of actuarial assumptions to determine its benefit obligation and net periodic benefit cost (income), the most significant of which include discount rates and expected return on plan assets assumptions.   
Discount Rates - The discount rate is determined using a yield curve as of the annual measurement date. The yield curve consists of a series of individual discount rates, with each discount rate corresponding to a single point in time, based on high-quality bonds. Projected benefit payments are discounted to the measurement date using the corresponding rate from the yield curve that is consistent with the maturity profile of the expected liability cash flows.  
Expected Return on Plan Assets - The expected long-term rate of return on plan assets is determined by using the plan’s target allocation and return expectations based on many factors including forecasted long-term capital market real returns and the inflationary outlook on a plan by plan basis. See “Pension Plan Assets” below for additional details regarding the pension plan assets as of December 31, 2021 and 2020.  
The Company also considers other assumptions including mortality, interest crediting rate, termination and retirement rates and cost of living adjustments.   
The Company determined its benefit obligation based on the following weighted average assumptions as of December 31, 2021 and 2020:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |
| Discount rate | 2.8  | % |  | 2.5  | % |

  
The Company determined its net periodic benefit cost (income) based on the following weighted average assumptions for the years ended December 31, 2021, 2020 and 2019:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |  | 2019 |
| Discount rate | 1.8  | % |  | 2.9  | % |  | 4.0  | % |
| Expected long-term rate of return on plan assets | 4.8  | % |  | 6.3  | % |  | 6.5  | % |

  
  
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