Employer contributions

  
  
Plan assets by fund category (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |  | Fair Value Hierarchy |
| Fund type: |   |  |   |  |  |
| U.S. equity market fund | $ | 885  |  |  | $ | 914  |  |  | 1 |
| Non-U.S. equity fund | 370  |  |  | 384  |  |  | 1 |
| Credit bond index fund | 1,342  |  |  | 1,088  |  |  | 1 |
| Plan assets in common commingled trusts | $ | 2,597  |  |  | $ | 2,386  |  |  |  |
| Real estate | 92  |  |  | 96  |  |  | (a) |
| Cash equivalents | 6  |  |  | 6  |  |  | 1 |
| Total plan assets | $ | 2,695  |  |  | $ | 2,488  |  |  |  |

(a)In accordance with Subtopic 820-10, certain investments that are measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.   
The following table sets forth the status of the qualified defined-benefit pension plans (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |
| Projected benefit obligation (PBO) |   |  |   |
| Beginning of year | $ | 2,934  |  |  | $ | 2,602  |  |
| Service cost | 56  |  |  | 52  |  |
| Interest cost | 56  |  |  | 75  |  |
| Actuarial (gain)/loss | (171) |  |  | 339  |  |
| Benefits paid | (117) |  |  | (134) |  |
| End of year | $ | 2,758  |  |  | $ | 2,934  |  |
|  |  |  |  |
| Plan assets at fair value |   |  |   |
| Beginning of year | $ | 2,488  |  |  | $ | 2,239  |  |
| Actual return on plan assets | 224  |  |  | 383  |  |
| Employer contributions | 100  |  |  | —  |  |
| Benefits paid | (117) |  |  | (134) |  |
| End of year | $ | 2,695  |  |  | $ | 2,488  |  |
| Unfunded status | $ | (63) |  |  | $ | (446) |  |
|  |  |  |  |
| Percent funded | 98  | % |  | 85  | % |

 The accumulated benefit obligation for the combined qualified defined-benefit pension plans was $2.7 billion and $2.8 billion at December 31, 2021 and 2020. During 2021 actuarial gains decreased the benefit obligation primarily due to the increase in discount rates.   
The amounts recognized in the consolidated balance sheets (in millions): 

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |
| Accrued benefit liability-long term | $ | (155) |  |  | $ | (502) |  |
| Plan assets-long term (within Other noncurrent assets) | 92  |  |  | 51  |  |
| Total liability recognized | $ | (63) |  |  | $ | (451) |  |

 The amounts not yet reflected in net periodic benefit cost and included in AOCL (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |
| Prior service credit | $ | (4) |  |  | $ | (5) |  |
| Net loss | 316  |  |  | 626  |  |
| Amount recognized in AOCL (pretax) | $ | 312  |  |  | $ | 621  |  |

  
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