PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS

6 Months Ended

Jun. 30, 2021

Pension And Other Postretirement Benefit Expense [Abstract]

PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS

NOTE 7: PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The components of net periodic benefit cost are:

	PENSION
	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	JUNE 2021			JUNE 2020			JUNE 2021			JUNE 2020
Service cost	$	10		$	8		$	21		$	18
Interest cost		25			34			49			69
Expected return on plan assets		(53	)		(57	)		(102	)		(116	)
Amortization of actuarial loss		27			31			57			61
Amortization of prior service cost		—			1			1			2
Total net periodic benefit cost – pension	$	9		$	17		$	26		$	34

	OTHER POST-EMPLOYMENT BENEFITS
	QUARTER ENDED				YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	JUNE 2021		JUNE 2020		JUNE 2021		JUNE 2020
Interest cost	$	1	$	1	$	2	$	2
Amortization of actuarial loss		—		—		2		1
Amortization of prior service credit		1		—		—		—
Total net periodic benefit cost – other post-employment benefits	$	2	$	1	$	4	$	3

For the periods presented, service cost is included in “Costs of sales,” “Selling expenses,” and “General and administrative expenses” with the remaining components included in “Non-operating pension and other post-employment benefit costs” in the Consolidated Statement of Operations.

Fair Value of Pension Plan Assets and Obligations

In our year-end reporting process, we estimate the fair value of pension plan assets based upon the information available at that time. For certain assets, primarily private equity funds, the information available consists of net asset values as of an interim date, cash flows between the interim date and the end of the year and market events. We update the year-end estimated fair value of pension plan assets in the second quarter of each year to incorporate final net asset values reflected in financial statements received after we have filed our Annual Report on Form 10-K.

During second quarter 2021, we recorded an increase to the beginning of the year fair value of the pension assets of $155 million, or 5 percent. We also updated our census data that is used to estimate our beginning of the year projected benefit obligation for our pension plans, which resulted in a projected benefit obligation increase of $17 million, or less than 1 percent. The net effect of these updates was a $138 million improvement in funded status. This change in funded status was reflected on our Consolidated Balance Sheet as of June 30, 2021.