Employee Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:

	Three Months Ended June 30,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2023		2022		2023		2022		2023		2022
Service cost	$	—	$	1	$	1	$	4	$	—	$	1
Interest cost	27		24		47		33		2		2
Expected return on plan assets	(24)		(24)		(51)		(59)		—		—
Recognized net actuarial loss (gain)	4		3		4		6		(4)		(1)
Amortization of prior service cost (credit)	—		—		2		—		(3)		(3)
Recognized settlement loss	7		15		—		—		—		—
Defined benefit plans	14		19		3		(16)		(5)		(1)
Defined contribution plans	5		5		4		4		n/a		n/a
Net Periodic Benefit Cost (Credit)	19		24		7		(12)		(5)		(1)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)(1)	44		(7)		(48)		31		(5)		—
Prior service cost	—		—		36		48		—		—
Amortization of net actuarial (loss) gain	(11)		(18)		(4)		(6)		4		1
Amortization of net prior service (cost) credit	—		—		(2)		—		3		3
Total Recognized in Other Comprehensive Income (Loss)(2)	33		(25)		(18)		73		2		4
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Income (Loss)	$	52	$	(1)	$	(11)	$	61	$	(3)	$	3
	Six Months Ended June 30,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2023		2022		2023		2022		2023		2022
Service cost	$	—	$	1	$	2	$	8	$	—	$	1
Interest cost	54		44		93		62		5		4
Expected return on plan assets	(49)		(51)		(107)		(114)		—		—
Recognized net actuarial loss (gain)	7		7		5		12		(6)		(1)
Amortization of prior service cost (credit)	—		—		3		—		(7)		(7)
Recognized settlement loss	12		33		—		—		—		—
Defined benefit plans	24		34		(4)		(32)		(8)		(3)
Defined contribution plans	9		10		10		8		n/a		n/a
Net Periodic Benefit Cost (Credit)	33		44		6		(24)		(8)		(3)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)(1)	37		7		(48)		31		(5)		(7)
Prior service cost (credit)	—		—		36		48		—		(23)
Amortization of net actuarial (loss) gain	(19)		(40)		(5)		(12)		6		1
Amortization of prior service (cost) credit	—		—		(3)		—		7		7
Total Recognized in Other Comprehensive Income (Loss)(2)	18		(33)		(20)		67		8		(22)
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Income (Loss)	$	51	$	11	$	(14)	$	43	$	—	$	(25)

_____________

(1)The net actuarial loss (gain) for U.S. Pension Plans primarily reflects (i) the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements and (ii) adjustments for the actuarial valuation results based on the January 1st plan census data. The non-U.S. net actuarial (gain) loss reflects remeasurements related to the Pension Plan amendments in the U.K. in second quarter 2023 and 2022, respectively. The Retiree Health plan's net actuarial gain reflects adjustments for the actuarial valuation results based on the January 1st plan census data in 2023, and remeasurements related to a Plan Amendment for our U.S. Plan in 2022.

(2)Amounts represent the pre-tax effect included within Other Comprehensive Income (Loss). Refer to Note 19 - Other Comprehensive Income (Loss) for related tax effects and the after-tax amounts.

Pension Plan Amendment

In April 2023, our U.K. defined benefit pension plan was amended, at the sole discretion of the Plan Trustees as legally allowed, to increase the capped inflation indexation for the April 2023 pension increase award to 6.5%. This plan amendment resulted in an increase of approximately $36 (GBP 28 million) in the projected benefit obligation (PBO) for this plan (approximately 1.5% of the plan PBO as of December 31, 2022). The associated impacts from the required remeasurement of the plan assets and obligations for updates to discount rates, actual returns and actuarial experience as of the effective date of the amendment resulted in an actuarial gain of $48 (GBP 38 million). Refer to Note 18 - Employee Benefit Plans in the Consolidated Financial Statements included in the 2022 Annual Report for additional information regarding our U.K. defined benefit pension plan including its funding status as of December 31, 2022.

Contributions

The following table summarizes cash contributions to our defined benefit pension plans and retiree health benefit plans:

	Six Months Ended June 30,				Year Ended December 31,
	2023		2022		Estimated 2023		2022
U.S. plans	$	12	$	12	$	55	$	24
Non-U.S. plans	13		51		25		81
Total Pension plans	25		63		80		105
Retiree Health	7		9		25		19
Total Retirement plans	$	32	$	72	$	105	$	124

Approximately $30 of the estimated 2023 contributions for our U.S. plans are for our tax-qualified defined benefit plans.