XML 33 R19.htm IDEA: XBRL DOCUMENT v3.21.2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS
6 Months Ended
Jun. 30, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS
Pension Plans
The Company sponsors defined benefit pension plans. Under the plans, pension benefits are based on an employee’s years of service and, for certain categories of employees, qualifying compensation. Company contributions to these pension plans are determined by an independent actuary to meet or exceed minimum funding requirements. In our non-U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average future service period of plan participants expected to receive benefits. In our U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average remaining life expectancy of the inactive participants as substantially all of the plan participants are inactive.
The following table provides information regarding pension expense recognized (in millions):
Three Months Ended June 30,
20212020
  
U.S.Non-U.S.TotalU.S.Non-U.S.Total
Components of Net Periodic Pension Cost
Service cost$$$$$$
Interest cost10 
Expected return on plan assets(9)(4)(13)(12)(4)(16)
Amortization of actuarial loss
Net periodic pension cost$$— $$— $$
Six Months Ended June 30,
20212020
  
U.S.Non-U.S.TotalU.S.Non-U.S.Total
Components of Net Periodic Pension Cost
Service cost$$$$$$
Interest cost11 15 14 19 
Expected return on plan assets(18)(9)(27)(23)(8)(31)
Amortization of actuarial loss
Net periodic pension cost$$— $$— $$
The Company does not expect to contribute to the U.S. pension plans during 2021. The Company expects to contribute $25 million in cash to non-U.S. plans during 2021. The Company made cash contributions of $2 million to the plans during the six months ended June 30, 2021.
Postemployment and Postretirement Benefits Other than Pensions ("OPEB")
The Company maintains healthcare and life insurance benefit plans for certain retired employees and their dependents. The health care plans in the United States are non-funded and pay either (1) stated percentages of covered medically necessary expenses, after subtracting payments by Medicare or other providers and after stated deductibles have been met, or (2) fixed amounts of medical expense reimbursement.
The following table provides the components of net periodic benefit cost for aggregated U.S. and non-U.S. plans for the periods indicated (in millions):
  
Three Months Ended
June 30,
Six Months Ended
June 30,
  
2021202020212020
Components of Net Periodic Benefit Cost
Service cost$$$$
Interest cost
Amortization of prior service credit(1)(1)(1)(2)
Amortization of actuarial gain(2)(2)(4)(4)
Net periodic benefit income$(1)$(1)$(2)$(2)