Pensions and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefits

PENSIONS AND OTHER POSTRETIREMENT BENEFITS

The Company maintains both defined benefit pension plans and postretirement health care plans that provide medical and life insurance coverage to eligible salaried and hourly retired employees in North America and their dependents. The Company maintains international defined benefit pension plans which are either noncontributory or contributory and are funded in accordance with applicable local laws. Pension or termination benefits are based primarily on years of service and the employee's compensation.

In the first quarter of 2020, the Company, using the assets held within the pension trust, purchased a group annuity contract that transferred the remaining pension obligation under its largest U.S. pension plan of $713 million to an insurance company. The Company incurred an additional non-cash settlement charge of $153 million related to this transfer. These non-cash settlement charges relate to Net Actuarial Loss previously recognized in Accumulated Other Comprehensive Loss.

Pension Expense

The pension expenses related to the Company’s plans consisted of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
In millions	2021		2020		2021		2020
Components of Net Periodic Cost:
Service Cost	$	3	$	4	$	11	$	12
Interest Cost	3		3		7		10
Expected Return on Plan Assets	(6)		(4)		(15)		(16)
Net Settlement Loss	—		—		—		153
Amortization:
Actuarial Loss	2		1		4		4
Net Periodic Cost	$	2	$	4	$	7	$	163

Employer Contributions

The Company made contributions of $30 million and $16 million to its pension plans during the first nine months of 2021 and 2020 respectively. In the first quarter of 2021, the Company made a $14 million contribution to its remaining U.S. defined benefit plan by effectively utilizing a portion of the excess balance related to the terminated U.S. defined benefit plan. Excluding this $14 million transfer, the Company expects to make contributions in the range of $15 million to $20 million for the full year of 2021. During 2020, the Company made $19 million of contributions to its pension plans.