RETIREMENT-RELATED BENEFITS

3 Months Ended

Mar. 31, 2022

RETIREMENT-RELATED BENEFITS

RETIREMENT-RELATED BENEFITS

NOTE 12. RETIREMENT-RELATED BENEFITS

The following table presents the components of net periodic benefit cost for the retirement-related benefit plans recognized in the Consolidated Income Statement, excluding defined contribution plans, for the three months ended March 31, 2022 and 2021.

(Dollars in millions)	Defined Benefit Pension Plans				Nonpension Postretirement Benefit Plans
For the three months ended March 31:	2022		2021		2022		2021
Service cost	$	14	$	23	$	—	$	—
Interest cost(1)		6		1		—		1
Expected return on plan assets(1)		(10)		(5)		—		—
Amortization of prior service costs (credits)(1)		—		—		—		—
Recognized actuarial losses (gains)(1)		16		11		—		—
Curtailments and settlements(1)		4		—		—		—
Multi-employer plans and other costs(2)		(1)		3		—		—
Net periodic benefit cost	$	28	$	32	$	—	$	1

(1) These components of net periodic benefit cost are included in other (income) and expense in the Consolidated Income Statement.

(2) Multi-employer plan costs represent required contributions for the period to multi-employer plans, which are plans sponsored by third parties. The Company recognizes expense in connection with multi-employer plans as operating costs as contributions are funded.

During the three months ended March 31, 2022, Company contributions paid to the defined benefit pension plans, multi-employer plans and nonpension postretirement benefit plans were not significantly different from amounts previously disclosed in our 2021 Annual Report.

The Company estimates contributions to its defined benefit pension plans, multi-employer plans and nonpension postretirement benefit plans for fiscal year 2023 to be approximately $27 million. These amounts generally represents legally mandated minimum contributions.

In connection with the change to the fiscal year-end to March 31 from December 31, the Company performed an interim remeasurement of our retirement-related benefit plans at March 31, 2022, which resulted in a change in the discount rate from 1.19% at December 31, 2021, to 1.88% at March 31, 2022. Retirement and nonpension postretirement benefit obligations on the Consolidated Balance Sheet decreased by $140 million primarily due to this remeasurement.