RETIREMENT-RELATED BENEFITS

9 Months Ended

Dec. 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 and nine months ended December 31, 2022 and 2021.

(Dollars in millions)	Defined Benefit Pension Plans				Nonpension Postretirement Benefit Plans
For the three months ended December 31:	2022		2021		2022		2021
Service cost	$	12	$	16	$	—	$	—
Interest cost(1)		9		6		—		1
Expected return on plan assets(1)		(10)		(12)		—		—
Recognized actuarial losses (gains)(1)		10		19		—		—
Curtailments and settlements(1)		—		2		—		—
Multi-employer plans and other costs(2)		—		1		—		—
Net periodic benefit cost	$	20	$	33	$	—	$	1

(Dollars in millions)	Defined Benefit Pension Plans				Nonpension Postretirement Benefit Plans
For the nine months ended December 31:	2022		2021		2022		2021
Service cost	$	36	$	58	$	1	$	2
Interest cost(1)		27		10		—		1
Expected return on plan assets(1)		(32)		(25)		—		(1)
Recognized actuarial losses (gains)(1)		30		41		—		—
Curtailments and settlements(1)		—		2		—		—
Multi-employer plans and other costs(2)		4		4		—		—
Net periodic benefit cost	$	64	$	90	$	1	$	2

(1) These components of net periodic benefit cost are included in other expense (income) 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.

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 $37 million. These amounts generally represent legally mandated minimum contributions. During the three and nine months ended December 31, 2022, Company contributions paid to the defined benefit pension plans, multi-employer plans and nonpension postretirement benefit plans were $15 million and $27 million, respectively.