PENSION AND OTHER POSTRETIREMENT BENEFITS

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

NOTE 4. PENSIONS AND OTHER POSTRETIREMENT BENEFITS

We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit (OPEB) plans. Prior to the acquisition, Meritor provided a range of benefits to its employees and retirees, including pension benefits and postretirement healthcare benefits. As part of the acquisition, we assumed the assets and liabilities associated with these plans. Accordingly, on August 3, 2022, we recorded assets of $147 million and liabilities of $105 million on our Condensed Consolidated Balance Sheets related to Meritor's postretirement benefit plans.

Contributions to these plans were as follows:

	Three months ended				Nine months ended
In millions	September 30, 2022		October 3, 2021		September 30, 2022		October 3, 2021
Defined benefit pension contributions	$	7	$	13	$	46	$	67
OPEB payments, net	9		5		25		19
Defined contribution pension plans	26		20		82		72

We anticipate making additional defined benefit pension contributions during the remainder of 2022 of $7 million for our U.S. and U.K. qualified and non-qualified pension plans. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2022 annual net periodic pension cost to approximate $20 million.

The components of net periodic pension and OPEB costs under our plans were as follows:

	Pension
	U.S. Plans				U.K. Plans				OPEB
	Three months ended
In millions	September 30, 2022		October 3, 2021		September 30, 2022		October 3, 2021		September 30, 2022		October 3, 2021
Service cost	$	35	$	35	$	7	$	8	$	—	$	—
Interest cost	27		20		10		8		2		1
Expected return on plan assets	(60)		(49)		(22)		(22)		—		—
Amortization of prior service cost	1		—		—		1		—		—
Recognized net actuarial loss	5		11		1		8		—		—
Net periodic benefit cost (credit)	$	8	$	17	$	(4)	$	3	$	2	$	1

	Pension
	U.S. Plans				U.K. Plans				OPEB
	Nine months ended
In millions	September 30, 2022		October 3, 2021		September 30, 2022		October 3, 2021		September 30, 2022		October 3, 2021
Service cost	$	103	$	105	$	23	$	25	$	—	$	—
Interest cost	71		59		28		23		4		3
Expected return on plan assets	(164)		(149)		(62)		(65)		—		—
Amortization of prior service cost	1		—		—		2		—		—
Recognized net actuarial loss	17		35		2		24		—		—
Net periodic benefit cost (credit)	$	28	$	50	$	(9)	$	9	$	4	$	3