Pension, Savings and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Pension, Other Postretirement Benefits and Savings Plans

NOTE 12. PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

We provide employees with defined benefit pension or defined contribution savings plans.

Defined benefit pension cost follows:

	U.S.						U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2020			2019			2020			2019
Service cost	$	1		$	1		$	2		$	2
Interest cost		32			42			65			86
Expected return on plan assets		(48	)		(55	)		(97	)		(111	)
Amortization of net losses		28			28			55			56
Net periodic pension cost	$	13		$	16		$	25		$	33
Net curtailments/settlements/termination benefits		6			—			7			—
Total defined benefit pension cost	$	19		$	16		$	32		$	33

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2020			2019			2020			2019
Service cost	$	7		$	7		$	14		$	14
Interest cost		14			17			28			35
Expected return on plan assets		(13	)		(15	)		(27	)		(30	)
Amortization of prior service cost		—			1			1			1
Amortization of net losses		9			7			19			14
Net periodic pension cost	$	17		$	17		$	35		$	34
Net curtailments/settlements/termination benefits		—			(1	)		1			—
Total defined benefit pension cost	$	17		$	16		$	36		$	34

Service cost is recorded in CGS or SAG. Other components of net periodic pension cost are recorded in Other (Income) Expense. Net curtailments, settlements and termination benefits are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan.

For the second quarter and first six months of 2020, pension settlement charges of $1 million and $3 million, respectively, were recorded in Other (Income) Expense and a pension termination benefits charge of $5 million was recorded in Rationalizations, related to the exit of employees under an approved rationalization plan.  

We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Other postretirement benefits expense (credit) for the three months ended June 30, 2020 and 2019 was $2 million and $1 million, respectively.  Other postretirement benefits expense (credit) for the six months ended June 30, 2020

was ($1) million and included a curtailment credit of $4 million related to the exit of employees under an approved rationalization plan. Other postretirement benefits expense (credit) for the six months ended June 30, 2019 was $3 million.  

We expect to contribute approximately $25 million to our funded non-U.S. pension plans in 2020. For the three and six months ended June 30, 2020, we contributed $4 million and $11 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended June 30, 2020 and 2019 was $20 million and $28 million, respectively, and for the six months ended June 30, 2020 and 2019 was $50 million and $56 million, respectively.