Pension, Savings and Other Postretirement Benefit Plans

9 Months Ended

Sep. 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						Nine Months Ended
	September 30,						September 30,
(In millions)	2020			2019			2020			2019
Service cost	$	1		$	—		$	3		$	2
Interest cost		32			44			97			130
Expected return on plan assets		(48	)		(56	)		(145	)		(167	)
Amortization of net losses		27			28			82			84
Net periodic pension cost	$	12		$	16		$	37		$	49
Net curtailments/settlements/termination benefits		18			1			25			1
Total defined benefit pension cost	$	30		$	17		$	62		$	50

	Non-U.S.						Non-U.S.
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2020			2019			2020			2019
Service cost	$	8		$	6		$	22		$	20
Interest cost		14			17			42			52
Expected return on plan assets		(13	)		(14	)		(40	)		(44	)
Amortization of prior service cost		—			—			1			1
Amortization of net losses		9			8			28			22
Net periodic pension cost	$	18		$	17		$	53		$	51
Net curtailments/settlements/termination benefits		—			—			1			—
Total defined benefit pension cost	$	18		$	17		$	54		$	51

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.

During the third quarter and the first nine months of 2020, we recognized settlement charges of $18 million and $21 million, respectively, primarily related to our salaried U.S. pension plan, and during the first nine months of 2020, we recognized a pension termination benefits charge of $5 million, related to our hourly U.S. pension plan. The settlement charges resulted from total lump sum benefit payments exceeding annual service and interest cost. 

For the third quarter and first nine months of 2020, pension settlement charges of $16 million and $19 million, respectively, were recorded in Other (Income) Expense and pension settlement and termination benefits of $2 million and $7 million, respectively, were recorded in Rationalizations, related to the exit of employees under approved rationalization plans.

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 for the three months ended September 30, 2020 and 2019 was $1 million and $2 million, respectively. Other postretirement benefits expense for the nine months ended September 30, 2020 included $4 million of net periodic cost, offset by a curtailment credit of $4 million related to the exit of employees under an approved rationalization plan. Other postretirement benefits expense for the nine months ended September 30, 2019 was $5 million.  

We expect to contribute approximately $25 million to our funded non-U.S. pension plans in 2020. For the nine months ended September 30, 2020, we contributed $11 million to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended September 30, 2020 and 2019 was $25 million and $27 million, respectively, and for the nine months ended September 30, 2020 and 2019 was $75 million and $83 million, respectively.