Employee Benefits

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Employee Benefits

EMPLOYEE BENEFITS

Pension and other defined contribution retirement plan expenses included the following components:

(DOLLARS IN MILLIONS)	U.S. Plans
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Interest cost on projected benefit obligation(2)	$	6	$	4	$	13	$	8
Expected return on plan assets(2)	(8)		(6)		(16)		(11)
Net amortization and deferrals(2)	1		2		1		4
Net periodic benefit (income) cost	$	(1)	$	—	$	(2)	$	1

(DOLLARS IN MILLIONS)	Non-U.S. Plans
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Service cost for benefits earned(1)	$	5	$	10	$	10	$	19
Interest cost on projected benefit obligation(2)	9		4		18		9
Expected return on plan assets(2)	(11)		(11)		(23)		(22)
Net amortization and deferrals(2)	(1)		3		(1)		6
Net periodic benefit (income) cost	$	2	$	6	$	4	$	12

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(1)Included as a component of Operating profit.

(2)Included as a component of Other (income) expense, net.

The Company expects to contribute a total of $5 million to its U.S. pension plans and a total of $32 million to its non-U.S. pension plans during 2023. During the six months ended June 30, 2023, no contributions were made to the qualified U.S. pension plans, $16 million of contributions were made to the non-U.S. pension plans, and $2 million of benefit payments were made with respect to the Company’s non-qualified U.S. pension plan.

(Income) expense recognized for postretirement benefits other than pensions included the following components:

	Three Months Ended June 30,				Six Months Ended June 30,
(DOLLARS IN MILLIONS)	2023		2022		2023		2022
Interest cost on projected benefit obligation	$	1	$	1	$	2	$	1
Net amortization and deferrals	(2)		(1)		(3)		(2)
Total postretirement benefit (income) expense	$	(1)	$	—	$	(1)	$	(1)

The Company expects to contribute $3 million to its postretirement benefits other than pension plans during 2023. In the six months ended June 30, 2023, $2 million of contributions were made.