EMPLOYEE BENEFITS

6 Months Ended

Jun. 30, 2020

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

14. Employee Benefits

We sponsor various defined benefit plans for eligible employees and retirees in the U.S. and certain non-U.S. countries.

The following table presents the components of net periodic benefit cost (credit) with respect to pension benefits:

	Pension
		U.S.		Non-U.S.
(in millions)		Plans		Plans		Total
Three Months Ended June 30, 2020
Components of net periodic benefit cost:
Service cost	$	2	$	5	$	7
Interest cost		33		2		35
Expected return on assets		(59)		(5)		(64)
Amortization of prior service cost		-		1		1
Amortization of net loss		8		2		10
Net periodic benefit cost (credit)		(16)		5		(11)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(16)	$	5	$	(11)
Three Months Ended June 30, 2019
Components of net periodic benefit cost:
Service cost	$	3	$	4	$	7
Interest cost		43		4		47
Expected return on assets		(57)		(6)		(63)
Amortization of prior service cost		-		1		1
Amortization of net loss		8		2		10
Net periodic benefit cost (credit)		(3)		5		2
Settlement charges		-		1		1
Net benefit cost (credit)	$	(3)	$	6	$	3
Six Months Ended June 30, 2020
Components of net periodic benefit cost:
Service cost	$	3	$	10	$	13
Interest cost		67		5		72
Expected return on assets		(119)		(10)		(129)
Amortization of prior service cost		-		1		1
Amortization of net loss		16		4		20
Net periodic benefit cost (credit)		(33)		10		(23)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(33)	$	10	$	(23)
Six Months Ended June 30, 2019
Components of net periodic benefit cost:
Service cost	$	5	$	10	$	15
Interest cost		87		8		95
Expected return on assets		(114)		(11)		(125)
Amortization of prior service cost		-		1		1
Amortization of net loss		16		3		19
Net periodic benefit cost (credit)		(6)		11		5
Settlement credit		-		(3)		(3)
Net benefit cost (credit)	$	(6)	$	8	$	2

The service cost for our U.S. defined benefit plans only reflects administrative fees as the plans are frozen and no longer accrue benefits. We recognized net expense of $2 million and $4 million for our U.S. and non-U.S. postretirement benefit plans for the three- and six-month periods ended June 30, 2020, respectively. We recognized net expense of $1 million and $3 million for our U.S. and non-U.S. postretirement benefit plans for the three- and six-month periods ended June 30, 2019, respectively.