RETIREMENT AND DEFERRED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Changes in Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension and Postretirement Benefit Plans

The following tables set forth the benefit obligation, fair value of plan assets and funded status as of December 31, 2021, 2020, and 2019, and the underlying weighted average actuarial assumptions used for the U.K. Pension Plan and U.S. postretirement benefit plan. The Company uses a measurement date of December 31 for its pension and postretirement benefit plans.


	2021						2020						2019
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
	(In millions)
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	$	233		$	20		$	199		$	20		$	187		$	27
Service cost	3			1			3			1			3			2
Interest cost	3			—			4			—			5			1
Foreign currency exchange rates	(2)			—			8			—			7			—
Actuarial losses (gains)	(5)			1			30			1			15			(9)
Plan settlements	(17)			—			—			—			(14)			—
Benefits paid	(4)			(4)			(11)			(4)			(4)			(2)
Retiree contributions	—			2			—			2			—			1
Projected benefit obligation at end of year	211			20			233			20			199			20
Change in Plan Assets
Fair value of plan assets at beginning of year	262			—			228			—			208			—
Actual return on plan assets	11			—			31			—			25			—
Foreign currency exchange rates	(3)			—			9			—			8			—
Employer contributions	5			2			5			2			5			1
Plan settlements	(17)			—			—			—			(14)			—
Benefits paid	(4)			(4)			(11)			(4)			(4)			(2)
Retiree contributions	—			2			—			2			—			1
Fair value of plan assets at end of year	254			—			262			—			228			—
Funded status at end of year	$	43		$	(20)		$	29		$	(20)		$	29		$	(20)
Amounts recognized in Consolidated Balance Sheet
Current liability	$	—		$	(2)		$	—		$	(2)		$	—		$	(2)
Non-current asset (liability)	43			(18)			29			(18)			29			(18)
	$	43		$	(20)		$	29		$	(20)		$	29		$	(20)
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Accumulated gain (loss)	$	1		$	14		$	(11)		$	16		$	(7)		$	19

Weighted Average Assumptions used as of December 31
Discount rate	1.80		%	2.57		%	1.40		%	2.06		%	2.10		%	3.00		%
Salary increases	4.90		%	N/A			4.50		%	N/A			4.30		%	N/A
Expected return on assets	1.90		%	N/A			1.50		%	N/A			2.20		%	N/A
Healthcare cost trend
Initial	N/A			6.25		%	N/A			6.00		%	N/A			6.25		%
Ultimate in 2028	N/A			5.00		%	N/A			5.00		%	N/A			5.00		%

Allocations for Plan Asset Holding and Target Allocation for Company's Plan Asset

A breakout of previous allocations for plan asset holdings and the target allocation for the Company’s plan assets are summarized below:


	Target Allocation		Percentage of Plan Assets at Year-End
	2021		2021		2020
Asset Category
Equity securities:

Overseas quoted equities	15	%	15	%	19	%
Total equity securities	15	%	15	%	19	%
Debt securities:
U.K. government bonds	55	%	54	%	64	%
U.K. corporate bonds	24	%	25	%	16	%
Total debt securities	79	%	79	%	80	%
Cash	6	%	6	%	1	%
Total	100	%	100	%	100	%

Fair Values of Plan Assets for Each Major Asset Category Based on Nature and Significant Concentration of Risks in Plan Assets

The following tables present the fair values of plan assets for each major asset category based on the nature and significant concentration of risks in plan assets at December 31, 2021 and 2020:


	December 31,
	2021		2020
	(In millions)
Equity securities:

Overseas quoted equities	$	38	$	49
Total equity securities	38		49
Debt securities:
U.K. government bonds	138		168
U.K. corporate bonds	62		43
Total debt securities	200		211
Cash	16		2
Fair value of plan assets	$	254	$	262

Components of Net Periodic Cost and Underlying Weighted Average Actuarial Assumptions Used for Pension and Postretirement Benefit Plans

The following tables set forth the components of the net periodic cost and the underlying weighted average actuarial assumptions used for the pension and postretirement benefit plans as of December 31, 2021, 2020, and 2019:


	2021						2020						2019
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
	(In millions)
Components of Net Periodic Benefit Cost
Service cost	$	3		$	1		$	3		$	1		$	3		$	2
Interest cost	3			—			4			—			5			1
Expected return on assets	(4)			—			(5)			—			(5)			—
Amortization of loss	—			(1)			—			(1)			—			(1)
Settlement loss	—			—			—			—			—			—
Net periodic benefit cost	$	2		$	—		$	2		$	—		$	3		$	2
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31
Discount rate	1.40		%	2.06		%	2.10		%	3.00		%	2.90		%	4.13		%
Salary increases	4.50		%	N/A			4.30		%	N/A			4.70		%	N/A
Expected return on assets	1.50		%	N/A			2.20		%	N/A			2.80		%	N/A
Healthcare cost trend
Initial	N/A			6.00		%	N/A			6.25		%	N/A			6.50		%
Ultimate in 2025	N/A			5.00		%	N/A			5.00		%	N/A			5.00		%

Expected Future Benefit Payment

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:


	Pension Benefits		Postretirement Benefits
	(In millions)
2022	$	6	$	2
2023	7		2
2024	6		2
2025	6		2
2026	6		2
Years 2027-2031	39		6