Employee Benefit and Retirement Plans

9 Months Ended

Sep. 30, 2020

The components of pension and postretirement benefit expense for continuing operations for the periods indicated, are as follows (in millions):


	Pension Benefits
	Three Months Ended September 30,
	U.S.				International
	2020		2019		2020		2019
Service cost	$	—	$	—	$	1	$	2
Interest cost	10		12		2		3
Expected return on plan assets	(16)		(14)		(2)		(4)
Amortization, net	6		4		1		1

Total expense	$	—	$	2	$	2	$	2


	Pension Benefits
	Nine Months Ended September 30,
	U.S.				International
	2020		2019		2020		2019
Service cost	$	—	$	—	$	3	$	5
Interest cost	28		37		7		9
Expected return on plan assets	(46)		(44)		(5)		(10)
Amortization, net	18		12		2		2
Settlements	1		—		—		—
Total expense	$	1	$	5	$	7	$	6


	Postretirement Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019

Interest cost	$	—	$	—	$	1	$	1
Amortization, net	(1)		(2)		(4)		(7)
Total income	$	(1)	$	(2)	$	(3)	$	(6)

The components of net periodic pension and postretirement costs other than the service cost component are included in other (income) expense, net in the Condensed Consolidated Statements of Operations.

Retiree Annuity Buyout

On October 22, 2020, the Company entered into an agreement with an insurance company to purchase a group annuity contract to settle approximately $155 million to $160 million of projected benefit obligations for approximately 45% of the retirees in one of its U.S. defined benefit pension plans. The irrevocable transaction for the transfer of pension liability to the insurance company will be funded with the plan’s existing assets. Payments from the insurance company to the beneficiaries will commence on

January 1, 2021. During the fourth quarter 2020, the Company will record a pre-tax settlement loss in connection with this transaction to reclassify approximately $45 million to $50 million into earnings from Accumulated Other Comprehensive Losses.