Employee Benefit and Retirement Plans

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Employee Benefit and Retirement Plans

Employee Benefit and Retirement Plans

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

	Pension Benefits
	U.S.				International				U.S.				International
	Three Months Ended September 30,								Nine Months Ended September 30,
	2023		2022		2023		2022		2023		2022		2023		2022
Service cost	$	—	$	—	$	—	$	1	$	—	$	—	$	2	$	3
Interest cost	11		6		5		1		34		19		13		6
Expected return on plan assets	(13)		(12)		(3)		(1)		(41)		(36)		(9)		(4)
Amortization	1		4		4		1		3		12		5		2
Settlements	—		—		61		—		—		—		66		—
Total (income) expense	$	(1)	$	(2)	$	67	$	2	$	(4)	$	(5)	$	77	$	7

	Postretirement Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest cost	$	1	$	—	$	1	$	—
Amortization	(2)		(1)		(5)		(3)
Total income	$	(1)	$	(1)	$	(4)	$	(3)

U.K. Defined Benefit Plan

In February 2022, the Company entered into an agreement with an insurance company for a bulk annuity purchase or “buy-in” for one of its U.K. defined benefit pension plans (“U.K. Plan”), resulting in an exchange of plan assets for an annuity that matches the plan’s future projected benefit obligations (“PBO”) to covered participants.

In April 2023, the Company completed a “buy-out” of approximately 7% of the U.K. Plan's PBO. The “buy-out” was completed by the execution of a Deed Poll Agreement and a Deed of Assignment with an insurance company. In September 2023, the Company completed the “buy-out” of the remaining PBO of the aforementioned plan through the execution of a Deed Poll Agreement and a Deed of Assignment with an insurance company. In connection with these transactions, during the three and nine months ended September 30, 2023, the Company recorded a pretax settlement loss of $61 million and $66 million, respectively, in other (income) expense, net, in the Company's Condensed Consolidated Statement of Operations, related to the recognition of previously unrecognized actuarial losses reclassified from AOCL to losses.

Retiree Annuity Buyout

In October 2023, the Company entered into an agreement with an insurance company to purchase a group annuity contract to settle approximately $160 million to $175 million of projected benefit obligations for approximately 55% of the retirees in one of its U.S. defined benefit pension plans. The transaction for the transfer of the pension liability to the insurance company will be funded with the plan’s existing assets. The Company will record a pretax loss in connection with this transaction to reclassify approximately $60 million to $70 million into earnings from AOCL.