Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of expense for defined contribution and defined benefit pension plans and other post employment defined benefit plans

The following table summarizes the expenses for the Company’s defined contribution and defined benefit pension plans and the other postretirement defined employee benefit plans:


	Year Ended December 31,
(in millions)	2020		2019		2018
Defined contribution expense	$	38	$	37	$	35
Defined benefit pension expense	15		45		8
Other postretirement employee benefit (income) expense	(1)		—		—
Total	$	52	$	82	$	43

Reconciliation of the plans' benefit obligations, plan assets, funded status and recognition

The following provides a roll forward of the plans’ benefit obligations, plan assets, funded status and recognition in the Consolidated Balance Sheets:


	Pension benefits								Other postretirement
	Year Ended December 31,								employee benefits
	2020				2019				Year Ended December 31,
(in millions)	U.S		Non-U.S.		U.S		Non-U.S.		2020		2019
Change in projected benefit obligation:
Projected benefit obligation, January 1	$	198	$	695	$	253	$	612	$	81	$	87
Service cost	—		21		—		18		—		—
Interest cost	5		16		8		12		2		3

Plan amendments	—		—		—		—		(12)		—
Settlement and curtailment	—		(19)		(65)		(5)		—		—
Actuarial (gain) loss	14		161		17		75		1		3
Currency translation	—		147		—		(1)		—		—
Delphi Technologies acquisition*	—		1,542		—		—		1		—

Benefits paid	(15)		(36)		(15)		(16)		(8)		(12)
Projected benefit obligation, December 31	$	202	$	2,527	$	198	$	695	$	65	$	81
Change in plan assets:
Fair value of plan assets, January 1	$	176	$	505	$	216	$	438
Actual return on plan assets	16		83		29		68
Employer contribution	10		164		10		16

Settlements	—		(18)		(65)		(5)
Currency translation	—		115		—		4
Delphi Technologies acquisition*	—		1,228		—		—

Benefits paid	(15)		(36)		(14)		(16)
Fair value of plan assets, December 31	$	187	$	2,041	$	176	$	505
Funded status	$	(15)	$	(486)	$	(22)	$	(190)	$	(65)	$	(81)
Amounts in the Consolidated Balance Sheets consist of:
Non-current assets	$	—	$	26	$	—	$	28	$	—	$	—
Current liabilities	(1)		(6)		(1)		(4)		(9)		(10)
Non-current liabilities	(14)		(506)		(21)		(214)		(56)		(71)
Net amount	$	(15)	$	(486)	$	(22)	$	(190)	$	(65)	$	(81)
Amounts in accumulated other comprehensive loss consist of:
Net actuarial loss	$	94	$	330	$	82	$	211	$	16	$	16
Net prior service (credit) cost	(4)		2		(5)		2		(16)		(8)
Net amount	$	90	$	332	$	77	$	213	$	—	$	8

Total accumulated benefit obligation for all plans	$	202	$	2,471	$	198	$	660

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*Balances are based on actuarial valuations as of October 1, 2020, the date of the Delphi Technologies acquisition. All subsequent activity is included elsewhere within the table.

Summary of funded status of pension plans with accumulated benefit obligations in excess of plan assets

The funded status of pension plans with accumulated benefit obligations in excess of plan assets is as follows:


	December 31,
(in millions)	2020		2019
Accumulated benefit obligation	$	(2,401)	$	(633)
Plan assets	1,924		425
Deficiency	$	(477)	$	(208)
Pension deficiency by country:
United States	$	(15)	$	(22)
United Kingdom	(202)		—
Germany	(139)		(107)
Other	(121)		(79)
Total pension deficiency	$	(477)	$	(208)

Summary of weighted average asset allocations of funded pensions plans and target allocations

The weighted average asset allocations of the Company’s funded pension plans and target allocations by asset category are as follows:


	December 31,				Target Allocation
	2020		2019
U.S. Plans:
Alternative credit, real estate, cash and other	23	%	16	%	15% - 25%
Fixed income securities	43	%	50	%	45% - 55%
Equity securities	34	%	34	%	25% - 35%
	100	%	100	%
Non-U.S. Plans:
Insurance contract, real estate, cash and other	31	%	30	%	15% - 30%
Fixed income securities	55	%	33	%	50% - 70%
Equity securities	14	%	37	%	10% - 30%
	100	%	100	%

Summary of components of net periodic benefit cost

See the table below for a breakout of net periodic benefit cost between U.S. and non-U.S. pension plans:


	Pension benefits												Other postretirement employee benefits
	Year Ended December 31,
	2020				2019				2018				Year Ended December 31,
(in millions)	U.S		Non-U.S.		U.S		Non-U.S.		U.S		Non-U.S.		2020		2019		2018
Service cost	$	—	$	21	$	—	$	18	$	—	$	18	$	—	$	—	$	—
Interest cost	5		16		8		12		9		12		2		3		3
Expected return on plan assets	(10)		(36)		(11)		(22)		(14)		(27)		—		—		—
Settlements, curtailments and other	—		5		27		1		—		—		—		—		—
Amortization of unrecognized prior service (credit) cost	—		—		(1)		—		(1)		—		(4)		(4)		(4)
Amortization of unrecognized loss	3		11		4		9		4		7		1		1		1
Net periodic cost (income)	$	(2)	$	17	$	27	$	18	$	(2)	$	10	$	(1)	$	—	$	—

Summary of defined benefit plan weighted average assumptions used in calculating benefit obligations

The Company's weighted-average assumptions used to determine the benefit obligations for its defined benefit pension and other postretirement employee benefit plans were as follows:


	December 31,
(percent)	2020	2019
U.S. pension plans:
Discount rate	2.31	3.17
Rate of compensation increase	N/A	N/A
U.S. other postretirement employee benefit plans:
Discount rate	1.93	2.95
Rate of compensation increase	N/A	N/A
Non-U.S. pension plans:
Discount rate*	1.44	1.61
Rate of compensation increase	3.23	3.05

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*Includes 1.39% and 1.97% for the U.K. pension plans for December 31, 2020 and 2019, respectively.

The Company's weighted-average assumptions used to determine the net periodic benefit cost/(income) for its defined benefit pension and other postretirement employee benefit plans were as follows:


	Year Ended December 31,
(percent)	2020	2019
U.S. pension plans:
Discount rate	3.17	4.24
Effective interest rate on benefit obligation	2.73	3.88
Expected long-term rate of return on assets	6.00	6.00
Average rate of increase in compensation	N/A	N/A
U.S. other postretirement plans:
Discount rate	2.95	4.05
Effective interest rate on benefit obligation	2.50	3.68
Expected long-term rate of return on assets	N/A	N/A
Average rate of increase in compensation	N/A	N/A
Non-U.S. pension plans:
Discount rate*	1.69	2.28
Effective interest rate on benefit obligation	2.19	2.06
Expected long-term rate of return on assets**	4.75	5.23
Average rate of increase in compensation	3.10	3.03

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*Includes 1.82% and 2.76% for the U.K. pension plans for December 31, 2020 and 2019, respectively.

**Includes 3.97% and 5.00% for the U.K. pension plans for December 31, 2020 and 2019, respectively.

Summary of defined benefit plan estimated future benefit payments

The estimated future benefit payments for the pension and other postretirement employee benefits are as follows:


	Pension benefits				Other postretirement employee benefits
(in millions)
Year	U.S.		Non-U.S.
2021	$	19	$	70	$	8
2022	14		79		8
2023	14		74		7
2024	13		76		6
2025	13		82		5
2026-2030	59		465		19

Summary defined benefit plan effect of one percentage point change in assumed health care cost trend rates

A 25 basis-point change in the assumed health care cost trend would have the following effects:


	25 Basis Point
(in millions)	Increase		Decrease
Effect on other postretirement employee benefit obligation	$	1	$	(1)
Effect on total service and interest cost components	$	(1)	$	1