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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Defined Benefit Pension Plans
The Company sponsors defined benefit pension plans that cover certain U.S., Canadian, German, and United Kingdom employees and which provide benefits of stated amounts for each year of service of the employee. The Company uses a December 31 measurement date for the plans.
The following tables provide information regarding the Company’s significant defined benefit pension plans summarized by U.S. and international components.
Obligations and Funded Status
 U.S.International
In millions2021202020212020
Change in projected benefit obligation    
Obligation at beginning of year$(43)$(41)$(385)$(347)
Service cost— — (4)(4)
Interest cost(1)(1)(4)(6)
Employee contributions— — (1)— 
Plan settlements and amendments— — 1 (2)
Benefits paid3 3 13 14 
Actuarial gain (loss)2 (4)15 (22)
Effect of currency rate changes— — 9 (18)
Obligation at end of year$(39)$(43)$(356)$(385)
Change in plan assets    
Fair value of plan assets at beginning of year$36 $34 $305 $270 
Actual return on plan assets2 4 11 25 
Employer contributions5 1 11 10 
Employee contributions— — 1 1 
Benefits paid(3)(3)(13)(14)
Settlements and other— — (3)2 
Effect of currency rate changes— — (5)11 
Fair value of plan assets at end of year$40 $36 $307 $305 
Funded status    
Fair value of plan assets$40 $36 $307 $305 
Benefit obligations(39)(43)(356)(385)
Funded status$1 $(7)$(49)$(80)
Amounts recognized in the statement of financial position consist of:    
Noncurrent assets$1 $— $17 $14 
Current liabilities— — (2)(3)
Noncurrent liabilities— (7)(64)(91)
Net amount recognized$1 $(7)$(49)$(80)
Amounts recognized in Accumulated other comprehensive loss, before tax consist of:    
Prior service cost— — (1)(1)
Net actuarial loss(16)(19)(70)(90)
Net amount recognized$(16)$(19)$(71)$(91)
The aggregate accumulated benefit obligation for the U.S. pension plans was $38 million and $42 million as of December 31, 2021 and 2020, respectively. The aggregate accumulated benefit obligation for the international pension plans was $345 million and $372 million as of December 31, 2021 and 2020, respectively.
 U.S.International
In millions2021202020212020
Information for pension plans with accumulated benefit obligations in excess of Plan assets:    
Projected benefit obligationN/A$(43)$(107)$(316)
Accumulated benefit obligationN/A(42)(97)(304)
Fair value of plan assetsN/A36 41 222 
Information for pension plans with projected benefit obligations in excess of plan assets:   
Projected benefit obligationN/A$(43)$(112)$(317)
Accumulated benefit obligationN/A(42)(101)(305)
Fair value of plan assetsN/A36 45 224 
Components of Net Periodic Benefit Costs
 U.S.International
In millions202120202019202120202019
Service cost$— $— $— $4 $4 $3 
Interest cost1 1 2 4 6 7 
Expected return on plan assets(1)(1)(2)(13)(12)(12)
Amortization of net loss1 1 1 4 3 3 
Settlement and curtailment losses recognized— — — 1 — — 
Net periodic benefit cost$1 $1 $1 $— $1 $1 
Interest cost is recorded in Interest expense, net on the Consolidated Statements of Income. Expected return on plan assets, Amortization of net loss, and Settlement and curtailment losses recognized are recorded within Other expense, net on the Consolidated Statements of Income.
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2021 are as follows:
In millionsU.S.International
Net gain arising during the year$2 $13 
Effect of exchange rates and other— 2 
Total benefit recognized in Other comprehensive income$2 $15 
Total benefit recognized in Net periodic benefit cost and Other comprehensive income$1 $15 
The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed.
 U.S.International
 202120202019202120202019
Discount rate2.87 %2.47 %3.27 %1.97 %1.39 %1.84 %
Expected return on plan assets5.00 %5.35 %5.35 %4.27 %4.43 %5.01 %
Rate of compensation increase3.00 %3.00 %3.00 %2.70 %2.65 %2.64 %
The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds, and the rate of compensation increase is based on actual experience. The expected return on plan assets is based on historical performance as well as expected future rates of return on plan assets considering the current investment portfolio mix and the long-term investment strategy.
The amounts of net actuarial loss and prior service cost included in other comprehensive loss expected to be recognized as components of periodic benefit costs in 2022 are not material.
Pension Plan Assets
The Company has established formal investment policies for the assets associated with our pension plans. Objectives include maximizing long-term return at acceptable risk levels and diversifying among asset classes. Asset allocation targets are based on periodic asset liability study results which help determine the appropriate investment strategies. The investment policies permit variances from the targets within certain parameters. The plan assets consist primarily of equity security funds, debt security funds, insurance contracts, and temporary cash and cash equivalent investments. The assets held in these funds are generally actively managed and are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. (See Note 17 “Fair Value Measurement” included herein). Plan assets by asset category at December 31, 2021 and 2020 are as follows:
 U.S.International
In millions2021202020212020
Pension Plan Assets    
Equity security funds$10 $19 $87 $75 
Debt security funds27 16 194 198 
Insurance Contracts— — 15 15 
Cash and cash equivalents and other3 1 11 17 
Fair value of plan assets$40 $36 $307 $305 
The U.S. plan has a target asset allocation of 75% equity securities and 25% debt securities. The International plan has a target asset allocation of 10% equity securities, 22% debt securities and 68% in other investments. Investment policies are determined by the respective Plan’s Pension Committee and set forth in its Investment Policy. Rebalancing of the asset allocation occurs on a quarterly basis.
The following tables summarize our pension plan assets measured at fair value on a recurring basis by fair value hierarchy level (See Note 17):
December 31, 2021
In millionsNAVLevel 1Level 2Level 3Total
US:     
Equity$— $10 $— $— $10 
Debt Securities — 15 12 — 27 
Cash and cash equivalents— 3 — — 3 
International:     
Equity7 20 60 — 87 
Debt Securities— 4 190 — 194 
Insurance Contracts— — 5 10 15 
Cash and cash equivalents and other— 6 5 — 11 
Total$7 $58 $272 $10 $347 
December 31, 2020
In millionsNAVLevel 1Level 2Level 3Total
US:     
Equity$— $19 $— $— $19 
Debt Securities— 6 10 — 16 
Cash and cash equivalents— 1 — — 1 
International:     
Equity6 22 47 — 75 
Debt Securities— 3 195 — 198 
Insurance Contracts— — 5 10 15 
Cash and cash equivalents and other— 9 8 — 17 
Total$6 $60 $265 $10 $341 
There were no material changes to the Level 3 assets during 2020 and 2021.
Cash Flows
The Company’s funding methods are based on governmental requirements and differ from those methods used to recognize pension expense. The Company expects to contribute $3 million to the international pension plan and does not expect to make a contribution to the U.S. pension plan during 2022.
Benefit payments expected to be paid to plan participants are as follows:
In millionsU.S.International
Year ended December 31,  
2022$3 $14 
2023$3 $15 
2024$3 $15 
2025$3 $16 
2026$3 $16 
2027 through 2031$12 $90 
Defined Contribution Plans
The Company participates in certain defined contribution plans. Costs recognized during 2021, 2020, and 2019 were approximately $55 million each year. The 401(k) savings plan is a participant directed defined contribution plan that holds shares of the Company’s stock as one of the investment options. At December 31, 2021 and 2020, the plan held on behalf of its participants approximately 387,000 shares with a market value of $36 million, and approximately 409,000 shares with a market value of $30 million, respectively.