Pension Plans, Postretirement and Other Employee Benefits

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Pension Plans, Postretirement and Other Employee Benefits

11. Pension Plans, Postretirement and Other Employee Benefits

The Company sponsors several defined benefit pension plans ("Pension Benefits") and health care and life insurance benefits ("Other Postretirement Benefits" or "OPEB") for certain employees and retirees around the world.

In September 2020, the Company renegotiated one of its collective bargaining agreements in the U.S. which eliminated health care benefits in retirement if benefits are not commenced by September 24, 2021 for participants covered by the union agreement. This amendment resulted in a non-cash curtailment gain of $21 million for the three and nine months ended September 30, 2020.

During the three and nine months ended September 30, 2020, the Company paid lump sums out of certain pension plans in connection with a previously announced plant closure. These lump sums were paid out of the pension plan assets and resulted in a non-cash settlement charge of $5 million for the three and nine months ended September 30, 2020. The Company expects additional lump sums to be paid out of pension plan assets during the fourth quarter 2020.

Components of net periodic benefit costs (credits) for the three and nine months ended September 30, 2020 and 2019 are as follows:

	Three Months Ended September 30,
	Pension Benefits								Other Postretirement Benefits
	2020				2019
	U.S.		Non-U.S.		U.S.		Non-U.S.		2020		2019
Service cost	$	—	$	7	$	1	$	6	$	—	$	—
Interest cost	11		4		13		6		2		3
Expected return on plan assets	(16)		(5)		(17)		(5)		—		—
Settlement loss	—		5		—		—		—		—
Curtailment gain	—		—		—		—		(21)		—
Net amortization:
Actuarial loss	1		3		1		1		1		1
Prior service cost (credit)	—		—		—		1		(3)		(2)
Net pension and postretirement costs (credits)	$	(4)	$	14	$	(2)	$	9	$	(21)	$	2

	Nine Months Ended September 30,
	Pension Benefits								Other Postretirement Benefits
	2020				2019
	U.S.		Non-U.S.		U.S.		Non-U.S.		2020		2019
Service cost	$	1	$	19	$	2	$	18	$	—	$	—
Interest cost	31		13		40		18		7		10
Expected return on plan assets	(48)		(13)		(51)		(14)		—		—
Settlement loss	—		5		—		—		—		—
Curtailment gain	—		—		—		—		(21)		—
Net amortization:
Actuarial loss	4		7		3		4		2		3
Prior service cost (credit)	—		—		—		1		(7)		(6)
Net pension and postretirement costs (credits)	$	(12)	$	31	$	(6)	$	27	$	(19)	$	7