Retirement Plans

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Retirement Plans

8. RETIREMENT PLANS

The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows (dollars in millions):

U.S. Plans	Three Months Ended March 31,
	2022			2021
Service cost	$	0		$	2
Interest cost		2			3
Expected return on plan assets		(4	)		(4	)
Amortization of actuarial loss		0			(1	)
Settlement loss		1			0
Net Periodic Benefit Cost	$	(1	)	$	0
Non-U.S. Plans	Three Months Ended March 31,
	2022			2021
Service cost	$	3		$	3
Interest cost		1			1
Expected return on plan assets		0			0
Amortization of actuarial loss		0			0
Settlement gain		(1	)		—
Net Periodic Benefit Cost	$	3		$	4

The Service cost component in the tables above is reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components - Interest cost, Expected return on plan assets, Amortization of actuarial loss and Settlement loss - are reported as Other non-operating items, net in the Consolidated Statements of Income. Settlement accounting has been triggered because the lump-sum payments made during the quarter exceeded the sum of service cost and interest cost for the major U.S. plan. Due to the settlement accounting, the obligation and plan assets for this U.S. plan have been re-measured as of March 31, 2022, which resulted in a lower net pension liability of $12 million. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from previously 2.77% to 3.76%. The expected long-term rate of return on plan asset is unchanged at 5.05%.