Retirement Plans

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Service cost	$	0		$	2		$	0		$	4
Interest cost		4			2			6			5
Expected return on plan assets		0			(5	)		(4	)		(9	)
Amortization of prior service cost		—			1			—			0
Amortization of actuarial loss		0			1			0			1
Settlement loss		0			—			1			—
Net Periodic Benefit Cost	$	4		$	1		$	3		$	1
Non-U.S. Plans	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Service cost	$	2		$	3		$	5		$	6
Interest cost		2			2			3			3
Expected return on plan assets		(1	)		(1	)		(1	)		(1	)
Amortization of actuarial loss		0			1			0			1
Curtailment gain		(2	)		—			(2	)		—
Settlement gain		(2	)		—			(3	)		—
Net Periodic Benefit (Gain) Cost	$	(1	)	$	5		$	2		$	9

The Service cost and Amortization of prior service cost components in the tables above are 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, Settlement loss (gain) and Curtailment gain - are reported as Other non-operating items, net in the Consolidated Statements of Income.

Settlement accounting has been triggered for the U.S. pension plans because the lump-sum payments made during the second quarter exceeded the sum of service cost and interest cost for these U.S. plans. Due to the settlement accounting, the obligation and plan assets for these U.S. plans have been re-measured as of June 30, 2022, which resulted in a lower net pension liability of $3 million compared to March 31, 2022. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from previously 3.76% to 4.76% in the second quarter. The expected long-term rate of return on plan asset is unchanged at 5.05%.