Retirement Plans

6 Months Ended

Jun. 30, 2023

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,
	2023			2022			2023			2022
Interest cost	$	3		$	4			6			6
Expected return on plan assets		(3	)		0			(5	)		(4	)
Settlement loss		0			0			0			1
Net periodic benefit cost	$	0		$	4		$	1		$	3
Non-U.S. Plans	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Service cost	$	3		$	2		$	5		$	5
Interest cost		3			2			5			3
Expected return on plan assets		0			(1	)		(1	)		(1	)
Settlement/curtailment gain		0			(4	)		0			(5	)
Net periodic benefit cost (gain)	$	6		$	(1	)	$	9		$	2

The Service cost component in the table 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, 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 primary U.S. pension plan in the second quarter of 2023 because the lump-sum payments made during the quarter exceeded the sum of Service cost and Interest cost for this U.S. plan. Due to the settlement accounting, the obligation and plan assets for the primary U.S. plan have been re-measured as of June 30, 2023, which resulted in an immaterial change in the net pension liability compared to December 31, 2022. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from 5.09% to 5.32% in the second quarter of 2023. The expected long-term rate of return on plan asset is unchanged at 5.05%.