Retirement Plans

3 Months Ended

Mar. 31, 2024

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,
	2024			2023
Interest cost	$	3		$	3
Expected return on plan assets		(3	)		(2	)
Amortization of actuarial (gain) loss		0			0
Settlement loss		0			0
Net periodic benefit cost	$	(0	)	$	1
Non-U.S. Plans	Three Months Ended March 31,
	2024			2023
Service cost	$	2		$	2
Interest cost		3			2
Expected return on plan assets		(1	)		(1	)
Amortization of actuarial loss		0			0
Settlement/curtailment gain		—			—
Net periodic benefit cost (gain)	$	5		$	3

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.

The Company triggered settlement accounting for the closed U.S. pension plans in the first quarter of 2024 because the lump-sum payments made during the quarter exceeded the sum of Service cost and Interest cost. Due to the settlement accounting, the obligation and plan assets for the U.S. plans have been re-measured as of March 31, 2024, which resulted in an immaterial change in the net pension liability compared to December 31, 2023. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from 5.13% to 5.35% in the first quarter of 2024. The expected long-term rate of return on plan assets remained unchanged at 6.21%.