POSTRETIREMENT BENEFIT PLANS

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

POSTRETIREMENT BENEFIT PLANS

NOTE L— POSTRETIREMENT BENEFIT PLANS

The following tables provide the components of our net periodic benefit income for our defined benefit plans, including defined benefit pension plans and other postretirement defined benefit plans:

	Quarter Ended September 30, 2022				Three Quarters Ended September 30, 2022
(In millions)	Pension		Other Benefits		Pension		Other Benefits
Net periodic benefit income
Operating
Service cost	$	10	$	1	$	32	$	2
Non-operating
Interest cost	55		1		165		5
Expected return on plan assets	(156)		(5)		(468)		(16)
Amortization of net actuarial loss (gain)	2		(1)		7		(5)
Amortization of prior service (credit) cost	(7)		—		(21)		1
Non-service cost periodic benefit income	(106)		(5)		(317)		(15)
Net periodic benefit income	$	(96)	$	(4)	$	(285)	$	(13)

	Quarter Ended October 1, 2021				Three Quarters Ended October 1, 2021
(In millions)	Pension		Other Benefits		Pension		Other Benefits
Net periodic benefit income
Operating
Service cost	$	16	$	1	$	52	$	2
Non-operating
Interest cost	47		1		139		4
Expected return on plan assets	(155)		(5)		(467)		(15)
Amortization of net actuarial loss	7		—		26		—
Amortization of prior service credit (cost)	(7)		1		(21)		1
Effect of curtailments or settlements	7		—		4		—
Non-service cost periodic benefit income	(101)		(3)		(319)		(10)
Net periodic benefit income	$	(85)	$	(2)	$	(267)	$	(8)

During the quarter and three quarters ended October 1, 2021, we undertook an initiative to de-risk pension obligations by purchasing a group annuity policy and transferring approximately $81 million and $250 million, respectively, of pension plan assets to an insurance company thereby reducing our defined benefit obligations by approximately $81 million and $250 million, respectively. As a result of the annuity purchase, we recognized pre-tax Financial Accounting Standard settlement losses of $7 million and $4 million in the quarter and three quarters ended October 1, 2021, respectively, which are included as a component of the “Non-operating income, net” line item in our Condensed Consolidated Statement of Operations (Unaudited).

The service cost component of net periodic benefit income is included in the “Cost of product sales and services” and “Engineering, selling and administrative expenses” line items in our Condensed Consolidated Statement of Operations (Unaudited). The non-service cost components of net periodic benefit income are included in the “Non-operating income, net” line item in our Condensed Consolidated Statement of Operations (Unaudited).

We made no material contributions to our U.S. qualified defined benefit pension plans during the quarter or three quarters ended September 30, 2022 or October 1, 2021. As a result of prior voluntary contributions, we are not required to make any contributions to these plans during fiscal 2022 and for several years thereafter.