Defined Benefit Plans

6 Months Ended

Jul. 01, 2022

Retirement Benefits [Abstract]

Defined Benefit Plans

DEFINED BENEFIT PLANS

The following sets forth the components of the Company’s net periodic benefit costs of the noncontributory defined benefit pension plans and other postretirement employee benefit plans ($ in millions):

	Three-Month Period Ended				Six-Month Period Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
U.S. pension benefits:
Service cost	$	—	$	—	$	—	$	—
Interest cost	(14)		(11)		(27)		(23)
Expected return on plan assets	33		31		65		62
Amortization of actuarial loss	(9)		(11)		(18)		(22)
Net periodic pension benefit	$	10	$	9	$	20	$	17
Non-U.S. pension benefits:
Service cost	$	(9)	$	(11)	$	(19)	$	(22)
Interest cost	(6)		(5)		(12)		(10)
Expected return on plan assets	8		11		18		22
Amortization of actuarial loss	(1)		(3)		(1)		(6)
Settlement losses recognized	—		—		(10)		—
Net periodic pension cost	$	(8)	$	(8)	$	(24)	$	(16)
Other postretirement employee benefit plans:
Service cost	$	—	$	—	$	—	$	—
Interest cost	—		—		(1)		(1)
Amortization of actuarial loss	—		(1)		—		(1)
Amortization of prior service credit	—		—		1		1
Net periodic benefit cost	$	—	$	(1)	$	—	$	(1)

The service cost component of net periodic benefit costs is presented in cost of goods sold and selling, general and administrative expenses while the other cost components are presented in other income (expense), net. The Company’s net periodic pension cost for the six-month period ended July 1, 2022 includes a settlement loss of $10 million as a result of the transfer of a portion of its non-U.S. pension liabilities related to one defined benefit plan to a third-party.

Employer Contributions

During 2022, the Company’s cash contribution requirements for its U.S. and non-U.S. defined benefit pension plans are forecasted to be approximately $10 million and $44 million, respectively. The ultimate amounts to be contributed depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the anticipated tax deductibility of the contribution, local practices, market conditions, interest rates and other factors.