EMPLOYEE BENEFITS

9 Months Ended

Sep. 30, 2020

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

14. Employee Benefits

We sponsor various defined benefit plans for eligible employees and retirees in the U.S. and certain non-U.S. countries.

The following table presents the components of net periodic benefit cost (credit) with respect to pension benefits:

	Pension
		U.S.		Non-U.S.
(in millions)		Plans		Plans		Total
Three Months Ended September 30, 2020
Components of net periodic benefit cost:
Service cost	$	1	$	5	$	6
Interest cost		33		3		36
Expected return on assets		(60)		(5)		(65)
Amortization of prior service cost		-		1		1
Amortization of net loss		9		1		10
Net periodic benefit cost (credit)		(17)		5		(12)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(17)	$	5	$	(12)
Three Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	2	$	6	$	8
Interest cost		44		3		47
Expected return on assets		(58)		(5)		(63)
Amortization of prior service cost		-		-		-
Amortization of net loss		9		1		10
Net periodic benefit cost (credit)		(3)		5		2
Settlement charges		-		-		-
Net benefit cost (credit)	$	(3)	$	5	$	2
Nine Months Ended September 30, 2020
Components of net periodic benefit cost:
Service cost	$	4	$	15	$	19
Interest cost		100		8		108
Expected return on assets		(179)		(15)		(194)
Amortization of prior service cost		-		2		2
Amortization of net loss		25		5		30
Net periodic benefit cost (credit)		(50)		15		(35)
Settlement charges		-		-		-
Net benefit cost (credit)	$	(50)	$	15	$	(35)
Nine Months Ended September 30, 2019
Components of net periodic benefit cost:
Service cost	$	7	$	16	$	23
Interest cost		131		11		142
Expected return on assets		(172)		(16)		(188)
Amortization of prior service cost		-		1		1
Amortization of net loss		25		4		29
Net periodic benefit cost (credit)		(9)		16		7
Settlement credit		-		(3)		(3)
Net benefit cost (credit)	$	(9)	$	13	$	4

The service cost for our U.S. defined benefit plans only reflects administrative fees as the plans are frozen and no longer accrue benefits. We recognized net expense of $2 million and $6 million for our U.S. and non-U.S. postretirement benefit plans for the three- and nine-month periods ended September 30, 2020, respectively. We recognized net expense of $2 million and $5 million for our U.S. and non-U.S. postretirement benefit plans for the three- and nine-month periods ended September 30, 2019, respectively.