Defined Benefit Pension Plans

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Compensation and Employee Benefit Plans

DEFINED BENEFIT PENSION PLANS

The following table summarizes our net periodic pension cost for our defined benefit pension and postretirement plans during the three months ended March 31, 2023 and 2022 (dollar amounts in millions):

	Three Months Ended March 31,
	2023		2022
Service cost	$	—	$	1
Other components of net periodic pension cost1:
Interest cost	—		2
Expected return on plan assets	—		(2)
Amortization of prior service cost	—		—
Amortization of net loss	—		1
Net periodic pension costs before loss due to settlement	—		2
Loss due to settlement	6		—
Total net periodic pension cost	$	6	$	2

1Other components of net periodic pension cost are included in Other non-operating items on our Condensed Consolidated Statements of Income.

In November 2021, the Company initiated the termination of our frozen U.S. and Canadian defined benefit pension plans (collectively, the Plan), which would result in the full settlement of the Company's Plan obligations. During the year ended December 31, 2022, the Company liquidated substantially all of the Plan assets to fund lump-sum distributions to participants and purchase non-participating group annuity contracts. As a result, a substantial portion of the Plan was settled during the year ended December 31, 2022. During the three months ended March 31, 2023, the Company completed the termination of the Plan resulting in recognition of non-cash, pre-tax charges of $6 million from Accumulated comprehensive loss to Other non-operating items in our Condensed Consolidated Statements of Income. Liquidation of remaining Plan assets in surplus of the defined benefit pension obligation will be made once the Plan satisfies all regulatory requirements, which is expected to be completed during 2023.

The changes recognized in Other comprehensive loss were as follows (dollar amounts in millions):

	Three Months Ended March 31,
	2023		2022
Net actuarial gain (loss) and prior service (cost) arising during the period, net of tax	$	—	$	—
Amortization of actuarial loss, prior service cost and settlements, net of tax	4		1
Total amounts recognized in Other comprehensive income	$	4	$	1