Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2023

A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, 2023 and 2022, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets):


(in millions)	Retirement Plans				Postretirement Plans
	2023		2022		2023		2022
Net benefit obligation at beginning of year	$	1,407	$	2,122	$	20	$	28
Service cost	2		3		—		—
Interest cost	74		48		1		1
Plan participants’ contributions	—		—		—		—
Actuarial loss (gain)	57		(636)		1		(6)
Gross benefits paid	(70)		(86)		(2)		(3)
Foreign currency effect	20		(44)		—		—

Other adjustments 1	(65)		—		—		—
Net benefit obligation at end of year	1,425		1,407		20		20
Fair value of plan assets at beginning of year	1,464		2,231		5		6
Actual return on plan assets	115		(647)		(1)		1
Employer contributions	10		11		—		—
Plan participants’ contributions	—		—		—		—
Gross benefits paid	(70)		(86)		(3)		(2)
Foreign currency effect	19		(45)		—		—
Other adjustments 1	(65)		—		—		—
Fair value of plan assets at end of year	1,473		1,464		1		5
Funded status	$	48	$	57	$	(19)	$	(15)
Amounts recognized in consolidated balance sheets:
Non-current assets	$	238	$	232	$	—	$	—
Current liabilities	(10)		(10)		—		—
Non-current liabilities	(180)		(165)		(19)		(15)
	$	48	$	57	$	(19)	$	(15)
Accumulated benefit obligation	$	1,418	$	1,401
Plans with accumulated benefit obligation in excess of the fair value of plan assets:
Projected benefit obligation	$	190	$	175
Accumulated benefit obligation	$	182	$	168
Fair value of plan assets	$	—	$	—
Amounts recognized in accumulated other comprehensive loss, net of tax:
Net actuarial loss (gain)	$	410	$	400	$	(37)	$	(39)
Prior service credit	—		—		(11)		(12)
Total recognized	$	410	$	400	$	(48)	$	(51)

1Relates to the impact of lump sum benefit payments to terminated vested participants to settle existing pension obligations owed under the plan. The non-cash pretax settlement charge reflects the accelerated recognition of a portion of unamortized actuarial losses in the plan.

Schedule of Net Periodic Benefit Cost

A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows:


(in millions)	Retirement Plans						Postretirement Plans
	2023		2022		2021		2023		2022		2021
Service cost	$	2	$	3	$	4	$	—	$	—	$	—
Interest cost	74		48		40		1		1		1
Expected return on assets	(101)		(87)		(104)		—		—		—
Amortization of:
Actuarial loss (gain)	6		15		21		(2)		(2)		(2)
Prior service credit	—		—		—		(2)		(2)		(1)
Net periodic benefit cost	(19)		(21)		(39)		(3)		(3)		(2)
Settlement charge 1	23		13		3		—		—		—
Total net periodic benefit cost	$	4	$	(8)	$	(36)	$	(3)	$	(3)	$	(2)

1Lump sum withdrawals exceeded the combined total anticipated annual service and interest cost of our U.S. retirement plan during the year ended December 31, 2023 and U.K. plan during the years ended December 31, 2022 and 2021, triggering the recognition of non-cash pre-tax settlement charges of $23 million, $13 million and $3 million for 2023, 2022 and 2021, respectively.

Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, Net of Tax

Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows:


(in millions)	Retirement Plans						Postretirement Plans
	2023		2022		2021		2023		2022		2021
Net actuarial loss (gain)	$	33	$	67	$	(6)	$	1	$	(3)	$	(1)
Recognized actuarial (gain) loss	(5)		(12)		(15)		1		1		1
Prior service cost	—		—		—		1		1		(1)
Settlement charge 1	(18)		(10)		(2)		—		—		—
Total recognized	$	10	$	45	$	(23)	$	3	$	(1)	$	(1)

Schedule of Assumptions

Assumptions


	Retirement Plans						Postretirement Plans
	2023		2022		2021		2023		2022		2021
Benefit obligation:
Discount rate 1	5.27	%	5.63	%	3.05	%	5.18	%	5.52	%	2.72	%
Net periodic cost:

Discount rate - U.S. plan 1	5.63	%	3.05	%	2.75	%	5.52	%	2.72	%	2.20	%
Discount rate - U.K. plan 1	4.76	%	1.87	%	1.36	%
Return on assets 2	6.00	%	4.00	%	5.00	%

1Effective January 1, 2023, we changed our discount rate assumption on our U.S. retirement plans to 5.63% from 3.05% in 2022 and changed our discount rate assumption on our U.K. plan to 4.76% from 1.87% in 2022.

2The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2023, our return on assets assumptions for the U.S. retirement plans and U.K plan remained unchanged at 6.00% and 5.50%, respectively.

Schedule of Information about the Expected Cash Flows for Retirement and Post-Retirement Plans

Information about the expected cash flows for our retirement and postretirement plans is as follows:



(in millions)	Retirement Plans 1		Postretirement Plans 2
2024	$	75	3
2025	77		3
2026	80		2
2027	82		2
2028	83		2
2029-2033	445		7

1Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost.

2Reflects the total benefits expected to be paid from our assets.

Schedule of Fair Value of Defined Benefit Plan Assets

The fair value of our defined benefit plans assets as of December 31, 2023 and 2022, by asset class is as follows:


(in millions)	December 31, 2023
	Total		Level 1		Level 2		Level 3
Cash and short-term investments	$	3	$	3	$	—	$	—





Fixed income:
Long duration strategy 1	991		—		991		—






Real Estate:
U.K. 2	34		—		—		34


Total	$	1,028	$	3	$	991	$	34
Common collective trust funds measured at net asset value as a practical expedient:
Collective investment funds 3	445
Total	$	1,473


(in millions)	December 31, 2022
	Total		Level 1		Level 2		Level 3
Cash and short-term investments	$	5	$	5	$	—	$	—
Equities:
U.S. indexes 4	6		6		—		—



Fixed income:
Long duration strategy 1	1,007		—		1,007		—
Intermediate duration securities	38		—		38		—





Real Estate:
U.K. 2	34		—		—		34
Infrastructure:
U.K. 5	81		—		81		—
Total	$	1,171	$	11	$	1,126	$	34
Common collective trust funds measured at net asset value as a practical expedient:
Collective investment funds 3	293
Total	$	1,464

1Includes securities that are mainly investment grade obligations of issuers in the U.S.

2Includes a fund which holds real estate properties in the U.K.

32023 and 2022 includes the Standard & Poor’s 500 Composite Stock Index, the Standard & Poor’s MidCap 400 Composite Stock Index, a short-term investment fund which is a common collective trust vehicle, and other various asset classes. Additionally, 2023 includes the Standard & Poor’s MidCap 600 Composite Stock Index.

4Includes securities that are tracked in the S&P Smallcap 600 index.

5Includes funds that invest in global infrastructure for the U.K. Pension.

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The following table details further information on our plan assets where we have used significant unobservable inputs:


(in millions)	Level 3
Balance as of December 31, 2022	$	34

Distributions	(1)
Gain (loss)	1
Balance as of December 31, 2023	$	34