Retirement Benefit Plans

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Retirement Benefit Plans

Retirement Benefit Plans

The Company has a number of defined benefit pension plans and other postretirement benefit plans covering eligible salaried and hourly employees and their dependents. The estimated contributions to the Company's defined benefit pension plans for 2020 range from $15 million to $20 million, of which $10 million has been contributed through the first six months of the year. The other postretirement benefit plans, which provide medical and life insurance benefits, are funded on a pay-as-you-go basis.

During the three months ended June 30, 2019, the Company settled approximately $50 million of its U.S. pension projected benefit obligation by liquidating approximately $50 million in plan assets through a lump-sum disbursement made to an insurance company. Pursuant to this agreement, the insurance company has unconditionally and irrevocably guaranteed all future payments to certain participants that were receiving payments from the U.S. pension plan. The insurance company has assumed all investment risk associated with the assets that were delivered as part of this transaction. Additionally, during the three months ended June 30, 2019, the Company discharged certain U.S. pension plan obligations by making lump-sum payments of $13 million to former employees of the Company. As a result, the Company settled $63 million of U.S. pension projected benefit obligation by liquidating pension plan assets and recorded a non-cash settlement loss of $26 million related to the accelerated recognition of unamortized losses.

The components of net periodic benefit cost recorded in the Condensed Consolidated Statements of Operations are as follows:

	Pension benefits								Other postretirement employee benefits
(in millions)	2020				2019
Three Months Ended June 30,	US		Non-US		US		Non-US		2020		2019
Service cost	$	—	$	5	$	—	$	4	$	—	$	—
Interest cost	2		3		3		3		—		1
Expected return on plan assets	(2)		(6)		(3)		(6)		—		—
Settlement	—		—		26		—		—		—
Amortization of unrecognized prior service credit	—		—		—		—		—		(1)
Amortization of unrecognized loss	—		2		1		3		—		—
Net periodic benefit cost	$	—	$	4	$	27	$	4	$	—	$	—

	Pension benefits								Other postretirement employee benefits
(in millions)	2020				2019
Six Months Ended June 30,	US		Non-US		US		Non-US		2020		2019
Service cost	$	—	$	10	$	—	$	9	$	—	$	—
Interest cost	3		5		5		6		1		2
Expected return on plan assets	(5)		(12)		(6)		(11)		—		—
Settlement	—		—		26		—		—		—
Amortization of unrecognized prior service credit	—		—		—		—		(1)		(2)
Amortization of unrecognized loss	1		5		2		5		—		—
Net periodic benefit (income) cost	$	(1)	$	8	$	27	$	9	$	—	$	—

The components of net periodic benefit (income) cost other than the service cost component are included in Other postretirement (income) expense in the Condensed Consolidated Statements of Operations.