Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2023

Expenses related to defined benefit and retiree health care benefit plans are as follows:


	U.S. Defined Benefit						U.S. Retiree Health Care						Non-U.S. Defined Benefit
	2023		2022		2021		2023		2022		2021		2023		2022		2021
Service cost	$	8	$	15	$	21	$	2	$	3	$	3	$	16	$	25	$	36
Interest cost	28		29		30		15		11		10		57		33		37
Expected return on plan assets	(23)		(27)		(31)		(19)		(12)		(9)		(63)		(66)		(81)
Amortization of prior service cost (credit)	—		—		—		—		(2)		(2)		1		1		1
Recognized net actuarial losses (gains)	6		3		15		(5)		—		—		12		1		7
Net periodic benefit costs (credits)	19		20		35		(7)		—		2		23		(6)		—
Settlement losses	7		64		13		—		—		—		—		10		2
Total, including other postretirement losses (gains)	$	26	$	84	$	48	$	(7)	$	—	$	2	$	23	$	4	$	2

Schedule of Changes in the Benefit Obligations and Plan Assets for the Defined Benefit and Retiree Health Care Benefit Plans

Changes in the benefit obligations and plan assets for defined benefit and retiree health care benefit plans are as follows:


	U.S. Defined Benefit				U.S. Retiree Health Care				Non-U.S. Defined Benefit
	2023		2022		2023		2022		2023		2022
Change in plan benefit obligation
Benefit obligation at beginning of year:	$	521	$	895	$	274	$	360	$	1,667	$	2,574
Service cost	8		15		2		3		16		25
Interest cost	28		29		15		11		57		33
Participant contributions	—		—		14		15		1		5
Benefits paid	(13)		(12)		(41)		(41)		(77)		(86)
Settlements	(40)		(309)		—		—		(6)		(91)
Curtailments	—		—		—		—		—		(4)
Actuarial loss (gain)	1		(97)		(6)		(74)		80		(547)

Effects of exchange rate changes	—		—		—		—		(6)		(242)
Benefit obligation at end of year	$	505	$	521	$	258	$	274	$	1,732	$	1,667

Change in plan assets
Fair value of plan assets at beginning of year:	$	421	$	934	$	280	$	385	$	1,822	$	2,813
Actual return on plan assets	47		(205)		29		(80)		137		(557)
Employer contributions (qualified plans)	—		—		1		1		2		9
Employer contributions (non-qualified plans)	3		13		—		—		—		—
Participant contributions	—		—		14		15		1		5
Benefits paid	(13)		(12)		(41)		(41)		(77)		(86)
Settlements	(40)		(309)		—		—		(6)		(91)
Effects of exchange rate changes	—		—		—		—		(13)		(271)
Other	—		—		(19)		—		—		—
Fair value of plan assets at end of year	$	418	$	421	$	264	$	280	$	1,866	$	1,822

Funded status at end of year	$	(87)	$	(100)	$	6	$	6	$	134	$	155

Schedule of Amounts Recognized in our Balance Sheet

Amounts recognized on our Consolidated Balance Sheets as of December 31, are as follows:


	U.S. Defined Benefit		U.S. Retiree Health Care		Non-U.S. Defined Benefit		Total
2023
Overfunded retirement plans	$	—	$	8	$	165	$	173
Accrued expenses and other liabilities & other long-term liabilities	(5)		—		(7)		(12)
Underfunded retirement plans	(82)		(2)		(24)		(108)
Funded status at end of 2023	$	(87)	$	6	$	134	$	53

2022
Overfunded retirement plans	$	—	$	8	$	180	$	188
Accrued expenses and other liabilities & other long-term liabilities	(3)		—		(6)		(9)
Underfunded retirement plans	(97)		(2)		(19)		(118)
Funded status at end of 2022	$	(100)	$	6	$	155	$	61

Schedule of Change in AOCI

The change in AOCI is as follows:


	U.S. Defined Benefit		U.S. Retiree Health Care				Non-U.S. Defined Benefit				Total
	Net Actuarial Loss		Net Actuarial Gain		Prior Service Cost		Net Actuarial Loss		Prior Service Cost		Net Actuarial Loss		Prior Service Cost
AOCI balance, net of taxes, December 31, 2022	$	90	$	(15)	$	—	$	174	$	1	$	249	$	1
Changes in AOCI by category:
Adjustments	(23)		(17)		—		4		—		(36)		—
Recognized within net income	(13)		5		—		(12)		(1)		(20)		(1)
Tax effect	8		3		—		3		—		14		—
Total change to AOCI	(28)		(9)		—		(5)		(1)		(42)		(1)
AOCI balance, net of taxes, December 31, 2023	$	62	$	(24)	$	—	$	169	$	—	$	207	$	—

Schedule of Allocation of Plan Assets

The tables below set forth the fair value of our plan assets using the same three-level hierarchy of fair-value inputs described in Note 6.


	December 31, 2023
	Level 1		Level 2		Other (a)		Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents	$	—	$	—	$	272	$	272
Equity securities	—		—		146		146
Total	$	—	$	—	$	418	$	418

Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents	$	4	$	—	$	206	$	210
Equity securities	—		—		54		54
Total	$	4	$	—	$	260	$	264

Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents	$	49	$	52	$	1,343	$	1,444
Equity securities	57		1		364		422
Total	$	106	$	53	$	1,707	$	1,866

(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.


	December 31, 2022
	Level 1		Level 2		Other (a)		Total
Assets of U.S. defined benefit plan:
Fixed income securities and cash equivalents	$	—	$	—	$	272	$	272
Equity securities	—		—		149		149
Total	$	—	$	—	$	421	$	421

Assets of U.S. retiree health care plan:
Fixed income securities and cash equivalents	$	7	$	—	$	175	$	182
Equity securities	—		—		98		98
Total	$	7	$	—	$	273	$	280

Assets of non-U.S. defined benefit plans:
Fixed income securities and cash equivalents	$	40	$	60	$	1,282	$	1,382
Equity securities	52		1		387		440
Total	$	92	$	61	$	1,669	$	1,822

(a)Consists of bond index and equity index funds, measured at net asset value per share, as well as cash equivalents.

The target allocation ranges for the plans that hold a substantial majority of the defined benefit assets are as follows:

U.S. Defined Benefit

U.S. Retiree Health Care

Non-U.S. Defined Benefit

Fixed income securities and cash equivalents

65% – 80%

75% – 85%

60% – 100%

Equity securities

20% – 35%

15% – 25%

0% – 40%

Weighted average asset allocations as of December 31 are as follows:


	U.S. Defined Benefit		U.S. Retiree Health Care		Non-U.S. Defined Benefit
	2023	2022	2023	2022	2023	2022
Fixed income securities and cash equivalents	65%	65%	80%	65%	77%	76%
Equity securities	35%	35%	20%	35%	23%	24%

Schedule of Assumptions Used

Assumptions and investment policies


	U.S. Defined Benefit		U.S. Retiree Health Care		Non-U.S. Defined Benefit
	2023	2022	2023	2022	2023	2022
Weighted average assumptions used to determine benefit obligations:
Discount rate	5.20%	5.67%	5.17%	5.68%	3.28%	3.45%
Long-term pay progression	3.00%	3.75%	n/a	n/a	3.12%	3.03%

Weighted average assumptions used to determine net periodic benefit cost:
Discount rate	5.67%	3.82%	5.68%	3.05%	3.45%	1.57%
Long-term rate of return on plan assets	5.70%	3.80%	5.70%	3.40%	3.50%	2.73%
Long-term pay progression	3.75%	3.70%	n/a	n/a	3.03%	3.15%

Schedule of Assumed Future Benefit Payments

The following assumed future benefit payments to plan participants in the next 10 years are used to measure our benefit obligations. Almost all of the payments, which may vary significantly from these assumptions, will be made from plan assets and not from company assets.


	2024		2025		2026		2027		2028		2029 – 2033
U.S. Defined Benefit	$	70	$	72	$	64	$	62	$	56	$	207
U.S. Retiree Health Care	27		25		24		23		22		97
Non-U.S. Defined Benefit	88		89		92		92		95		501

Schedule of Assumed Health Care Cost Trend Rates for U.S Retiree Health Care Benefit Plan

Assumed health care cost trend rates for the U.S. retiree health care benefit plan as of December 31 are as follows:


	2023	2022
Assumed health care cost trend rate for next year	7.00%	7.00%
Ultimate trend rate	5.00%	5.00%
Year in which ultimate trend rate is reached	2032	2031