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Pension and other postretirement benefits (Tables) | 12 Months Ended
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Dec. 31, 2023
Retirement Benefits [Abstract] |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The change in benefit obligation, change in plan assets, funded status of pension and other postretirement (OPEB) plans, and amounts recognized in the Consolidated Balance Sheets were:
| Pension Plans | OPEB Plans (i)
| 2023 | 2022 | 2023 | 2022
in $ millions | U.S. | Non-U.S. | U.S. | Non-U.S. |  |
Change in benefit obligation: |  |  |  |  |  |
Benefit obligation at beginning of year | 497 | 2,105 | 677 | 3,136 | 100 | 129
Service cost | 1 | 31 | 2 | 55 | 2 | 3
Interest cost | 24 | 86 | 18 | 43 | 5 | 3
Amendments | – | (1) | 2 | (2) | – | –
Actuarial losses and (gains) | 9 | 178 | (153) | (831) | 3 | (32)
Benefits paid | (35) | (89) | (35) | (101) | (5) | (5)
Plan participant contributions | – | 9 | – | 9 | – | –
Settlements | – | (4) | – | (6) | – | –
Net transfer out (including the effect of any business combinations/divestitures) | – | – | (14) | (11) | – | –
Foreign currency rate changes | – | 99 | – | (187) | – | 2
Benefit obligation at end of year | 496 | 2,414 | 497 | 2,105 | 105 | 100
Change in plan assets |  |  |  |  |  |
Fair value of plan assets at beginning of year | 446 | 2,316 | 601 | 3,015 | – | –
Actual gain (loss) on plan assets | 37 | 143 | (122) | (467) | – | –
Employer contributions | 1 | 38 | 2 | 36 | 5 | 5
Plan participant contributions | – | 9 | – | 9 | – | –
Benefits paid | (35) | (89) | (35) | (101) | (5) | (5)
Settlements | – | (4) | – | (6) | – | –
Foreign currency rate changes | – | 111 | – | (170) | – | –
Fair value of plan assets at end of year | 449 | 2,524 | 446 | 2,316 | – | –
Reconciliation of funded status: |  |  |  |  |  |
Fair value of plan assets | 449 | 2,524 | 446 | 2,316 | – | –
Benefit obligation | 496 | 2,414 | 497 | 2,105 | 105 | 100
Funded status | (47) | 110 | (51) | 211 | (105) | (100)
Accumulated Benefit Obligation | 496 | 2,349 | 497 | 2,074 |  |
Amounts recognized in the Consolidated Balance Sheets: |  |  |  |  |  |
Noncurrent assets | – | 271 | – | 347 | – | –
Current liabilities | (2) | (4) | (2) | (7) | (6) | (6)
Noncurrent liabilities | (45) | (111) | (49) | (129) | (98) | (94)
Liabilities held for sale | – | (46) | – | – | (1) | –
Funded status at end of year | (47) | 110 | (51) | 211 | (105) | (100)
Net actuarial (loss) gain | (68) | (225) | (79) | (97) | 35 | 40
Prior service (cost) credit | (1) | 92 | (1) | 95 | 3 | 3
Total accumulated other comprehensive (loss) income | (69) | (133) | (80) | (2) | 38 | 43
(i) Includes a benefit obligation of $11 million and $11 million related to non-U.S. OPEB plans at December 31, 2023 and 2022, respectively.
Schedule of Pension Plans where Accumulated Benefit Obligation (“ABO”) Projected Benefit Obligation (“PBO”) Exceeds the Fair Value of Respective Plan Assets | The pension and other postretirement plans for which their accumulated benefit obligation, projected benefit obligation or accumulated postretirement benefit obligation exceeds the fair value of their respective plan assets at December 31 were:
| U.S. Plans | Non-U.S. Plans
in $ millions | 2023 | 2022 | 2023 | 2022
Pension plans with projected benefit obligations in excess of plan assets: |  |  |  |
Projected benefit obligation | 496 | 497 | 580 | 512
Fair value of plan assets | 449 | 446 | 421 | 378
Pension plans with accumulated benefit obligations in excess of plan assets: |  |  |  |
Accumulated benefit obligation | 496 | 497 | 527 | 503
Fair value of plan assets | 449 | 446 | 394 | 374
Other postretirement plans with accumulated postretirement benefit obligations in excess of plan assets: |  |  |  |
Accumulated postretirement benefit obligation | – | – | 9 | 8
Fair value of plan assets | – | – | – | –
Schedule of Net Benefit Costs | The total retirement benefit expense recognized in the Consolidated Statements of Income for the years ended December 31 were:
in $ millions | 2023 | 2022 | 2021
Total defined contribution expense | 320 | 307 | 288
Total defined benefit expense | 31 | 30 | 61
Total expense within the Consolidated Statements of Income | 351 | 337 | 349
The components of net periodic benefit cost (income) recognized in the Consolidated Statements of Income for the years ended December 31 were:
| Pension Plans | OPEB Plans (ii)
| U.S. | Non-U.S. |
in $ millions | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | 2023 | 2022 | 2021
Service cost | 1 | 2 | 3 | 31 | 55 | 63 | 2 | 3 | 4
Interest cost | 24 | 18 | 19 | 86 | 43 | 40 | 5 | 3 | 4
Expected return on assets | (20) | (30) | (37) | (91) | (72) | (71) | – | - | –
Amortization of: |  |  |  |  |  |  |  |  |
Prior service cost (credit) | – | 1 | – | (11) | (11) | (11) | – | – | (1)
Actuarial loss (gain) | 3 | 2 | 4 | 4 | 15 | 26 | (3) | – | –
Curtailment loss (gain) | – | 3 | – | – | – | – | (1) | – | –
Settlement loss (gain) | – | – | 17 | 1 | (2) | 1 | – | – | –
Net periodic benefit cost (income) (i) | 8 | (4) | 6 | 20 | 28 | 48 | 3 | 6 | 7
(i) Service cost is included within Cost of revenues and Selling, general and administrative expenses while all other cost components are recorded within Other nonoperating (expense) income, net. (ii) Includes the net periodic benefit cost of $nil million, $1 million and $1 million related to non-U.S. OPEB plans for the years ended December 31, 2023, 2022, and 2021 respectively. The changes in plan assets and benefit obligations that were recognized in Other comprehensive (income) loss for the years ended December 31 were:
| Pension Plans | OPEB Plans
| U.S. | Non-U.S. | (i)
in $ millions | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | 2023 | 2022 | 2021
Net actuarial (gain) loss | (8) | (1) | (7) | 126 | (292) | (181) | 3 | (32) | (19)
Prior service cost (credit) | – | 2 | 1 | (1) | (2) | (1) | – | – | (1)
Amortization or curtailment recognition of prior service (cost) credit | – | (4) | – | 11 | 11 | 11 | – | – | 1
Amortization or settlement recognition of net (loss) gain | (3) | (2) | (21) | (4) | (13) | (27) | 3 | – | –
Foreign currency exchange effects | – | – | – | (2) | (27) | (29) | – | – | –
Amount recognized in other comprehensive (income) loss (i) | (11) | (5) | (27) | 130 | (323) | (227) | 6 | (32) | (19)
Amount recognized in net periodic pension benefit cost (income) and other comprehensive (income) loss | (3) | (9) | (21) | 150 | (295) | (179) | 9 | (26) | (12)
(i) Includes an amount recognized in other comprehensive (income) loss of $1 million, $(2) million and $(2) million related to non-U.S. OPEB plans for the years ended December 31, 2023, 2022 and 2021, respectively.
Schedule of Weighted Average Assumptions | The weighted average assumptions used to determine net periodic benefit cost (income) for the years ended December 31 were:
| Pension Plans | OPEB Plans
| U.S. | Non-U.S. |
| 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | 2023 | 2022 | 2021
Discount rate | 5.20 | % | 2.70 | % | 2.25 | % | 4.13 | % | 1.54 | % | 1.23 | % | 5.08 | % | 2.59 | % | 2.18 | %
Rate of compensation increase | N/A | 3.50 | % | 3.50 | % | 3.22 | % | 2.74 | % | 2.39 | % | 2.80 | % | 2.22 | % | 2.37 | %
Expected long‐term rate of return on plan assets | 5.50 | % | 5.50 | % | 5.50 | % | 4.04 | % | 2.54 | % | 2.51 | % | N/A | N/A | N/A
Interest crediting rates | N/A | N/A | N/A | 1.50 | % | 2.25 | % | 1.25 | % | N/A | N/A | N/A
The weighted average assumptions used to determine the benefit obligation at December 31 were:
| Pension Plans |  | OPEB Plans |
| U.S. |  | Non-U.S. |  |  |
| 2023 | 2022 |  | 2023 | 2022 |  | 2023 | 2022 |
Discount rate | 4.95 | % | 5.20 | % |  | 3.49 | % | 4.13 | % |  | 4.86 | % | 5.08 | % |
Rate of compensation increase | N/A | N/A |  | 3.22 | % | 3.22 | % |  | 2.75 | % | 2.80 | % |
Schedule of Allocation of Plan Assets | The target allocation ranges and fair values by asset class at December 31 were:
| Pension Plans
| Target allocation ranges
| U.S. Plans | Non-U.S. Plans
| 2023 (%)
Cash and cash equivalents | – | 0-5
Equity instruments (i) | 10-30 | 15-25
Debt instruments (ii) | 65-85 | 20-35
Real estate | – | 5-10
Derivatives | – | 0-5
Investment funds | 0-15 | 0-5
Assets held by insurance company | – | 0-5
Other | – | 0-10
(i) For U.S. pension plans, equity instruments with a total allocation range of 10-30% are made up of 10-30% in developed markets’ diversified equity instruments and 10-30% in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments with a total allocation range of 15-25% are made up of 15-22% in developed markets’ diversified equity instruments and 1-2% in emerging markets’ diversified equity instruments. (ii) For U.S. pension plans, debt instruments with a total allocation range of 65-85% are made up of 65-85% in non-government debt instruments and 65-85% in government fixed interest instruments. For non-U.S. pension plans, debt instruments with a total allocation range of 20-35% are made up of 11-18% in non-government debt instruments, 17-32% in government fixed interest instruments, 31-40% in government inflation-protected bonds, 4-10% in asset-backed instruments, 4-10% in inflation-protected bonds and 4-10% in structured debt. The Company’s asset allocations by asset category at December 31 were:
| Pension Plans
| Fair Values
| 2023
| U.S. Plans | Non-U.S. Plans
in $ millions | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Cash and cash equivalents | 3 | – | – | 3 | 50 | 15 | – | 65
Equity instruments (i) | – | 90 | – | 90 | 462 | 56 | – | 518
Debt instruments (ii) | – | 341 | – | 341 | 1,310 | 179 | – | 1,489
Real estate | – | – | – | – | 97 | 82 | 14 | 193
Derivatives | – | – | – | – | 12 | 2 | – | 14
Investment funds | 11 | – | – | 11 | 85 | 13 | – | 98
Assets held by insurance company | – | – | – | – | – | 2 | 117 | 119
Other | – | – | 4 | 4 | 1 | 19 | 8 | 28
Total | 14 | 431 | 4 | 449 | 2,017 | 368 | 139 | 2,524
(i) For U.S. pension plans, equity instruments of $90 million are made up of $79 million in developed markets’ diversified equity instruments and $11 million in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments of $518 million are made up of $486 million in developed markets’ diversified equity instruments and $32 million in emerging markets’ diversified equity instruments. (ii) For U.S. pension plans, debt instruments of $341 million are made up of $233 million in non-government debt instruments and $108 million in government fixed interest instruments. For non-U.S. pension plans, debt instruments of $1,489 million are made up of $251 million in non-government debt instruments, $400 million in government fixed interest instruments, $763 million in government inflation-protected bonds, $34 million in asset-backed instruments and $41 million in inflation-protected bonds.
| Pension Plans
| Fair Values
| 2022
| U.S. Plans | Non-U.S. Plans
in $ millions | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Cash and cash equivalents | 4 | – | – | 4 | 53 | – | – | 53
Equity instruments (i) | – | 83 | – | 83 | 435 | 66 | – | 501
Debt instruments (ii) | 3 | 314 | – | 317 | 1,288 | 36 | – | 1,324
Real estate | – | – | – | – | 181 | – | 13 | 194
Derivatives | – | – | – | – | 12 | (5) | – | 7
Investment funds | 23 | – | 11 | 34 | 77 | 11 | – | 88
Assets held by insurance company | – | – | – | – | – | 2 | 113 | 115
Other | – | – | 8 | 8 | 28 | – | 6 | 34
Total | 30 | 397 | 19 | 446 | 2,074 | 110 | 132 | 2,316
(i) For U.S. pension plans, equity instruments of $83 million are made up of $73 million in developed markets’ diversified equity instruments and $10 million in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments of $501 million are made up of $470 million in developed markets’ diversified equity instruments and $31 million in emerging markets’ diversified equity instruments. (ii) For U.S. pension plans, debt instruments of $317 million are made up of $189 million in non-government debt instruments and $128 million in government fixed interest instruments. For non-U.S. pension plans, debt instruments of $1,324 million are made up of $197 million in non-government debt instruments, $437 million in government fixed interest instruments, $663 million in government inflation-protected bonds and $27 million in asset-backed instruments.
Schedule of Reconciliation for Pension Plans by Asset | The Level 3 reconciliation for pension plans by asset class for the years ended December 31, 2023 and 2022 were:
| U.S. Plans
in $ millions | Beginning balance on 1/1/2023 | Actual return on plan assets, relating to assets still held at reporting date | Purchases, sales and settlements | Transfer (out of) Level 3 | Change due to exchange rate changes | Ending balance on 12/31/2023
Asset Class |  |  |  |  |  |
Investment funds | 11 | – | – | (11) | – | –
Other | 8 | 1 | (1) | (4) | – | 4
Total | 19 | 1 | (1) | (15) | – | 4
| Non-U.S. Plans
in $ millions | Beginning balance on 1/1/2023 | Actual return on plan assets, relating to assets still held at reporting date | Purchases, sales and settlements | Transfer into/(out of) Level 3 | Change due to exchange rate changes | Ending balance on 12/31/2023
Asset Class |  |  |  |  |  |
Real estate | 13 | – | - | – | 1 | 14
Assets held by insurance company | 113 | 11 | (10) | – | 3 | 117
Other | 6 | 2 | – | – | – | 8
Total | 132 | 13 | (10) | – | 4 | 139
| U.S. Plans
in $ millions | Beginning balance on 1/1/2022 | Actual return on plan assets, relating to assets still held at reporting date |  | Purchases, sales and settlements |  | Change due to exchange rate changes | Ending balance on 12/31/2022
Asset Class |  |  |  |  |  |  |
Investment funds | 11 | – |  | – |  | – | 11
Other | 9 | – |  | (1) |  | – | 8
Total | 20 | – |  | (1) |  | – | 19
| Non-U.S. Plans
in $ millions | Beginning balance on 1/1/2022 | Actual return on plan assets, relating to assets still held at reporting date |  | Purchases, sales and settlements |  | Change due to exchange rate changes | Ending balance on 12/31/2022
Asset Class |  |  |  |  |  |  |
Real estate | 17 | (2) |  | – |  | (2) | 13
Assets held by insurance company | 152 | (31) |  | – |  | (8) | 113
Other | 5 | 2 |  | – |  | (1) | 6
Total | 174 | (31) |  | – |  | (11) | 132
Schedule of Health Care Cost Trend Rates | The assumed healthcare cost trend rates at December 31 were:
| 2023 | 2022 | 2021
Healthcare cost trend rate assumed for next year | 6.85 | % | 1.76 | % | 5.91 | %
Rate to which the cost trend rate gradually declines | 3.70 | % | 3.70 | % | 3.60 | %
Year the rate reaches the ultimate rate | 2090 | 2090 | 2074
Schedule of Expected Benefit Payments | The following table presents the expected future benefit payments to be made over the next 10 years:
| Pension plans | OPEB
in $ millions | U.S. | Non-U.S. |
2024 | 36 | 100 | 6
2025 | 37 | 104 | 6
2026 | 37 | 107 | 6
2027 | 37 | 111 | 6
2028 | 36 | 114 | 6
2029-2033 | 176 | 598 | 34

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- Definition Tabular disclosure of the major categories of plan assets of pension plans and/or other employee benefit plans. This information may include, but is not limited to, the target allocation of plan assets, the fair value of each major category of plan assets, and the level within the fair value hierarchy in which the fair value measurements fall. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -SubTopic 20 -Subparagraph (d)(5) -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
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