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Pension and Other Postretirement Benefit Plans | 6 Months Ended
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Jun. 30, 2023
Retirement Benefits [Abstract] |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company has defined benefit pension plans covering eligible employees in the U.S. and in certain of its international subsidiaries. The net periodic benefit cost (credit) of such plans consisted of the following components:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
($ in millions) | U.S. |  | International |  | U.S. |  | International |  | U.S. |  | International |  | U.S. |  | International
Service cost | $ | 76 |  |  | $ | 50 |  |  | $ | 99 |  |  | $ | 72 |  |  | $ | 152 |  |  | $ | 99 |  |  | $ | 198 |  |  | $ | 147 |
Interest cost | 133 |  |  | 75 |  |  | 103 |  |  | 37 |  |  | 266 |  |  | 149 |  |  | 206 |  |  | 75 |
Expected return on plan assets | (185) |  |  | (130) |  |  | (197) |  |  | (98) |  |  | (372) |  |  | (257) |  |  | (393) |  |  | (199) |
Amortization of unrecognized prior service cost (credit) | — |  |  | 16 |  |  | (8) |  |  | (3) |  |  | (1) |  |  | 12 |  |  | (16) |  |  | (7) |
Net (gain) loss amortization | — |  |  | (1) |  |  | 56 |  |  | 25 |  |  | — |  |  | (2) |  |  | 112 |  |  | 50 |
Termination benefits | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |
Curtailments | 2 |  |  | — |  |  | 4 |  |  | — |  |  | 5 |  |  | — |  |  | 8 |  |  | — |
Settlements | 5 |  |  | — |  |  | 101 |  |  | — |  |  | 26 |  |  | — |  |  | 101 |  |  | — |
| $ | 32 |  |  | $ | 10 |  |  | $ | 159 |  |  | $ | 33 |  |  | $ | 77 |  |  | $ | 1 |  |  | $ | 217 |  |  | $ | 66 |
The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net credit of such plans consisted of the following components:
| Three Months Ended June 30, |  | Six Months Ended June 30,
($ in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Service cost | $ | 8 |  |  | $ | 12 |  |  | $ | 17 |  |  | $ | 25 |
Interest cost | 16 |  |  | 11 |  |  | 31 |  |  | 23 |
Expected return on plan assets | (16) |  |  | (21) |  |  | (32) |  |  | (43) |
Amortization of unrecognized prior service credit | (12) |  |  | (14) |  |  | (25) |  |  | (29) |
Net gain amortization | (11) |  |  | (11) |  |  | (21) |  |  | (21) |
| $ | (15) |  |  | $ | (23) |  |  | $ | (30) |  |  | $ | (45) |
In connection with restructuring actions (see Note 5), termination charges were recorded on pension plans related to expanded eligibility for certain employees e x iting Merck. Also, in connection with these restructuring activities, curtailments were recorded on certain pension plans. In addition, lump sum payments to U.S. pension plan participants triggered partial settlement charges in the second quarter and first six months of both 2023 and 2022. These partial settlements triggered remeasurements of some of the Company’s U.S. pension plans. Remeasurements during the first six months of 2023 resulted in an increase of $47 million to net pension liabilities and a related adjustment to AOCL. The components of net periodic benefit cost (credit) other than the service cost component are included in Other (income) expense, net (see Note 12), with the exception of certain amounts for termination benefits, curtailments and settlements, which are recorded in Restructuring costs if the event giving rise to the termination benefits, curtailment or settlement related to restructuring actions.

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