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Other Postretirement Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] |
Other Postretirement Employee Benefit Plans | OTHER POSTRETIREMENT EMPLOYEE BENEFIT PLANS In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for some of its retired employees in the United States. Certain employees may become eligible for these benefits as they reach normal retirement age while working for the Company. The following sets forth the funded status of the domestic plans as of the most recent actuarial valuations using measurement dates as of December 31 ($ in millions):
| 2020 |  | 2019
Change in benefit obligation: |  |  |
Benefit obligation at beginning of year | $ | (139) |  |  | $ | (142) |
Service cost | — |  |  | — |
Interest cost | (4) |  |  | (5) |
Actuarial gain (loss) | (15) |  |  | (4) |
Retiree contributions | (2) |  |  | (2) |
Benefits paid | 12 |  |  | 14 |
Benefit obligation at end of year | (148) |  |  | (139) |
Change in plan assets: |  |  |
Fair value of plan assets | — |  |  | — |
Funded status | $ | (148) |  |  | $ | (139) |
As of December 31, 2020 and 2019, $133 million and $123 million, respectively, of the total underfunded status of the plan was recognized as long-term accrued postretirement liability since it was not expected to be funded within one year. The largest contributor to the net actuarial losses affecting the benefit obligation in both 2020 and 2019 for the plan is due to decreases in the discount rates. As of December 31, 2020 and 2019, the projected benefit obligation of the plan exceeded the fair value of the plan assets, as the plan had no plan assets, and the accumulated and projected benefit obligation was $148 million and $139 million, respectively. Weighted average assumptions used to determine benefit obligations at date of measurement:
| 2020 |  | 2019
Discount rate | 2.1 | % |  | 3.1 | %
Medical trend rate – initial | 5.5 | % |  | 5.7 | %
Medical trend rate – grading period | 17 years |  | 18 years
Medical trend rate – ultimate | 4.5 | % |  | 4.5 | %
The medical trend rate used to determine the postretirement benefit obligation was 5.5% for 2020. The rate decreases gradually to an ultimate rate of 4.5% in 2037 and remains at that level thereafter. The trend rate is a significant factor in determining the amounts reported. Components of net periodic benefit (cost) ($ in millions):
| 2020 |  | 2019
Service cost | $ | — |  |  | $ | — |
Interest cost | (4) |  |  | (5) |
Amortization of prior service credit | 2 |  |  | 2 |
Amortization of net loss | (1) |  |  | — |
Net periodic benefit (cost) | $ | (3) |  |  | $ | (3) |
The net periodic cost of the other postretirement employee benefit plans incurred during the years ended December 31, 2020, 2019 and 2018 are reflected in the following captions in the accompanying Consolidated Statements of Earnings ($ in millions):
| Year Ended December 31
| 2020 |  | 2019 |  | 2018
Service cost: |  |  |  |  |
Cost of sales | $ | — |  |  | $ | — |  |  | $ | — |
Selling, general and administrative expenses | — |  |  | — |  |  | (1) |
Total service cost | — |  |  | — |  |  | (1) |
Other net periodic pension costs: |  |  |  |  |
Other income (expense), net | (3) |  |  | (3) |  |  | (2) |
Total | $ | (3) |  |  | $ | (3) |  |  | $ | (3) |
Included in accumulated other comprehensive income (loss) as of December 31, 2020 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service credits of $14 million ($11 million, net of tax) and unrecognized actuarial losses of $27 million ($21 million, net of tax). The unrecognized losses and prior service credits, net, is calculated as the difference between the actuarially determined projected benefit obligation and the value of the plan assets less accrued benefit costs as of December 31, 2020. The following sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid in the periods indicated ($ in millions):
2021 | $ | 15 |
2022 | 14 |
2023 | 13 |
2024 | 12 |
2025 | 11 |
2026 - 2030 | 47 |

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- Definition The entire disclosure for postemployment benefits, which may include supplemental unemployment benefits, obligations recognized for all types of benefits provided to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. Disclosure may also include discussion that an obligation for postemployment benefits is not accrued in accordance with regulation only because the amount cannot be reasonably estimated. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6410195&loc=d3e80090-111668 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 + Details
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