XML 31 R20.htm IDEA: XBRL DOCUMENT v3.24.3
Pensions and Other Postretirement Benefits
 9 Months Ended
Sep. 30, 2024
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Pensions and Other Postretirement Benefits Pensions and Other Postretirement Benefits
 
We have both funded and unfunded defined benefit pension plans covering eligible employees. We also provide specified health care benefits to eligible retired employees; these plans can be amended or terminated at our option.  Under our self-insured retiree health care plan, for those participants who are not Medicare-eligible, certain health care expenses are covered for retired employees and their dependents, reduced by any deductibles, coinsurance, and, in some cases, coverage provided under other group insurance policies. Eligible retired participants and their spouses who are Medicare-eligible are not covered under the self-insured retiree health care plan, but instead are provided with an employer-funded health reimbursement account which can be used for reimbursement of health insurance premiums or eligible out-of-pocket medical expenses.

Pension and postretirement benefit cost components were as follows:

 Pension BenefitsOther Postretirement Benefits
 Third Quarter
 2024202320242023
 ($ in millions)
Service cost$7 $7 $— $1 
Interest cost26 27 4 4 
Expected return on plan assets(51)(53)(2)(2)
Amortization of net losses4 1 — (1)
Amortization of prior service benefit— — (6)(6)
Net benefit$(14)$(18)$(4)$(4)

 Pension BenefitsOther Postretirement Benefits
 First Nine Months
 2024202320242023
 ($ in millions)
Service cost$20 $19 $2 $3 
Interest cost80 81 11 13 
Expected return on plan assets(153)(157)(8)(8)
Amortization of net losses12 3 — (1)
Amortization of prior service benefit— — (18)(19)
Curtailment gain— — (20)— 
Net benefit$(41)$(54)$(33)$(12)

The service cost component of defined benefit pension cost and postretirement benefit cost are reported within “Compensation and benefits” and all other components of net benefit cost are presented in “Other income – net” on the Consolidated Statements of Income.

During the first quarter of 2024, we commenced voluntary and involuntary separation programs to reduce our management workforce. Through these programs, approximately 350 management employees were separated from service by May 2024. In accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 715, “Compensation-Retirement Benefits,” we evaluated whether a curtailment of our pension and other postretirement benefit plans had occurred. While the reduction in our workforce did not result in
a curtailment to our pension benefit plans, a curtailment to our other postretirement benefit plan did occur as the future years of service of plan participants were reduced in excess of 10%. As a result, we remeasured the other postretirement benefit obligation using a discount rate of 5.74% and recorded an $11 million reduction to the obligation. Additionally, we recognized a curtailment gain of $20 million in the second quarter of 2024, the period in which the employees departed the Company, for the impacted portion of the prior service benefit previously recorded within accumulated other comprehensive loss.