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PENSION PLANS
 12 Months Ended
Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
PENSION PLANS PENSION PLANS
Pension Plans
The Company sponsors defined benefit pension plans. Under the plans, pension benefits are based on an employee’s years of service and, for certain categories of employees, qualifying compensation. Company contributions to these pension plans are determined by an independent actuary to meet or exceed minimum funding requirements. In our U.S. plan, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average remaining life expectancy of inactive participants. In all of our Non-U.S plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average future service period of plan participants expected to receive benefits.
The following tables provide a reconciliation of the change in the projected benefit obligation, the change in plan assets and the net amount recognized in the Consolidated Balance Sheets (in millions):    
 December 31, 2022December 31, 2021
 U.S.Non-U.S.TotalU.S.Non-U.S.Total
Change in Projected Benefit Obligation
Benefit obligation at beginning of period
$841 $476 $1,317 $910 $523 $1,433 
Service cost5 4 9 5 6 11 
Interest cost23 11 34 22 9 31 
Actuarial gain(174)(103)(277)(31)(28)(59)
Currency gain— (38)(38)— (10)(10)
Benefits paid(58)(18)(76)(67)(19)(86)
Plan amendments— — — — (1)(1)
Settlements/curtailments— (4)(4)— (4)(4)
Other1 (2)(1)2 — 2 
Benefit obligation at end of period$638 $326 $964 $841 $476 $1,317 

December 31, 2022December 31, 2021
U.S.Non-U.S.TotalU.S.Non-U.S.Total
Change in Plan Assets
Fair value of assets at beginning of period
$816 $443 $1,259 $842 $441 $1,283 
Actual return on plan assets(156)(92)(248)41 12 53 
Currency loss— (35)(35)— (8)(8)
Company contributions— 8 8 — 21 21 
Benefits paid(58)(18)(76)(67)(19)(86)
Settlements/curtailments— (4)(4)— (4)(4)
Fair value of assets at end of period602 302 904 816 443 1,259 
Funded status$(36)$(24)$(60)$(25)$(33)$(58)

The following table presents the amount recorded and respective location in the Consolidated Balance sheet (in millions):

 December 31, 2022December 31, 2021
LocationU.S.Non-U.S.TotalU.S.Non-U.S.Total
Prepaid pension costOther non-current assets$— $21 $21 $— $21 $21 
Accrued pension cost – currentOther current liabilities(1)(2)(3)— (2)(2)
Accrued pension cost – non-currentPension plan liability(35)(43)(78)(25)(52)(77)
Total amount recorded$(36)$(24)$(60)$(25)$(33)$(58)
Amounts Recorded in AOCI
Net actuarial loss$(340)$(72)$(412)$(333)$(74)$(407)
Net prior service cost— (5)(5)— (7)(7)
Total amount recorded$(340)$(77)$(417)$(333)$(81)$(414)

For the year ended December 31, 2022, the actuarial gain of $277 million was largely the result of increases in discount rates across all plans. In the U.S. plan, the actuarial gain was primarily driven by the increase in the discount rate. The gain was slightly offset by the unfavorable impact of differences between expected and actual pension experience. In the Non-U.S. plans, the actuarial gain was driven by an increase in the discount rate of the U.K. and Canada plans, partially offset by the unfavorable impact of differences between expected and actual pension experience.

For the year ended December 31, 2021, the actuarial gain of $59 million was largely the result of increases in discount rates across all plans. In the U.S. plan, the actuarial gain was primarily driven by the increase in the discount rate. The gain was slightly offset by the unfavorable impact of updated mortality assumptions. In the Non-U.S. plans, the actuarial gain was driven by an increase in the discount rate of the U.K. and other plans, partially offset by inflation.

The following table presents information about the projected benefit obligation, accumulated benefit obligation (ABO) and plan assets of the Company’s pension plans (in millions):
 December 31, 2022December 31, 2021
 U.S.Non-U.S.TotalU.S.Non-U.S.Total
Plans with PBO in excess of fair value of plan assets:
Projected benefit obligation$638 $208 $846 $841 $328 $1,169 
Fair value of plan assets$602 $163 $765 $816 $275 $1,091 
Plans with ABO in excess of fair value of plan assets:
Accumulated benefit obligation$638 $192 $830 $841 $300 $1,141 
Fair value of plan assets$602 $153 $755 $816 $257 $1,073 

Weighted-Average Assumptions Used to Determine Benefit Obligation
The following table presents weighted average assumptions used to determine benefit obligations at the measurement dates:
 December 31,
 20222021
United States Plans
Discount rate5.15 %2.85 %
Cash balance interest crediting rate3.77 %1.26 %
Non-United States Plans
Discount rate5.02 %2.35 %
Rate of compensation increase3.31 %3.31 %
Components of Net Periodic Pension Cost
The following table presents the components of net periodic pension cost (income) (in millions):
 Twelve Months Ended December 31,
 202220212020
United States Plans
Service cost$5 $5 $5 
Interest cost23 22 28 
Expected return on plan assets(36)(36)(45)
Amortization of actuarial loss11 12 12 
Settlement/curtailment— — — 
Other— 2 — 
Net periodic pension cost$3 $5 $— 
Non-United States Plans
Service cost$4 $6 $5 
Interest cost11 9 10 
Expected return on plan assets(16)(18)(17)
Amortization of actuarial loss2 4 3 
Settlement/curtailment(1)— 1 
Other— — — 
Net periodic pension cost$— $1 $2 
Total
Service cost$9 $11 $10 
Interest cost34 31 38 
Expected return on plan assets(52)(54)(62)
Amortization of actuarial loss13 16 15 
Settlement/curtailment(1)— 1 
Other— 2 — 
Net periodic pension cost$3 $6 $2 
 
Weighted-Average Assumptions Used to Determine Net Periodic Pension Cost
The following table presents weighted-average assumptions used to determine net periodic pension costs for the periods noted:
 Twelve Months Ended December 31,
 2022 2021 2020 
United States Plans
Discount rate2.85 %2.50 %3.30 %
Expected return on plan assets4.75 %4.75 %6.50 %
Cash balance interest crediting rate1.26 %0.79 %2.66 %
Rate of compensation increaseN/A (a) N/A (a) N/A (a) 
Non-United States Plans
Discount rate2.35 %1.73 %2.24 %
Expected return on plan assets3.93 %4.08 %4.66 %
Rate of compensation increase3.31 %3.00 %3.99 %
 (a)    Not applicable due to changes in plan made on August 1, 2009 that were effective beginning January 1, 2010.
The expected return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on plan investments over a 30 year period, with the expected rate of return selected from a best estimate range within the total range of projected results. The result is then rounded down to the nearest 25 basis points.
Items Measured at Fair Value
The Company classifies and discloses pension plan assets in one of the following three categories:
Level 1: Quoted market prices in active markets for identical assets.
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.

Plan Assets

The tables in this section show pension plan asset fair values and fair value leveling information. The assets are categorized into one of the three levels of the fair value hierarchy or are not subject to leveling, in the case of investments that are valued using the net asset value per share (or its equivalent) practical expedient (“NAV”).
The following table summarizes the fair values and applicable fair value hierarchy levels of United States pension plan assets (in millions):                                                     
 December 31, 2022
Asset CategoryLevel 1Level 2Level 3Total
Equities:
Domestic$39 $— $— $39 
Fixed income and cash equivalents:
Corporate bonds26 230 — 256 
Government debt— 58 — 58 
Total United States plan assets subject to leveling $65 $288 $— 353 
Plan assets measured at NAV:
Equities 95 
Real assets25 
Fixed income and cash equivalents87 
Absolute return strategies42 
Total United States plan assets $602 

 December 31, 2021
Asset CategoryLevel 1Level 2Level 3Total
Equities:
Domestic$56 $— $— $56 
Fixed income and cash equivalents:
Corporate bonds35 328 — 363 
Government debt— 78 — 78 
Total United States plan assets subject to leveling $91 $406 $— 497 
Plan assets measured at NAV:
Equities 144 
Fixed income and cash equivalents125 
Absolute return strategies50 
Total United States plan assets $816 
The following table summarizes the fair values and applicable fair value hierarchy levels of non-United States pension plan assets (in millions):
 December 31, 2022
Asset CategoryLevel 1Level 2Level 3Total
Equities$— $1 $1 
Fixed income and cash equivalents:
Cash and cash equivalents— 56 56 
Fixed income— 11 11 
Total non-United States plan assets subject to leveling $— $68 $— 68 
Plan assets measured at NAV:
Equities 22 
Fixed income and cash equivalents127 
Absolute return strategies and other85 
Total non-United States plan assets$302 

 December 31, 2021
Asset CategoryLevel 1Level 2Level 3Total
Equities$— $2 $— $2 
Fixed income and cash equivalents:
Cash and cash equivalents— 72 — 72 
Corporate bonds— 10 — 10 
Total non-United States plan assets subject to leveling $— $84 $— 84 
Plan assets measured at NAV:
Equities 61 
Fixed income and cash equivalents202 
Absolute return strategies96 
Total non-United States plan assets$443 
 
Investment Strategy
The current targeted asset allocation for the United States pension plan is to have 21.5% of assets invested in equities, 68.5% in intermediate and long-term fixed income securities and 10% in other strategies. Assets are rebalanced at least quarterly to conform to policy tolerances. The Company actively evaluates the reasonableness of its asset mix given changes in the projected benefit obligation and market dynamics. Our investment policy and asset mix for the non-United States pension plans varies by location and is based on projected benefit obligation and market dynamics.                    
Estimated Future Benefit Payments
The following table shows estimated future benefit payments from the Company’s pension plans (in millions):
Year  
Estimated
Benefit
Payments
2023  $77 
2024  $75 
2025  $72 
2026  $74 
2027$71 
2028-2032  $357 
Contributions
The Company expects to contribute $25 million in cash to its defined benefit pension plans during 2023. Actual contributions to the plans may change as a result of a variety of factors, including changes in laws that impact funding requirements.
Defined Contribution Plans
The Company sponsors two defined contribution plans which are available to substantially all United States employees. The Company matches a percentage of employee contributions up to a maximum level and contributes up to 2% of an employee’s wages regardless of employee contributions. The Company recognized expense of $57 million, $52 million and $48 million during the years ended December 31, 2022, 2021 and 2020, respectively, related to these plans.
POSTEMPLOYMENT AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The Company maintains health care and life insurance benefit plans for certain retired employees and their dependents. The health care plans in the United States are non-funded and pay either (1) stated percentages of covered medically necessary expenses, after subtracting payments by Medicare or other providers and after stated deductibles have been met, or (2) fixed amounts of medical expense reimbursement.
Salaried employees hired on or before December 31, 2005 become eligible to participate in the United States health care plans upon retirement if they have accumulated 10 years of service after age 45, 48 or 50, depending on the category of employee. For employees hired after December 31, 2005, the Company does not provide subsidized retiree health care. Some of the plans are contributory, with some retiree contributions adjusted annually. The Company has reserved the right to change or eliminate these benefit plans subject to the terms of collective bargaining agreements.
The following table provides a reconciliation of the change in the projected benefit obligation and the net amount recognized in the Consolidated Balance Sheets for the years ended December 31, 2022 and 2021 (in millions):
 December 31, 2022December 31, 2021
 U.S.Non-U.S.TotalU.S.Non-U.S.Total
Change in Projected Benefit Obligation
Benefit obligation at beginning of period
$151 $13 $164 $163 $14 $177 
Service cost1 — 1 1 — 1 
Interest cost4 — 4 3 1 4 
Actuarial gain(30)(2)(32)(4)(1)(5)
Currency gain(1)(1)— — — 
Benefits paid(11)— (11)(12)(1)(13)
Benefit obligation at end of period$115 $10 $125 $151 $13 $164 
Funded status$(115)$(10)$(125)$(151)$(13)$(164)

The following table presents the amount recorded and respective location in the Consolidated Balance sheet (in millions):
December 31, 2022December 31, 2021
U.S.Non-U.S.TotalU.S.Non-U.S.Total
Location
Accrued benefit obligation – currentOther current liabilities$(11)$(1)$(12)$(13)$(1)$(14)
Accrued benefit obligation – non-currentOther Employee Benefits Liability(104)(9)(113)(138)(12)(150)
Net amount recorded$(115)$(10)$(125)$(151)$(13)$(164)
Amounts Recorded in AOCI
Net actuarial gain$60 $5 $65 $37 $3 $40 
Net prior service credit— — — 1 — 1 
Total amount recorded$60 $5 $65 $38 $3 $41 
Weighted-Average Assumptions Used to Determine Benefit Obligations

The following table presents weighted average assumptions used to determine benefit obligations at the measurement dates:
 December 31,
 20222021
United States plans
Discount rate5.10 %2.70 %
Rate of compensation increaseN/AN/A
Non-United States plans
Discount rate5.93 %3.63 %
Rate of compensation increase3.00 %3.00 %

 
Components of Net Periodic Postretirement Benefit Income
The following table presents the components of net periodic postretirement benefit income (in millions):
        
 Twelve Months Ended December 31,
 202220212020
United States plans
Service cost$1 $1 $1 
Interest cost4 4 6 
Amortization of prior service credit— (1)(4)
Amortization of actuarial gain(7)(8)(8)
Net periodic postretirement benefit income$(2)$(4)$(5)

There was no significant net periodic postretirement income attributable to non-U.S. plans.

Weighted-Average Assumptions Used to Determine Net Periodic Postretirement Benefit Income
The following table presents the discount rates used to determine net periodic postretirement benefit income:
 Twelve Months Ended December 31,
 202220212020
United States plans2.70 %2.25 %3.10 %
Non-United States plans3.63 %3.04 %3.84 %
The following table presents health care cost trend rates used to determine net periodic postretirement benefit income, as well as information regarding the ultimate rate and the year in which the ultimate rate is reached:
 Twelve Months Ended December 31,
 202220212020
United States plans:
Initial rate at end of year8.86 %8.10 %8.20 %
Ultimate rate4.50 %4.50 %4.50 %
Year in which ultimate rate is reached203120292029
Non-United States plans:
Initial rate at end of year4.65 %4.25 %4.10 %
Ultimate rate4.13 %3.87 %3.90 %
Year in which ultimate rate is reached204020402040

Estimated Future Benefit Payments
The following table shows estimated future benefit payments from the Company’s postretirement benefit plans (in millions):
Year
Estimated
Benefit
Payments
2023$13 
2024$12 
2025$12 
2026$12 
2027$11 
2028-2032$49 
Postemployment Benefits
The Company may also provide benefits to former or inactive employees after employment but before retirement under certain conditions. These benefits include continuation of benefits such as health care and life insurance coverage. The accrued postemployment benefits liability at December 31, 2022 and 2021 was $5 million and $8 million, respectively. The net periodic postemployment benefit expense/(income) for the years ended December 31, 2022, 2021, and 2020 were less than $1 million, less than $(1) million, and $(1) million, respectively.