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Pension and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
Pensions. The Company sponsors various pension plans covering certain U.S. and non-U.S. employees, and participates in certain multi-employer pension plans. The benefits under the Company plans are based primarily on years of service and either the employees’ remuneration near retirement or a fixed dollar multiple.
 
A measurement date of December 31 was used for all plans presented below.

The components of pension expense were as follows:
U.S. Plans202320222021
Service cost$13 $19 $20 
Interest cost54 31 25 
Expected return on plan assets(60)(75)(63)
Curtailments and special termination benefits— 1 9 
Amortization of actuarial loss43 44 58 
Amortization of prior service cost1 1 1 
Net periodic cost$51 $21 $50 

Non-U.S. Plans202320222021
Service cost$7 $9 $13 
Interest cost19 13 32 
Expected return on plan assets(22)(22)(72)
Settlements— — 1,511 
Special termination benefits6 — — 
Amortization of actuarial loss3 5 33 
Amortization of prior service credit— (1)— 
Net periodic cost$13 $4 $1,517 

The settlement charge in 2021 arose from the irrevocable transfer of the Company's U.K. defined benefit pension plan (the "Plan") to an insurer. In 2021, the Company made a cash contribution of £196 to enable the Plan to purchase a bulk annuity insurance contract for the benefit of the Plan participants. The Company has been repaid £103 ($131 using December 31, 2023 exchange rate) of the contribution and expects to receive another £24 in future years.

Additional pension expense of $6 in 2023 and $5 for 2022 and 2021 was recognized for multi-employer plans.

The projected benefit obligations, accumulated benefit obligations, plan assets and funded status of the Company's U.S. and non-U.S. plans were as follows:
 U.S. PlansNon-U.S. Plans
 2023202220232022
Projected Benefit Obligations
Benefit obligations at January 1$1,094 $1,413 $387 $513 
Service cost13 19 7 9 
Interest cost54 31 19 13 
Plan participants' contributions— — 2 2 
Amendments1 1 (2)— 
Settlements— (9)(8)(9)
Curtailments— (2)— — 
Special termination benefits— — 6 — 
Actuarial (gain)/loss36 (266)18 (95)
Benefits paid(89)(93)(38)(30)
Foreign currency translation— — 24 (16)
Benefit obligations at December 31$1,109 $1,094 $415 $387 
Plan Assets
Fair value of plan assets at January 1$886 $1,177 $381 $529 
Actual return on plan assets - gain/(loss)81 (199)33 (22)
Employer contributions2 10 17 (63)
Plan participants' contributions— — 2 2 
Settlements— (9)(7)(7)
Benefits paid(89)(93)(38)(31)
Foreign currency translation— — 24 (27)
Fair value of plan assets at December 31$880 $886 $412 $381 
Funded status$(229)$(208)$(3)$(6)
Accumulated benefit obligations at December 31$1,065 $1,055 $389 $361 

During 2023, actuarial losses for the Company’s U.S. and non-U.S. pension plans totaled $22. Actuarial gains and losses arise each year primarily due to changes in discount rates, differences in actual plan asset returns compared to expected returns, and changes in actuarial assumptions such as mortality. The loss in 2023 was primarily due to lower discount rates at the end of 2023, partially offset by actual asset returns higher than expected.

U.S. pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets were as follows: 
20232022
Projected benefit obligations$1,109 $1,094 
Accumulated benefit obligations1,065 1,055 
Fair value of plan assets880 886 

Non-U.S. pension plans with accumulated benefit obligations in excess of plan assets were as follows: 
20232022
Projected benefit obligations$213 $224 
Accumulated benefit obligations195 204 
Fair value of plan assets117 134 

Non-U.S. pension plans with projected benefit obligations in excess of plan assets were as follows: 
20232022
Projected benefit obligations$213 $224 
Accumulated benefit obligations195 204 
Fair value of plan assets117 135 
The Company’s investment strategy in its U.S. plan is designed to generate returns that are consistent with providing benefits to plan participants within the risk tolerance of the plan. Asset allocation is the primary determinant of return levels and investment risk exposure.

The strategic ranges for asset allocation in the U.S. plans are as follows: 
U.S. equities45 %to55 %
International equities7.5 %to12.5 %
Fixed income15 %to25 %
Balanced funds7.5 %to12.5 %
Real estate7.5 %to12.5 %

Pension assets are classified into three levels. Level 1 asset values are derived from quoted prices which are available in active markets as of the report date. Level 2 asset values are derived from other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the report date. Level 3 asset values are derived from unobservable pricing inputs that are not corroborated by market data or other objective sources.

Level 1 Investments

Equity securities are valued at the latest quoted prices taken from the primary exchange on which the security trades. Mutual funds are valued at the net asset value ("NAV") of shares held at year-end.

Level 2 Investments

Fixed income securities, including government issued debt, corporate debt, asset-backed and structured debt securities are valued using the latest bid prices or valuations based on a matrix system (which considers such factors as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and other reference data including market research publications). Derivatives, which consist mainly of interest rate swaps, are valued using a discounted cash flow pricing model based on observable market data.

Level 3 Investments

Hedge funds and private equity funds are valued at the NAV at year-end. The values assigned to private equity funds are based upon assessments of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information, including comparable transactions, and performance multiples among other factors. Real estate investments are based on third party appraisals.

Investments Measured Using NAV per Share Practical Expedient

Investments measured using NAV per share as a practical expedient include investment funds that invest in global equity, emerging markets and fixed income. The global equity funds invest in equity securities of various market sectors including industrial materials, consumer discretionary goods and services, financial infrastructure, technology, and health care. The emerging markets funds invest in equity markets within financial services, consumer goods and services, energy, and technology.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair value. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurements at the reporting date.

The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and their placement within the fair value hierarchy. The levels assigned to the defined benefit plan assets as of December 31, 2023 and 2022 are summarized in the tables below:
 2023
 U.S. plan
assets		Non-U.S. plan
assets		Total
Level 1
Cash and cash equivalents$15 $23 $38 
Global large cap equity— 3 3 
U.S. large cap equity173 4 177 
U.S. mid/small cap equity276 21 297 
Mutual funds – global equity59 — 59 
Mutual funds – U.S. equity49 — 49 
Mutual funds – fixed income18 — 18 
590 51 641 
Level 2
Government issued debt securities— 18 18 
Corporate debt securities41 8 49 
Insurance contracts— 110 110 
Investment funds – fixed income— 1 1 
41 137 178 
Level 3
Investment funds – real estate127 60 187 
Private equity3 — 3 
Real estate – direct27 17 44 
157 77 234 
Total assets in fair value hierarchy788 265 1,053 
Investments measured at NAV Practical Expedient (a)
Investment funds - fixed income86 22 108 
Investment funds - global equity— 118 118 
Investment funds - emerging markets5 — 5 
Investment funds - real estate— 7 7 
 91 147 238 
Total investments at fair value$879 $412 $1,291 
 2022
 U.S. plan
assets		Non-U.S. plan
assets		Total
Level 1
Cash and cash equivalents$35 $19 $54 
Global large cap equity— 11 11 
U.S. large cap equity152 2 154 
U.S. mid/small cap equity246 19 265 
Mutual funds – global equity64 — 64 
Mutual funds – U.S. equity52 — 52 
Mutual funds – fixed income54 — 54 
603 51 654 
Level 2
Government issued debt securities— 18 18 
Corporate debt securities42 2 44 
Insurance contracts— 94 94 
Investment funds – fixed income— 1 1 
42 115 157 
Level 3
Investment funds – real estate135 68 203 
Private equity4 1 5 
Real estate – direct28 16 44 
167 85 252 
Total assets in fair value hierarchy812 251 1,063 
Investments measured at NAV Practical Expedient (a)
Investment funds - fixed income68 19 87 
Investment funds - global equity— 108 108 
Investment funds - emerging markets5 — 5 
Investments funds - real estate— 3 3 
73 130 203 
Total investments at fair value$885 $381 $1,266 

(a) Certain investments that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy.

Accrued income excluded from the tables above was as follows:
20232022
U.S. plan assets$1 $1 

Plan assets include $297 and $265 of the Company’s common stock at December 31, 2023 and 2022.
The following tables reconcile the beginning and ending balances of plan assets measured using significant unobservable inputs (Level 3).
Private
equity		Real
estate		Total
Balance at January 1, 2022$7 $211 $218 
Foreign currency translation— (9)(9)
Asset returns – assets held at reporting date(2)(9)(11)
Asset returns – assets sold during the period1 9 10 
Purchases, sales and settlements, net(1)45 44 
Balance at December 31, 20225 247 252 
Foreign currency translation— 2 2 
Asset returns – assets held at reporting date18 (24)(6)
Asset returns – assets sold during the period(18)11 (7)
Purchases, sales and settlements, net(2)(5)(7)
Balance at December 31, 2023$3 $231 $234 

The following table presents additional information about the pension plan assets valued using NAV as a practical expedient:
Fair ValueRedemption FrequencyRedemption Notice Period
Balance at December 31, 2023
Investment funds – fixed income$108 Semi-monthly
1- 5 days
Investment funds – global equity118 Daily 10 days
Investment funds – emerging markets5 Daily 30 days
Investment funds – real estate7 Daily1 day
Balance at December 31, 2022
Investment funds – fixed income$87 Semi-monthly
1- 5 days
Investment funds – global equity108 Daily10 days
Investment funds – emerging markets5 Daily30 days
Investment funds – real estate3 Daily10 days

The pension plan assets valued using NAV as a practical expedient do not have any unfunded commitments.

Pension assets and liabilities included in the Consolidated Balance Sheets were:
20232022
Non-current assets$94 $88 
Current liabilities12 8 
Non-current liabilities314 294 

The Company’s current liability at December 31, 2023, represents the expected required payments to be made for unfunded plans over the next twelve months. Total estimated 2024 employer contributions are $43 for the Company’s pension plans.

Changes in the net loss and prior service cost (credit) for the Company’s pension plans were: 
 202320222021
 Net lossPrior
service		Net lossPrior
service		Net lossPrior
service
Balance at January 1$712 $— $814 $2 $1,802 $8 
Reclassification to net periodic benefit cost(46)(1)(49)(1)(1,629)(4)
Current year loss / (gain)22 — (45)(1)640 (2)
Amendments(1)— — — (1)— 
Foreign currency translation(1)— (8)— 2 — 
Balance at December 31$686 $(1)$712 $— $814 $2 
Expected future benefit payments as of December 31, 2023 are:

 
U.S.
plans		Non-U.S.
plans
2024$91 $32 
2025105 32 
202684 32 
2027105 31 
202880 32 
2029 - 2033376 162 

The weighted average actuarial assumptions used to calculate the benefit obligations at December 31 were:
U.S. Plans202320222021
Discount rate5.0 %5.2 %2.9 %
Compensation increase5.0 %5.0 %4.7 %
Non-U.S. Plans202320222021
Discount rate4.8 %4.9 %2.5 %
Compensation increase2.9 %2.7 %2.5 %

The weighted average actuarial assumptions used to calculate pension expense for each year were:
U.S. Plans202320222021
Discount rate - service cost5.4 %3.3 %3.1 %
Discount rate - interest cost5.1 %2.2 %1.7 %
Compensation increase5.0 %4.7 %4.7 %
Long-term rate of return7.2 %6.6 %5.7 %
 
Non-U.S. Plans202320222021
Discount rate - service cost5.0 %2.9 %2.2 %
Discount rate - interest cost5.1 %2.6 %1.8 %
Compensation increase2.9 %2.7 %2.5 %
Long-term rate of return5.1 %4.3 %3.3 %

The expected long-term rate of return on plan assets is determined by taking into consideration expected long-term returns associated with each major asset class based on long-term historical ranges, inflation assumptions and the expected net value from active management of the assets based on actual results.

Other Postretirement Benefit Plans. The Company sponsors unfunded plans to provide health care and life insurance benefits to certain retirees and survivors. Generally, the medical plans pay a stated percentage of medical expenses reduced by deductibles and other coverages. Life insurance benefits are generally provided by insurance contracts. The Company reserves the right, subject to existing agreements, to change, modify or discontinue the plans. A measurement date of December 31 was used for the plans presented below.

The components of net postretirement benefits cost were as follows:
Other Postretirement Benefits202320222021
Service cost$— $1 $1 
Interest cost6 4 4 
Amortization of prior service credit— (20)(26)
Amortization of actuarial loss— 2 4 
Net periodic benefit cost/(credit)$6 $(13)$(17)
Changes in the benefit obligations were:
20232022
Benefit obligations at January 1$108 $137 
Service cost— 1 
Interest cost6 4 
Actuarial (gain) /loss — (22)
Benefits paid(11)(11)
Foreign currency translation4 (1)
Benefit obligations at December 31$107 $108 

Changes in the net (gain)/ loss and prior service credit for the Company’s postretirement benefit plans were:
 202320222021
 Net (gain) /
loss		Prior
service		Net
loss		Prior
service		Net
loss		Prior
service
Balance at January 1$(2)$— $21 $(20)$45 $(46)
Reclassification to net periodic benefit cost— — (2)20 (4)26 
Current year (gain) / loss— — (22)— (20)— 
Foreign currency translation(1)— 1 — — — 
Balance at December 31$(3)$— $(2)$— $21 $(20)


Expected future benefit payments are as follows:
 Benefit Payments
2024$13 
202510 
202610 
202710 
20289 
2029 - 203341 

The assumed health care cost trend rates at December 31, 2023 were as follows: 
Health care cost trend rate assumed for 20234.7 %
Rate that the cost trend rate gradually declines to3.8 %
Year that the rate reaches the rate it is assumed to remain2032

Weighted average discount rates used to calculate the benefit obligations at the end of each year and the cost for each year are presented below:

 
202320222021
Benefit obligations5.0 %5.8 %3.4 %
Service cost5.3 %7.8 %5.9 %
Interest cost4.9 %5.7 %3.6 %
Defined Contribution Benefit Plans. The Company also sponsors defined contribution benefit plans in certain jurisdictions including the U.S. and the U.K. The Company recognized expense of $14, $13, and $12 in 2023, 2022 and 2021 related to these plans.