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RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
RETIREMENT BENEFIT PLANS RETIREMENT BENEFIT PLANS
The Company sponsors various defined contribution savings plans, primarily in the U.S., that allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with plan specified guidelines. Under specified conditions, the Company will make contributions to the plans and/or match a percentage of the employee contributions up to certain limits. Total expense related to the defined contribution plans was $45 million, $59 million and $58 million in the years ended December 31, 2023, 2022 and 2021, respectively.

The Company has a number of defined benefit pension plans and other postemployment benefit plans covering eligible salaried and hourly employees and their dependents. The defined pension benefits provided are primarily based on (i) years of service and (ii) average compensation or a monthly retirement benefit amount. The Company provides defined benefit pension plans in France, Germany, India, Italy, Japan, Mexico, South Korea, Sweden, Switzerland, Turkey, U.K. and the U.S. The other postemployment benefit plans, which provide medical benefits, are unfunded plans. The Company’s U.S. and U.K. defined benefit plans are frozen, and no additional service cost is being accrued. All pension and other postemployment benefit plans in the U.S. have been closed to new employees. The measurement date for all plans is December 31.
The PHINIA-related defined benefits pension assets, liabilities and benefits (costs) are included in the tables below for periods prior to the Spin-Off, as they are not reported as discontinued operations in accordance with ASC Topic 205-20, “Discontinued Operations”.
The following table summarizes the expenses for the Company’s defined contribution and defined benefit pension plans and the other postemployment benefit plans:
Year Ended December 31,
(in millions)202320222021
Defined contribution expense$45 $59 $58 
Defined benefit pension (income) expense26 (10)(19)
Other postemployment benefit income— (1)(1)
Total$71 $48 $38 
The following provides a roll forward of the plans’ benefit obligations, plan assets, funded status and recognition in the Consolidated Balance Sheets:
 Pension benefitsOther postemployment benefits
Year Ended December 31,
 20232022Year Ended December 31,
(in millions)U.S.Non-U.S.U.S.Non-U.S.20232022
Change in projected benefit obligation:      
Projected benefit obligation, January 1$136 $1,322 $183 $2,227 $37 $54 
Service cost— 11 — 20 — — 
Interest cost7 42 4 37 2 1 
Plan amendments— — — (11)— — 
Settlement and curtailment— 3 (6)(3)— — 
Actuarial loss (gain)2 25 (33)(685)— (13)
Currency translation— 57 — (200)— — 
Acquisition— — — 8 — — 
PHINIA spin-off— (938)— — (1)— 
Benefits paid(14)(44)(12)(71)(5)(5)
Projected benefit obligation, December 311
$131 $478 $136 $1,322 $33 $37 
Change in plan assets:      
Fair value of plan assets, January 1$129 $1,156 $177 $2,049   
Actual return on plan assets7 50 (33)(655)  
Employer contribution1 20 2 20   
Plan participants’ contribution— 1 — —   
Settlements— (3)(5)(4)
Currency translation— 53 — (189)  
Acquisition— — — 6 
PHINIA spin-off— (841)— — 
Benefits paid(14)(44)(12)(71)  
Fair value of plan assets, December 31$123 $392 $129 $1,156 
Funded status$(8)$(86)$(7)$(166)$(33)$(37)
Amounts in the Consolidated Balance Sheets consist of:      
Non-current assets$— $30 $— $26 $— $— 
Current liabilities(1)(5)(1)(6)(5)(6)
Non-current liabilities(7)(111)(6)(186)(28)(31)
Net amount$(8)$(86)$(7)$(166)$(33)$(37)
Amounts in accumulated other comprehensive loss consist of:      
Net actuarial loss$77 $112 $80 $104 $(3)$(3)
Net prior service (credit) cost(2)1 (3)(9)(8)(11)
Net amount$75 $113 $77 $95 $(11)$(14)
Total accumulated benefit obligation for all plans$131 $450 $136 $1,279   
_____________________________
1 The decrease in the projected benefit obligation was primarily due to discontinued operations and actuarial losses during the period. The main driver of these losses was the decrease of 0.70% in the weighted average discount rate for Non-U.S. plans.
The funded status of pension plans with accumulated benefit obligations in excess of plan assets is as follows:
December 31,
(in millions)20232022
Accumulated benefit obligation$(338)$(1,185)
Plan assets235 1,022 
Deficiency$(103)$(163)
Pension deficiency by country:  
United States$(8)$(6)
United Kingdom— (38)
Germany(39)(34)
Other(56)(85)
Total pension deficiency$(103)$(163)

The funded status of pension plans with projected benefit obligations in excess of plan assets is as follows:
December 31,
(in millions)20232022
Projected benefit obligation$(360)$(1,223)
Plan assets237 1,026 
Deficiency$(123)$(197)
Pension deficiency by country:
United States$(8)$(6)
United Kingdom— (38)
Germany(40)(35)
Other(75)(118)
Total pension deficiency$(123)$(197)

The weighted average asset allocations of the Company’s funded pension plans and target allocations by asset category are as follows:
December 31,Target Allocation
 20232022
U.S. Plans:   
Alternative credit, real estate, cash and other15 %18 %
10% - 20%
Fixed income securities71 %69 %
66% - 76%
Equity securities14 %13 %
10% - 20%
 100 %100 % 
Non-U.S. Plans:   
Insurance contract, real estate, cash and other36 %42 %
32% - 42%
Fixed income securities54 %46 %
49% - 59%
Equity securities10 %12 %
4% - 14%
 100 %100 % 

The Company’s investment strategy is to maintain actual asset weightings within a preset range of target allocations. The Company believes these ranges represent an appropriate risk profile for the planned benefit payments of the plans based on the timing of the estimated benefit payments. In each asset category, separate portfolios are maintained for additional diversification. Investment managers are retained in each asset category to manage each portfolio against its benchmark. Each investment
manager has appropriate investment guidelines. In addition, the entire portfolio is evaluated against a relevant peer group. The defined benefit pension plans did not hold any Company securities as investments as of December 31, 2023 and 2022. A portion of pension assets is invested in common and commingled trusts.

The Company expects to contribute a total of $20 million to $30 million into its defined benefit pension plans during 2024. Of the $20 million to $30 million in projected 2024 contributions, $6 million are contractually obligated, while any remaining payments would be discretionary.

Refer to Note 16, “Fair Value Measurements,” to the Consolidated Financial Statements for more detail surrounding the fair value of each major category of plan assets, as well as the inputs and valuation techniques used to develop the fair value measurements of the plans’ assets at December 31, 2023 and 2022.

See the table below for a breakout of net periodic benefit cost between U.S. and non-U.S. pension plans:
 Pension benefitsOther postemployment benefits
Year Ended December 31,
202320222021Year Ended December 31,
(in millions)U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.202320222021
Service cost$— $11 $— $20 $— $25 $— $— $— 
Interest cost7 42 4 37 3 30 2 1 1 
Expected return on plan assets(6)(37)(8)(75)(10)(83)— — — 
Settlements, curtailments and other— 4 3 — 2 (2)— — — 
Amortization of unrecognized prior service (credit) cost(1)— (1)— (1)— (2)(2)(3)
Amortization of unrecognized loss3 3 3 7 4 13 — — 1 
Net periodic cost (income) $3 $23 $1 $(11)$(2)$(17)$— $(1)$(1)

The components of net periodic benefit cost other than the service cost component are included in Other postretirement income in the Consolidated Statements of Operations.

The Company’s weighted average assumptions used to determine the benefit obligations for its defined benefit pension and other postemployment benefit plans were as follows:
December 31,
(percent)20232022
U.S. pension plans:  
Discount rate5.14 5.46 
Rate of compensation increaseN/AN/A
U.S. other postemployment benefit plans:
Discount rate5.10 5.41 
Rate of compensation increaseN/AN/A
Non-U.S. pension plans:
Discount rate1
4.23 4.94 
Rate of compensation increase3.32 3.76 
________________
1 Includes 4.61% and 4.94% for the U.K. pension plans for December 31, 2023 and 2022, respectively.
The Company’s weighted average assumptions used to determine the net periodic benefit cost/(income) for its defined benefit pension and other postemployment benefit plans were as follows:
Year Ended December 31,
(percent)202320222021
U.S. pension plans:  
Discount rate5.47 2.73 2.31 
Effective interest rate on benefit obligation5.34 2.18 1.62 
Expected long-term rate of return on assets5.00 4.75 5.75 
Average rate of increase in compensationN/AN/AN/A
U.S. other postemployment plans:  
Discount rate5.41 2.46 1.93 
Effective interest rate on benefit obligation5.29 1.84 1.21 
Expected long-term rate of return on assetsN/AN/AN/A
Average rate of increase in compensationN/AN/AN/A
Non-U.S. pension plans:  
Discount rate1
4.85 1.97 1.44 
Effective interest rate on benefit obligation4.88 1.83 1.24 
Expected long-term rate of return on assets2
4.90 4.10 4.10 
Average rate of increase in compensation3.58 3.21 3.23 
________________
1 Includes 4.94%, 1.91% and 1.39% for the U.K. pension plans for December 31, 2023, 2022 and 2021, respectively.
2 Includes 5.30%, 4.12% and 4.00% for the U.K. pension plans for December 31, 2023, 2022 and 2021, respectively.

The Company's approach to establishing the discount rate is based upon the market yields of high-quality corporate bonds, with appropriate consideration of each plan's defined benefit payment terms and duration of the liabilities. In determining the discount rate, the Company utilizes a full-yield approach in the estimation of service and interest components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.

The Company determines its expected return on plan asset assumptions by evaluating estimates of future market returns and the plans’ asset allocation. The Company also considers the impact of active management of the plans’ invested assets.

The estimated future benefit payments for the pension and other postemployment benefits are as follows:
 Pension benefitsOther postemployment benefits
(in millions)  
YearU.S.Non-U.S.
2024$15 $24 $5 
202513 28 5 
202612 27 4 
202712 27 4 
202811 29 3 
2029-203348 164 12 
The weighted average rate of increase in the per capita cost of covered health care benefits is projected to range from 6.25% in 2024 down to an ultimate trend rate of 4.75%.