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Post-employment benefits for associates (Tables)

12 Months Ended

Dec. 31, 2023

Employee Benefits [Abstract]

Summary of funded and unfunded defined benefit obligations and reconciliation of net liability

The following tables summarize the funded and unfunded DBO for pension and other post-employment benefit plans of Alcon associates at December 31, 2023 and 2022:

			Pension plans												Other post-employment benefit plans
($ millions)			2023						2022						2023						2022
Benefit obligation at January 1			563						791						221						300
Current service cost			16						20						5						8
Interest cost			20						12						11						8
Past service costs and settlements			(1)						(3)						—						—
Administrative expenses			2						2						—						—
Remeasurement losses/(gains) arising from changes in financial assumptions			46						(185)						6						(62)
Remeasurement (gains) arising from changes in demographic assumptions			(2)						(15)						—						—
Remeasurement losses/(gains) arising from experience-related changes			16						3						(16)						(19)
Currency translation effects			22						(31)						—						—
Benefit payments			(49)						(36)						(18)						(18)
Contributions of associates			5						5						4						4
Benefit obligation at December 31			638						563						213						221
Fair value of plan assets at January 1			417						541						—						—
Interest income			14						8						—						—
Return on plan assets excluding interest income			15						(93)						—						—
Currency translation effects			16						(27)						—						—
Employer contributions			31						19						14						14
Contributions of associates			5						5						4						4
Settlements			(1)						—						—						—
Benefit payments			(49)						(36)						(18)						(18)
Fair value of plan assets at December 31			448						417						—						—
Funded status			(190)						(146)						(213)						(221)
Limitation on recognition of fund surplus at January 1			(21)						(20)
Change in limitation on recognition of fund surplus (including exchange rate differences)			(4)						(1)
Limitation on recognition of fund surplus at December 31			(25)						(21)
Net liability in the balance sheet at December 31			(215)						(167)						(213)						(221)

The reconciliation of the net liability from January 1 to December 31 is as follows:

			Pension plans												Other post-employment benefit plans
($ millions)			2023						2022						2023						2022
Net liability at January 1			(167)						(270)						(221)						(300)
Current service cost			(16)						(20)						(5)						(8)
Net interest expense			(6)						(4)						(11)						(8)
Administrative expenses			(2)						(2)						—						—
Past service costs and settlements			—						3						—						—
Remeasurements			(45)						104						10						81
Currency translation effects			(6)						4						—						—
Employer contributions			31						19						14						14
Change in limitation on recognition of fund surplus			(4)						(1)						—						—
Net liability at December 31			(215)						(167)						(213)						(221)
Amounts recognized in the balance sheet
Prepaid benefit cost			6						8						—						—
Accrued benefit liability			(221)						(175)						(213)						(221)

Breakdown of DBO for pension plans by geography and type of member

The following tables provide detail of the DBO for pension plans by geography and type of member and of plan assets based on the geographical locations in which they are held:

			2023
($ millions)			Switzerland						United States						Germany						United Kingdom						Rest of the world						Total
By type of member
Active			(241)						(31)						(47)						—						(80)						(399)
Deferred pensioners			(8)						(31)						(19)						(31)						(15)						(104)
Pensioners			(33)						(37)						(27)						(31)						(7)						(135)
Benefit obligation at December 31			(282)						(99)						(93)						(62)						(102)						(638)
Thereof: unfunded plans			49						22						—						—						17						88
Thereof: unfunded portion of funded plans			42						3						74						—						14						133
Prepaid benefit costs and assets subject to limitation on recognition of fund surplus			—						—						—						(5)						(26)						(31)
Fair value of plan assets at December 31			191						74						19						67						97						448
Funded status			(91)						(25)						(74)						5						(5)						(190)

			2022
($ millions)			Switzerland						United States						Germany						United Kingdom						Rest of the world						Total
By type of member
Active			(207)						(32)						(38)						—						(79)						(356)
Deferred pensioners			(6)						(28)						(18)						(33)						(9)						(94)
Pensioners			(23)						(35)						(21)						(25)						(9)						(113)
Benefit obligation at December 31			(236)						(95)						(77)						(58)						(97)						(563)
Thereof: unfunded plans			35						24						—						—						19						78
Thereof: unfunded portion of funded plans			26						7						60						—						4						97
Prepaid benefit costs and assets subject to limitation on recognition of fund surplus			—						—						—						(6)						(23)						(29)
Fair value of plan assets at December 31			175						64						17						64						97						417
Funded status			(61)						(31)						(60)						6						—						(146)

Defined benefit plans assumptions

The following table shows the principal weighted average actuarial assumptions used for calculating defined benefit plans and other post-employment benefits of Alcon associates:

			Pension plans												Other post-employment benefit plans
			2023						2022						2023						2022
Discount rate			3.0		%				3.6		%				5.0		%				5.3		%
Expected rate of pension increase			1.1		%				1.1		%
Expected rate of salary increase			2.7		%				2.5		%
Interest on savings account			2.2		%				2.9		%
Current average life expectancy for a 65-year-old male (in years)			20						20						21						21
Current average life expectancy for a 65-year-old female (in years)			22						22						23						23

The following table shows additional details related to the weighted average discount rates for the principal plan for each significant country:

			Pension plans												Other post-employment benefit plans
			2023						2022						2023						2022
Switzerland			1.9		%				2.2		%
United States			5.0		%				5.3		%				5.0		%				5.3		%
Germany			3.1		%				3.7		%
United Kingdom			4.5		%				4.8		%

The healthcare cost trend rate assumptions used for other post-employment benefits are as follows:

			2023						2022						2021
Healthcare cost trend rate assumed for next year			6.0		%				6.3		%				6.2		%
Rate to which the cost trend rate is assumed to decline			4.5		%				4.5		%				4.5		%
Year that the rate reaches the ultimate trend rate			2030						2030						2029

Disclosure of sensitivity analysis for actuarial assumptions

The following table shows the sensitivity of the defined benefit pension and other post-employment benefit obligations to the principal actuarial assumptions as of December 31, 2023:

($ millions)			(Decrease)/increase in 2023 year-end liability
25 basis point increase in discount rate			(26)
25 basis point decrease in discount rate			27
1 year increase in life expectancy			17
25 basis point increase in rate of pension increase			7
25 basis point decrease in rate of pension increase(1)			(4)
25 basis point increase of interest on savings account			3
25 basis point decrease of interest on savings account			(3)
25 basis point increase in rate of salary increase			3
25 basis point decrease in rate of salary increase			(3)

(1)Decrease in rate of pension increase is limited to zero.

Fair value of plan assets and asset allocation

The following table shows the weighted average plan asset allocation of funded defined benefit pension plans at December 31, 2023, and 2022:

			Pension plans
(as a percentage)			Long-term target minimum						Long-term target maximum						2023						2022
Equity securities			15						40						33						37
Debt securities			20						60						41						34
Real estate			5						20						11						14
Alternative investments			—						20						13						12
Cash and other investments			—						15						2						3
Total															100						100

Schedule of expected future cash flows for benefit plans

The following table summarizes expected employer contributions for one year and expected future benefit payments for ten years for pension and other post-employment benefit plans as of December 31, 2023:

($ millions)			Pension plans						Other post-employment benefit plans
Employer contributions
2024 (estimated)			11						—
Expected future benefit payments
2024			48						16
2025			33						17
2026			35						18
2027			35						19
2028			35						19
2029-2033			199						91

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The disclosure of an analysis of the present value of a defined benefit obligation that distinguishes the nature, characteristics and risks of the obligation. Such a disclosure could distinguish: (a) between amounts owing to active members, deferred members, and pensioners; (b) between vested benefits and accrued but not vested benefits; and (c) between conditional benefits, amounts attributable to future salary increases and other benefits. [Refer: Defined benefit obligation, at present value]

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The disclosure of information about the maturity profile of a defined benefit obligation. This will include the weighted average duration of the defined benefit obligation and may include other information about the distribution of the timing of benefit payments, such as a maturity analysis of the benefit payments. [Refer: Defined benefit obligation, at present value]

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The disclosure of a net defined benefit liability (asset). [Refer: Net defined benefit liability (asset)]

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The disclosure of a sensitivity analysis for significant actuarial assumptions used to determine the present value of a defined benefit obligation. [Refer: Actuarial assumptions [member]; Defined benefit obligation, at present value]

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