Meritor Acquisition and 2022 Financial Results
Table of Contents
In millions
Qualified and Non-Qualified Pension Plans
U.S. Plans
2022
2021
U.K. Plans
2022
2021
Change in benefit obligation
Benefit obligation at the beginning of the year
Service cost
3,012 $
137
3,122 $
139
1.887 $
2,050
30
33
Interest cost
101
79
39
30
Actuarial gain
(643)
(132)
(702)
(136)
Benefits paid from fund
(200)
(178)
(70)
(63)
Benefits paid directly by employer
(25)
(18)
Plan amendment
3
Assumption of Meritor's benefit obligation
786
418
Foreign currency translation adjustments
(204)
(27)
Benefit obligation at end of year
3,171 $
3,012
1.398
1,887
Change in plan assets
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contributions
Benefits paid from fund
Assumption of Meritor's plan assets
Foreign currency translation adjustments
3,548
(244)
25
$
3,429 $
2,390
2,337
267
(960)
118
30
3
30
(200)
(178)
(70)
(63)
699
565
(258)
(32)
Fair value of plan assets at end of year
$
3,828 $
3,548 $
1,670 $
2,390
Funded status (including unfunded plans) at end of year
$
657 $
536
$
272 $
503
Amounts recognized in consolidated balance sheets
Pension assets
$
1,126 $
985 $
272 S
503
Accrued compensation, benefits and retirement costs
(24)
(18)
Other liabilities
(445)
(431)
Net amount recognized
$
657
$
536
$
272
S
503
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss
Prior service cost
Net amount recognized
$
273
$
8
467 $
6
402 $
61
10
11
$
281
S
473 $
412
$
72
In addition to the pension plans in the above table, we also maintain less significant defined benefit pension plans in 4 other countries outside of the U.S. and the U.K. that
comprise approximately 4 percent and 5 percent of our pension plan assets and obligations, respectively, at December 31, 2022. These plans are reflected in other liabilities on
our Consolidated Balance Sheets. In 2022 and 2021, we made $12 million and $13 million of contributions to these plans, respectively.
The following table summarizes the total accumulated benefit obligation (ABO), the ABO for defined benefit pension plans with ABO in excess of plan assets and the PBO for
defined benefit pension plans with PBO in excess of plan assets:
Qualified and Non-Qualified Pension Plans
U.S. Plans
U.K. Plans
In millions
Total ABO
2022
2021
2022
2021
$
3,138 $
2,986 $
1,376 $
1,844
Plans with ABO in excess of plan assets
ABO
1,044
424
Plans with PBO in excess of plan assets
PBO
1,078
449
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