Meritor Acquisition and 2022 Financial Results slide image

Meritor Acquisition and 2022 Financial Results

Table of Contents Components of Net Periodic Pension Cost (Income) The following table presents the net periodic pension cost (income) under our plans for the years ended December 31: In millions Service cost Interest cost Expected return on plan assets Amortization of prior service cost Recognized net actuarial loss Net periodic pension cost (income) Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2022 2021 2020 2022 2021 2020 $ 137 $ 139 $ 133 $ 30 $ 33 S 29 101 79 95 39 30 36 (229) (199) (195) (87) (85) (74) 1 1 1 1 2 2 23 47 41 3 31 34 $ 33 $ 67 $ 75 $ (14) $ 11 $ 27 Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows: In millions Amortization of prior service cost Recognized net actuarial loss Incurred prior service cost Incurred actuarial loss (gain) Foreign currency translation adjustments Total recognized in other comprehensive loss (income) Total recognized in net periodic pension cost and other comprehensive loss (income) 2022 2021 2020 $ (2) $ (3) $ (3) (26) (78) (75) 3 173 (368) 85 5 19 $ 148 $ (444) $ 26 167 $ (366) $ 128 Assumptions The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans Discount rate Cash balance crediting rate Compensation increase rate U.S. Plans U.K. Plans 2022 5.55 % 4.56 % 5.35 % 2021 3.01 % 3.79 % 2.71 % 2022 4.99 % 2021 1.95 % 3.75 % 3.75 % The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows: Qualified and Non-Qualified Pension Plans U.S. Plans U.K. Plans 2022 2021 2020 2022 2021 2020 Discount rate Expected return on plan assets Compensation increase rate 3.31 % 6.50% 2.71 % 2.62% 3.36% 2.26% 6.25% 6.25% 4.01 % 1.50% 4.00 % 2.00% 4.00 % 2.72% 2.73 % 3.75 % 3.75 % 3.75 % 97
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