Corridor approach percentage

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Year Ended December 31, |
|  | 2021 |  | 2020 |  | 2019 |
| Interest cost | $ | 14  |  |  | $ | 22  |  |  | $ | 28  |  |
| Estimated return on plan assets | (19) |  |  | (25) |  |  | (31) |  |
| Amortization of loss | 6  |  |  | 5  |  |  | 3  |  |
| Aggregate pension expense | $ | 1  |  |  | $ | 2  |  |  | $ | —  |  |

We use a market-related value of plan assets when determining the estimated return on plan assets. Gains/losses on plan assets are amortized over a four-year period and accumulate in other comprehensive income. We recognize deferred gains and losses in future net income based on a “corridor” approach, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year.The following shows the projected payments for the pension plan based on actuarial assumptions (in millions):

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| 2022 | $ | 49  |  |
| 2023 | 50  |  |
| 2024 | 49  |  |
| 2025 | 50  |  |
| 2026 | 49  |  |
| Next 5 years | 238  |  |

Supplemental Executive Retirement PlanWe have a U.S. nonqualified supplemental executive retirement plan, or SERP, which provides supplemental retirement benefits for certain employees. The future benefit accrual of the SERP plan is frozen. To provide for the future payments of these benefits, we have purchased insurance on the lives of certain of the participants through company-owned policies. As of December 31, 2021 and 2020, the cash surrender value of such policies was $61 million and $60 million, respectively, and is included in other non-current assets in the accompanying consolidated balance sheets. We also acquired a SERP through both the ICE NGX and CHX acquisitions. The following table provides a summary of the changes in the SERP benefit obligations (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of December 31, |
|  | 2021 |  | 2020 |
| Change in benefit obligation: |  |  |  |
| Benefit obligation at beginning of year | $ | 38  |  |  | $ | 41  |  |
|  |  |  |  |
| Interest cost | 1  |  |  | 1  |  |
| Actuarial (gain) loss | (1) |  |  | 1  |  |
| Benefits paid | (5) |  |  | (5) |  |
| Benefit obligation at year end | $ | 33  |  |  | $ | 38  |  |
| Funded status | $ | (33) |  |  | $ | (38) |  |
| Amounts recognized in the accompanying consolidated balance sheets: |  |  |  |
| Other current liabilities | $ | (4) |  |  | $ | (5) |  |
| Accrued employee benefits | (29) |  |  | (33) |  |

SERP plan expense in the accompanying consolidated statements of income was $1 million each year in 2021, 2020 and 2019 and primarily consisted of interest cost. The following table shows the projected payments for the SERP plan based on the actuarial assumptions (in millions):

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Projected SERP Plan Payments |  |
| 2022 | $ | 4  |  |
| 2023 | 4  |  |
| 2024 | 3  |  |
| 2025 | 3  |  |
| 2026 | 3  |  |
| Next 5 years | 10  |  |

135
