Pension plan liabilities

  
As part of our continued effort to reduce pension plan obligations, we transferred approximately $2.4 billion of U.S. qualified pension plan liabilities to an insurance company through the purchase of a group annuity contract in October 2019. As a result of this transaction, we recognized a non-cash pretax pension settlement charge of $755 million in the fourth quarter of 2019.U.S. Defined Contribution PlanMost U.S. employees are eligible to participate in a qualified defined contribution plan. We recognized expense of $59 million in 2021, $61 million in 2020 and $53 million in 2019 related to contributions to this plan.NOTE 13 

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| INCOME TAXES  |

Income Before Income Tax Expense (Benefit) by Category

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| years ended December 31 (in millions) | 2021 | 2020 | 2019 |
| United States | $ | (424) |  | $ | (329) |  | $ | (586) |  |
| International | 1,901  |  | 1,621  |  | 1,556  |  |
| Income before income taxes | $ | 1,477  |  | $ | 1,292  |  | $ | 970  |  |

Income Tax Expense (Benefit) 

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| years ended December 31 (in millions) | 2021 | 2020 | 2019 |
| Current |  |  |  |
| United States |  |  |  |
| Federal | $ | (11) |  | $ | 7  |  | $ | 8  |  |
| State and local | 10  |  | (7) |  | 3  |  |
| International | 329  |  | 270  |  | 258  |  |
| Current income tax expense | 328  |  | 270  |  | 269  |  |
| Deferred |  |  |  |
| United States |  |  |  |
| Federal | (103) |  | (99) |  | (140) |  |
| State and local | (8) |  | 5  |  | (29) |  |
| International | (35) |  | 6  |  | (141) |  |
| Deferred income tax expense (benefit) | (146) |  | (88) |  | (310) |  |
| Income tax expense (benefit) | $ | 182  |  | $ | 182  |  | $ | (41) |  |

93
