Under certain conditions, the Company provides benefits to former or inactive employees, including salary continuance, severance, and long-term disability, in the United States and Canada. The Company’s postemployment benefit plans are unfunded. Actuarial assumptions used are generally consistent with those presented for pension and postretirement benefits in Note 10 "Pension and Postretirement Benefits".

Prior to the Spin-Off, Kellanova provided benefits to former or inactive employees and a reasonable allocation of costs was made to the Consolidated Financial Statements. As the postemployment benefits prior to the Spin-Off were settled by Kellanova, the offset to allocated expense was recognized through net parent investment on the Consolidated Balance Sheets. Pursuant to the Employee Matters Agreement, the Company assumed certain postemployment liabilities related to its employees following a division of the postemployment plan that were previously sponsored by Kellanova and created standalone plans that were sponsored by the Company and dedicated to our employees.


(millions)	2024		2023
Change in accumulated benefit obligation
Beginning of year	$	9	$	—
Spin-Off impacts	—		9
Service cost	1		—
Interest cost	—		—
Actuarial (gain)loss	2		—
Benefits paid	(1)		—


End of year	$	11	$	9

Amounts recognized in the Consolidated Balance Sheet consist of
Other current liabilities	$	1	$	1
Other liabilities	10		8
Net amount recognized	$	11	$	9
Amounts recognized in accumulated other comprehensive income consist of

Net experience gain	2		4
Net amount recognized	$	2	$	4

The components of postemployment benefit expense was immaterial for all periods presented. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE.

Benefit payments