Pension and Other Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefit Plans

The Company has defined benefit pension plans covering eligible employees in the United States and in certain of its international subsidiaries. The net periodic benefit cost (credit) of such plans consisted of the following components:



	Three Months Ended March 31,
	2017						2016
($ in millions)	U.S.			International			U.S.			International
Service cost	$	77		$	61		$	73		$	58
Interest cost	113			41			113			52
Expected return on plan assets	(218		)	(94		)	(210		)	(95		)
Amortization of unrecognized prior service credit	(13		)	(2		)	(14		)	(3		)
Net loss amortization	44			23			29			22
Termination benefits	5			1			4			—
Curtailments	3			—			—			1
	$	11		$	30		$	(5	)	$	35

The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net cost (credit) of such plans consisted of the following components:



	Three Months Ended March 31,
($ in millions)	2017			2016
Service cost	$	14		$	13
Interest cost	20			21
Expected return on plan assets	(19		)	(35		)
Amortization of unrecognized prior service credit	(25		)	(26		)
Termination benefits	1			1
Curtailments	(3		)	(1		)
	$	(12	)	$	(27	)

In connection with restructuring actions (see Note 3), termination charges were recorded on pension and other postretirement benefit plans related to expanded eligibility for certain employees exiting Merck. Also, in connection with these restructuring actions, curtailments were recorded on pension and other postretirement benefit plans as reflected in the tables above.