Note 9. Benefit Plans

Pension Plans

Components of Net Periodic Pension Cost:

Net periodic pension cost consisted of the following:


	U.S. Plans						Non-U.S. Plans
	For the Three Months Ended September 30,						For the Three Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Service cost	$	12		$	15		$	40		$	37
Interest cost		16			15			51			57
Expected return on plan assets		(25	)		(24	)		(110	)		(105	)
Amortization:
Net loss from experience differences		10			12			43			31
Prior service credit		–			–			(1	)		–
Settlement losses and other expenses		6			9			–			–

Net periodic pension cost	$	19		$	27		$	23		$	20


	U.S. Plans						Non-U.S. Plans
	For the Nine Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Service cost	$	34		$	42		$	117		$	114
Interest cost		47			46			148			179
Expected return on plan assets		(75	)		(72	)		(322	)		(326	)
Amortization:
Net loss from experience differences		27			30			124			93
Prior service cost/(credit)		1			1			(2	)		(2	)
Settlement losses/(gains) and other expenses		27			25			2			(1	)

Net periodic pension cost	$	61		$	72		$	67		$	57

Within settlement losses/(gains) and other expenses are losses of $1 million for the three months and $12 million for the nine months ended September 30, 2017 and $3 million for the three months and $12 million for the nine months ended September 30, 2016, that are related to our 2014-2018 Restructuring Program and are recorded within asset impairment and exit costs on our condensed consolidated statements of earnings.

Employer Contributions:

During the nine months ended September 30, 2017, we contributed $19 million to our U.S. pension plans and $408 million to our non-U.S. pension plans. The non-U.S. amount included a non-recurring $250 million contribution made in connection with a new funding agreement for a Company plan in the U.K. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability.

As of September 30, 2017, we plan to make further contributions of approximately $7 million to our U.S. plans and approximately $47 million to our non-U.S. plans during the remainder of 2017. Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates.

Postretirement Benefit Plans

Net periodic postretirement health care costs consisted of the following:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(in millions)
Service cost	$	1		$	3		$	5		$	9
Interest cost		4			6			11			16
Amortization:
Net loss from experience differences		4			2			11			5
Prior service credit ⁽¹⁾		(10	)		(11	)		(30	)		(14	)

Net periodic postretirement health care (credits)/costs	$	(1	)	$	–		$	(3	)	$	16

(1)

For the three and nine months ended September 30, 2017, amortization of prior service credit includes an $8 million and $24 million gain respectively, related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants.

Postemployment Benefit Plans

Net periodic postemployment costs consisted of the following:


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2017			2016		2017			2016
	(in millions)
Service cost	$	1		$	2	$	4		$	5
Interest cost		1			1		3			4
Amortization of net gains		(1	)		–		(3	)		–

Net periodic postemployment costs	$	1		$	3	$	4		$	9