NOTE J - EMPLOYEE BENEFIT PLANS

For the nine months ended June 30, 2018, Ashland contributed $7 million to its non-U.S. pension plans and $1 million to its U.S. pension plans. Ashland expects to make additional contributions of approximately $1 million to its non-U.S. plans during the remainder of 2018.

Plan Remeasurements

Effective January 1, 2017, Ashland discontinued certain post-employment health and life insurance benefits. The effect of these plan changes resulted in a remeasurement gain of $2 million recorded within the other net periodic benefit income caption on the Statement of Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2017.

Components of net periodic benefit costs (income)

The following table details the components of pension and other postretirement benefit costs for continuing operations.

	Pension benefits						Other postretirement benefits
(In millions)	2018			2017			2018		2017
Three months ended June 30
Service cost (a)	$	2		$	2		$	1	$	—
Interest cost (b)		3			2			—		—
Expected return on plan assets (b)		(3	)		(2	)		—		—
Total net periodic benefit costs	$	2		$	2		$	1	$	—
Nine months ended June 30
Service cost (a)	$	6		$	6		$	1	$	—
Interest cost (b)		7			6			1		1
Expected return on plan assets (b)		(9	)		(8	)		—		—
Actuarial gain (b)		—			—			—		(2	)
Total net periodic benefit costs (income)	$	4		$	4		$	2	$	(1	)

(a)

Service cost was not impacted by new accounting guidance adopted in 2018 and is therefore still classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). See Note A for additional information.

(b)

These components are now classified within the other net periodic benefit income caption on the Statements of Consolidated Comprehensive Income (Loss) due to the adoption of new accounting guidance in the current quarter. See Note A for additional information.

For segment reporting purposes, service cost for continuing operations is proportionately allocated to each segment, excluding the Unallocated and other segment, while all other costs for continuing operations are recorded within the other net periodic benefit income caption on the Statements of Consolidated Comprehensive Income (Loss).