Pension, Savings and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2019

PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

We provide employees with defined benefit pension or defined contribution savings plans.

Defined benefit pension cost follows:



	U.S.						U.S.
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2019			2018			2019			2018
Service cost	$	—		$	1		$	2		$	3
Interest cost	44			39			130			118
Expected return on plan assets	(56		)	(55		)	(167		)	(164		)
Amortization of net losses	28			28			84			84
Net periodic pension cost	$	16		$	13		$	49		$	41
Net curtailments/settlements/termination benefits	1			—			1			3
Total defined benefit pension cost	$	17		$	13		$	50		$	44



	Non-U.S.						Non-U.S.
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2019			2018			2019			2018
Service cost	$	6		$	7		$	20		$	21
Interest cost	17			17			52			52
Expected return on plan assets	(14		)	(17		)	(44		)	(53		)
Amortization of prior service cost	—			—			1			—
Amortization of net losses	8			7			22			22
Net periodic pension cost	$	17		$	14		$	51		$	42
Net curtailments/settlements/termination benefits	—			10			—			10
Total defined benefit pension cost	$	17		$	24		$	51		$	52

Service cost is recorded in CGS or SAG. Other components of net periodic pension cost are recorded in Other (Income) Expense. Net curtailments, settlements and termination benefits are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan.

During the third quarter of 2018, we recognized a settlement charge of $9 million in Other (Income) Expense for our frozen U.K. pension plan. This settlement charge was related primarily to an offer of lump sum payments over a limited time during 2018 to non-retiree participants of the plan. Lump sum payments of $74 million, primarily related to this offer, were made from existing plan assets for the nine months ended September 30, 2018. As a result, total lump sum payments related to this plan exceeded annual interest cost for 2018.

We expect to contribute approximately $25 million to $50 million to our funded non-U.S. pension plans in 2019. For the three and nine months ended September 30, 2019, we contributed $11 million and $28 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended September 30, 2019 and 2018 was $27 million for both periods, and for the nine months ended September 30, 2019 and 2018 was $83 million and $84 million, respectively.

We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Other postretirement benefits expense for the three months ended September 30, 2019 and 2018 was $2 million for both periods, and for the nine months ended September 30, 2019 and 2018 was $5 million and $8 million, respectively.