Employee Benefit Plans

Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined pension and other postretirement benefit plans, and defined contribution plans.

In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires an employer to report the service cost component of net periodic pension benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period, with other cost components presented separately from the service cost component and outside of income from operations. This ASU also allows only the service cost component of net periodic pension benefit cost to be eligible for capitalization when applicable. This ASU was effective for years beginning after December 15, 2017. The Company adopted this standard on January 1, 2018 applying the presentation requirements retrospectively. We elected to apply the practical expedient, which allows us to reclassify amounts disclosed previously in the employee benefit plans note as the basis for applying retrospective presentation for comparative periods as it is impracticable to determine the disaggregation of the cost components for amounts capitalized and amortized in those periods. Provisions related to presentation of the service cost component eligibility for capitalization were applied prospectively.

The effect of the retrospective presentation change related to the net periodic benefit cost of our defined benefit pension and postretirement plans on our condensed consolidated statement of operations was as follows:



	Quarter Ended September 30, 2017
(dollars in millions)	Previously Reported		Effect of Change Higher/(Lower)			As Revised
Cost of product sold	$	7,750	$	50		$	7,800
Cost of services sold	3,293		13			3,306
Research and development	582		10			592
Selling, general and administrative	1,524		58			1,582
Non-service pension (benefit)	—		(131		)	(131		)



	Nine Months Ended September 30, 2017
(dollars in millions)	Previously Reported		Effect of Change Higher/(Lower)			As Revised
Cost of product sold	$	22,920	$	148		$	23,068
Cost of services sold	9,300		38			9,338
Research and development	1,768		29			1,797
Selling, general and administrative	4,544		165			4,709
Non-service pension (benefit)	—		(380		)	(380		)

Contributions to our plans were as follows:



	Quarter Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2018		2017		2018		2017
Defined benefit plans	$	13	$	1,929	$	72	$	2,008
Defined contribution plans	97		86		296		262

There were no contributions to our domestic defined benefit pension plans in the quarter and nine months ended September 30, 2018. There was a $1.9 billion contribution to our domestic defined benefit pension plans in the quarter and nine months ended September 30, 2017. The following table illustrates the components of net periodic benefit cost for our defined pension and other postretirement benefit plans:



	Pension Benefits Quarter Ended September 30,						Other Postretirement Benefits Quarter Ended September 30,
(dollars in millions)	2018			2017			2018			2017
Service cost	$	94		$	94		$	—		$	—
Interest cost	274			281			7			9
Expected return on plan assets	(558		)	(555		)	—			—
Amortization of prior service credit	(11		)	(9		)	—			(1		)
Recognized actuarial net loss (gain)	100			144			(3		)	(2		)
Net settlement and curtailment loss	3			2			—			—
Total net periodic benefit (income) cost	$	(98	)	$	(43	)	$	4		$	6



	Pension Benefits Nine Months Ended September 30,						Other Postretirement Benefits Nine Months Ended September 30,
(dollars in millions)	2018			2017			2018			2017
Service cost	$	280		$	280		$	1		$	2
Interest cost	831			838			19			22
Expected return on plan assets	(1,683		)	(1,636		)	—			—
Amortization of prior service credit	(31		)	(27		)	(2		)	(1		)
Recognized actuarial net loss (gain)	302			430			(7		)	(7		)
Net settlement and curtailment loss	—			1			—			—
Total net periodic benefit (income) cost	$	(301	)	$	(114	)	$	11		$	16