Pension Plans, Postretirement and Other Employee Benefits

Net periodic pension costs and postretirement benefit costs consist of the following components:



	Three Months Ended June 30,
	Pension												Postretirement
	2016						2015						2016		2015
	US			Foreign			US			Foreign			US		US
	(Millions)
Service cost — benefits earned during the period	$	—		$	2		$	1		$	2		$	—	$	—
Interest cost	5			3			4			5			2		3
Expected return on plan assets	(6		)	(5		)	(6		)	(5		)	—		—
Net amortization:
Actuarial loss	2			2			2			1			1		1
Prior service cost (credit)	—			—			—			—			—		(1		)
Net pension and postretirement costs	$	1		$	2		$	1		$	3		$	3	$	3


	Six Months Ended June 30,
	Pension												Postretirement
	2016						2015						2016		2015
	US			Foreign			US			Foreign			US		US
	(Millions)
Service cost — benefits earned during the period	$	—		$	4		$	1		$	4		$	—	$	—
Interest cost	9			7			9			9			3		4
Expected return on plan assets	(12		)	(10		)	(12		)	(10		)	—		—
Net amortization:
Actuarial loss	4			4			4			3			2		2
Prior service cost (credit)	—			—			—			—			—		(2		)
Net pension and postretirement costs	$	1		$	5		$	2		$	6		$	5	$	4

For the six months ended June 30, 2016, we made pension contributions of $1 million and $7 million for our domestic and foreign pension plans, respectively. Based on current actuarial estimates, we believe we will be required to contribute approximately $36 million for the remainder of 2016, which includes estimated contributions for the pension buyout. Pension contributions beyond 2016 will be required, but those amounts will vary based upon many factors including, for example, the performance of our pension fund investments during 2016.

In February 2016, the Company launched a voluntary program to buy out active employees and retirees who have earned benefits in the U.S. pension plans and announced that the program is expected to be completed by the end of 2016. We will record a non-cash charge at that time. Cash payments to those who elect to take the buyout will be made from pension plan assets.

We made postretirement contributions of approximately $4 million during the first six months of 2016. Based on current actuarial estimates, we believe we will be required to contribute approximately $5 million for the remainder of 2016.

The assets of some of our pension plans are invested in trusts that permit commingling of the assets of more than one employee benefit plan for investment and administrative purposes. Each of the plans participating in the trust has interests in the net assets of the underlying investment pools of the trusts. The investments for all our pension plans are recorded at estimated fair value, in compliance with the accounting guidance on fair value measurement.

Amounts recognized for pension and postretirement benefits in other comprehensive income for the three and six months ended June 30, 2016 and 2015 include the following components:



	Three Months Ended June 30,
	2016							2015
	Before-Tax Amount		Tax Benefit			Net-of-Tax Amount		Before- Tax Amount			Tax Benefit			Net-of-Tax Amount
	(Millions)
Defined benefit pension and postretirement plans:
Amortization of prior service cost included in net periodic pension and postretirement cost	$	—	$	—		$	—	$	(1	)	$	—		$	(1	)
Amortization of actuarial loss included in net periodic pension and postretirement cost	5		(2		)	3		4			(1		)	3
Other comprehensive income – pension benefits	$	5	$	(2	)	$	3	$	3		$	(1	)	$	2



	Six Months Ended June 30,
	2016							2015
	Before-Tax Amount		Tax Benefit			Net-of-Tax Amount		Before- Tax Amount			Tax Benefit			Net-of-Tax Amount
	(Millions)
Defined benefit pension and postretirement plans:
Amortization of prior service cost included in net periodic pension and postretirement cost	$	—	$	—		$	—	$	(2	)	$	—		$	(2	)
Amortization of actuarial loss included in net periodic pension and postretirement cost	10		(3		)	7		9			(2		)	7
Other comprehensive income – pension benefits	$	10	$	(3	)	$	7	$	7		$	(2	)	$	5