Pension Plans, Postretirement and Other Employee Benefits

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Pension Plans, Postretirement and Other Employee Benefits

Pension Plans, Postretirement and Other Employee Benefits

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

	Three Months Ended March 31,
	Pension												Postretirement
	2017						2016						2017		2016
	US			Foreign			US			Foreign			US		US
	(Millions)
Service cost — benefits earned during the period	$	—		$	2		$	—		$	2		$	—	$	—
Interest cost	3			3			4			4			1		1
Expected return on plan assets	(4		)	(4		)	(6		)	(5		)	—		—
Net amortization:
Actuarial loss	1			2			2			2			1		1
Net pension and postretirement costs	$	—		$	3		$	—		$	3		$	2	$	2

For the three months ended March 31, 2017, we made pension contributions of $11 million and $3 million for our domestic and foreign pension plans, respectively. Based on current actuarial estimates, we believe we will be required to contribute approximately $18 million for the remainder of 2017, which includes estimated contributions for the pension buyout referenced below. Pension contributions beyond 2017 will be required, but those amounts will vary based upon many factors including, for example, the performance of our pension fund investments during 2017.

In February 2016, the Company launched a voluntary program to buy out active employees and retirees who had earned benefits in the U.S. pension plans. As of March 31, 2017, this program has been substantially completed with cash payments made from pension plan assets to those who elected to take the buyout. In connection with this program the Company contributed $10 million into the pension trust and recognized a non-cash charge of $6 million in the first quarter of 2017.

We made postretirement contributions of approximately $2 million during the first three months of 2017. Based on current actuarial estimates, we believe we will be required to contribute approximately $8 million for the remainder of 2017.

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 months ended March 31, 2017 and 2016 include the following components:

	Three Months Ended March 31,
	2017							2016
	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 actuarial loss included in net periodic pension and postretirement cost	$	4	$	(1	)	$	3	$	5	$	(1	)	$	4
Settlement Charge	6		(2		)	4		—		—			—
Other comprehensive income – pension benefits	$	10	$	(3	)	$	7	$	5	$	(1	)	$	4