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
	2018						2017						2018			2017
	US			Foreign			US			Foreign			US			US
	(Millions)
Service cost — benefits earned during the period	$	—		$	2		$	—		$	2		$	—		$	—
Interest cost (a)	2			3			2			3			1			2
Expected return on plan assets (a)	(3		)	(5		)	(3		)	(11		)	—			—
Net amortization:
Actuarial loss (a)	1			2			2			3			3			2
Prior service credit (a)	—			—			—			—			(1		)	(1		)
Net pension and postretirement costs	$	—		$	2		$	1		$	(3	)	$	3		$	3


	Six Months Ended June 30,
	Pension												Postretirement
	2018						2017						2018			2017
	US			Foreign			US			Foreign			US			US
	(Millions)
Service cost — benefits earned during the period	$	—		$	5		$	—		$	4		$	—		$	—
Interest cost (a)	5			6			5			6			3			3
Expected return on plan assets (a)	(7		)	(10		)	(7		)	(15		)	—			—
Settlement loss (a)	—			—			6			—			—			—
Net amortization:
Actuarial loss (a)	2			4			3			5			4			3
Prior service credit (a)	—			—			—			—			(1		)	(1		)
Net pension and postretirement costs	$	—		$	5		$	7		$	—		$	6		$	5

(a) Recorded in other (expense) income.

For the six months ended June 30, 2018, we made pension contributions of $1 million and $6 million for our domestic and foreign pension plans, respectively. Based on current actuarial estimates, we believe we will be required to contribute approximately $8 million for the remainder of 2018 for domestic and foreign plans. Pension contributions beyond 2018 will be required, but those amounts will vary based upon many factors including, for example, the performance of our pension fund investments during 2018.

We made postretirement contributions of approximately $4 million during the first six months of 2018. Based on current actuarial estimates, we believe we will be required to contribute approximately $5 million for the remainder of 2018.

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. This program was substantially completed and all cash payments were made from pension plan assets to those who elected to take the buyout as of June 30, 2017. In connection with this program, the Company contributed $10 million into the pension trust and recognized a non-cash settlement loss of $6 million in the first quarter 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 and six months ended June 30, 2018 and 2017 include the following components:



	Three Months Ended June 30,
	2018									2017
	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	)	$	(1	)	$	—		$	(1	)
Amortization of actuarial loss included in net periodic pension and postretirement cost	6			(1		)	5			7			(2		)	5
Other comprehensive income (loss) – pension benefits	$	5		$	(1	)	$	4		$	6		$	(2	)	$	4



	Six Months Ended June 30,
	2018									2017
	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	)	$	(1	)	$	—		$	(1	)
Amortization of actuarial loss included in net periodic pension and postretirement cost	10			(2		)	8			11			(3		)	8
Settlement charge	—			—			—			6			(2		)	4
Other comprehensive income (loss) – pension benefits	$	9		$	(2	)	$	7		$	16		$	(5	)	$	11