Net Periodic Pension and Postretirement Benefit Costs

3 Months Ended

Mar. 31, 2018

Net Periodic Pension and Postretirement Benefit Costs

Benefit plans

9.     Net Periodic Pension and Postretirement Benefit Costs

For detailed information about the Company’s pension and postretirement benefit plans, please refer to Note 10 of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 

On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation- Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  As a result, the interest cost, expected return on plan assets, and amortization of actuarial loss components of net periodic benefit cost for the Company’s pension plans and other postretirement plans are presented as other, non-operating income on the Condensed Consolidated Statements of Income.  There is no change to the presentation of the service cost component of net periodic benefit cost. 

The following table sets forth the components of net periodic benefit cost of the U.S. and non-U.S. defined benefit pension plans for the periods presented:

	Three Months Ended March 31,
	U.S. Plans				Non-U.S. Plans
(in millions)	2018		2017		2018		2017
Service cost	$	1	$	1	$	1	$	1
Interest cost		3		3		3		2
Expected return on plan assets		(5)		(5)		(2)		(3)
Amortization of actuarial loss		—		—		—		1
Net periodic benefit cost	$	(1)	$	(1)	$	2	$	1

The Company currently anticipates that it will make approximately $5 million in cash contributions to its pension plans in 2018, consisting of $3 million to its non-U.S. pension plans and $2 million to its U.S. pension plans. For the three months ended March 31, 2018,cash contributions of approximately $1 million were made to the non-U.S. plans and less than $1 million to the U.S. plans.

The following table sets forth the components of net postretirement benefit cost for the periods presented:

	Three Months Ended March 31,
(in millions)	2018		2017
Service cost	$	—	$	—
Interest cost	$	1	$	1
Amortization of prior service credit		(1)		(1)
Net periodic benefit cost	$	—	$	—