Net Periodic Pension and Postretirement Benefit Costs

9 Months Ended

Sep. 30, 2019

Net Periodic Pension and Postretirement Benefit Costs

Net Periodic Pension and Postretirement Benefit Costs

10. Net Periodic Pension and Postretirement Benefit Costs

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

	Three Months Ended September 30,								Nine Months Ended September 30,
	U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
(in millions)	2019		2018		2019		2018		2019		2018		2019		2018
Service cost	$	2	$	1	$	—	$	1	$	4	$	4	$	2	$	3
Interest cost		4		4		3		3		11		10		8		8
Expected return on plan assets		(5)		(6)		(2)		(2)		(14)		(16)		(6)		(7)
Amortization of actuarial loss		—		—		—		—		—		—		1		1
Net periodic benefit cost/(benefit) (a)	$	1	$	(1)	$	1	$	2	$	1	$	(2)	$	5	$	5

The Company currently anticipates that it will make approximately $4 million in cash contributions to its pension plans in 2019, consisting of $3 million to its non-U.S. pension plans and $1 million to its U.S. pension plans. For the nine

months ended September 30, 2019, cash contributions of approximately $2 million were made to the non-U.S. plans and $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 September 30,				Nine Months Ended September 30,
(in millions)	2019		2018		2019		2018
Service cost	$	—	$	1	$	—	$	1
Interest cost		1		—		2		2
Amortization of prior service credit		—		—		(1)		(1)
Net periodic benefit cost (a)	$	1	$	1	$	1	$	2

(a) The service cost component of net periodic benefit cost is presented within either cost of sales or operating expenses on the Condensed Consolidated Statements of Income. The interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service credit components of net periodic benefit cost are presented as other, non-operating income on the Condensed Consolidated Statements of Income.