PENSION AND POSTRETIREMENT BENEFIT PLANS

The net periodic benefit cost/(credit) of defined benefit pension and postretirement benefit plans includes:



	Three Months Ended March 31,
	Pension Benefits						Other Benefits
Dollars in Millions	2015			2014			2015			2014
Service cost – benefits earned during the year	$	6		$	10		$	1		$	1
Interest cost on projected benefit obligation	61			78			3			3
Expected return on plan assets	(102		)	(131		)	(7		)	(7		)
Amortization of prior service credits	(1		)	(1		)	(1		)	—
Amortization of net actuarial loss	24			27			1			—
Curtailments and settlements	27			54			—			(3		)
Special termination benefits	—			13			—			—
Net periodic cost/(credit)	$	15		$	50		$	(3	)	$	(6	)

Pension settlement charges were recognized after determining that the annual lump sum payments will likely exceed the annual interest and service costs for certain pension plans, including the primary U.S. pension plan. The charges included the acceleration of a portion of unrecognized actuarial losses. The applicable pension benefit obligation and pension plan assets were remeasured during 2015 resulting in an increase to liabilities and a corresponding increase in accumulated other comprehensive loss of $120 million. The changes resulted from a lower weighted average discount rate assumed in remeasuring the pension benefit obligations (3.6% at March 31, 2015 and 3.8% at December 31, 2014) partially offset by higher actual return on plan assets than expected. Contributions to the pension plans are expected to approximate $100 million during 2015, of which $40 million occurred in the three months ended March 31, 2015.

The expense attributed to defined contribution plans in the U.S. was $44 million and $50 million for the three months ended March 31, 2015, and 2014, respectively.