Retirement Plans

9 Months Ended

Sep. 30, 2019

Retirement Plans [Abstract]

Retirement Plans

(17) Retirement Plans:

The following tables provide the components of total pension and postretirement benefit cost:

	Pension Benefits
	For the three months ended				For the nine months ended
	September 30,				September 30,
($ in millions)	2019		2018		2019		2018
Components of total pension benefit cost
Service cost	$	21	$	22	$	63	$	70
Interest cost on projected benefit obligation		33		31		98		91
Expected return on plan assets		(43)		(45)		(129)		(143)
Amortization of unrecognized loss		14		4		42		17
Net periodic pension benefit cost	$	25	$	12	$	74	$	35
Pension settlement costs		-		9		-		34
Total pension benefit cost	$	25	$	21	$	74	$	69
	Postretirement Benefits
	For the three months ended				For the nine months ended
	September 30,				September 30,
($ in millions)	2019		2018		2019		2018
Components of net periodic postretirement benefit cost
Service cost	$	4	$	5	$	14	$	16
Interest cost on projected benefit obligation		10		9		31		28
Amortization of prior service cost (credit)		(3)		(1)		(7)		(6)
Amortization of unrecognized (gain) loss		1		-		(1)		1
Net periodic postretirement benefit cost	$	12	$	13	$	37	$	39

The components of net periodic benefit cost other than the service cost component are included in “Investment and other income” in the consolidated statement of operations.

During the first nine months of 2019 and 2018, we capitalized $18 million and $20 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities.

Our Pension Plan assets increased from $2,348 million at December 31, 2018 to $2,670 million at September 30, 2019, an increase of $322 million, or 14%. This increase was a result of contributions of $129 million and positive investment returns (net of investment management and administrative fees) of $404 million, partially offset by benefit payments of $211 million.

Required pension plan contributions for the full year 2019 are estimated to be $166 million, of which $129 million was contributed to the Plan during the first nine months of 2019.