RETIREMENT BENEFITS

Defined Benefit Plans - Expense

The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the periods ended June 30 was as follows (in millions):



	Second Quarter
	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Worldwide OPEB
	2017			2018			2017			2018			2017			2018
Service cost	$	134		$	136		$	125		$	151		$	12		$	13
Interest cost	381			366			173			173			49			49
Expected return on assets	(684		)	(722		)	(335		)	(329		)	—			—
Amortization of prior service costs/(credits)	35			35			9			7			(29		)	(28		)
Net remeasurement (gain)/loss	—			—			—			—			—			—
Separation programs/other	9			3			3			16			—			1
Settlements and curtailments	—			—			—			—			—			—
Net periodic benefit cost/(income)	$	(125	)	$	(182	)	$	(25	)	$	18		$	32		$	35

	First Half
	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Worldwide OPEB
	2017			2018			2017			2018			2017			2018
Service cost	$	267		$	272		$	259		$	303		$	24		$	27
Interest cost	762			733			332			349			98			98
Expected return on assets	(1,367		)	(1,444		)	(665		)	(663		)	—			—
Amortization of prior service costs/(credits)	71			71			18			13			(59		)	(55		)
Net remeasurement (gain)/loss	—			(26		)	—			—			—			—
Separation programs/other	12			14			19			18			—			1
Settlements and curtailments	—			(15		)	—			—			—			—
Net periodic benefit cost/(income)	$	(255	)	$	(395	)	$	(37	)	$	20		$	63		$	71

The service cost component is included in Cost of sales and Selling, administrative, and other expenses. Other components of net periodic benefit cost/(income) are included in Other income/(loss), net of our consolidated income statement.

In the first quarter of 2018, we recognized both a remeasurement gain and a curtailment gain related to amendments to our U.S. defined benefit plans for senior management. Effective December 31, 2019, the plans will have a 35-year limit for service and pay for purposes of determining the pension benefits.

Pension Plan Contributions

During 2018, we expect to contribute about $500 million (most of which are mandatory contributions) from cash and cash equivalents to our global funded pension plans, and to make about $350 million of benefit payments to participants in unfunded plans, for a total of about $850 million. In the first half of 2018, we contributed about $150 million to our global funded pension plans and made about $150 million of benefit payments to participants in unfunded plans.