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 September 30 was as follows (in millions):



	Third Quarter
	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Worldwide OPEB
	2017			2018			2017			2018			2017			2018
Service cost	$	133		$	136		$	154		$	146		$	13		$	13
Interest cost	382			367			155			168			50			49
Expected return on assets	(683		)	(721		)	(347		)	(318		)	—			—
Amortization of prior service costs/(credits)	36			36			9			6			(30		)	(27		)
Net remeasurement (gain)/loss	—			—			—			—			—			—
Separation programs/other	58			15			5			47			—			—
Settlements and curtailments	—			—			—			—			—			—
Net periodic benefit cost/(income)	$	(74	)	$	(167	)	$	(24	)	$	49		$	33		$	35

	First Nine Months
	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Worldwide OPEB
	2017			2018			2017			2018			2017			2018
Service cost	$	400		$	408		$	413		$	449		$	37		$	40
Interest cost	1,144			1,100			487			517			148			147
Expected return on assets	(2,050		)	(2,165		)	(1,012		)	(981		)	—			—
Amortization of prior service costs/(credits)	107			107			27			19			(89		)	(82		)
Net remeasurement (gain)/loss	—			(26		)	—			—			—			—
Separation programs/other	70			29			24			65			—			1
Settlements and curtailments	—			(15		)	—			—			—			—
Net periodic benefit cost/(income)	$	(329	)	$	(562	)	$	(61	)	$	69		$	96		$	106

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 amended the 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. As a result, we recognized both a remeasurement gain and a curtailment gain related to the amendments.

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 nine months of 2018, we contributed about $300 million to our global funded pension plans and made about $250 million of benefit payments to participants in unfunded plans.