17. Retirement-Related Benefits: The company offers defined benefit pension plans, defined contribution pension plans, as well as nonpension postretirement plans primarily consisting of retiree medical benefits. The following table provides the pre-tax cost for all retirement-related plans. | | | | | | | | | | | | | | | | | | Yr. to Yr. | | (Dollars in millions) | | | | | | | | Percent | | For the three months ended March 31: | | 2020 | | 2019 | | Change | | Retirement-related plans — cost | | | | | | | | | | Defined benefit and contribution pension plans — cost | | $ | 584 | | $ | 437 | | 33.7 | % | Nonpension postretirement plans — cost | | | 52 | | | 54 | | (4.1) | | Total | | $ | 636 | | $ | 491 | | 29.5 | % |
The following table provides the components of the cost/(income) for the company’s pension plans. Cost/(Income) of Pension Plans | | | | | | | | | | | | | (Dollars in millions) | | U.S. Plans | | Non-U.S. Plans | For the three months ended March 31: | | 2020 | | 2019 | | 2020 | | 2019 | Service cost | | $ | — | | $ | — | | $ | 95 | | $ | 93 | Interest cost (1) | | | 375 | | | 472 | | | 129 | | | 208 | Expected return on plan assets (1) | | | (542) | | | (650) | | | (309) | | | (399) | Amortization of prior service costs/(credits) (1) | | | 4 | | | 4 | | | (5) | | | (6) | Recognized actuarial losses (1) | | | 207 | | | 140 | | | 342 | | | 314 | Curtailments and settlements (1) | | | — | | | — | | | 8 | | | 1 | Multi-employer plans | | | — | | | — | | | 7 | | | 9 | Other costs/(credits) (1) | | | — | | | — | | | 5 | | | 5 | Total net periodic pension (income)/cost of defined benefit plans | | $ | 44 | | $ | (34) | | $ | 274 | | $ | 223 | Cost of defined contribution plans | | | 155 | | | 149 | | | 110 | | | 98 | Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement | | $ | 199 | | $ | 115 | | $ | 385 | | $ | 322 |
(1) | These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. |
The following table provides the components of the cost for the company’s nonpension postretirement plans. Cost of Nonpension Postretirement Plans | | | | | | | | | | | | | (Dollars in millions) | | U.S. Plan | | Non-U.S. Plans | For the three months ended March 31: | | 2020 | | 2019 | | 2020 | | 2019 | Service cost | | $ | 2 | | $ | 3 | | $ | 1 | | $ | 1 | Interest cost (1) | | | 26 | | | 36 | | | 10 | | | 12 | Expected return on plan assets (1) | | | — | | | — | | | (1) | | | (1) | Amortization of prior service costs/(credits) (1) | | | 1 | | | (1) | | | 0 | | | 0 | Recognized actuarial losses (1) | | | 7 | | | 1 | | | 6 | | | 3 | Curtailments and settlements (1) | | | — | | | — | | | 0 | | | 0 | Total nonpension postretirement plans cost recognized in Consolidated Income Statement | | $ | 36 | | $ | 39 | | $ | 16 | | $ | 15 |
(1)These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. The company does not anticipate any significant changes to the expected plan contributions in 2020 from the amounts disclosed in the 2019 Annual Report. The table below includes contributions to the following plans: | | | | | | | (Dollars in millions) | | Plan Contributions | For the three months ended March 31: | | 2020 | | 2019 | U.S. nonpension postretirement benefit plan | | $ | 136 | | $ | 194 | Non-U.S. DB and multi-employer plans | | | 82 | | | 94 | Total plan contributions | | $ | 217 | | $ | 288 |
During the three months ended March 31, 2020 and 2019, $255 million and $256 million, respectively, was contributed in U.S. Treasury securities, which is considered a non-cash transaction (includes the Active Medical Trust).
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