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Retirement-Related Benefits
3 Months Ended
Mar. 31, 2020
Retirement-Related Benefits  
Retirement-Related Benefits

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).