Defined Benefit Postretirement Plans

The following summarizes the components of net periodic benefit cost:



	Three Months Ended September 30,
	Pension Benefits						Other Benefits
(In millions)	2017			2016			2017			2016
Service cost	$	5		$	6		$	—		$	1
Interest cost	7			9			2			3
Expected return on plan assets	(10		)	(12		)	—			—
Amortization:
– prior service cost (credit)	(3		)	(2		)	(2		)	(1		)
– actuarial loss	3			4			—			—
Net settlement loss ^(a)	8			14			—			—
Net periodic benefit cost	$	10		$	19		$	—		$	3



	Nine Months Ended September 30,
	Pension Benefits						Other Benefits
(In millions)	2017			2016			2017			2016
Service cost	$	16		$	18		$	1		$	3
Interest cost	22			30			6			8
Expected return on plan assets	(32		)	(40		)	—			—
Amortization:
– prior service cost (credit)	(7		)	(7		)	(5		)	(3		)
– actuarial loss	7			11			—			—
Net settlement loss ^(a)	25			93			—			—
Net periodic benefit cost	$	31		$	105		$	2		$	8


^(a)	Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest cost for that year.

During the first nine months of 2017, we recorded the effects of settlements of our U.S. and U.K. pension plans. As required, we remeasured the plans’ assets and liabilities as of the applicable balance sheet dates. The cumulative effects of these events are included in the remeasurement and reflected in both the pension liability and net periodic benefit cost.

During the first nine months of 2017, we made contributions of $45 million to our funded pension plans and we expect to make additional contributions up to an estimated $8 million over the remainder of 2017. During the first nine months of 2017, we made payments of $10 million and $16 million related to unfunded pension plans and other postretirement benefit plans, respectively.