Defined Benefit Postretirement Plans

9 Months Ended

Sep. 30, 2020

The following summarizes the components of net periodic benefit costs (credits):


	Three Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2020		2019(c)		2020		2019
Service cost	$	4	$	5	$	—	$	—
Interest cost	2		3		1		1
Expected return on plan assets	(2)		(3)		—		—
Amortization:
– prior service credit	(1)		(1)		(4)		(5)
– actuarial loss	2		2		—		1
Net settlement loss(a)	9		—		—		—

Net periodic benefit costs (credits)(b)	$	14	$	6	$	(3)	$	(3)


	Nine Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2020		2019(c)		2020		2019
Service cost	$	14	$	14	$	—	$	—
Interest cost	7		17		2		3
Expected return on plan assets	(7)		(19)		—		—
Amortization:
– prior service credit	(5)		(5)		(13)		(14)
– actuarial loss	7		6		1		1
Net settlement loss(a)	25		2		—		—
Net curtailment gain(d)	(3)		—		(14)		—
Net periodic benefit costs (credits)(b)	$	38	$	15	$	(24)	$	(10)

(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.

(b)Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.

(c)Includes amounts related to the noncontributory defined benefit pension plan covering U.K. employees, prior to the plan being transferred to the buyer upon sale of the U.K. asset on July 1, 2019.

(d)Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans.

During the first nine months of 2020, we made contributions of $21 million to our funded pension plan and expect to contribute an additional $7 million this year. During the first nine months of 2020, we made payments of $17 million and $11 million related to unfunded pension plans and other postretirement benefit plans.

In connection with the sale of our U.K. business, the noncontributory defined benefit pension plan covering U.K. employees was transferred to the buyer. See Note 4 for further information on this disposition. During the three and nine months ended September 30, 2019, we reclassified $20 million from accumulated other comprehensive income to pension assets upon remeasurement of the plan.