Pension Plans, Postretirement and Other Employee Benefits

Net periodic pension costs and postretirement benefit costs consist of the following components:



	Three Months Ended June 30,
	Pension												Postretirement
	2017						2016						2017			2016
	US			Foreign			US			Foreign			US			US
	(Millions)
Service cost — benefits earned during the period	$	—		$	2		$	—		$	2		$	—		$	—
Interest cost	2			3			5			3			2			2
Expected return on plan assets	(3		)	(11		)	(6		)	(5		)	—			—
Net amortization:
Actuarial loss	2			3			2			2			2			1
Prior service cost (credit)	—			—			—			—			(1		)	—
Net pension and postretirement costs	$	1		$	(3	)	$	1		$	2		$	3		$	3


	Six Months Ended June 30,
	Pension												Postretirement
	2017						2016						2017			2016
	US			Foreign			US			Foreign			US			US
	(Millions)
Service cost — benefits earned during the period	$	—		$	4		$	—		$	4		$	—		$	—
Interest cost	5			6			9			7			3			3
Expected return on plan assets	(7		)	(15		)	(12		)	(10		)	—			—
Settlement loss	6			—			—			—			—			—
Net amortization:
Actuarial loss	3			5			4			4			3			2
Prior service cost (credit)	—			—			—			—			(1		)	—
Net pension and postretirement costs	$	7		$	—		$	1		$	5		$	5		$	5

For the six months ended June 30, 2017, we made pension contributions of $12 million and $7 million for our domestic and foreign pension plans, respectively. Based on current actuarial estimates, we believe we will be required to contribute approximately $13 million for the remainder of 2017. Pension contributions beyond 2017 will be required, but those amounts will vary based upon many factors including, for example, the performance of our pension fund investments during 2017.

In February 2016, the Company launched a voluntary program to buy out active employees and retirees who had earned benefits in the U.S. pension plans. As of June 30, 2017, this program has been substantially completed and all cash payments have been made from pension plan assets to those who elected to take the buyout. In connection with this program the Company contributed $10 million into the pension trust and recognized a non-cash charge of $6 million in the first quarter of 2017.

We made postretirement contributions of approximately $6 million during the first six months of 2017. Based on current actuarial estimates, we believe we will be required to contribute approximately $4 million for the remainder of 2017.

The assets of some of our pension plans are invested in trusts that permit commingling of the assets of more than one employee benefit plan for investment and administrative purposes. Each of the plans participating in the trust has interests in the net assets of the underlying investment pools of the trusts. The investments for all our pension plans are recorded at estimated fair value, in compliance with the accounting guidance on fair value measurement.

Amounts recognized for pension and postretirement benefits in other comprehensive income for the three and six months ended June 30, 2017 and 2016 include the following components:



	Three Months Ended June 30,
	2017									2016
	Before-Tax Amount			Tax Benefit			Net-of-Tax Amount			Before- Tax Amount		Tax Benefit			Net-of-Tax Amount
	(Millions)
Defined benefit pension and postretirement plans:
Amortization of prior service cost included in net periodic pension and postretirement cost	$	(1	)	$	—		$	(1	)	$	—	$	—		$	—
Amortization of actuarial loss included in net periodic pension and postretirement cost	$	7		$	(2	)	$	5		$	5	$	(2	)	$	3
Other comprehensive income – pension benefits	$	6		$	(2	)	$	4		$	5	$	(2	)	$	3



	Six Months Ended June 30,
	2017									2016
	Before-Tax Amount			Tax Benefit			Net-of-Tax Amount			Before- Tax Amount		Tax Benefit			Net-of-Tax Amount
	(Millions)
Defined benefit pension and postretirement plans:
Amortization of prior service cost included in net periodic pension and postretirement cost	$	(1	)	$	—		$	(1	)	$	—	$	—		$	—
Amortization of actuarial loss included in net periodic pension and postretirement cost	11			(3		)	8			10		(3		)	7
Settlement charge	$	6		$	(2	)	$	4		$	—	$	—		$	—
Other comprehensive income – pension benefits	$	16		$	(5	)	$	11		$	10	$	(3	)	$	7