Note 8 – Benefit Plans

The Company has defined benefit pension plans covering certain employees in the United States and certain foreign locations. The Company also provides certain postretirement healthcare and life insurance benefits to qualifying domestic retirees. Other postretirement benefit plans in foreign countries are not material. The measurement date used for the Company’s employee benefit plans is September 30.

Net pension and postretirement cost included the following components for the three months ended June 30:


	Pension Plans						Other Postretirement Benefits
(Millions of dollars)	2015			2014			2015			2014
Service cost	$	20		$	18		$	1		$	1
Interest cost		22			23			2			2
Expected return on plan assets		(32	)		(32	)		—			—
Amortization of prior service credit		(4	)		(4	)		(1	)		(1	)
Amortization of loss		18			12			1			—


Net pension and postretirement cost	$	24		$	18		$	2		$	2

Net pension and postretirement cost included the following components for the nine months ended June 30:


	Pension Plans						Other Postretirement Benefits
(Millions of dollars)	2015			2014			2015			2014
Service cost	$	58		$	53		$	2		$	3
Interest cost		66			69			6			7
Expected return on plan assets		(93	)		(94	)		—			—
Amortization of prior service credit		(12	)		(11	)		(4	)		(3	)
Amortization of loss		52			36			2			2


Net pension and postretirement cost	$	70		$	53		$	7		$	8

The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive (loss) income in prior periods.

Postemployment benefit costs were $10 million and $12 million for the three-month periods ended June 30, 2015 and 2014, respectively. Postemployment benefit costs were $31 million and $35 million for the nine-month periods ended June 30, 2015 and 2014, respectively. During the fourth quarter of fiscal year 2014, the Company recognized a $36 million charge associated with unusually broad and significant workforce reduction actions that were not contemplated when the postemployment benefit plan obligation was measured on September 30, 2013. As of June 30, 2015, the Company’s remaining liability relating to these workforce reductions, reflecting payments and a change in estimate which decreased the liability by $5 million, was $9 million. During the three and nine months ended June 30, 2015, the Company recognized charges of $53 million and $87 million, respectively, for employee termination costs in connection with its acquisition of CareFusion. Additional disclosures regarding the CareFusion acquisition are provided in Note 9 and additional disclosures regarding the Company’s restructuring activities that relate to this acquisition are provided in Note 10.