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Retirement Benefits (Unaudited)
 9 Months Ended
Sep. 30, 2018
Retirement Benefits [Abstract]  
RETIREMENT BENEFITS
9.    RETIREMENT BENEFITS
The cost to the company of its retirement plans is shown in the following table:
 
Three Months Ended September 30
Nine Months Ended September 30
 
Pension
Benefits
 
Medical and
Life Benefits
Pension
Benefits
 
Medical and
Life Benefits
$ in millions
2018
 
2017
 
2018
 
2017
2018
 
2017
 
2018
 
2017
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
102

 
$
97

 
$
5

 
$
5

$
301

 
$
291

 
$
15

 
$
16

Interest cost
316

 
312

 
20

 
21

906

 
937

 
58

 
63

Expected return on plan assets
(571
)
 
(471
)
 
(26
)
 
(22
)
(1,644
)
 
(1,414
)
 
(75
)
 
(67
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service credit
(15
)
 
(14
)
 
(5
)
 
(4
)
(44
)
 
(43
)
 
(16
)
 
(15
)
Net loss from previous years
135

 
171

 
(2
)
 
2

402

 
553

 
(2
)
 
9

Net periodic benefit cost
$
(33
)
 
$
95

 
$
(8
)
 
$
2

$
(79
)
 
$
324

 
$
(20
)
 
$
6


Changes in Presentation
As discussed in Note 1, we adopted ASU 2017-07 on January 1, 2018 using the retrospective method, which changed the financial statement presentation of service costs and the other components of net periodic benefit cost. The service cost component continues to be included in operating income; however, the other components are now presented in Net FAS (non-service) pension benefit (expense) in the unaudited condensed consolidated statements of earnings and comprehensive income. In addition, interest on service cost and plan administrative expenses which, in some cases, have historically been included in service cost are now consistently presented in the interest cost and amortization of net actuarial loss components, respectively. As a result, the company reclassified interest on service cost of $4 million and $12 million and plan administrative expense adjustments of $(7) million and $19 million from service cost to the interest cost and amortization of net actuarial loss components, respectively, for its pension plans in the three and nine months ended September 30, 2017, respectively, to conform to the current year presentation. For the company’s medical and life benefit plans, plan administrative expenses of $1 million and $3 million were reclassified from service cost to the amortization of net actuarial loss component for the three and nine months ended September 30, 2017, respectively, to conform to the current year presentation. This change in presentation had no impact on net periodic benefit cost.
Employer Contributions
The company sponsors defined benefit pension and post-retirement plans, as well as defined contribution plans. We fund our defined benefit pension plans annually in a manner consistent with the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006. Additionally, in the third quarter of 2018, we made a voluntary pension contribution of $250 million.
Contributions made by the company to its retirement plans are as follows:
 
Three Months Ended September 30
 
Nine Months Ended September 30
$ in millions
2018
 
2017
 
2018
 
2017
Defined benefit pension plans
$
273

 
$
20

 
$
318

 
$
71

Medical and life benefit plans
10

 
11

 
32

 
35

Defined contribution plans
104

 
91

 
296

 
267