EMPLOYEE BENEFIT PLANS

The total pension and other postretirement benefit income was $9 million and $19 million during the three and six months ended March 31, 2018, respectively, and $17 million and $42 million during the three and six months ended March 31, 2017, respectively.

Contributions to the U.S. non-qualified and non-U.S. pension plans during the six months ended March 31, 2018 were $9 million. For the remainder of fiscal 2018, Valvoline expects to contribute approximately $9 million to these plans, for a total of $18 million in fiscal 2018.

Components of net periodic benefit income

Due to the freeze of U.S. pension benefits effective September 30, 2016, the only service costs are related to certain international pension benefits, and therefore, these costs are reported in the respective reportable segment and caption of the Condensed Consolidated Statements of Comprehensive Income as the other employee compensation costs from services rendered. All other components of net periodic benefit income are recognized below operating income within Net pension and other postretirement plan non-service income and remeasurement adjustments in the Condensed Consolidated Statements of Comprehensive Income.

Effective January 1, 2017, Valvoline discontinued certain other postretirement health and life insurance benefits. The effect of these plan amendments resulted in a remeasurement gain of $8 million during the six months ended March 31, 2017 as shown in the table below. The following table summarizes the components of pension and other postretirement benefit income for the three and six months ended March 31:



							Other postretirement benefits
	Pension benefits						Other postretirement benefits
(In millions)	2018			2017			2018			2017
Three months ended March 31
Service cost	$	1		$	—		$	—		$	—
Interest cost	18			22			1			—
Expected return on plan assets	(26		)	(36		)	—			—
Amortization of prior service credit	—			—			(3		)	(3		)
Net periodic benefit income	$	(7	)	$	(14	)	$	(2	)	$	(3	)

Six months ended March 31
Service cost	$	1		$	1		$	—		$	—
Interest cost	37			43			1			—
Expected return on plan assets	(52		)	(72		)	—			—
Amortization of prior service credit	—			—			(6		)	(6		)
Actuarial gain	—			—			—			(8		)
Net periodic benefit income	$	(14	)	$	(28	)	$	(5	)	$	(14	)

Multiemployer pension plan partial withdrawal

Valvoline participates in two multiemployer pension plans that provide pension benefits to certain union-represented employees under the terms of collective bargaining agreements. Valvoline assumed responsibility for contributions to these plans in connection with the separation from Ashland. Contributions to these plans were not material for the three and six months ended March 31, 2018 and 2017.

In April 2018, Valvoline received a demand for payment of a partial withdrawal liability assessment of approximately $30 million related to the sale of a business by Ashland in fiscal 2011 and the associated reduction in the number of employees covered by one of the multiemployer pension plans and the related decline in contributions. The Company plans to vigorously contest the assessment as well as the calculation method utilized in determining the assessment and will submit a formal arbitration request, if necessary. The Company's current best estimate of cost associated with this assessment is not material to the condensed consolidated financial statements as of and for the periods ended March 31, 2018.