
10.	RETIREMENT BENEFITS

The components of net periodic benefit cost for the defined benefit pension and other postretirement benefit plans for the three and six months ended 31 March 2017 and 2016 were as follows:



	Pension Benefits												Other Benefits
	2017						2016						2017		2016
Three Months Ended 31 March	U.S.			International			U.S.			International
Service cost	$	6.9		$	6.3		$	9.3		$	6.1		$	.2	$	.6
Interest cost	27.6			7.9			27.7			11.1			.4		.5
Expected return on plan assets	(51.7		)	(18.3		)	(50.5		)	(19.6		)	—		—
Prior service cost amortization	.6			(.1		)	.8			(.1		)	—		—
Actuarial loss amortization	20.9			13.2			21.5			9.1			—		.1
Settlements	4.1			4.0			2.6			—			—		—
Curtailment	.1			1.8			—			—			—		—
Special termination benefits	(.1		)	.1			.6			—			—		—
Other	—			(2.2		)	—			.5			—		—
Net periodic benefit cost (Total)	$	8.4		$	12.7		$	12.0		$	7.1		$	.6	$	1.2
Less: Discontinued Operations	(.1		)	(3.4		)	(2.1		)	(.2		)	—		—
Net periodic benefit cost (Continuing Operations)	$	8.3		$	9.3		$	9.9		$	6.9		$	.6	$	1.2




	Pension Benefits												Other Benefits
	2017						2016						2017		2016
Six Months Ended 31 March	U.S.			International			U.S.			International
Service cost	$	15.2		$	13.0		$	18.3		$	12.3		$	.7	$	1.1
Interest cost	52.5			15.5			55.4			22.7			.8		1.0
Expected return on plan assets	(104.4		)	(36.8		)	(101.0		)	(40.3		)	—		—
Prior service cost amortization	1.2			(.1		)	1.5			(.1		)	—		—
Actuarial loss amortization	47.0			27.1			42.6			18.3			.2		.3
Settlements	4.1			1.7			2.6			—			—		—
Curtailment	4.3			(1.3		)	—			—			—		—
Special termination benefits	1.0			.5			.6			—			—		—
Other	—			.5			—			1.0			—		—
Net periodic benefit cost (Total)	$	20.9		$	20.1		$	20.0		$	13.9		$	1.7	$	2.4
Less: Discontinued Operations	(.7		)	(4.1		)	(3.9		)	(1.6		)	—		—
Net periodic benefit cost (Continuing Operations)	$	20.2		$	16.0		$	16.1		$	12.3		$	1.7	$	2.4

Net periodic benefit cost is primarily included in cost of sales and selling and administrative expense on our consolidated income statements. The increase in pension expense in fiscal year 2017 is primarily related to recognition of settlement, curtailment and special termination benefits. The amount of net periodic benefit cost capitalized in fiscal year 2017 and 2016 was not material.

Certain of our pension plans provide for a lump sum benefit payment option at the time of retirement, or for corporate officers, six months after their retirement date. A participant's vested benefit is considered settled upon cash payment of the lump sum. We recognize pension settlement losses when cash payments exceed the sum of the service and interest cost components of net periodic benefit cost of the plan for the fiscal year. For the three and six months ended 31 March 2017 and 2016, we recognized $4.1 and $2.0 of settlement losses in results of continuing operations, respectively, to accelerate recognition of a portion of actuarial losses deferred in accumulated other comprehensive loss associated with the U.S. Supplementary Pension Plan.

In connection with the disposition of the two divisions comprising the Materials Technologies segment, we incurred settlement, curtailment, and special termination benefits totaling $3.5 and $6.0 for the three and six months ended 31 March 2017, respectively. Costs recorded during the second quarter were recorded in the results of discontinued operations. Otherwise, the costs were reflected on the consolidated income statements as "Business separation costs".

As discussed in Note 3, Discontinued Operations, we completed the separation of EMD through the spin-off of Versum on 1 October 2016. In connection with the spin-off, the Company transferred defined benefit pension assets and obligations to Versum resulting in a net decrease in the underfunded status of the Company's sponsored pension plans of $24. As a result of the transfer of unrecognized losses to Versum, accumulated other comprehensive loss, net of tax, decreased by approximately $5. In addition, we completed the sale of PMD to Evonik Industries AG on 3 January 2017. In connection with the sale, the Company transferred defined benefit pension obligations to Evonik resulting in a net decrease in the underfunded status of the Company's sponsored pension plans of approximately $7.

For the six months ended 31 March 2017 and 2016, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $40.8 and $60.2, respectively. Total contributions for fiscal 2017 are expected to be approximately $65 to $85. During fiscal 2016, total contributions were $79.3.