13. PENSION AND POSTRETIREMENT PLANS

The Company has a non-contributory qualified defined benefit pension plan covering the majority of its U.S. employees. The Company also has U.S. non-contributory non-qualified defined benefit plans, which provide for benefits to employees in excess of limits permitted under its U.S. pension plans. Various international subsidiaries also have defined benefit pension plans. The Company provides postretirement health care benefits to certain U.S. employees and retirees.

The components of net periodic pension and postretirement health care benefit costs for the first quarter ended March 31 are as follows:


	U.S.				International				U.S. Postretirement
	Pension				Pension				Health Care
(millions)	2018		2017		2018		2017		2018		2017
Service cost		$18.6		$17.5		$8.5		$7.4		$0.9		$0.7
Interest cost on benefit obligation		20.8		20.9		7.5		6.9		1.5		1.5
Expected return on plan assets		(40.5)		(37.4)		(16.3)		(13.5)		(0.1)		(0.1)
Recognition of net actuarial (gain) loss		9.8		7.2		4.4		4.4		(0.5)		(0.6)
Amortization of prior service
cost (benefit)		(1.7)		(1.7)		(0.2)		(0.2)		(4.1)		(4.2)
Total expense (benefit)		$7.0		$6.5		$3.9		$5.0		$(2.3)		$(2.7)

Service cost is included with employee compensation cost in cost of sales and selling, general and administrative expenses in the Consolidated Statement of Income while all other components are included in other (income) expense in the Consolidated Statement of Income. For more information about the adoption of the pension standard relating to the classification of components of pension expense, refer to Note 17.

As of March 31, 2018, the Company is in compliance with all funding requirements of its U.S. pension and postretirement health care plans. During the first quarter of 2018, the Company made payments of $1 million to its U.S. non-contributory non-qualified defined benefit plans and estimates it will make additional payments of approximately $5 million to such plans during the remainder of 2018.

The Company contributed $19 million to its international pension benefit plans during the first quarter of 2018. The Company estimates it will contribute approximately an additional $30 million to such plans during the remainder of 2018.

During the first three months of 2018, the Company made payments of $3 million to its U.S. postretirement health care benefit plans and estimates it will make additional payments of approximately $8 million to such plans during the remainder of 2018.