Employee Benefits

The following table provides the components of the net periodic benefit (cost) recognized in the Condensed Consolidated Statements of Income for Aon’s material U.K., U.S., and other significant international pension plans located in the Netherlands and Canada. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):



	Three months ended September 30
	U.K.						U.S.						Other
	2018			2017			2018			2017			2018			2017
Service cost	$	—		$	—		$	—		$	—		$	—		$	—
Interest cost	26			31			24			24			6			7
Expected return on plan assets, net of administration expenses	(46		)	(50		)	(36		)	(34		)	(11		)	(13		)
Amortization of prior-service cost	1			—			—			—			—			—
Amortization of net actuarial loss	6			8			15			13			3			3
Net periodic (benefit) cost	(13		)	(11		)	3			3			(2		)	(3		)
Loss on pension settlement	9			—			—			—			—			—
Total net periodic (benefit) cost	$	(4	)	$	(11	)	$	3		$	3		$	(2	)	$	(3	)



	Nine months ended September 30
	U.K.						U.S.						Other
	2018			2017			2018			2017			2018			2017
Service cost	$	—		$	—		$	—		$	—		$	—		$	—
Interest cost	84			91			74			72			20			19
Expected return on plan assets, net of administration expenses	(147		)	(147		)	(108		)	(104		)	(34		)	(35		)
Amortization of prior-service cost	1			—			1			1			—			—
Amortization of net actuarial loss	21			23			45			38			9			9
Net periodic (benefit) cost	(41		)	(33		)	12			7			(5		)	(7		)
Loss on pension settlement	32			—			—			—			—			—
Total net periodic (benefit) cost	$	(9	)	$	(33	)	$	12		$	7		$	(5	)	$	(7	)

In March 2017, the Company approved a plan to offer a voluntary one-time lump sum payment option to certain eligible employees of the Company’s U.K. pension plans that, if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer will close during 2018. As of September 30, 2018, lump sum payments from plan assets of £125 million ($164 million using September 30, 2018 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the third quarter of 2018, which in aggregate resulted in a reduction to the projected benefit obligation of £108 million ($143 million using September 30, 2018 exchange rates), as well as a non-cash settlement charge of £7 million ($9 million using average September 30, 2018 exchange rates) in the third quarter of 2018 and £24 million ($32 million using average exchange rates) for the nine months ended September 30, 2018. Additional non-cash settlement charges are expected in the fourth quarter of 2018.

Contributions

The Company expects to make cash contributions of approximately $92 million, $143 million, and $22 million, based on exchange rates as of December 31, 2017, to its significant U.K., U.S., and other significant international pension plans, respectively, during 2018. This includes the Company’s contribution to the qualified U.S. pension plan of $100 million in the third quarter of 2018, which allowed the pension contribution tax deduction to be taken at the 2017 federal tax rate of 35%.

During the three months ended September 30, 2018, cash contributions of $27 million, $108 million, and $3 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively. During the nine months ended September 30, 2018, cash contributions of $75 million, $133 million, and $14 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively.

During the three months ended September 30, 2017, cash contributions of $22 million, $5 million, and $3 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively. During the nine months ended September 30, 2017, cash contributions of $64 million, $31 million, and $14 million were made to the Company’s significant U.K., U.S., and other significant international pension plans, respectively.