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Employee Benefit Plans
6 Months Ended
Jun. 30, 2017
Retirement Benefits [Abstract]  
Employee Benefit Plans
6. EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost (income) of the pension plans for the three months ended June 30 were as follows:
In millions
U.S. Pension Benefits
 
International Pension Benefits
 
Total Pension Benefits
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Net service cost
$

 
$

 
$
2

 
$
2

 
$
2

 
$
2

Interest cost
18

 
22

 
5

 
7

 
23

 
29

Expected return on plan assets
(15
)
 
(18
)
 
(8
)
 
(9
)
 
(23
)
 
(27
)
Net periodic benefit cost (income)
$
3

 
$
4

 
$
(1
)
 
$

 
$
2

 
$
4


Components of the net periodic benefit cost (income) of the pension plans for the the six months ended June 30 were as follow:
In millions
U.S. Pension Benefits
 
International Pension Benefits
 
Total Pension Benefits
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Net service cost
$

 
$

 
$
4

 
$
4

 
$
4

 
$
4

Interest cost
36

 
45

 
10

 
14

 
46

 
59

Expected return on plan assets
(29
)
 
(36
)
 
(17
)
 
(18
)
 
(46
)
 
(54
)
Net periodic benefit cost (income)
$
7

 
$
9

 
$
(3
)
 
$

 
$
4

 
$
9


Effective January 1, 2017, we changed the method used to estimate the service and interest components of net periodic benefit cost (income) for our significant pension plans where yield curves are available. Previously, we estimated such cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the pension benefit obligation. The new methodology utilizes a full yield curve approach by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. This change does not affect the measurement of our total benefit obligation and is applied prospectively as a change in estimate, beginning January 1, 2017.

The benefit from the postretirement plan for the three and six months ended June 30 was:
 
Three months ended June 30
 
Six months ended June 30
In millions
2017
 
2016
 
2017
 
2016
Amortization of:
 
 
 
 
 
 
 
   Prior service benefit
$
(2
)
 
$
(3
)
 
(3
)
 
(7
)
   Actuarial loss
1

 

 
1

 
1

Net postretirement benefit
$
(1
)
 
$
(3
)
 
$
(2
)
 
$
(6
)


The cost of the postemployment plan for the three and six months ended June 30 was:
 
Three months ended June 30
 
Six months ended June 30
In millions
2017
 
2016
 
2017
 
2016
Net service cost
$
5

 
$
4

 
$
19

 
$
8

Interest cost

 
1

 
1

 
1

Amortization of:
 
 
 
 
 
 
 
   Prior service benefit
(1
)
 
(2
)
 
(2
)
 
(3
)
   Actuarial gain
(1
)
 
(1
)
 
(2
)
 
(2
)
Net benefit cost
$
3

 
$
2

 
$
16

 
$
4

Restructuring severance cost

 
2

 

 
2

Total postemployment cost
$
3

 
$
4

 
$
16

 
$
6



Employer Contributions

Pension For the three and six months ended June 30, 2017, NCR contributed $4 million and $9 million, respectively, to its international pension plans. In 2017, NCR anticipates contributing an additional $21 million to its international pension plans for a total of $30 million.

Postretirement For the three and six months ended June 30, 2017, NCR contributed zero and $1 million, respectively, to its U.S. postretirement plan. NCR anticipates contributing an additional $2 million to its U.S. postretirement plan for a total of $3 million in 2017.

Postemployment For the three and six months ended June 30, 2017, NCR contributed $9 million and $14 million, respectively, to its postemployment plans. NCR anticipates contributing an additional $41 million to its postemployment plans for a total of $55 million in 2017.