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Pension and Postretirement Benefit Plans (Tables)
 9 Months Ended
Sep. 30, 2018
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Costs
The following table provides the components of net periodic benefit cost/(credit):
 
 
Three Months Ended
 
 
Pension Plans
 
 
 
 
U.S.
Qualified(a)
 
U.S.
Supplemental
(Non-Qualified)
 
International
 
Postretirement
Plans
(MILLIONS OF DOLLARS)
 
Sep 30, 2018

 
Oct 1, 2017

 
Sep 30, 2018

 
Oct 1, 2017

 
Sep 30, 2018

 
Oct 1, 2017

 
Sep 30, 2018

 
Oct 1, 2017

Net periodic benefit cost/(credit)(b):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service cost(c)
 
$
—

 
$
67

 
$
—

 
$
6

 
$
33

 
$
44

 
$
10

 
$
10

Interest cost
 
149

 
157

 
14

 
13

 
52

 
52

 
18

 
23

Expected return on plan assets
 
(259
)
 
(248
)
 
—

 
—

 
(89
)
 
(87
)
 
(9
)
 
(9
)
Amortization of:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Actuarial losses(c)
 
30

 
91

 
3

 
12

 
25

 
29

 
2

 
8

Prior service credits
 
—

 
—

 
—

 
—

 
(1
)
 
(1
)
 
(45
)
 
(45
)
Curtailments
 
1

 
1

 
1

 
—

 
(4
)
 
(2
)
 
(1
)
 
(3
)
Settlements
 
38

 
30

 
3

 
7

 
—

 
—

 
—

 
—

 
 
$
(40
)
 
$
99

 
$
20

 
$
39

 
$
17

 
$
35

 
$
(26
)
 
$
(17
)
 
 
 
Nine Months Ended
 
 
Pension Plans
 
 
 
 
U.S.
Qualified(a)
 
U.S.
Supplemental
(Non-Qualified)
 
International
 
Postretirement
Plans
(MILLIONS OF DOLLARS)
 
Sep 30, 2018

 
Oct 1, 2017

 
Sep 30, 2018

 
Oct 1, 2017

 
Sep 30, 2018

 
Oct 1, 2017

 
Sep 30, 2018

 
Oct 1, 2017

Net periodic benefit cost/(credit)(b):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost(c)
 
$
—

 
$
202

 
$
—

 
$
18

 
$
104

 
$
127

 
$
29

 
$
32

Interest cost
 
450

 
478

 
40

 
41

 
160

 
152

 
54

 
68

Expected return on plan assets
 
(783
)
 
(759
)
 
—

 
—

 
(274
)
 
(256
)
 
(28
)
 
(27
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actuarial losses(c)
 
90

 
302

 
10

 
37

 
77

 
86

 
5

 
23

Prior service costs/(credits)
 
1

 
3

 
(1
)
 
(1
)
 
(3
)
 
(3
)
 
(135
)
 
(137
)
Curtailments
 
11

 
10

 
1

 
—

 
(4
)
 
(2
)
 
(15
)
 
(15
)
Settlements
 
84

 
54

 
24

 
32

 
—

 
3

 
—

 
—

 
 
$
(147
)
 
$
292

 
$
75

 
$
127

 
$
61

 
$
106

 
$
(89
)
 
$
(57
)

(a) 
In the second quarter of 2017, we settled the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. We purchased a group annuity contract on behalf of the remaining plan participants with a third-party insurance provider. As a result, we were relieved of the $156 million net pension benefit obligation and recorded a pre-tax settlement gain of $41 million, partially offset by the recognition of actuarial losses and prior service costs upon plan settlement of approximately $30 million in Other (income)/deductions––net (see Note 3).
(b) 
We adopted a new accounting standard on January 1, 2018 that requires the net periodic pension and postretirement benefit costs other than service costs be presented in Other (income)/deductions––net on the condensed consolidated statements of income. For additional information, see Note 1B and Note 4.
(c) 
Effective January 1, 2018, we froze two significant defined benefit pension plans to future benefit accruals in the U.S. and U.K. and as a result, service costs for those plans are eliminated. In addition, due to the plan freeze, the average amortization period for the U.S. qualified plans and U.S. supplemental (non-qualified) plans was extended to the expected life expectancy of the plan participants, whereas the average amortization period in prior years utilized the expected future service period of plan participants.
Schedule of Employer Contributions to Pension and Postretirement Plans
The following table provides the amounts we contributed, and the amounts we expect to contribute during 2018, to our pension and postretirement plans from our general assets for the periods indicated:
 
 
Pension Plans
 
 
(MILLIONS OF DOLLARS)
 
U.S. Qualified
 
U.S. Supplemental (Non-Qualified)
 
International
 
Postretirement Plans
Contributions from our general assets for the nine months ended September 30, 2018
 
$
500

 
$
118

 
$
174

 
$
108

Expected contributions from our general assets during 2018(a)
 
500

 
137

 
229

 
149

(a) 
Contributions expected to be made for 2018 are inclusive of amounts contributed during the nine months ended September 30, 2018, including the $500 million voluntary contribution that was made in February 2018 for the U.S. qualified plans, which was considered pre-funding for future anticipated mandatory contributions and is also expected to reduce Pension Benefit Guaranty Corporation variable rate premiums. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments.