9. Retirement-Related Benefits: The company offers defined benefit pension plans, defined contribution pension plans, as well as nonpension postretirement plans primarily consisting of retiree medical benefits. The following table provides the pre-tax cost for all retirement-related plans.

					Yr. to Yr.
(Dollars in millions)					Percent
For the three months ended March 31:	2018		2017		Change
Retirement-related plans — cost
Defined benefit and contribution pension plans — cost	$	738	$	664	11.1	%
Nonpension postretirement plans — cost	51		61		(17.2	)

Total	$	788	$	725	8.7	%

The following table provides the components of the cost/(income) for the company’s pension plans.

Cost/(Income) of Pension Plans

(Dollars in millions)	U.S. Plans						Non-U.S. Plans
For the three months ended March 31:	2018			2017			2018			2017
Service cost	$	—		$	—		$	104		$	101
Interest cost (1)	430			479			215			201
Expected return on plan assets (1)	(676		)	(754		)	(348		)	(317		)
Amortization of prior service costs/(credits) (1)	4			4			(21		)	(24		)
Recognized actuarial losses (1)	384			337			359			361
Curtailments and settlements (1)	—			—			0			(1		)
Multi-employer plans	—			—			10			9
Other costs (1)	—			—			7			5

Total net periodic pension (income)/cost of defined benefit plans	143			67			327			335
Cost of defined contribution plans	160			162			108			101

Total defined benefit and contribution plans cost recognized in the Consolidated Statement of Earnings	$	303		$	228		$	434		$	436

(1)

These components of net periodic pension cost are included in other (income) and expense in the Consolidated Statement of Earnings.

In 2018, the company expects to contribute approximately $400 million to its non-U.S. defined benefit and multi-employer plans, the largest of which will be contributed to the defined benefit pension plans in Japan, Spain and the UK. This amount generally represents the legally mandated minimum contribution. Total contributions to the non-U.S. plans in the first three months of 2018 were $191 million, of which $44 million was in cash and $147 million in U.S. Treasury securities. Total net contributions to the non-U.S. plans in the first three months of 2017 were $182 million, of which $40 million was in cash and $142 million in U.S. Treasury securities. The contribution of U.S. Treasury securities is considered a non-cash transaction in the Consolidated Statement of Cash Flows.

The following table provides the components of the cost for the company’s nonpension postretirement plans.

Cost of Nonpension Postretirement Plans

(Dollars in millions)	U.S. Plan						Non-U.S. Plans
For the three months ended March 31:	2018			2017			2018			2017
Service cost	$	3		$	4		$	1		$	1
Interest cost (1)	33			38			13			14
Expected return on plan assets (1)	—			—			(1		)	(2		)
Amortization of prior service costs/(credits) (1)	(2		)	(2		)	0			0
Recognized actuarial losses (1)	2			5			1			2
Curtailments and settlements (1)	—			—			0			0

Total nonpension postretirement plan cost recognized in Consolidated Statement of Earnings	$	37		$	46		$	14		$	16

(1)

These components of net periodic pension cost are included in other (income) and expense in the Consolidated Statement of Earnings.

The company contributed $120 million in U.S. Treasury securities to the U.S. nonpension postretirement benefit plan during the three months ended March 31, 2018, and $135 million in U.S. Treasury securities during the three months ended March 31, 2017. The contribution of U.S. Treasury securities is considered a non-cash transaction in the Consolidated Statement of Cash Flows.