17. 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 tables provide the pre-tax cost for all retirement-related plans. | | | | | | | | | | | | | | | | | | Yr. to Yr. | | (Dollars in millions) | | | | | | | | Percent | | For the three months ended June 30: | | 2021 | | 2020 | | Change | | Retirement-related plans — cost: | | | | | | | | | | Defined benefit and contribution pension plans — cost | | $ | 653 | | $ | 596 | | 9.6 | % | Nonpension postretirement plans — cost | | | 45 | | | 50 | | (10.4) | | Total | | $ | 698 | | $ | 645 | | 8.1 | % |
| | | | | | | | | | | | | | | | | | Yr. to Yr. | | (Dollars in millions) | | | | | | | | Percent | | For the six months ended June 30: | | 2021 | | 2020 | | Change | | Retirement-related plans — cost: | | | | | | | | | | Defined benefit and contribution pension plans — cost | | $ | 1,325 | | $ | 1,179 | | 12.4 | % | Nonpension postretirement plans — cost | | | 89 | | | 102 | | (12.5) | | Total | | $ | 1,414 | | $ | 1,281 | | 10.4 | % |
The following tables provide 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 June 30: | | 2021 | | 2020 | | 2021 | | 2020 | Service cost | | $ | — | | $ | — | | $ | 95 | | $ | 95 | Interest cost (1) | | | 277 | | | 375 | | | 112 | | | 137 | Expected return on plan assets (1) | | | (451) | | | (542) | | | (291) | | | (311) | Amortization of prior service costs/(credits) (1) | | | 4 | | | 4 | | | (4) | | | (5) | Recognized actuarial losses (1) | | | 249 | | | 207 | | | 370 | | | 340 | Curtailments and settlements (1) | | | — | | | — | | | 16 | | | 13 | Multi-employer plans | | | — | | | — | | | 7 | | | 7 | Other costs/(credits) (1) | | | — | | | — | | | 3 | | | 9 | Total net periodic pension (income)/cost of defined benefit plans | | $ | 80 | | $ | 44 | | $ | 308 | | $ | 284 | Cost of defined contribution plans | | | 151 | | | 154 | | | 114 | | | 113 | Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement | | $ | 231 | | $ | 198 | | $ | 422 | | $ | 397 |
| | | | | | | | | | | | | (Dollars in millions) | | U.S. Plans | | Non-U.S. Plans | For the six months ended June 30: | | 2021 | | 2020 | | 2021 | | 2020 | Service cost | | $ | — | | $ | — | | $ | 187 | | $ | 190 | Interest cost (1) | | | 555 | | | 750 | | | 223 | | | 266 | Expected return on plan assets (1) | | | (901) | | | (1,084) | | | (581) | | | (620) | Amortization of prior service costs/(credits) (1) | | | 8 | | | 8 | | | (6) | | | (9) | Recognized actuarial losses (1) | | | 498 | | | 415 | | | 745 | | | 682 | Curtailments and settlements (1) | | | — | | | — | | | 34 | | | 21 | Multi-employer plans | | | — | | | — | | | 15 | | | 14 | Other costs/(credits) (1) | | | — | | | — | | | 15 | | | 14 | Total net periodic pension (income)/cost of defined benefit plans | | $ | 160 | | $ | 89 | | $ | 630 | | $ | 559 | Cost of defined contribution plans | | | 302 | | | 309 | | | 234 | | | 223 | Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement | | $ | 462 | | $ | 398 | | $ | 864 | | $ | 782 |
(1) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. The following tables provide 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 June 30: | | 2021 | | 2020 | | 2021 | | 2020 | Service cost | | $ | 2 | | $ | 2 | | $ | 1 | | $ | 1 | Interest cost (1) | | | 16 | | | 26 | | | 8 | | | 8 | Expected return on plan assets (1) | | | — | | | — | | | (1) | | | (1) | Amortization of prior service costs/(credits) (1) | | | 1 | | | 1 | | | 0 | | | 0 | Recognized actuarial losses (1) | | | 13 | | | 7 | | | 4 | | | 5 | Curtailments and settlements (1) | | | — | | | — | | | 0 | | | — | Total nonpension postretirement plans cost recognized in the Consolidated Income Statement | | $ | 32 | | $ | 36 | | $ | 13 | | $ | 14 |
| | | | | | | | | | | | | (Dollars in millions) | | U.S. Plan | | Non-U.S. Plans | For the six months ended June 30: | | 2021 | | 2020 | | 2021 | | 2020 | Service cost | | $ | 4 | | $ | 4 | | $ | 2 | | $ | 3 | Interest cost (1) | | | 32 | | | 51 | | | 16 | | | 18 | Expected return on plan assets (1) | | | — | | | — | | | (2) | | | (2) | Amortization of prior service costs/(credits) (1) | | | 2 | | | 2 | | | 0 | | | 0 | Recognized actuarial losses (1) | | | 26 | | | 15 | | | 8 | | | 11 | Curtailments and settlements (1) | | | — | | | — | | | 0 | | | 0 | Total nonpension postretirement plans cost recognized in Consolidated Income Statement | | $ | 64 | | $ | 72 | | $ | 25 | | $ | 29 |
(1) These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. The company does not anticipate any significant changes to the expected plan contributions in 2021 from the amounts disclosed in the 2020 Annual Report. The table below includes contributions to the following plans: | | | | | | | | | | (Dollars in millions) | | Plan Contributions | For the six months ended June 30: | | | 2021 | 2020 | U.S. nonpension postretirement benefit plan | | $ | 191 | | $ | 200 | Non-U.S. DB and multi-employer plans * | | | 46 | | | 111 | Total plan contributions | | $ | 237 | | $ | 311 |
* Amounts reported net of refunds. During the six months ended June 30, 2021 and 2020, the company contributed $235 million and $250 million of U.S. Treasury Securities, respectively, to the non-U.S. DB plans and U.S. nonpension postretirement benefit plans. Additionally, during the six months ended June 30, 2021 and 2020, the company contributed $249 million and $160 million in U.S. Treasury securities, respectively, to the Active Medical Trust. Contributions made with U.S. Treasury securities are considered a non-cash transaction.
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