18. Retirement-Related Benefits: The company offers defined benefit (DB) 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 March 31: | | 2022 | | 2021 | | Change | | Retirement-related plans — cost: | | | | | | | | | | Defined benefit and contribution pension plans — cost | | $ | 478 | | $ | 619 | | (22.8) | % | Nonpension postretirement plans — cost | | | 33 | | | 44 | | (25.0) | | Total | | $ | 510 | | $ | 663 | | (23.0) | % |
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: | | 2022 | | 2021 | | 2022 | | 2021 | Service cost | | $ | — | | $ | — | | $ | 64 | | $ | 65 | Interest cost (1) | | | 302 | | | 277 | | | 139 | | | 108 | Expected return on plan assets (1) | | | (475) | | | (451) | | | (274) | | | (279) | Amortization of prior service costs/(credits) (1) | | | 2 | | | 4 | | | 4 | | | (2) | Recognized actuarial losses (1) | | | 179 | | | 249 | | | 278 | | | 356 | Curtailments and settlements (1) | | | — | | | — | | | 8 | | | 17 | Multi-employer plans | | | — | | | — | | | 4 | | | 6 | Other costs/(credits) (1) | | | — | | | — | | | 9 | | | 11 | Total net periodic pension (income)/cost of defined benefit plans | | $ | 8 | | $ | 80 | | $ | 231 | | $ | 283 | Cost of defined contribution plans | | | 141 | | | 151 | | | 98 | | | 105 | Total defined benefit and contribution pension plans cost recognized in the Consolidated Income Statement | | $ | 149 | | $ | 231 | | $ | 328 | | $ | 388 |
(1)These components of net periodic pension cost are included in other (income) and expense in the Consolidated Income Statement. 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: | | 2022 | | 2021 | | 2022 | | 2021 | Service cost | | $ | 1 | | $ | 2 | | $ | 1 | | $ | 1 | Interest cost (1) | | | 18 | | | 16 | | | 9 | | | 8 | Expected return on plan assets (1) | | | — | | | — | | | 0 | | | (1) | Amortization of prior service costs/(credits) (1) | | | 1 | | | 1 | | | 0 | | | 0 | Recognized actuarial losses (1) | | | 2 | | | 13 | | | 1 | | | 4 | Curtailments and settlements (1) | | | — | | | — | | | — | | | — | Total nonpension postretirement plans cost recognized in the Consolidated Income Statement | | $ | 23 | | $ | 32 | | $ | 10 | | $ | 12 |
(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 2022 from the amounts disclosed in the 2021 Annual Report. The table below includes contributions to the following plans: | | | | | | | (Dollars in millions) | | Plan Contributions | For the three months ended March 31: | | | 2022 | 2021 | U.S. and non-U.S. nonpension postretirement benefit plans | | $ | 120 | | $ | 106 | Non-U.S. DB and multi-employer plans* | | | 35 | | | 64 | Total plan contributions | | $ | 154 | | $ | 170 |
* | Amounts reported net of refunds. |
During the three months ended March 31, 2022 and 2021, the company contributed $105 million and $150 million of U.S Treasury Securities, respectively, to the non-U.S. DB plans and nonpension postretirement benefit plans. Additionally, during the three months ended March 31, 2022 and 2021, the company contributed $156 million and $129 million of 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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