Quarterly report pursuant to Section 13 or 15(d)

PENSION AND OTHER POSTRETIREMENT BENEFITS

v2.4.0.6
PENSION AND OTHER POSTRETIREMENT BENEFITS
 6 Months Ended
Jul. 01, 2012
PENSION AND OTHER POSTRETIREMENT BENEFITS  
PENSION AND OTHER POSTRETIREMENT BENEFITS

NOTE 4. PENSION AND OTHER POSTRETIREMENT BENEFITS

 

We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement plans.  Contributions to these plans were as follows:

 

 

 

Three months ended

 

Six months ended

 

 

 

July 1,

 

June 26,

 

July 1,

 

June 26,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

Defined benefit pension and other postretirement plans

 

 

 

 

 

 

 

 

 

Voluntary pension

 

$

35

 

$

35

 

$

73

 

$

70

 

Mandatory pension

 

6

 

5

 

11

 

11

 

Defined benefit pension contributions

 

41

 

40

 

84

 

81

 

Other postretirement plans

 

8

 

9

 

17

 

18

 

Total defined benefit plans

 

$

49

 

$

49

 

$

101

 

$

99

 

 

 

 

 

 

 

 

 

 

 

Defined contribution pension plans

 

$

17

 

$

13

 

$

44

 

$

37

 

 

We made $84 million of pension contributions in the six months ended July 1, 2012, and we anticipate making an additional $46 million of contributions during the remainder of 2012. We paid $17 million of claims and premiums for other postretirement benefits in the six months ended July 1, 2012; payments for the remainder of 2012 are expected to be $34 million. The $130 million of contributions for the full year include voluntary contributions of approximately $109 million.  These contributions and payments may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants.

 

The components of net periodic pension and other postretirement benefit cost under our plans consisted of the following:

 

 

 

Pension

 

 

 

 

 

 

 

U.S. Plans

 

Non-U.S. Plans

 

Other Postretirement Benefits

 

 

 

Three months ended

 

 

 

July 1,

 

June 26,

 

July 1,

 

June 26,

 

July 1,

 

June 26,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

Service cost

 

$

15

 

$

13

 

$

5

 

$

5

 

$

—

 

$

—

 

Interest cost

 

26

 

27

 

15

 

15

 

5

 

6

 

Expected return on plan assets

 

(39

)

(38

)

(21

)

(19

)

—

 

—

 

Amortization of prior service (credit) cost

 

—

 

—

 

—

 

1

 

(1

)

(2

)

Recognized net actuarial loss

 

11

 

10

 

4

 

3

 

1

 

—

 

Net periodic benefit cost

 

$

13

 

$

12

 

$

3

 

$

5

 

$

5

 

$

4

 

 

 

 

Pension

 

 

 

 

 

 

 

U.S. Plans

 

Non-U.S. Plans

 

Other Postretirement Benefits

 

 

 

Six months ended

 

 

 

July 1,

 

June 26,

 

July 1,

 

June 26,

 

July 1,

 

June 26,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

Service cost

 

$

29

 

$

26

 

$

11

 

$

10

 

$

—

 

$

—

 

Interest cost

 

52

 

54

 

29

 

30

 

10

 

12

 

Expected return on plan assets

 

(78

)

(76

)

(41

)

(37

)

—

 

—

 

Amortization of prior service (credit) cost

 

—

 

—

 

—

 

1

 

(2

)

(4

)

Recognized net actuarial loss

 

23

 

20

 

7

 

6

 

2

 

—

 

Net periodic benefit cost

 

$

26

 

$

24

 

$

6

 

$

10

 

$

10

 

$

8