Quarterly report pursuant to Section 13 or 15(d)

PENSION AND OTHER POSTRETIREMENT BENEFITS

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PENSION AND OTHER POSTRETIREMENT BENEFITS
 3 Months Ended
Mar. 31, 2013
PENSION AND OTHER POSTRETIREMENT BENEFITS  
PENSION AND OTHER POSTRETIREMENT BENEFITS

NOTE 3. 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

 

In millions

 

March 31, 2013

 

April 1, 2012

 

Defined benefit pension and other postretirement plans

 

 

 

 

 

Voluntary contribution

 

$

39

 

$

38

 

Mandatory contribution

 

37

 

5

 

Defined benefit pension contributions

 

76

 

43

 

Other postretirement plans

 

14

 

9

 

Total defined benefit plans

 

$

90

 

$

52

 

 

 

 

 

 

 

Defined contribution pension plans

 

$

22

 

$

27

 

 

We made $76 million of pension contributions in the three month period ended March 31, 2013, and we anticipate making an additional $89 million of contributions during the remainder of 2013. We paid $14 million of claims and premiums for other postretirement benefits in the three month period ended March 31, 2013; payments for the remainder of 2013 are expected to be $33 million. The $165 million of contributions for the full year include voluntary contributions of approximately $110 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. Our expected pension expense for 2013 has been reduced $10 million, to $87 million, from the amount we had expected at year-end, due to a remeasurement of the U.S. plan for changes in employee census data.

 

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

 

 

 

Pension

 

 

 

 

 

 

 

U.S. Plans

 

U.K. Plans

 

Other Postretirement Benefits

 

 

 

Three months ended

 

 

 

March 31,

 

April 1,

 

March 31,

 

April 1,

 

March 31,

 

April 1,

 

In millions

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

Service cost

 

$

17

 

$

14

 

$

5

 

$

6

 

$

—

 

$

—

 

Interest cost

 

24

 

26

 

14

 

14

 

4

 

5

 

Expected return on plan assets

 

(42

)

(39

)

(18

)

(20

)

—

 

—

 

Amortization of prior service credit

 

—

 

—

 

—

 

—

 

—

 

(1

)

Recognized net actuarial loss

 

16

 

12

 

6

 

3

 

2

 

1

 

Net periodic benefit cost

 

$

15

 

$

13

 

$

7

 

$

3

 

$

6

 

$

5