Quarterly report pursuant to Section 13 or 15(d)

PENSION AND OTHER POSTRETIREMENT BENEFITS

v2.4.0.8
PENSION AND OTHER POSTRETIREMENT BENEFITS
6 Months Ended
Jun. 30, 2013
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

 

 

 

June 30,

 

July 1,

 

June 30,

 

July 1,

 

In millions

 

2013

 

2012

 

2013

 

2012

 

Defined benefit pension and other postretirement plans

 

 

 

 

 

 

 

 

 

Voluntary contribution

 

$

38

 

$

35

 

$

77

 

$

73

 

Mandatory contribution

 

7

 

6

 

44

 

11

 

Defined benefit pension contributions

 

45

 

41

 

121

 

84

 

Other postretirement plans

 

12

 

8

 

26

 

17

 

Total defined benefit plans

 

$

57

 

$

49

 

$

147

 

$

101

 

 

 

 

 

 

 

 

 

 

 

Defined contribution pension plans

 

$

14

 

$

17

 

$

36

 

$

44

 

 

We made $121 million of pension contributions in the six months ended June 30, 2013 and we anticipate making an additional $49 million of contributions during the remainder of 2013.  We paid $26 million of claims and premiums for other postretirement benefits in the six months ended June 30, 2013; payments for the remainder of 2013 are expected to be $21 million.  The $170 million of pension contributions for the full year include voluntary contributions of approximately $115 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 December 31, 2012, due to a remeasurement of the U.S. plan for changes in employee census data in the first quarter of 2013.

 

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

 

 

 

June 30,

 

July 1,

 

June 30,

 

July 1,

 

June 30,

 

July 1,

 

In millions

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

Service cost

 

$

18

 

$

15

 

$

5

 

$

5

 

$

 

$

 

Interest cost

 

23

 

26

 

14

 

15

 

4

 

5

 

Expected return on plan assets

 

(42

)

(39

)

(18

)

(21

)

 

 

Amortization of prior service credit

 

 

 

 

 

 

(1

)

Recognized net actuarial loss

 

15

 

11

 

6

 

4

 

1

 

1

 

Net periodic benefit cost

 

$

14

 

$

13

 

$

7

 

$

3

 

$

5

 

$

5

 

 

 

 

Pension

 

 

 

 

 

 

 

U.S. Plans

 

U.K. Plans

 

Other Postretirement Benefits

 

 

 

Six months ended

 

 

 

June 30,

 

July 1,

 

June 30,

 

July 1,

 

June 30,

 

July 1,

 

In millions

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

Service cost

 

$

35

 

$

29

 

$

10

 

$

11

 

$

 

$

 

Interest cost

 

47

 

52

 

28

 

29

 

8

 

10

 

Expected return on plan assets

 

(84

)

(78

)

(36

)

(41

)

 

 

Amortization of prior service credit

 

 

 

 

 

 

(2

)

Recognized net actuarial loss

 

31

 

23

 

12

 

7

 

3

 

2

 

Net periodic benefit cost

 

$

29

 

$

26

 

$

14

 

$

6

 

$

11

 

$

10