Defined Benefit Postretirement Plans

The following summarizes the components of net periodic benefit cost:



	Three Months Ended September 30,
	Pension Benefits						Other Benefits
(In millions)	2013			2012			2013			2012
Service cost	$	14		$	12		$	1		$	1
Interest cost	16			16			3			4
Expected return on plan assets	(17		)	(14		)	—			—
Amortization:
– prior service cost (credit)	2			2			(2		)	(2		)
– actuarial loss	9			12			—			—
Net settlement loss^(a)	15			34			—			—
Net periodic benefit cost	$	39		$	62		$	2		$	3



	Nine months Ended September 30,
	Pension Benefits						Other Benefits
(In millions)	2013			2012			2013			2012
Service cost	$	42		$	37		$	3		$	3
Interest cost	47			48			9			11
Expected return on plan assets	(50		)	(46		)	—			—
Amortization:
– prior service cost (credit)	5			6			(5		)	(5		)
– actuarial loss	38			37			—			—
Net settlement loss^(a)	32			34			—			—
Net periodic benefit cost	$	114		$	116		$	7		$	9

(a) Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. Such settlements were recorded for our U.S. plans in the second and third quarters of 2013 and the third quarter of 2012.

During the second and third quarters of 2013 and the third quarter of 2012, we recorded the effects of partial settlements of our U.S. pension plans and we remeasured the plans' assets and liabilities as of the applicable balance sheet dates. As a result, we recognized decreases of $24 million and $163 million in actuarial losses in other comprehensive income for the three months and nine months ended September 30, 2013, and an increase of $103 million in actuarial losses, net of settlement loss, for the three months and nine months ended September 30, 2012.

During the first nine months of 2013, we made contributions of $50 million to our funded pension plans. We expect to make additional contributions up to an estimated $17 million to our funded pension plans over the remainder of 2013. Current benefit payments related to unfunded pension and other postretirement benefit plans were $19 million and $12 million during the first nine months of 2013.