Retirement Plans

6 Months Ended

Jun. 30, 2011

Retirement Plans

Retirement Plans

9.     Retirement Plans

Net Periodic Benefit Cost

The following table presents the components of net periodic benefit cost for Devon's pension and other postretirement benefit plans.

	Pension Benefits				Other Postretirement Benefits
	Three Months Ended June 30,		Six Months Ended June 30,		Three Months Ended June 30,		Six Months Ended June 30,
	2011	2010	2011	2010	2011	2010	2011	2010
	(In millions)
Service cost	$          9	$          8	$        18	$        16	$          1	$        —	$          1	$        —
Interest cost	15	14	30	28	—	1	1	2
Expected return on plan assets	(11)	(9)	(21)	(18)	—	—	—	—
Amortization of prior service cost	1	1	2	2	(1)	—	(1)	—
Net actuarial loss	8	7	16	14	—	—	—	—
Net periodic benefit cost	$        22	$        21	$        45	$        42	$        —	$          1	$          1	$          2

Pension Plan Assets

Devon previously disclosed in its financial statements for the year ended December 31, 2010, that it expected to contribute $84 million to its qualified pension plans in 2011. Devon now expects to contribute $346 million to its qualified pension plans in 2011, including $246 million that was contributed in the first six months of 2011 and $100 million that was contributed in July 2011. The increase in Devon's 2011 contributions is due to increased discretionary funding.

As a result of the discretionary contributions noted above, Devon amended its target allocation for its pension plan assets in the second quarter of 2011. Devon previously disclosed a target allocation of 47.5% for equity securities, 40% for fixed income and 12.5% for other investment types. Devon now expects an allocation of 70% fixed income, 20% equity and 10% for other investment types for its pension assets.