Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Components of net periodic cost and weighted-average assumptions used to determine net cost



(Millions of dollars)	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Postretirement Benefits
	September 30,						September 30,						September 30,
	2012			2011			2012			2011			2012			2011
For the three months ended:
Components of net periodic benefit cost:
Service cost	$	46		$	41		$	26		$	28		$	23		$	21
Interest cost	152			164			44			45			55			64
Expected return on plan assets	(204		)	(200		)	(53		)	(50		)	(15		)	(18		)
Amortization of:
Transition obligation (asset)	—			—			—			—			1			1
Prior service cost (credit) ¹	5			5			1			1			(18		)	(14		)
Net actuarial loss (gain) ¹	126			112			24			18			25			27
Net periodic benefit cost	125			122			42			42			71			81
Curtailments, settlements and special termination benefits ²	7			—			6			—			—			—
Total cost included in operating profit	$	132		$	122		$	48		$	42		$	71		$	81

For the nine months ended:
Components of net periodic benefit cost:
Service cost	$	138		$	118		$	82		$	83		$	69		$	62
Interest cost	460			488			135			132			166			190
Expected return on plan assets	(610		)	(598		)	(160		)	(150		)	(47		)	(53		)
Amortization of:
Transition obligation (asset)	—			—			—			—			2			2
Prior service cost (credit) ¹	15			15			1			2			(51		)	(41		)
Net actuarial loss (gain) ¹	374			338			72			54			75			81
Net periodic benefit cost	377			361			130			121			214			241
Curtailments, settlements and special termination benefits ²	7			—			28			9			(40		)	—
Total cost included in operating profit	$	384		$	361		$	158		$	130		$	174		$	241

Weighted-average assumptions used to determine net cost:
Discount rate	4.3		%	5.1		%	4.3		%	4.6		%	4.3		%	5.0		%
Expected return on plan assets	8.0		%	8.5		%	7.1		%	7.1		%	8.0		%	8.5		%
Rate of compensation increase	4.5		%	4.5		%	3.9		%	4.2		%	4.4		%	4.4		%

¹ Prior service cost (credit) and net actuarial loss (gain) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period to the full retirement eligibility date of employees expected to receive benefits from the plan. For other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) and net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of those participants.

² Curtailments, settlements and special termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.

Company costs related to U.S. and non-U.S. defined contribution plans

Total company costs related to our defined contribution plans were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(Millions of dollars)	2012		2011		2012		2011
U.S. Plans	$	62	$	3	$	196	$	135
Non-U.S. Plans	15		14		46		40
	$	77	$	17	$	242	$	175