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Postretirement Benefits (Tables)
3 Months Ended
Mar. 31, 2015
Compensation and Retirement Disclosure [Abstract]  
Components of net periodic cost and weighted-average assumptions used to determine net cost
 
U.S. Pension 
Benefits
 
Non-U.S. Pension 
Benefits
 
Other
Postretirement 
Benefits
(Millions of dollars)

March 31,
 
March 31,
 
March 31,
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
For the three months ended:
 
 
 
 
 
 
 
 
 
 
 
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
46

 
$
39

 
$
29

 
$
28

 
$
25

 
$
20

Interest cost
151

 
162

 
39

 
46

 
46

 
53

Expected return on plan assets 1
(220
)
 
(221
)
 
(67
)
 
(65
)
 
(13
)
 
(13
)
Amortization of:
 
 
 

 
 
 
 

 
 
 
 

Prior service cost (credit) 2

 
4

 

 

 
(13
)
 
(13
)
Net actuarial loss (gain) 3
127

 
98

 
25

 
22

 
13

 
10

Net periodic benefit cost
104

 
82

 
26

 
31

 
58

 
57

Curtailments, settlements and termination benefits 4

 

 
1

 

 

 

Total cost included in operating profit
$
104

 
$
82

 
$
27

 
$
31

 
$
58

 
$
57

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine net cost:
 
 
 
 
 
 
 
 
 
 
Discount rate
3.8
%
 
4.6
%
 
3.3
%
 
4.1
%
 
3.9
%
 
4.6
%
Expected rate of return on plan assets
7.4
%
 
7.8
%
 
6.8
%
 
6.9
%
 
7.8
%
 
7.8
%
Rate of compensation increase
4.0
%
 
4.0
%
 
4.0
%
 
4.2
%
 
4.0
%
 
4.0
%
 
 
 
 
 
 
 
 
 
 
 
 

1 
Expected return on plan assets developed using calculated market-related value of plan assets which recognizes differences in expected and actual returns over a three-year period.
2 
Prior service cost (credit) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and 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) are amortized using the straight-line method over the remaining life expectancy of those participants.
3 
Net actuarial loss (gain) for pension and other postretirement benefit plans are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For plans in which all or almost all of the plan’s participants are inactive, net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of the inactive participants.
4 
Curtailments, settlements and termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.
 
 
 
 
 
Components of net periodic cost and weighted-average assumptions used to determine net cost
 
U.S. Pension 
Benefits
 
Non-U.S. Pension 
Benefits
 
Other
Postretirement 
Benefits
(Millions of dollars)

March 31,
 
March 31,
 
March 31,
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
For the three months ended:
 
 
 
 
 
 
 
 
 
 
 
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
46

 
$
39

 
$
29

 
$
28

 
$
25

 
$
20

Interest cost
151

 
162

 
39

 
46

 
46

 
53

Expected return on plan assets 1
(220
)
 
(221
)
 
(67
)
 
(65
)
 
(13
)
 
(13
)
Amortization of:
 
 
 

 
 
 
 

 
 
 
 

Prior service cost (credit) 2

 
4

 

 

 
(13
)
 
(13
)
Net actuarial loss (gain) 3
127

 
98

 
25

 
22

 
13

 
10

Net periodic benefit cost
104

 
82

 
26

 
31

 
58

 
57

Curtailments, settlements and termination benefits 4

 

 
1

 

 

 

Total cost included in operating profit
$
104

 
$
82

 
$
27

 
$
31

 
$
58

 
$
57

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine net cost:
 
 
 
 
 
 
 
 
 
 
Discount rate
3.8
%
 
4.6
%
 
3.3
%
 
4.1
%
 
3.9
%
 
4.6
%
Expected rate of return on plan assets
7.4
%
 
7.8
%
 
6.8
%
 
6.9
%
 
7.8
%
 
7.8
%
Rate of compensation increase
4.0
%
 
4.0
%
 
4.0
%
 
4.2
%
 
4.0
%
 
4.0
%
 
 
 
 
 
 
 
 
 
 
 
 

1 
Expected return on plan assets developed using calculated market-related value of plan assets which recognizes differences in expected and actual returns over a three-year period.
2 
Prior service cost (credit) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and 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) are amortized using the straight-line method over the remaining life expectancy of those participants.
3 
Net actuarial loss (gain) for pension and other postretirement benefit plans are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For plans in which all or almost all of the plan’s participants are inactive, net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of the inactive participants.
4 
Curtailments, settlements and 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
March 31,
(Millions of dollars)
2015
 
2014
U.S. Plans
$
83

 
$
81

Non-U.S. Plans
18

 
20

 
$
101

 
$
101