Employee Benefits

9 Months Ended

Sep. 30, 2012

Employee Benefits

Employee Benefits

(6)   Employee Benefits

        Net periodic pension income included the following components:

	Pension Plans
	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(Dollars in millions)
Service cost	$	23		21		68		49
Interest cost		156		166		468		395
Expected return on plan assets		(212)		(212)		(636)		(497)
Recognition of prior service cost		1		—		3		—
Recognition of net actuarial loss		7		4		22		11
Net periodic pension income	$	(25)		(21)		(75)		(42)

        Net periodic post-retirement benefit expense included the following components:

	Post-Retirement Plans
	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(Dollars in millions)
Service cost	$	5		5		16		12
Interest cost		44		49		131		104
Expected return on plan assets		(11)		(14)		(33)		(27)
Recognition of prior service cost		—		—		—		(1)
Net periodic post-retirement benefit expense	$	38		40		114		88

        We report net periodic pension income and net periodic post-retirement benefit expense in cost of services and products and selling, general and administrative expenses on our consolidated statements of operations.