Long-Term Employee Benefits

9 Months Ended

Sep. 30, 2012

Long Term Employee Benefits [Abstract]

Long-Term Employee Benefits

Long-Term Employee Benefits

Pension Plans

In August 2012, the company announced the sale of its Performance Coatings business (See Note 2). As a result of the planned sale, the company recorded a pension curtailment charge of $2 and re-measured the principal U.S. pension plan and certain other pension plans as of August 31, 2012. In connection with the re-measurement, the company updated the discount rate and expected return on plan assets, assumed at December 31, 2011, from 4.50 percent to 4.10 percent and from 9.00 percent to 8.75 percent, respectively. The curtailment and re-measurement increased the underfunded status of the pension plans and the pre-tax net loss by $609.

The following sets forth the components of the company’s net periodic benefit cost for pensions:  

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Service cost	$	67		$	62		$	201		$	182
Interest cost	290			316			882			940
Expected return on plan assets	(378		)	(371		)	(1,138		)	(1,105		)
Amortization of unrecognized loss	222			153			661			459
Amortization of prior service cost	3			4			10			12
Curtailment charge	2			—			2			—
Net periodic benefit cost	$	206		$	164		$	618		$	488

Other Long-Term Employee Benefit Plans

During the third quarter 2012, the company amended its U.S. parent company retiree medical and dental plans for Medicare-eligible retirees and survivors. Beginning in 2013, the company is replacing the coverage for Medicare-eligible plan participants in the company sponsored plans with a new company-funded Health Reimbursement Arrangement (HRA). Medicare-eligible plan participants will enroll in individual health plans in the open market and the company will reimburse their health care expenses with HRA based on the provisions of the amended plans. As a result of this change, the company was required to re-measure the associated plans as of July 31, 2012, which included updating the discount rate assumption to 4.00 percent from 4.50 percent assumed at December 31, 2011. The re-measurement and amendment resulted in a net decrease of $700 to the company's other long-term employee benefit obligation, which included an actuarial loss of $138 due to a lower discount rate and a credit of $838 to the prior service cost due to the plan amendment. The company's other long-term employee benefit expense was reduced by approximately $18 for the three and nine months ended September 30, 2012.

The following sets forth the components of the company’s net periodic benefit cost for other long-term employee benefits:  

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Service cost	$	9		$	8		$	28		$	25
Interest cost	41			53			137			159
Amortization of unrecognized loss	24			15			68			45
Amortization of prior service benefit	(44		)	(30		)	(104		)	(91		)
Curtailment charge	3			—			3			—
Net periodic benefit cost	$	33		$	46		$	132		$	138