Long-Term Employee Benefits

Pension Plans

In February 2013, DuPont completed the sale of its Performance Coatings business. As a result of the sale, the company recorded settlement and curtailment losses of $153. See Note 2 for additional information.

In connection with the announcement of the planned sale of the Performance Coatings business, the company recorded a pension curtailment loss 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,
	2013			2012			2013			2012
Service cost	$	67		$	67		$	206		$	201
Interest cost	272			290			816			882
Expected return on plan assets	(379		)	(378		)	(1,139		)	(1,138		)
Amortization of loss	244			222			724			661
Amortization of prior service cost	2			3			8			10
Curtailment loss	—			2			1			2
Settlement loss	—			—			152			—
Net periodic benefit cost	$	206		$	206		$	768		$	618

Other Long-Term Employee Benefit Plans

In conjunction with the sale of the Performance Coating business noted above, the company recorded a net $153 settlement and curtailment gain. See Note 2 for additional information.

During the third quarter 2013, the company amended its U.S. parent company retiree life insurance plan for employees retiring on and after January 1, 2015 and subsidiary retiree health care plans. As a result of these changes, the company was required to re-measure the associated plans as of August 31, 2013, which included updating the discount rate assumption to 4.75% from 3.85% assumed at December 31, 2012. The re-measurement and amendment resulted in a net decrease of $294 to the company's other long-term employee benefit obligation, which included an actuarial gain of $95 due to a higher discount rate and prior service benefit of $199.

During the third quarter 2012, the company amended its U.S. parent company retiree medical and dental plans for Medicare-eligible retirees and survivors. 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,
	2013			2012			2013			2012
Service cost	$	7		$	9		$	23		$	28
Interest cost	32			41			98			137
Amortization of loss	26			24			51			68
Amortization of prior service benefit	(48		)	(44		)	(142		)	(104		)
Curtailment loss (gain)	—			3			(154		)	3
Settlement loss	—			—			1			—
Net periodic benefit cost	$	17		$	33		$	(123	)	$	132