Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2011

Pension and Other Postretirement Benefit Plans [Abstract]

Pension and Other Postretirement Benefits Plans

12. Pension and Other Postretirement Benefit Plans

     The Company has defined benefit pension plans covering eligible employees in the United States and in certain of its international subsidiaries. The net cost of such plans consisted of the following components:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
($ in millions)	2011			2010			2011			2010
Service cost	$	151		$	147		$	303		$	301
Interest cost		180			172			359			349
Expected return on plan assets		(242	)		(215	)		(485	)		(432	)
Net amortization		46			43			91			88
Termination benefits		7			9			17			28
Curtailments		(6	)		(1	)		(10	)		(37	)
Settlements		—			(6	)		(1	)		(7	)
	$	136		$	149		$	274		$	290

     The Company provides medical, dental and life insurance benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net cost of such plans consisted of the following components:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
($ in millions)	2011			2010			2011			2010
Service cost	$	28		$	28		$	56		$	54
Interest cost		35			36			71			74
Expected return on plan assets		(36	)		(33	)		(71	)		(65	)
Net amortization		(6	)		2			(9	)		4
Termination benefits		4			7			6			27
Curtailments		—			(2	)		1			(2	)
	$	25		$	38		$	54		$	92

     In connection with restructuring actions (see Note 2), termination charges for the three and six months ended June 30, 2011 and 2010 were recorded on pension and other postretirement benefit plans related to expanded eligibility for certain employees exiting Merck. Also, in connection with these restructuring actions, curtailments were recorded on pension and other postretirement benefit plans and settlements were recorded on pension plans as reflected in the tables above.