Pension and Other Postretirement Benefit Plans

9 Months Ended

Sep. 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						Nine Months Ended
	September 30,						September 30,
($ in millions)	2011			2010			2011			2010
Service cost	$	158		$	125		$	461		$	426
Interest cost		182			158			541			507
Expected return on plan assets		(243	)		(225	)		(728	)		(657	)
Net amortization		58			22			149			110
Termination benefits		15			14			32			42
Curtailments		(6	)		(3	)		(16	)		(40	)
Settlements		—			—			(1	)		(7	)
	$	164		$	91		$	438		$	381

     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						Nine Months Ended
	September 30,						September 30,
($ in millions)	2011			2010			2011			2010
Service cost	$	27		$	27		$	83		$	81
Interest cost		35			37			106			111
Expected return on plan assets		(35	)		(32	)		(106	)		(97	)
Net amortization		(4	)		1			(13	)		5
Termination benefits		5			9			11			36
Curtailments		(1	)		1			—			(1	)
	$	27		$	43		$	81		$	135

     In connection with restructuring actions (see Note 2), termination charges for the three and nine months ended September 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.