Pension and Postretirement Plans

3 Months Ended

Mar. 31, 2013

Pension and Postretirement Plans

Pension and Postretirement Plans

12. Pension and Postretirement Plans

The company has non-contributory qualified defined benefit pension plans covering most of its U.S. employees. The company also has U.S. non-contributory non-qualified defined benefit plans, which provide for benefits to employees in excess of limits permitted under its U.S. pension plans. Various international subsidiaries also have defined benefit pension plans. The company provides postretirement health care benefits to certain U.S. employees.

The components of net periodic pension and postretirement health care benefit costs for the first quarter ended March 31 are as follows:

													U.S.
							International						Postretirement
	U.S. Pension						Pension						Health Care
(millions)	2013			2012			2013			2012			2013			2012
Service cost	$	17.1		$	12.6		$	9.1		$	7.3		$	1.5		$	1.3
Interest cost on benefit obligation	21.2			22.3			11.9			11.9			2.7			3.2
Expected return on plan assets	(32.5		)	(31.8		)	(11.8		)	(10.5		)	(0.3		)	(0.3		)
Recognition of net actuarial loss	15.6			11.3			2.9			1.0			0.2			0.1
Amortization of prior service benefit	(1.7		)	(1.0)			(0.1		)	(0.1		)	(0.1		)	—
	$	19.7		$	13.4		$	12.0		$	9.6		$	4.0		$	4.3

As of March 31, 2013, the company is in compliance with all funding requirements of its U.S. pension and postretirement health care plans.

Based on plan asset values as of December 31, 2011, the company was required to make contributions of $38 million to its Nalco U.S. pension plan during 2012. During the first three months of 2012, $8 million was funded to the Nalco U.S. pension plan. During 2012, a total of $180 million was funded to the Nalco U.S. plan. Effective December 31, 2012, the Nalco U.S. qualified pension plan merged into the Ecolab U.S. qualified pension plan. No contributions are anticipated to be made to the U.S. qualified pension plan during 2013.

During the first three months of 2013, the company made payments of $1 million to its U.S. non-contributory non-qualified defined benefit plans, and estimates that it will make payments of approximately $9 million more to such plans during the remainder of 2013.

The company contributed $13 million to its international pension benefit plans during the first three months of 2013. The company currently estimates that it will contribute approximately $37 million more to the international pension benefit plans during the remainder of 2013.

During the first three months of 2013, the company made payments of $5 million to its U.S. postretirement health care benefit plans, and estimates that it will make payments of approximately $15 million more to such plans during the remainder of 2013.