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Retirement Benefits
 6 Months Ended
Jun. 30, 2011
Compensation and Retirement Disclosure [Abstract]  
RETIREMENT BENEFITS
RETIREMENT BENEFITS


We provide pension benefits and other postretirement employee benefits ("OPEB"), such as health care and life insurance, to employees in many of our operations around the world.


Pension and OPEB expense is summarized as follows (in millions):
 
Second Quarter
 
Pension Benefits
 
 
 
 
 
U.S. Plans
 
Non-U.S. Plans
 
OPEB
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Service cost
$
117


 
$
94


 
$
84


 
$
82


 
$
16


 
$
14


Interest cost
594


 
631


 
314


 
314


 
83


 
85


Expected return on assets
(757
)
 
(791
)
 
(358
)
 
(336
)
 
—


 
—


Amortization of:
 


 
 


 
 


 
 


 
 


 
 


Prior service costs/(credits)
85


 
93


 
18


 
18


 
(151
)
 
(156
)
(Gains)/Losses and Other
46


 
2


 
86


 
62


 
28


 
25


Separation programs
2


 
—


 
39


 
6


 
1


 
—


(Gains)/Losses from curtailments and settlements
—


 
—


 
104


 
—


 
—


 
—


Net expense/(income)
$
87


 
$
29


 
$
287


 
$
146


 
$
(23
)
 
$
(32
)


 
First Half
 
Pension Benefits
 
 
 
 
 
U.S. Plans
 
Non-U.S. Plans
 
OPEB
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Service cost
$
234


 
$
188


 
$
164


 
$
167


 
$
31


 
$
28


Interest cost
1,188


 
1,262


 
617


 
639


 
165


 
169


Expected return on assets
(1,514
)
 
(1,582
)
 
(706
)
 
(683
)
 
—


 
—


Amortization of:
 


 
 


 
 


 
 


 
 


 
 


Prior service costs/(credits)
171


 
186


 
36


 
37


 
(303
)
 
(310
)
(Gains)/Losses and Other
92


 
4


 
169


 
127


 
57


 
49


Separation programs
3


 
3


 
44


 
10


 
1


 
—


(Gains)/Losses from curtailments and settlements
—


 
—


 
104


 
—


 
—


 
—


Net expense/(income)
$
174


 
$
61


 
$
428


 
$
297


 
$
(49
)
 
$
(64
)




In the second quarter of 2011, we recorded a $104 million settlement loss in Automotive cost of sales associated with the partial settlement of a Belgium pension plan.


Plan Contributions
 
Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws and regulations. From time to time, we make contributions beyond those legally required.


Pension. In the first half of 2011, we contributed about $800 million to our worldwide funded pension plans, and made about $200 million of benefit payments directly by the Company for unfunded plans. We expect to contribute from Automotive cash and cash equivalents an additional $400 million to our funded plans in 2011, and to make $200 million of benefit payments directly by the Company for unfunded plans, for a total of $1.6 billion this year. Based on current assumptions and regulations, we do not expect to have a legal requirement to fund our major U.S. pension plans in 2011.