Pension, Savings and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2011

Pension, Savings and Other Postretirement Benefit Plans [Abstract]

PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

NOTE 10. PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

We provide employees with defined benefit pension or defined contribution savings plans.

     Defined benefit pension cost follows:

	U.S.						U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2011			2010			2011			2010
Service cost — benefits earned during the period	$	10		$	10		$	21		$	20
Interest cost on projected benefit obligation		70			73			141			148
Expected return on plan assets		(76	)		(70	)		(153	)		(140	)
Amortization of: — prior service cost		6			7			12			15
— net losses		33			33			67			66
Net periodic pension cost		43			53			88			109
Curtailments/settlements/termination benefits		11			—			11			—
Total defined benefit pension cost	$	54		$	53		$	99		$	109

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2011			2010			2011			2010
Service cost — benefits earned during the period	$	8		$	6		$	16		$	13
Interest cost on projected benefit obligation		38			35			76			72
Expected return on plan assets		(33	)		(30	)		(66	)		(62	)
Amortization of: — prior service cost		1			1			1			1
— net losses		9			8			19			17
Net periodic pension cost		23			20			46			41
Curtailments/settlements/termination benefits		1			—			—			1
Total defined benefit pension cost	$	24		$	20		$	46		$	42

During the second quarter of 2011, we recognized a settlement charge of $11 million related to one of our U.S. pension plans. This settlement charge resulted from total lump sum payments through June 30, 2011 exceeding estimated annual service and interest cost for the plan.

     We expect to contribute approximately $250 million to $300 million to our funded U.S. and non-U.S. pension plans in 2011. For the three and six months ended June 30, 2011, we contributed $10 million and $18 million, respectively, to our non-U.S. plans and for the three and six months ended June 30, 2011, we contributed $51 million to our U.S. plans.

     The expense recognized for our contributions to defined contribution savings plans was $25 million and $21 million for the three months ended June 30, 2011 and 2010, respectively, and $51 million and $46 million for the six months ended June 30, 2011 and 2010, respectively.

     We provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Postretirement benefit cost for the three months ended June 30, 2011 and 2010 was $2 million and $9 million, which includes a $7 million adjustment in 2010 for participant data related to prior periods, respectively, and $5 million and $11 million for the six months ended June 30, 2011 and 2010, respectively.