Pension, Savings and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

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)	2012			2011			2012			2011
Service cost — benefits earned during the period	$	10		$	10		$	20		$	21
Interest cost on projected benefit obligation	65			70			131			141
Expected return on plan assets	(75		)	(76		)	(150		)	(153		)
Amortization of: — prior service cost	6			6			12			12
— net losses	43			33			89			67
Net periodic pension cost	49			43			102			88
Curtailments/settlements/termination benefits	—			11			—			11
Total defined benefit pension cost	$	49		$	54		$	102		$	99

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2012			2011			2012			2011
Service cost — benefits earned during the period	$	7		$	8		$	15		$	16
Interest cost on projected benefit obligation	35			38			70			76
Expected return on plan assets	(29		)	(33		)	(59		)	(66		)
Amortization of: — prior service cost	1			1			1			1
— net losses	11			9			23			19
Net periodic pension cost	25			23			50			46
Curtailments/settlements/termination benefits	—			1			—			—
Total defined benefit pension cost	$	25		$	24		$	50		$	46

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 $550 million to $600 million to our funded U.S. and non-U.S. pension plans in 2012. For the three and six months ended June 30, 2012, we contributed $27 million and $81 million, respectively, to our non-U.S. plans and for the three and six months ended June 30, 2012, we contributed $78 million and $129 million, respectively, to our U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended June 30, 2012 and 2011 was $23 million and $25 million, respectively, and $50 million and $51 million for the six months ended June 30, 2012 and 2011, 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, 2012 and 2011 was $0 million and $2 million, respectively, and $3 million and $5 million for the six months ended June 30, 2012 and 2011, respectively.