EMPLOYEE BENEFITS

6 Months Ended

Jun. 30, 2014

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

14. EMPLOYEE BENEFITS

The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:

	Pension						Postretirement
		U.S.		Non-U.S.				U.S.		Non-U.S.
(in millions)		Plans		Plans		Total		Plans		Plans		Total
Three Months Ended June 30, 2014
Components of net periodic benefit cost:
Service cost	$	44	$	10	$	54	$	1	$	1	$	2
Interest cost		57		8		65		3		-		3
Expected return on assets		(71)		(5)		(76)		-		-		-
Amortization of prior service (credit) cost		(9)		-		(9)		(3)		-		(3)
Amortization of net (gain) loss		11		2		13		-		-		-
Net periodic benefit cost	$	32	$	15	$	47	$	1	$	1	$	2
Three Months Ended June 30, 2013
Components of net periodic benefit cost:
Service cost	$	44	$	12	$	56	$	2	$	1	$	3
Interest cost		49		7		56		2		1		3
Expected return on assets		(64)		(5)		(69)		-		-		-
Amortization of prior service (credit) cost		(9)		-		(9)		(2)		-		(2)
Amortization of net (gain) loss		33		3		36		-		-		-
Net periodic benefit cost	$	53	$	17	$	70	$	2	$	2	$	4
Six Months Ended June 30, 2014
Components of net periodic benefit cost:
Service cost	$	88	$	21	$	109	$	2	$	1	$	3
Interest cost		114		15		129		5		1		6
Expected return on assets		(142)		(11)		(153)		-		-		-
Amortization of prior service (credit) cost		(17)		(1)		(18)		(5)		-		(5)
Amortization of net (gain) loss		22		4		26		-		-		-
Net periodic benefit cost	$	65	$	28	$	93	$	2	$	2	$	4
Six Months Ended June 30, 2013
Components of net periodic benefit cost:
Service cost	$	88	$	24	$	112	$	3	$	2	$	5
Interest cost		98		15		113		4		1		5
Expected return on assets		(129)		(10)		(139)		-		-		-
Amortization of prior service (credit) cost		(17)		(1)		(18)		(5)		-		(5)
Amortization of net (gain) loss		66		6		72		1		-		1
Net periodic benefit cost	$	106	$	34	$	140	$	3	$	3	$	6

For the six-month period ended June 30,2014, we contributed $110 million to our U.S. and non-U.S. pension plans and estimate that we will contribute an additional $67 million for the remainder of 2014. These estimates are subject to change because contribution decisions are affected by various factors, including our liquidity, market performance and management discretion.