Employee Benefit Plans

6 Months Ended

Jun. 30, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans [Text Block]

7. EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost for the three months ended June 30 were as follows:

In millions	U.S. Pension Benefits		International Pension Benefits		Total Pension Benefits
	2012	2011	2012	2011	2012	2011
Net service cost	$—	$—	$3	$4	$3	$4
Interest cost	39	46	20	23	59	69
Expected return on plan assets	(28)	(39)	(24)	(28)	(52)	(67)
Settlement charge	—	—	—	1	—	1
Amortization of:
Prior service cost	—	—	1	1	1	1
Actuarial loss	13	29	15	16	28	45
Net benefit cost	$24	$36	$15	$17	$39	$53

Components of net periodic benefit cost for the six months ended June 30 were as follows:

In millions	U.S. Pension Benefits		International Pension Benefits		Total Pension Benefits
	2012	2011	2012	2011	2012	2011
Net service cost	$—	$—	$7	$8	$7	$8
Interest cost	78	91	39	45	117	136
Expected return on plan assets	(56)	(78)	(48)	(55)	(104)	(133)
Settlement charge	—	—	—	1	—	1
Amortization of:
Prior service cost	—	—	2	2	2	2
Actuarial loss	26	58	30	32	56	90
Net benefit cost	$48	$71	$30	$33	$78	$104

The decrease in pension expense was primarily due to a reduction in amortization of the actuarial losses for plans which have less than 10% active participants, as of January 1, 2012, where the amortization is now being calculated based on average remaining life expectancy rather than remaining service period. This change reflects our ongoing accounting policy for the evolving demographics of our pension plans, and was effective for the U.S. qualified pension and our largest U.K. plan beginning in the first quarter of 2012.

The income from the postretirement plan for the three and six months ended June 30 was:

In millions	Three months ended June 30		Six months ended June 30
	2012	2011	2012	2011
Interest cost	$1	$1	$1	$1
Amortization of:
Prior service benefit	(5)	(5)	(9)	(9)
Actuarial loss	1	1	2	2
Net postretirement income	$(3)	$(3)	$(6)	$(6)

The cost of the postemployment plan for the three and six months ended June 30 was:

In millions	Three months ended June 30		Six months ended June 30
	2012	2011	2012	2011
Net service cost	$5	$7	$11	$13
Interest cost	3	2	5	5
Amortization of:
Prior service cost	(1)	(7)	(3)	(7)
Actuarial loss	3	4	6	7
Net benefit cost	$10	$6	$19	$18
Restructuring severance cost	—	—	(1)	—
Total postemployment cost	$10	$6	$18	$18

During the second quarter of 2011, NCR announced a change in the long term disability benefits provided to former employees, effective July 1, 2011. This action reduced the actuarial liability associated with the benefits by approximately $6 million in the second quarter of 2011.

Employer Contributions

Pension For the three months ended June 30, 2012, NCR contributed approximately $23 million to its international pension plans, $27 million to its U.S. qualified pension plan and $2 million to its executive pension plan. For the six months ended June 30, 2012, NCR contributed approximately $39 million to is international plans, $27 million to its U.S. qualified pension plan and $4 million to its executive pension plan. In 2012, NCR anticipates contributing an additional $81 million to its international pension plans for a total of $120 million and an additional $6 million to its executive pension plan for a total of $10 million. See Note 14, "Subsequent Events," for a discussion of expected contributions to the U.S. qualified pension plan.

Postretirement For the three and six months ended June 30, 2012, NCR contributed $1 million and $3 million, respectively, to its U.S. postretirement plan. NCR anticipates contributing an additional $4 million to its U.S. postretirement plan for a total of $7 million in 2012.

Postemployment For the three and six months ended June 30, 2012, NCR contributed approximately $5 million and $13 million, respectively, to its postemployment plans. NCR anticipates contributing an additional $47 million to its postemployment plans for a total of $60 million in 2012.