Pension and Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Postretirement Benefit Plans

Pension and Postretirement Benefit Plans

The following table provides the components of net periodic benefit cost:

	Pension Plans
	U.S. Qualified(a)						U.S. Supplemental (Non-Qualified)(b)						International(c)						Postretirement Plans
(MILLIONS OF DOLLARS)	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
Three Months Ended
Net periodic benefit cost:
Service cost	$	77		$	96		$	7		$	10		$	56		$	53		$	16		$	18
Interest cost	168			183			14			17			97			101			42			46
Expected return on plan assets	(253		)	(245		)	—			—			(104		)	(105		)	(14		)	(9		)
Amortization of:
Actuarial losses	90			80			13			11			37			18			11			8
Prior service credits	(2		)	(3		)	(1		)	(1		)	(2		)	(2		)	(11		)	(12		)
Curtailments and settlements––net	29			44			22			13			3			(10		)	(7		)	(11		)
Special termination benefits	—			5			—			10			—			2			—			2
	$	109		$	160		$	55		$	60		$	87		$	57		$	37		$	42

^(a)  The decrease in net periodic benefit costs for the three months ended March 31, 2013, compared to the three months ended April 1, 2012, for our U.S. qualified plans was primarily driven by lower service cost resulting from the decision in 2012 to freeze the defined benefit plans in the U.S. and Puerto Rico, lower settlement activity and greater expected return on plan assets resulting from a higher plan asset base. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses.

^(b)  The decrease in net periodic benefit costs for the three months ended March 31, 2013, compared to the three months ended April 1, 2012, for our U.S. supplemental (non-qualified) pension plans was primarily driven by special termination benefits in 2012 and lower service cost resulting from the decision in 2012 to freeze the defined benefit plans in the U.S. and Puerto Rico, partially offset by higher settlement activity.

^(c)  The increase in net periodic benefit costs for the three months ended March 31, 2013, compared to the three months ended April 1, 2012, for our international pension plans was primarily driven by an increase in the amounts amortized for actuarial losses resulting from decreases in discount rates and the curtailment gain in our German plans in 2012.

For the three months ended March 31, 2013, we contributed from our general assets: $92 million to our U.S. supplemental (non-qualified) pension plans, $67 million to our international pension plans and $58 million to our postretirement plans. We did not make a contribution to our U.S. qualified pension plans during the first quarter of 2013.

During 2013, we expect to contribute from our general assets a total of $161 million to our U.S. supplemental (non-qualified) pension plans, $345 million to our international pension plans and $254 million to our postretirement plans. We do not expect to make contributions to our U.S. qualified pension plans during 2013. Contributions expected to be made for 2013 are inclusive of amounts contributed during the three months ended March 31, 2013. The international pension plan, postretirement plan and U.S. supplemental (non-qualified) pension plan contributions from our general assets include direct employer benefit payments.