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Pension and Postretirement Benefit Plans (Tables)
6 Months Ended
Jul. 03, 2011
Schedule of net periodic benefit costs of pension and post retirement benefit plans [Text Block]
The components of net periodic benefit costs of the U.S. and international pension plans and the postretirement plans, which provide medical and life insurance benefits to retirees and their eligible dependents, follow:
   
Pension Plans
       
   
U.S. Qualified(a)
   
U.S. Supplemental
(Non-Qualified)(b)
   
International(c)
   
Postretirement
Plans(d)
 
(millions of dollars)
 
July 3,
2011
   
July 4,
2010
   
July 3,
2011
   
July 4,
2010
   
July 3,
2011
   
July 4,
2010
   
July 3,
2011
   
July 4,
2010
 
Three Months Ended:
                                               
Service cost
  $ 89     $ 89     $ 10     $ 7     $ 65     $ 57     $ 18     $ 21  
Interest cost
    184       188       18       21       114       105       48       54  
Expected return on plan assets
    (220 )     (200 )                 (112 )     (107 )     (8 )     (8 )
Amortization of:
                                                               
Actuarial losses
    35       38       9       8       22       16       4        
Prior service (credits)/costs
    (2 )     1                   (1 )     (1 )     (13 )     (5 )
Curtailments and settlements––net
    34       (36 )     6       (8 )     6       (6 )     (20 )     (2 )
Special termination benefits
    5       36       6       62             2       1       6  
Net periodic benefit costs
  $ 125     $ 116     $ 49     $ 90     $ 94     $ 66     $ 30     $ 66  
                                                                 
Six Months Ended:
                                                               
Service cost
  $ 179     $ 183     $ 19     $ 15     $ 127     $ 117     $ 35     $ 43  
Interest cost
    369       379       37       40       225       216       97       108  
Expected return on plan assets
    (441 )     (402 )                 (221 )     (219 )     (17 )     (16 )
Amortization of:
                                                               
Actuarial losses
    70       76       18       15       43       33       8        
Prior service (credits)/costs
    (4 )     1       (1 )     (1 )     (2 )     (2 )     (27 )     (9 )
Curtailments and settlements––net
    51       (69 )     18       (9 )     4       (5 )     (26 )     (2 )
Special termination benefits
    10       50       13       152       3       3       1       12  
Net periodic benefit costs
  $ 234     $ 218     $ 104     $ 212     $ 179     $ 143     $ 71     $ 136  
(a)
The increase in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010, for our U.S. qualified plans was primarily driven by higher settlement charges and lower curtailment gains associated with Wyeth-related restructuring initiatives partially offset by higher expected return on plan assets and special termination benefits recognized in the prior-year period for certain executives as part of Wyeth-related restructuring initiatives.
(b)
The decrease in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010, for our U.S. supplemental (non-qualified) pension plans was primarily driven by special termination benefits recognized in the prior-year period for certain executives as part of Wyeth-related restructuring initiatives.
(c)
The increase in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010. for our international pension plans was primarily driven by the decrease in the discount rate partially offset by higher expected return on plan assets.
(d)
The decrease in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010, for our postretirement plans was primarily driven by the harmonization of the postretirement plans and by higher curtailment gains and lower settlement charges associated with Wyeth-related restructuring initiatives.