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Postretirement benefit plans
 9 Months Ended
Sep. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
Postretirement benefit plans
Postretirement benefit plans
Components of net periodic employee benefit cost are as follows:

 
U.S.
Defined Benefit
 
U.S.
Retiree Health Care
 
Non-U.S.
Defined Benefit
For Three Months Ended September 30,
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Service cost
$
6

 
$
6

 
$
1

 
$
1

 
$
10

 
$
9

Interest cost
11

 
11

 
6

 
6

 
19

 
16

Expected return on plan assets
(12
)
 
(11
)
 
(6
)
 
(5
)
 
(20
)
 
(20
)
Amortization of prior service cost (credit)
—

 
—

 
1

 
1

 
(1
)
 
(1
)
Recognized net actuarial loss
4

 
6

 
4

 
3

 
10

 
10

Net periodic benefit cost
$
9

 
$
12

 
$
6

 
$
6

 
$
18

 
$
14

 
 
 
 
 
 
 
 
 
 
 
 
Settlement charges (credits)
—

 
—

 
—

 
—

 
(144
)
 
—

Total, including charges
$
9

 
$
12

 
$
6

 
$
6

 
$
(126
)
 
$
14

 
U.S.
Defined Benefit
 
U.S.
Retiree Health Care
 
Non-U.S.
Defined Benefit
For Nine Months Ended September 30,
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Service cost
$
18

 
$
17

 
$
4

 
$
3

 
$
29

 
$
27

Interest cost
33

 
34

 
18

 
19

 
58

 
48

Expected return on plan assets
(37
)
 
(34
)
 
(18
)
 
(16
)
 
(59
)
 
(59
)
Amortization of prior service cost (credit)
1

 
1

 
3

 
2

 
(3
)
 
(3
)
Recognized net actuarial loss
12

 
17

 
10

 
9

 
34

 
29

Net periodic benefit cost
$
27

 
$
35

 
$
17

 
$
17

 
$
59

 
$
42

 
 
 
 
 
 
 
 
 
 
 
 
Curtailment charges (credits)
—

 
—

 
(1
)
 
—

 
—

 
—

Settlement charges (credits)
—

 
—

 
—

 
—

 
(144
)
 
—

Special termination benefit charges (credits)
(2
)
 
—

 
—

 
—

 
—

 
—

Total, including charges
$
25

 
$
35

 
$
16

 
$
17

 
$
(85
)
 
$
42



Transfer of Japan substitutional pension
In Japan, we maintain employee pension fund plans (EPFs) pursuant to the Japanese Welfare Pension Insurance Law (JWPIL). An EPF consists of two portions: a substitutional portion based on JWPIL-determined minimum old-age pension benefits similar to social security benefits in the United States; and a corporate portion established at the discretion of each employer. Employers and employees are exempt from contributing to the Japanese Pension Insurance (JPI) if the substitutional portion is funded by an EPF.

The JWPIL was amended to permit each EPF to separate the substitutional portion and transfer those obligations and related assets to the government of Japan. After such a transfer, the employer is required to contribute periodically to JPI, and the government of Japan is responsible for future benefit payments relating to the substitutional portion.
  
During the third quarter of 2012, our EPF received final approval for such a separation and transferred the obligations and assets of its substitutional portion to the government of Japan. On a pre-tax basis, this resulted in a net gain of $144 million recorded in Restructuring charges/other on our Consolidated statements of income and included in Other. This net gain of $144 million consisted of two parts - a gain of $339 million, representing the difference between the fair values of the obligations settled ($537 million) and the assets transferred to the government of Japan ($198 million), offset by a settlement loss of $195 million related to the recognition of previously unrecognized actuarial losses included in AOCI.