Note 10. Benefit Plans

Pension Plans

Components of Net Periodic Pension Cost:

Net periodic pension cost for the three and six months ended June 30, 2014 and 2013 consisted of:


	U.S. Plans						Non-U.S. Plans
	For the Three Months Ended June 30,
	2014			2013			2014			2013
	(in millions)

Service cost	$	13		$	19		$	45		$	43
Interest cost		16			15			100			88
Expected return on plan assets		(20	)		(17	)		(125	)		(107	)
Amortization:
Net loss from experience differences		7			13			27			33
Prior service cost		1			–			1			1
Settlement losses⁽¹⁾		4			2			5			–

Net periodic pension cost	$	21		$	32		$	53		$	58


	U.S. Plans						Non-U.S. Plans
	For the Six Months Ended June 30,
	2014			2013			2014			2013
	(in millions)

Service cost	$	28		$	36		$	89		$	86
Interest cost		33			30			197			177
Expected return on plan assets		(40	)		(34	)		(248	)		(215	)
Amortization:
Net loss from experience differences		15			27			54			68
Prior service cost		1			1			1			1
Settlement losses⁽¹⁾		6			5			10			–

Net periodic pension cost	$	43		$	65		$	103		$	117

(1)

Includes settlement losses of $9 million in the three and six months ended June 30, 2013 related to employees who elected to take lump-sum payments in connection with our 2012-2014 Restructuring Program. These costs are reflected within asset impairments and exit costs on the condensed consolidated statement of earnings and within the charges for severance and related costs in Note 6, Restructuring Programs – 2012-2014 Restructuring Program. In the six months ended June 30, 2013, these were partially offset by $4 million of gains due to improvements in current market rates for routine settlement losses.

Employer Contributions:

We make contributions to our U.S. and non-U.S. pension plans primarily to the extent that they are tax deductible and do not generate an excise tax liability. During the six months ended June 30, 2014, we contributed $5 million to our U.S. plans and $196 million to our non-U.S. plans. Based on current tax law, we plan to make further contributions of approximately $5 million to our U.S. plans and approximately $113 million to our non-U.S. plans during the remainder of 2014. However, our actual contributions may differ due to many factors, including changes in tax and other benefit laws or significant differences between expected and actual pension asset performance or interest rates.

Postretirement Benefit Plans

Net postretirement health care costs during the three and six months ended June 30, 2014 and 2013 consisted of:


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(in millions)

Service cost	$	3		$	4		$	6		$	8
Interest cost		6			4			11			9
Amortization:
Net loss from experience differences		1			3			3			6
Prior service credit		(2	)		(3	)		(5	)		(6	)

Net postretirement health care costs	$	8		$	8		$	15		$	17

Postemployment Benefit Plans

Net postemployment costs during the three and six months ended June 30, 2014 and 2013 consisted of:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
	(in millions)

Service cost	$	2	$	2	$	4	$	4
Interest cost		1		2		3		3

Net postemployment costs	$	3	$	4	$	7	$	7