Note 10. Benefit Plans

Pension Plans

Components of Net Periodic Pension Cost:

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


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

Service cost	$	14		$	17		$	47		$	44
Interest cost		16			15			99			88
Expected return on plan assets		(21	)		(16	)		(123	)		(108	)
Amortization:
Net loss from experience differences		7			14			26			34
Prior service cost		–			1			–			–
Settlement losses / (gains) ⁽¹⁾		14			(3	)		(5	)		1

Net periodic pension cost	$	30		$	28		$	44		$	59


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

Service cost	$	42		$	53		$	136		$	130
Interest cost		49			45			296			265
Expected return on plan assets		(61	)		(50	)		(371	)		(323	)
Amortization:
Net loss from experience differences		22			41			80			102
Prior service cost		1			2			1			1
Settlement losses⁽¹⁾		20			2			5			1

Net periodic pension cost	$	73		$	93		$	147		$	176

(1)

Includes settlement losses of $2 million in the three and nine months ended September 30, 2014 and $3 million in the three months and $12 million in the nine months ended September 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 nine months ended September 30, 2013, these were partially offset by $21 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 nine months ended September 30, 2014, we contributed $6 million to our U.S. plans and $242 million to our non-U.S. plans. Based on current tax law, we plan to make further contributions of approximately $4 million to our U.S. plans and approximately $67 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 nine months ended September 30, 2014 and 2013 consisted of:


	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in millions)

Service cost	$	4		$	4		$	10		$	12
Interest cost		5			5			16			14
Amortization:
Net loss from experience differences		1			2			4			8
Prior service credit		(3	)		(3	)		(8	)		(9	)

Net postretirement health care costs	$	7		$	8		$	22		$	25

Postemployment Benefit Plans

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


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(in millions)

Service cost	$	2	$	2	$	6	$	6
Interest cost		2		1		5		4

Net postemployment costs	$	4	$	3	$	11	$	10