v2.3.0.15
Employee Benefit Plans
9 Months Ended
Sep. 30, 2011
Employee Benefit Plans [Abstract] 
EMPLOYEE BENEFIT PLANS
NOTE 10. EMPLOYEE BENEFIT PLANS
     We have both funded and unfunded noncontributory defined benefit pension plans (“Pension Benefits”) covering certain employees primarily in the U.S., Canada, the U.K., Germany and several countries in the Middle East and Asia Pacific region. We also provide certain postretirement health care benefits (“other postretirement benefits”), through an unfunded plan, to substantially all U.S. employees who retire and have met certain age and service requirements.
     The components of net periodic cost are as follows for the three months ended September 30:
                                                 
    U.S. Pension Benefits   Non-U.S. Pension Benefits   Other Postretirement Benefits
    2011   2010   2011   2010   2011   2010
 
Service cost
  $ 10     $ 8     $ 2     $ 2     $ 2     $ 3  
Interest cost
    5       5       8       8       2       2  
Expected return on plan assets
    (8 )     (7 )     (8 )     (7 )     —       —  
Amortization of net loss
    3       3       1       1       —       —  
 
Net periodic cost (benefit)
  $ 10     $ 9     $ 3     $ 4     $ 4     $ 5  
 
     The components of net periodic cost are as follows for the nine months ended September 30:
                                                 
                                    Other Postretirement
    U.S. Pension Benefits   Non-U.S. Pension Benefits   Benefits
    2011   2010   2011   2010   2011   2010
 
Service cost
  $ 28     $ 24     $ 6     $ 5     $ 6     $ 7  
Interest cost
    15       16       24       20       6       8  
Expected return on plan assets
    (24 )     (21 )     (24 )     (17 )     —       —  
Amortization of prior service cost (benefit)
    —       —       —       —       (2 )     1  
Amortization of net loss
    7       9       3       3       —       —  
 
Net periodic cost (benefit)
  $ 26     $ 28     $ 9     $ 11     $ 10     $ 16  
 
     We invest the plan assets of our U.S. and Non-U.S. pension plans in investments according to the policies developed by our investment committees. The changes in the fair value of our U.S. and Non-U.S. pension plans’ assets using Level 3 unobservable inputs for the three months and nine months ended September 30, 2011 were as follows:
                                                 
    Three Months Ended September 30, 2011
    U.S.   Global           Non-U.S.   Non-U.S.    
    Property   Property   Hedge   Property   Insurance    
    Fund   Fund   Funds   Fund   Contracts   Total
 
Ending balance at June 30, 2011
  $ 15     $ —     $ 102     $ 20     $ 16     $ 153  
Purchases (sales)
    (7 )     3       4       —       —       —  
Unrealized gains (loss)
    —       —       (4 )     (1 )     —       (5 )
Transfers from Level 2 to Level 3
    —       —       —       —       —       —  
 
Ending balance at September 30, 2011
  $ 8     $ 3     $ 102     $ 19     $ 16     $ 148  
 
                                                 
    Nine Months Ended September 30, 2011
    U.S.   Global           Non-U.S.   Non-U.S.    
    Property   Property   Hedge   Property   Insurance    
    Fund   Fund   Funds   Fund   Contracts   Total
 
Ending balance at December 31, 2010
  $ 14     $ —     $ —     $ 19     $ 16     $ 49  
Purchases (sales)
    (7 )     3       4       —       —       —  
Unrealized gains (loss)
    1       —       —       —       —       1  
Transfers from Level 2 to Level 3
    —       —       98       —       —       98  
 
Ending balance at September 30, 2011
  $ 8     $ 3     $ 102     $ 19     $ 16     $ 148  
 
     Beginning in 2011, the U.S. pension plan began purchasing shares in three hedge funds, which the Company deems to be Level 3 investments. These hedge funds take long and short positions in equities, fixed income securities, currencies and derivative contracts.