v2.3.0.15
Retirement Plans
9 Months Ended
Sep. 30, 2011
Retirement Plans 
Retirement Plans

9.     Retirement Plans

Net Periodic Benefit Cost

 

The following table presents the components of net periodic benefit cost for Devon's pension and other postretirement benefit plans.

 

 

Pension Benefits

Other Postretirement Benefits

 

Three Months

Ended September 30,

Nine Months

Ended September 30,

Three Months

Ended September 30,

Nine Months

Ended September 30,

 

2011

2010

2011

2010

2011

2010

2011

2010

 

(In millions)

  Service cost

$        10

$          9

$        28

$        25

$        —

$        —

$          1

$        —

  Interest cost

          15

          15

          45

          43

          —

            1

            1

            3

  Expected return on plan assets

         (11)

         (10)

         (32)

         (28)

          —

          —

          —

          —

  Amortization of prior service cost

            1

          —

            3

            2

          —

            1

           (1)

            1

  Net actuarial loss

            8

            7

          24

          21

          —

          —

          —

          —

     Net periodic benefit cost

$        23

$        21

$        68

$        63

$        —

$          2

$          1

$          4

 

Pension Plan Assets

 

Devon previously disclosed in its financial statements for the year ended December 31, 2010, that it expected to contribute $84 million to its qualified pension plans in 2011. During 2011, Devon increased its estimated contribution to $446 million and has fully funded the contribution as of September 30, 2011. The increase in Devon's 2011 contributions is due to increased discretionary funding.

 

As a result of the discretionary contributions noted above, Devon amended its target allocation for its pension plan assets in the second quarter of 2011. Devon previously disclosed a target allocation of 47.5% for equity securities, 40% for fixed income and 12.5% for other investment types. Devon now expects an allocation of 70% fixed income, 20% equity and 10% for other investment types for its pension assets.