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Pensions, Other Post-employment Benefits and Employee Benefit Plans
9 Months Ended
Sep. 30, 2011
Pensions Other Post Employment Benefits and Employee Benefit Plans [Abstract] 
Pension and Other Postretirement Benefits Disclosure [Text Block]
Pensions, Other Post-employment Benefits and Employee Benefit Plans.
Federal-Mogul, ARI and Viskase each sponsor several defined benefit pension plans (the ''Pension Benefits'') (and, in the case of Viskase, its pension plans include defined contribution plans). Additionally, Federal-Mogul, ARI and Viskase each sponsors health care and life insurance benefits (''Other Post-Employment Benefits'') for certain employees and retirees around the world. The Pension Benefits are funded based on the funding requirements of federal and international laws and regulations, as applicable, in advance of benefit payments and the Other Benefits as benefits are provided to participating employees. As prescribed by applicable U.S. GAAP, Federal-Mogul, ARI and Viskase each uses, as applicable, appropriate actuarial methods and assumptions in accounting for its defined benefit pension plans, non-pension post-employment benefits, and disability, early retirement and other post-employment benefits. The measurement date for all defined benefit plans is December 31 of each fiscal year.
Components of net periodic benefit cost (credit) for Federal-Mogul, ARI and Viskase for the three and nine months ended September 30, 2011 and 2010 are as follows:
 
Pension Benefits
 
Other Post-Employment Benefits
 
Three Months Ended September 30,
 
2011
 
2010
 
2011
 
2010
 
(in millions)
Service cost
$
7

 
$
7

 
$
—

 
$
—

Interest cost
22

 
21

 
5

 
5

Expected return on plan assets
(17
)
 
(15
)
 
—

 
—

Amortization of actuarial losses
7

 
7

 
—

 
—

Amortization of prior service credit
—

 
—

 
(4
)
 
(4
)
Curtailment gain
—

 
—

 
—

 
(24
)
 
$
19

 
$
20

 
$
1

 
$
(23
)

 
Pension Benefits
 
Other Post-Employment Benefits
 
Nine Months Ended September 30,
 
2011
 
2010
 
2011
 
2010
 
(in millions)
Service cost
$
21

 
$
22

 
$
—

 
$
—

Interest cost
64

 
63

 
15

 
17

Expected return on plan assets
(51
)
 
(45
)
 
—

 
—

Amortization of actuarial losses
20

 
20

 
—

 
—

Amortization of prior service credit
—

 
—

 
(12
)
 
(7
)
Curtailment gain
—

 
—

 
—

 
(28
)
 
$
54

 
$
60

 
$
3

 
$
(18
)

Automotive
On May 6, 2010, Federal-Mogul approved an amendment to its U.S. Welfare Benefit Plan which eliminated Other Post-employment Benefits (“OPEB”) for certain salaried and non-union hourly employees and retirees effective July 1, 2010. Given that this event eliminated the accrual of defined benefits for a significant number of active participants, Federal-Mogul re-measured its OPEB obligation. Since this plan change reduced benefits attributable to employee service already rendered, it was treated as a negative plan amendment, which created a $162 million prior service credit in accumulated other comprehensive income. The corresponding reduction in the average remaining future service period to the full eligibility date of the remaining active plan participants also triggered the recognition of a $4 million curtailment gain which was recognized in the consolidated statements of operations during the second quarter of fiscal 2010. It should be noted that the calculation of the curtailment excluded the newly created prior service credit.
On July 23, 2010, in contract negotiations with a union at one of Federal-Mogul's U.S. manufacturing locations, the union offered to eliminate its retiree medical benefits, which was accepted by Federal-Mogul with no other change in retiree benefits in return. Since this event reduced benefits attributable to employee service already rendered, it was treated as a negative plan amendment, which created a $2 million prior service credit in accumulated other comprehensive income. The corresponding reduction in the average remaining future service period to the full eligibility date of the remaining active plan participants also triggered the recognition of a $24 million curtailment gain which was recognized in the consolidated statements of operations during the third quarter of fiscal 2010.