Pension, Other Post-employment Benefits and Employee Benefit Plans.

Federal-Mogul, ARI and Viskase each sponsor several defined benefit pension plans (''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 (''OPEB'') 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, and are typically funded in advance of benefit payments. Other Post-Employment Benefits are funded 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 year.

Components of net periodic benefit cost (gain) for the three and six months ended June 30, 2013 and 2012 are as follows:



	Pension Benefits						OPEB
	Three Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
	(in millions)
Service cost	$	4		$	7		$	—		$	—
Interest cost	17			20			4			4
Expected return on plan assets	(18		)	(16		)	—			—
Amortization of actuarial losses	7			9			1			—
Amortization of prior service credit	—			—			(3		)	(4		)
Settlement gain	—			—			—			—
Curtailment gain	—			—			(19		)	—
	$	10		$	20		$	(17	)	$	—



	Pension Benefits						OPEB
	Six Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in millions)
Service cost	$	8		$	14		$	—		$	—
Interest cost	35			41			8			8
Expected return on plan assets	(35		)	(32		)	—			—
Amortization of actuarial losses	13			19			3			—
Amortization of prior service credit	—			—			(6		)	(8		)
Settlement gain	—			(1		)	—			—
Curtailment gain	—			—			(19		)	—
	$	21		$	41		$	(14	)	$	—

Automotive

In the second quarter of 2013, Federal-Mogul ceased operations at one of its U.S. manufacturing locations. The resulting reduction in the average remaining future service period to the full eligibility date of the remaining active plan participants in Federal-Mogul's U.S. Welfare Benefit Plan triggered the recognition of an OPEB curtailment gain of $19 million during the three and six months ended June 30, 2013, which was recorded as a reduction to selling, general and administrative in the consolidated statements of operations.