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Pensions Benefit Plans and Other Postretirement Benefits
 6 Months Ended
Jun. 30, 2013
Pensions Benefit Plans and Other Postretirement Benefits  
Pensions Benefit Plans and Other Postretirement Benefits

5.  Pensions Benefit Plans and Other Postretirement Benefits

 

The components of the net periodic pension cost for the three months ended June 30, 2013 and 2012 are as follows:

 

 

 

U.S.

 

Non-U.S.

 

 

 

2013

 

2012

 

2013

 

2012

 

Service cost

 

$

7

 

$

7

 

$

8

 

$

6

 

Interest cost

 

27

 

29

 

17

 

18

 

Expected asset return

 

(46

)

(46

)

(22

)

(22

)

 

 

 

 

 

 

 

 

 

 

Amortization:

 

 

 

 

 

 

 

 

 

Actuarial loss

 

27

 

24

 

8

 

6

 

 

 

 

 

 

 

 

 

 

 

Net periodic pension cost

 

$

15

 

$

14

 

$

11

 

$

8

 

 

The components of the net periodic pension cost for the six months ended June 30, 2013 and 2012 are as follows:

 

 

 

U.S.

 

Non-U.S.

 

 

 

2013

 

2012

 

2013

 

2012

 

Service cost

 

$

14

 

$

14

 

$

16

 

$

13

 

Interest cost

 

54

 

57

 

34

 

37

 

Expected asset return

 

(92

)

(92

)

(45

)

(44

)

 

 

 

 

 

 

 

 

 

 

Amortization:

 

 

 

 

 

 

 

 

 

Actuarial loss

 

55

 

48

 

16

 

11

 

 

 

 

 

 

 

 

 

 

 

Net periodic pension cost

 

$

31

 

$

27

 

$

21

 

$

17

 

 

The U.S. pension expense for the six months ended June 30, 2013 excludes $8 million of special termination benefits that were recorded in discontinued operations.

 

The components of the net postretirement benefit cost for the three months ended June 30, 2013 and 2012 are as follows:

 

 

 

U.S.

 

Non-U.S.

 

 

 

2013

 

2012

 

2013

 

2012

 

Service cost

 

$

—

 

$

—

 

$

1

 

$

1

 

Interest cost

 

1

 

2

 

1

 

1

 

Curtailment gain

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization:

 

 

 

 

 

 

 

 

 

Prior service credit

 

(3

)

(1

)

 

 

 

 

Actuarial loss

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net amortization

 

(3

)

1

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Net postretirement benefit cost

 

$

(7

)

$

3

 

$

2

 

$

2

 

 

The components of the net postretirement benefit cost for the six months ended June 30, 2013 and 2012 are as follows:

 

 

 

U.S.

 

Non-U.S.

 

 

 

2013

 

2012

 

2013

 

2012

 

Service cost

 

$

—

 

$

1

 

$

1

 

$

1

 

Interest cost

 

2

 

4

 

2

 

2

 

Curtailment gain

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization:

 

 

 

 

 

 

 

 

 

Prior service credit

 

(4

)

(2

)

 

 

 

 

Actuarial loss

 

2

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net amortization

 

(2

)

1

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Net postretirement benefit cost

 

$

(5

)

$

6

 

$

3

 

$

3

 

 

During the second quarter of 2013, the Company recorded a curtailment gain related to modifications made to one of its U.S. postretirement benefit plans that reduced or eliminated certain health care and life insurance benefits. These modifications also resulted in a $55 million reduction in the postretirement benefit obligation that was recognized in accumulated other comprehensive income.