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Pension and Postretirement Benefits
3 Months Ended
Mar. 31, 2014
Pension and Postretirement Benefits

b. Pension and Postretirement Benefits. Net periodic pension expense for the three months ended March 31, 2014 and 2013 is presented below (in millions of dollars):

 

     Three Months     Three Months  
     Ended March 31, 2014     Ended March 31, 2013  
           U.S.     Int’l.           U.S.     Int’l.  
     Total     Plans     Plans     Total     Plans     Plans  

Service cost

   $ 2.4      $ —        $ 2.4      $ 2.6      $ —        $ 2.6   

Interest cost

     92.3        62.5        29.8        81.1        54.8        26.3   

Expected return on plan assets

     (112.7     (72.0     (40.7     (108.0     (73.0     (35.0

Amortization of prior service cost

     (.3     .2        (.5     (.1     .2        (.3

Recognized net actuarial loss

     37.8        27.8        10.0        47.6        34.9        12.7   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension expense

   $ 19.5      $ 18.5      $ 1.0      $ 23.2      $ 16.9      $ 6.3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

In 2014, the company expects to make cash contributions of approximately $234 million to its worldwide defined benefit pension plans, which is comprised of $108 million primarily for non-U.S. defined benefit pension plans and $126 million for the company’s U.S. qualified defined benefit pension plan. In 2013, the company made cash contributions of $147.2 million to its worldwide defined benefit pension plans. For the three months ended March 31, 2014 and 2013, $55.5 million and $26.6 million, respectively, of cash contributions have been made.

Net periodic postretirement benefit expense for the three months ended March 31, 2014 and 2013 is presented below (in millions of dollars):

 

     Three Months Ended March 31,  
     2014     2013  

Service cost

   $ .2      $ .1   

Interest cost

     2.0        2.0   

Expected return on assets

     (.1     (.1

Amortization of prior service cost

     .4        .4   

Recognized net actuarial loss

     .8        1.4   
  

 

 

   

 

 

 

Net periodic postretirement benefit expense

   $ 3.3      $ 3.8   
  

 

 

   

 

 

 

The company expects to make cash contributions of approximately $19 million to its postretirement benefit plan in 2014 compared with $18.0 million in 2013. For the three months ended March 31, 2014 and 2013, $2.7 million and $2.9 million, respectively, of cash contributions have been made.