XML 61 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Pension and Postretirement Benefits
6 Months Ended
Jun. 30, 2014
Pension and Postretirement Benefits

b. Pension and Postretirement Benefits. Net periodic pension expense for the three and six months ended June 30, 2014 and 2013 is presented below (in millions of dollars):

 

                                                                             
     Three Months
Ended June 30, 2014
    Three Months
Ended June 30, 2013
 
     Total     U.S.
Plans
    Int’l.
Plans
    Total     U.S.
Plans
    Int’l.
Plans
 

Service cost

   $ 1.9      $ —        $ 1.9      $ 2.6      $ —        $ 2.6   

Interest cost

     92.3        62.2        30.1        81.2        55.0        26.2   

Expected return on plan assets

     (112.9     (72.0     (40.9     (107.4     (72.7     (34.7

Amortization of prior service cost

     (.3     .2        (.5     (.3     .1        (.4

Recognized net actuarial loss

     37.5        27.0        10.5        46.7        34.1        12.6   

Curtailment gain

     (.6     —          (.6     —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension expense

   $ 17.9      $    17.4      $ .5      $ 22.8      $    16.5      $ 6.3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

                                                                             
     Six Months
Ended June 30, 2014
    Six Months
Ended June 30, 2013
 
     Total     U.S.
Plans
    Int’l.
Plans
    Total     U.S.
Plans
    Int’l.
Plans
 

Service cost

   $ 4.3      $ —        $ 4.3      $ 5.2      $ —        $ 5.2   

Interest cost

     184.6        124.7        59.9        162.3        109.8        52.5   

Expected return on plan assets

     (225.6     (144.0     (81.6     (215.4     (145.7     (69.7

Amortization of prior service cost

     (.6     .4        (1.0     (.4     .3        (.7

Recognized net actuarial loss

     75.3        54.8        20.5        94.3        69.0        25.3   

Curtailment gain

     (.6     —          (.6     —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension expense

   $ 37.4      $ 35.9      $ 1.5      $ 46.0      $ 33.4      $ 12.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

In 2014, the company estimates that it will make cash contributions of approximately $235 million to its worldwide defined benefit pension plans, which is comprised of $109 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 six months ended June 30, 2014 and 2013, $103.1 million and $61.3 million, respectively, of cash contributions have been made.

Net periodic postretirement benefit expense for the three and six months ended June 30, 2014 and 2013 is presented below (in millions of dollars):

 

     Three Months
Ended June 30
    Six Months
Ended June 30
 
     2014     2013     2014     2013  

Service cost

   $ .1      $ .2      $ .3      $ .3   

Interest cost

     2.0        2.0        4.0        4.0   

Expected return on assets

     (.2     (.1     (.3     (.2

Amortization of prior service cost

     .5        .5        .9        .9   

Recognized net actuarial loss

     .9        1.3        1.7        2.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic postretirement benefit expense

   $ 3.3      $ 3.9      $ 6.6      $ 7.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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 six months ended June 30, 2014 and 2013, $6.4 million and $7.0 million, respectively, of cash contributions have been made.