Pension and Postretirement Benefits

9 Months Ended

Sep. 30, 2015

c. Pension and Postretirement Benefits. Net periodic pension expense for the three and nine months ended September 30, 2015 and 2014 is presented below (in millions of dollars):


	Three Months Ended Sept. 30, 2015									Three Months Ended Sept. 30, 2014
	Total			U.S. Plans			Int’l. Plans			Total			U.S. Plans			Int’l. Plans
Service cost	$	2.2		$	—		$	2.2		$	2.1		$	—		$	2.1
Interest cost		80.0			56.1			23.9			91.4			61.6			29.8
Expected return on plan assets		(103.1	)		(63.7	)		(39.4	)		(111.8	)		(71.3	)		(40.5	)
Amortization of prior service (benefit) cost		(1.1	)		(.6	)		(.5	)		(1.1	)		(.5	)		(.6	)
Recognized net actuarial loss		49.2			33.1			16.1			37.5			27.5			10.0

Net periodic pension expense	$	27.2		$	24.9		$	2.3		$	18.1		$	17.3		$	.8


	Nine Months Ended Sept. 30, 2015									Nine Months Ended Sept. 30, 2014
	Total			U.S. Plans			Int’l. Plans			Total			U.S. Plans			Int’l. Plans
Service cost	$	6.5		$	—		$	6.5		$	6.4		$	—		$	6.4
Interest cost		238.9			168.1			70.8			276.0			186.3			89.7
Expected return on plan assets		(308.0	)		(191.1	)		(116.9	)		(337.4	)		(215.3	)		(122.1	)
Amortization of prior service (benefit) cost		(3.3	)		(1.8	)		(1.5	)		(1.7	)		(.1	)		(1.6	)
Recognized net actuarial loss		147.4			99.5			47.9			112.8			82.3			30.5
Curtailment gain		—			—			—			(.6	)		—			(.6	)

Net periodic pension expense	$	81.5		$	74.7		$	6.8		$	55.5		$	53.2		$	2.3

In 2015, the company estimates that it will make cash contributions of approximately $151 million to its worldwide defined benefit pension plans, which is comprised of $59 million for the company’s U.S. qualified defined benefit pension plan and $92 million primarily for non-U.S. defined benefit pension plans. In 2014, the company made cash contributions of $183.4 million to its worldwide defined benefit pension plans. For the nine months ended September 30, 2015 and 2014, $115.6 million and $161.3 million, respectively, of cash contributions have been made.

Net periodic postretirement benefit expense for the three and nine months ended September 30, 2015 and 2014 is presented below (in millions of dollars):


	Three Months Ended Sept. 30						Nine Months Ended Sept. 30
	2015			2014			2015			2014
Service cost	$	.1		$	.2		$	.4		$	.5
Interest cost		1.7			2.0			5.1			6.0
Expected return on assets		(.1	)		(.1	)		(.3	)		(.4	)
Amortization of prior service cost		.3			.4			.9			1.3
Recognized net actuarial loss		.7			.8			2.1			2.5

Net periodic postretirement benefit expense	$	2.7		$	3.3		$	8.2		$	9.9

The company expects to make cash contributions of approximately $16 million to its postretirement benefit plan in 2015 compared with $15.3 million in 2014. For the nine months ended September 30, 2015 and 2014, $10.8 million and $10.4 million, respectively, of cash contributions have been made.