Pension Plans, Postretirement and Other Employee Benefits

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Pension Plans, Postretirement and Other Employee Benefits

Pension Plans, Postretirement and Other Employee Benefits

Net periodic pension costs and postretirement benefit costs consist of the following components:

	Three Months Ended June 30,
	Pension												Postretirement
	2015						2014						2015			2014
	US			Foreign			US			Foreign			US			US
	(Millions)
Service cost — benefits earned during the period	$	1		$	2		$	—		$	2		$	—		$	—
Interest cost	4			5			5			4			3			2
Expected return on plan assets	(6		)	(5		)	(6		)	(5		)	—			—
Net amortization:
Actuarial loss	2			1			2			2			1			1
Prior service cost	—			—			—			—			(1		)	(2		)
Net pension and postretirement costs	$	1		$	3		$	1		$	3		$	3		$	1
	Six Months Ended June 30,
	Pension												Postretirement
	2015						2014						2015			2014
	US			Foreign			US			Foreign			US			US
	(Millions)
Service cost — benefits earned during the period	$	1		$	4		$	—		$	4		$	—		$	—
Interest cost	9			9			10			9			4			3
Expected return on plan assets	(12		)	(10		)	(12		)	(12		)	—			—
Net amortization:
Actuarial loss	4			3			4			4			2			1
Prior service cost (credit)	—			—			—			1			(2		)	(3		)
Net pension and postretirement costs	$	2		$	6		$	2		$	6		$	4		$	1

For the six months ended June 30, 2015, we made pension contributions of less than $1 million and $7 million for our domestic and foreign pension plans, respectively. Based on current actuarial estimates, we believe we will be required to contribute approximately $19 million for the remainder of 2015. Pension contributions beyond 2015 will be required, but those amounts will vary based upon many factors including, for example, the performance of our pension fund investments during 2015.

We made postretirement contributions of approximately $5 million during the first six months of 2015. Based on current actuarial estimates, we believe we will be required to contribute approximately $4 million for the remainder of 2015.

The assets of some of our pension plans are invested in trusts that permit commingling of the assets of more than one employee benefit plan for investment and administrative purposes. Each of the plans participating in the trust has interests in the net assets of the underlying investment pools of the trusts. The investments for all our pension plans are recorded at estimated fair value, in compliance with the accounting guidance on fair value measurement.

Amounts recognized for pension and postretirement benefits in other comprehensive income for the three and six months periods ended June 30, 2015 and 2014 include the following components:

	Three Months Ended June 30,
	2015									2014
	Before-Tax Amount			Tax Benefit			Net-of-Tax Amount			Before- Tax Amount			Tax Benefit		Net-of-Tax Amount
	(Millions)
Defined benefit pension and postretirement plans:
Amortization of prior service cost included in net periodic pension and postretirement cost	$	(1	)	$	—		$	(1	)	$	(2	)	$	—	$	(2	)
Amortization of actuarial loss included in net periodic pension and postretirement cost	4			(1		)	3			5			—		5
Other comprehensive income – pension benefits	$	3		$	(1	)	$	2		$	3		$	—	$	3

	Six Months Ended June 30,
	2015									2014
	Before-Tax Amount			Tax Benefit			Net-of-Tax Amount			Before- Tax Amount			Tax Benefit			Net-of-Tax Amount
	(Millions)
Defined benefit pension and postretirement plans:
Amortization of prior service cost included in net periodic pension and postretirement cost	$	(2	)	$	—		$	(2	)	$	(2	)	$	—		$	(2	)
Amortization of actuarial loss included in net periodic pension and postretirement cost	9			(2		)	7			9			(1		)	8
Other comprehensive income – pension benefits	$	7		$	(2	)	$	5		$	7		$	(1	)	$	6