Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2012

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefit Plans

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The following table summarizes the components of net periodic pension cost and the cost of other postretirement benefits for the periods presented:

	Three Months Ended June 30,
	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2012			2011			2012			2011			2012			2011
Service cost	$	1		$	—		$	1		$	2		$	2		$	2
Interest cost	44			48			5			5			5			8
Expected return on plan assets	(49		)	(48		)	(3		)	(3		)	—			—
Amortization:
Actuarial loss	12			8			1			1			—			—
Prior service credit	(1		)	(1		)	—			—			(11		)	(11		)
Settlement and curtailment (gain) loss	2			—			—			—			(49		)	—
Net periodic benefit cost (credit)	$	9		$	7		$	4		$	5		$	(53	)	$	(1	)

	Six Months Ended June 30,
	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2012			2011			2012			2011			2012			2011
Service cost	$	1		$	—		$	3		$	4		$	3		$	4
Interest cost	89			96			9			10			11			17
Expected return on plan assets	(97		)	(96		)	(5		)	(6		)	—			—
Amortization:
Actuarial loss	23			16			2			2			—			—
Prior service credit	(2		)	(2		)	—			—			(23		)	(18		)
Settlement and curtailment (gain) loss	4			—			—			—			(49		)	—
Net periodic benefit cost (credit)	$	18		$	14		$	9		$	10		$	(58	)	$	3

During the three months ended June 30, 2012, we recognized approximately $49 million in curtailment gains, which were primarily related to the closure of our Fort Smith, Arkansas facility, which was previously announced in October 2011. These curtailment gains are recognized as employees terminate and are included in cost of products sold with an offset in other comprehensive income, net of tax.