Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2011

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefit Plans

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The components of net periodic pension cost and the cost of other postretirement benefits for the three and six months ended June 30, 2011 and 2010 are as follows:

	Three months ended June 30,
	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2011			2010			2011			2010			2011			2010
Service cost	$	—		$	1		$	2		$	1		$	2		$	3
Interest cost	48			50			5			5			8			10
Expected return on plan assets	(48		)	(47		)	(3		)	(2		)	—			—
Amortization:
Actuarial loss	8			7			1			1			—			—
Prior service credit	(1		)	(1		)	—			—			(11		)	(8		)
Settlement and curtailment (gain) loss	—			—			—			—			—			(33		)
Net periodic benefit cost (credit)	$	7		$	10		$	5		$	5		$	(1	)	$	(28	)

	Six months ended June 30,
	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2011			2010			2011			2010			2011			2010
Service cost	$	—		$	1		$	4		$	3		$	4		$	5
Interest cost	96			100			10			10			17			20
Expected return on plan assets	(96		)	(95		)	(6		)	(5		)	—			—
Amortization:
Actuarial loss	16			15			2			1			—			—
Prior service credit	(2		)	(1		)	—			—			(18		)	(17		)
Settlement and curtailment (gain) loss	—			—			—			1			—			(62		)
Net periodic benefit cost (credit)	$	14		$	20		$	10		$	10		$	3		$	(54	)

During the June 2011 quarter, we modified retiree medical benefits for certain retirees, effective January 1, 2013, to be consistent with those benefits provided by the Whirlpool Corporation Group Benefit Plan. We accounted for these changes as a plan amendment, resulting in a reduction in the postretirement benefit obligation of $138 million with an offset to accumulated other comprehensive loss, net of tax.

On August 28, 2009, we announced the closure of our manufacturing facility in Evansville, Indiana, which triggered a curtailment gain in our United States retiree healthcare plan to be recognized as the employees terminate. For the three and six months endedJune 30, 2010 we recognized a curtailment gain of $33 million and $62 million. The curtailment gain was recognized in our Consolidated Statement of Income as a component of cost of products sold with an offset to accumulated other comprehensive loss, net of tax.