Note 8 – Benefit Plans

The Company has defined benefit pension plans covering substantially all of its employees in the United States and certain foreign locations. The Company also provides certain postretirement healthcare and life insurance benefits to qualifying domestic retirees. Other postretirement benefit plans in foreign countries are not material. The measurement date used for the Company’s employee benefit plans is September 30.

Effective April 1, 2014, the Company replaced its current post-65 group medical coverage with a new approach for retirees age 65 and older and their eligible dependents to access post-65 retiree medical and prescription drug coverage in the U.S. Such changes were communicated to active employees and retirees in early January 2014 and as such, the Company remeasured its U.S. postretirement healthcare benefit plan as of January 1, 2014. The impact of this plan change and remeasurement is immaterial to the Company’s consolidated financial results. The plan design changes included, among other modifications, a replacement of the Company-sponsored healthcare coverage program for post-65 retirees with contributions to a health reimbursement account that can be used to purchase coverage through a Medicare insurance exchange.

Net pension and postretirement cost included the following components for the three months ended June 30:


	Pension Plans						Other Postretirement Benefits
(millions of dollars)	2014			2013			2014			2013
Service cost	$	18		$	21		$	1		$	1
Interest cost		23			22			2			3
Expected return on plan assets		(32	)		(29	)		—			—
Amortization of prior service credit		(4	)		(3	)		(1	)		—
Amortization of loss		12			19			—			1


Net pension and postretirement cost	$	18		$	29		$	2		$	5

Net pension and postretirement cost included the following components for the nine months ended June 30:


	Pension Plans						Other Postretirement Benefits
(millions of dollars)	2014			2013			2014			2013
Service cost	$	53		$	63		$	3		$	4
Interest cost		69			65			7			8
Expected return on plan assets		(94	)		(87	)		—			—
Amortization of prior service credit		(11	)		(10	)		(3	)		(1	)
Amortization of loss		36			56			2			3


Net pension and postretirement cost	$	53		$	87		$	8		$	14

The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive (loss) income in prior periods.

Postemployment benefit costs were $12 million for the three-month periods ended June 30, 2014 and 2013 and $35 million for the nine-month periods ended June 30, 2014 and 2013.