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Employee Benefit Plans
9 Months Ended
Sep. 30, 2011
Compensation and Retirement Disclosure [Abstract] 
Employee Benefit Plans
Employee Benefit Plans
The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:
 
 
Pension Benefits
 
Retiree Health
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Components of Net Periodic Benefit Costs:
Service cost
$
46

 
$
45

 
$
140

 
$
133

 
$
2

 
$
2

 
$
6

 
$
6

Interest cost
121

 
119

 
360

 
357

 
11

 
13

 
35

 
41

Expected return on plan assets
(129
)
 
(118
)
 
(386
)
 
(354
)
 
—

 
—

 
—

 
—

Recognized net actuarial loss
17

 
18

 
53

 
53

 
—

 
—

 
—

 
—

Amortization of prior service credit
(5
)
 
(6
)
 
(17
)
 
(16
)
 
(10
)
 
(8
)
 
(30
)
 
(21
)
Recognized settlement loss
11

 
9

 
61

 
55

 
—

 
—

 
—

 
—

Net periodic benefit cost
61

 
67

 
211

 
228

 
3

 
7

 
11

 
26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial loss (gain) (2)
—

 
43

 
(9
)
 
43

 
(14
)
 
(9
)
 
(14
)
 
(9
)
Prior service cost (credit)(3)
—

 
(17
)
 
—

 
(17
)
 
—

 
(31
)
 
—

 
(31
)
Amortization of net prior service credit
5

 
6

 
17

 
16

 
10

 
8

 
30

 
21

Amortization of net actuarial losses
(28
)
 
(27
)
 
(114
)
 
(108
)
 
—

 
—

 
—

 
—

Total recognized in Other Comprehensive Income(1)
(23
)
 
5

 
(106
)
 
(66
)
 
(4
)
 
(32
)
 
16

 
(19
)
Total recognized in Net Periodic Benefit Cost and Other Comprehensive Income
$
38

 
$
72

 
$
105

 
$
162

 
$
(1
)
 
$
(25
)
 
$
27

 
$
7

_____________________________
(1)
Amount represents the pre-tax effect included within Other comprehensive income. The amount, net of tax, is included within Note 14, Shareholders’ Equity.
(2)
Represents adjustments for the actual valuation results based on January 1st plan census data for the U.S.
(3)
In 2010, as a result of the renegotiation of the contract with our largest union, we amended our union pension plan for this population to freeze the final average pay formula of the pension plan effective January 1, 2013 and our union retiree health benefits plan to eliminate a portion of the subsidy currently paid to current and future Medicare-eligible retirees effective January 1, 2011. These amendments are generally consistent with amendments previously made to our salaried employee retirement plans.
The following table provides a summary of the components of the Net change in benefit plans included within Other comprehensive income as reported in Note 14, Shareholders’ Equity:
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(Expense)/benefit
2011
 
2010
 
2011
 
2010
Other changes in plan assets and benefit obligations
$
27

 
$
27

 
$
90

 
$
85

Income tax
(10
)
 
(9
)
 
(32
)
 
(31
)
Fuji Xerox changes in defined benefit plans(1)
(11
)
 
(1
)
 
(32
)
 
32

Currency, net
38

 
(39
)
 
(2
)
 
14

Other, net
—

 
3

 
(2
)
 
—

Net Change in Benefit Plans
$
44

 
$
(19
)
 
$
22

 
$
100

 _____________________________
(1)
Represents our share of Fuji Xerox’s benefit plan changes.
Contributions: During the nine months ended September 30, 2011, we made cash contributions of $348 and $57 to our defined benefit plans and our other post-retirement benefit plans, respectively. In September 2011, we also elected to make a U.S. pension contribution of 16.6 million shares of our common stock, with an aggregate value of approximately $130, to meet our planned level of funding for 2011. We presently anticipate additional cash contributions of $87 to our defined benefit
pension plans and $26 to our other post-retirement benefit plans in 2011 for a total cash contribution of $435 ($565 total cash and stock contribution) and $83, respectively.