Pensions and Other Benefits

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pensions and Other Benefits

Pensions and Other Benefits

The following table reflects the components of net periodic benefit cost for the three months ended June 30, 2013 and 2012:

	Pension Benefits						Other Benefits
(In millions)	2013			2012			2013			2012
Service cost	$	32		$	30		$	7		$	8
Interest cost	102			117			36			46
Expected return on plan assets	(153		)	(153		)	(32		)	(29		)
Amortization of prior service cost	6			4			(4		)	5
Amortization of actuarial net loss	91			88			7			—
Net periodic benefit cost, excluding below	78			86			14			30
Multiemployer plans	18			17			—			—
Net periodic benefit cost	$	96		$	103		$	14		$	30

The following table reflects the components of net periodic benefit cost for the six months ended June 30, 2013 and 2012:

	Pension Benefits						Other Benefits
(In millions)	2013			2012			2013			2012
Service cost	$	64		$	59		$	14		$	15
Interest cost	203			233			71			91
Expected return on plan assets	(307		)	(306		)	(65		)	(57		)
Amortization of prior service cost	12			9			(7		)	11
Amortization of actuarial net loss	183			176			15			—
Net periodic benefit cost, excluding below	155			171			28			60
Multiemployer plans	36			34			—			—
Settlement, termination and curtailment gains	—			(2		)	—			—
Net periodic benefit cost	$	191		$	203		$	28		$	60

Employer Contributions

During the first six months of 2013, U. S. Steel made $45 million in required cash contributions to the USSC pension plans, cash payments of $36 million to the Steelworkers’ Pension Trust and $4 million of pension payments not funded by trusts.

During the first six months of 2013, cash payments of $113 million were made for other postretirement benefit payments not funded by trusts. In addition, U. S. Steel made a required contribution of $10 million in the first six months of 2013 to our trust for represented retiree health care and life insurance benefits.

Company contributions to defined contribution plans totaled $11 million in both the three months ended June 30, 2013 and 2012. Company contributions to defined contribution plans totaled $22 million and $21 million for the six months ended June 30, 2013 and 2012, respectively.

Pension Funding

In January 2013, U. S. Steel's Board of Directors authorized voluntary contributions to U. S. Steel's trusts for pensions and other benefits of up to $300 million through the end of 2014. U. S. Steel made voluntary contributions to our main U.S. defined benefit plan of $140 million in 2012. U. S. Steel will likely make voluntary contributions of similar amounts in future periods in order to mitigate potentially larger mandatory contributions in later years. Assuming future asset performance consistent with our expected long-term earnings rate assumption of 7.75%, we anticipate that the interest rate formula changes in the pension stabilization legislation enacted in 2012 will allow us to continue to make voluntary contributions of approximately $140 million per year through 2015 before we could be required to contribute more than that amount should the current low interest rate environment continue.