Pensions and Postretirement Benefits Other than Pensions

3 Months Ended

Mar. 31, 2013

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Pensions and Postretirement Benefits Other than Pensions

Pensions and Postretirement Benefits Other than Pensions

The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all of our U.S. employees. Additionally, the Company has many non-U.S. defined benefit and defined contribution plans covering eligible non-U.S. employees. Postretirement benefits, other than pensions, provide healthcare benefits, and in some instances, life insurance benefits for certain eligible retired employees.

Pension Plans

The noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on an average pay formula while most plans for collectively bargained U.S. employees provide benefits on a flat dollar benefit formula. The non-U.S. pension plans generally provide benefits based on earnings and years of service. The Company also maintains additional other supplemental plans for officers and other key employees.

The components of the Company’s net periodic pension benefit costs for the three months ended March 31 were as follows:

In millions	2013			2012
Service cost	$	23.1		$	25.3
Interest cost	39.2			41.3
Expected return on plan assets	(42.0		)	(43.3		)
Net amortization of:
Prior service costs	1.2			1.4
Plan net actuarial losses	15.5			14.9
Net periodic pension benefit cost	37.0			39.6
Net curtailment and settlement losses	—			0.1
Net periodic pension benefit cost after net curtailment and  settlement losses	$	37.0		$	39.7
Amounts recorded in continuing operations	$	34.7		$	36.8
Amounts recorded in discontinued operations	2.3			2.9
Total	$	37.0		$	39.7

The Company made required and discretionary employer contributions of $6.8 million and $8.2 million to its defined benefit pension plans during the three months ended March 31, 2013 and 2012, respectively.

The curtailment and settlement losses in 2012 are associated with lump sum distributions under supplemental benefit plans for officers and other key employees.

Postretirement Benefits Other Than Pensions

The Company sponsors several postretirement plans that provide for healthcare benefits, and in some instances, life insurance benefits that cover certain eligible retired employees. The Company funds postretirement benefit obligations principally on a pay as you go basis. Generally, postretirement health benefits are contributory with contributions adjusted annually. Life insurance plans for retirees are primarily noncontributory.

The components of net periodic postretirement benefit cost for the three months ended March 31 were as follows:

In millions	2013			2012
Service cost	$	1.7		$	2.0
Interest cost	6.7			8.1
Net amortization of:
Prior service gains	(2.6		)	(2.0		)
Net actuarial losses	2.7			2.5
Net periodic postretirement benefit cost	$	8.5		$	10.6
Amounts recorded in continuing operations	$	5.4		$	6.7
Amounts recorded in discontinued operations	3.1			3.9
Total	$	8.5		$	10.6