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.

In June 2012, the Board of Directors approved amendments to the Company's retirement plans for certain U.S. and Puerto Rico non-bargained employees. Eligible non-bargained employees hired prior to July 1, 2012 were given a choice of remaining in their respective defined benefit plan until the plan freezes on December 31, 2022 or freezing their accrued benefits in their respective defined benefit plan as of December 31, 2012 and receiving an additional 2% non-matching Company contribution into the Company's applicable defined contribution plan. Eligible employees hired or rehired on or after July 1, 2012 automatically receive the 2% non-matching Company contribution into the applicable defined contribution plan in lieu of participating in the defined benefit plan. Beginning January 1, 2023, all eligible employees will receive the 2% non-matching contribution into the applicable defined contribution plan. As a result of these changes, the Company's projected benefit obligations for the amended plans were remeasured in June 2012, which included updating the discount rate assumption to 4.00% from the 4.25% assumed at December 31, 2011. The amendments resulted in a 2012 curtailment loss of $4.0 million. The amendment and remeasurement resulted in an increase of $1.0 million to the projected benefit obligation, an increase of $29.4 million to the plan assets, an actuarial gain of $28.4 million and a credit of $4.0 million to prior service cost during 2012.

The components of the Company’s net periodic pension benefit costs for the three and nine months ended September 30 were as follows:



	Three months ended						Nine months ended
In millions	2013			2012			2013			2012
Service cost	$	20.2		$	23.5		$	66.3		$	73.0
Interest cost	39.9			40.9			118.2			122.3
Expected return on plan assets	(42.2		)	(43.9		)	(126.1		)	(129.5		)
Net amortization of:
Prior service costs	1.2			1.3			3.6			4.0
Plan net actuarial losses	17.8			15.7			48.8			45.0
Net periodic pension benefit cost	36.9			37.5			110.8			114.8
Net curtailment and settlement losses	—			0.4			—			4.5
Net periodic pension benefit cost after net curtailment and settlement losses	$	36.9		$	37.9		$	110.8		$	119.3
Amounts recorded in continuing operations	$	33.9		$	36.6		$	103.2		$	112.2
Amounts recorded in discontinued operations	3.0			1.3			7.6			7.1
Total	$	36.9		$	37.9		$	110.8		$	119.3

The Company made required and discretionary employer contributions of $45.3 million and $34.6 million to its defined benefit pension plans during the nine months ended September 30, 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.

In February 2012, the Board of Directors approved amendments to its postretirement medical plan with respect to post-65 retiree medical coverage. Effective January 1, 2013, the Company discontinued offering company-sponsored retiree medical coverage for certain individuals age 65 and older. The Company transitioned affected individuals to coverage through the individual Medicare market and will provide a tax-advantaged subsidy to those retirees eligible for subsidized company coverage that can be used toward reimbursing premiums and other qualified medical expenses for individual Medicare supplemental coverage that is purchased through our third-party Medicare coordinator. As a result of these changes, the Company's projected benefit obligations were remeasured in February 2012, which included updating the discount rate assumption to 3.75% from the 4.00% assumed at December 31, 2011. The remeasurement resulted in a decrease of $40.5 million to the projected benefit obligation, an actuarial loss of $21.3 million and a credit of $61.8 million to prior service cost.

The components of net periodic postretirement benefit cost for the three and nine months ended September 30 were as follows:



	Three months ended						Nine months ended
In millions	2013			2012			2013			2012
Service cost	$	1.6		$	1.6		$	5.0		$	5.5
Interest cost	6.0			7.0			19.4			23.2
Net amortization of:
Prior service gains	(2.7		)	(2.6		)	(7.9		)	(7.5		)
Net actuarial losses	(0.1		)	0.1			5.3			5.4
Net periodic postretirement benefit cost	$	4.8		$	6.1		$	21.8		$	26.6
Amounts recorded in continuing operations	$	3.2		$	4.4		$	14.0		$	17.5
Amounts recorded in discontinued operations	1.6			1.7			7.8			9.1
Total	$	4.8		$	6.1		$	21.8		$	26.6