Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Components of net periodic cost and weighted-average assumptions used to determine net cost



(Millions of dollars)	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Postretirement Benefits
	June 30,						June 30,						June 30,
	2012			2011			2012			2011			2012			2011
For the three months ended:
Components of net periodic benefit cost:
Service cost	$	46		$	38		$	28		$	28		$	22		$	20
Interest cost	154			162			46			44			56			63
Expected return on plan assets	(203		)	(199		)	(53		)	(50		)	(16		)	(17		)
Amortization of:
Prior service cost (credit) ¹	5			5			—			—			(16		)	(13		)
Net actuarial loss (gain) ¹	124			113			24			18			25			27
Net periodic benefit cost	126			119			45			40			71			80
Curtailments, settlements and special termination benefits ²	—			—			12			9			—			—
Total cost included in operating profit	$	126		$	119		$	57		$	49		$	71		$	80

For the six months ended:
Components of net periodic benefit cost:
Service cost	$	92		$	77		$	56		$	55		$	46		$	41
Interest cost	308			324			91			87			111			126
Expected return on plan assets	(406		)	(398		)	(107		)	(100		)	(32		)	(35		)
Amortization of:
Transition obligation (asset)	—			—			—			—			1			1
Prior service cost (credit) ¹	10			10			—			1			(33		)	(27		)
Net actuarial loss (gain) ¹	248			226			48			36			50			54
Net periodic benefit cost	252			239			88			79			143			160
Curtailments, settlements and special termination benefits ²	—			—			22			9			(40		)	—
Total cost included in operating profit	$	252		$	239		$	110		$	88		$	103		$	160

Weighted-average assumptions used to determine net cost:
Discount rate	4.3		%	5.1		%	4.3		%	4.6		%	4.3		%	5.0		%
Expected return on plan assets	8.0		%	8.5		%	7.1		%	7.1		%	8.0		%	8.5		%
Rate of compensation increase	4.5		%	4.5		%	3.9		%	4.2		%	4.4		%	4.4		%

¹ Prior service cost (credit) and net actuarial loss (gain) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period to the full retirement eligibility date of employees expected to receive benefits from the plan. For other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) and net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of those participants.

² Curtailments, settlements and special termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.

Company costs related to U.S. and non-U.S. defined contribution plans

Total company costs related to our defined contribution plans were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(Millions of dollars)	2012		2011		2012		2011
U.S. Plans	$	33	$	50	$	134	$	132
Non-U.S. Plans	17		14		31		26
	$	50	$	64	$	165	$	158