XML 37 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Postretirement Benefits
 3 Months Ended
Mar. 31, 2018
Retirement Benefits [Abstract]  
Postretirement Benefits
   Postretirement benefits
 
A.  Pension and postretirement benefit costs    

In the first quarter of 2017, we announced the closure of our Gosselies, Belgium, facility. This announcement impacted certain employees that participated in a defined benefit pension plan and resulted in a net loss of $20 million in the first quarter of 2017 for curtailment and termination benefits. In addition during the first quarter of 2017, we announced the decision to phase out production at our Aurora, Illinois, facility, which resulted in termination benefits of $9 million for certain hourly employees that participate in our U.S. hourly defined benefit pension plan.
See Note 19 for more information on the Gosselies closure.
 
U.S. Pension 
Benefits
 
Non-U.S. Pension 
Benefits
 
Other
Postretirement 
Benefits
(Millions of dollars)

March 31
 
March 31
 
March 31
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
For the three months ended:
 
 
 
 
 
 
 
 
 
 
 
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
32

 
$
29

 
$
22

 
$
23

 
$
21

 
$
19

Interest cost
133

 
131

 
25

 
25

 
31

 
33

Expected return on plan assets
(202
)
 
(184
)
 
(56
)
 
(57
)
 
(8
)
 
(9
)
Amortization of prior service cost (credit) 1
—

 
—

 
—

 
—

 
(9
)
 
(5
)
Curtailments and termination benefits
—

 
9

 
—

 
20

 
—

 
—

Net periodic benefit cost (benefit) 2
$
(37
)
 
$
(15
)
 
$
(9
)
 
$
11

 
$
35

 
$
38

 

 

 

 

 
 
 
 
Weighted-average assumptions used to determine net cost:
 
 
 
 
 
 
 
 
 
 
Discount rate used to measure service cost
3.7
%
 
4.2
%
 
2.3
%
 
2.3
%
 
3.5
%
 
3.9
%
Discount rate used to measure interest cost
3.2
%
 
3.3
%
 
2.2
%
 
2.3
%
 
3.2
%
 
3.3
%
Expected rate of return on plan assets
6.3
%
 
6.7
%
 
5.2
%
 
5.9
%
 
7.5
%
 
7.5
%
Rate of compensation increase
4.0
%
 
4.0
%
 
4.0
%
 
4.0
%
 
4.6
%
 
4.0
%
 
 
 
 
 
 
 
 
 
 
 
 

1 
Prior service cost (credit) for both pension and other postretirement benefits is generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and 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) is amortized using the straight-line method over the remaining life expectancy of those participants.
2 
The service cost component of net periodic pension and other postretirement benefits cost (benefit) is included in Operating costs in the Consolidated Statement of Results of Operations. All other components of net periodic pension and other postretirement benefits cost (benefit) are included in Other income (expense) in the Consolidated Statement of Results of Operations.
 
 
 
 
 


We made $152 million of contributions to our pension and other postretirement plans during the three months ended March 31, 2018. We currently anticipate full-year 2018 contributions of approximately $365 million. We made $106 million of contributions to our pension and other postretirement plans during the three months ended March 31, 2017.
 
B.  Defined contribution benefit costs
 
Total company costs related to our defined contribution plans were as follows:
 
 
 
 
 
 
Three Months Ended
March 31
(Millions of dollars)
2018
 
2017
U.S. Plans
$
73

 
$
80

Non-U.S. Plans
22

 
16

 
$
95

 
$
96