The following tables set forth the components of net periodic benefit cost of the Company’s pension and postretirement benefit plans for the periods presented below:



	Pension Benefits
	Successor					Predecessor
	Three Months Ended March 31, 2013			Period from Acquisition (March 26, 2012) to March 31, 2012		Period from January 1, 2012 to March 25, 2012
Net Periodic Benefit Cost:
Service cost	$	1		$	—	$	1
Interest cost	2			—		2
Expected return on plan assets	(3		)	—		(2		)
Actuarial loss amortization	1			—		2
	1			—		3
Regulatory adjustment ⁽²⁾	2			—		—
Net periodic benefit cost	$	3		$	—	$	3



	Other Postretirement Benefits
	Successor						Predecessor
	Three Months Ended March 31, 2013			Period from Acquisition (March 26, 2012) to March 31, 2012			Period from January 1, 2012 to March 25, 2012
Net Periodic Benefit Cost:
Service cost	$	—		$	—		$	1
Interest cost	1			—			1
Expected return on plan assets	(2		)	—			(1		)
Prior service credit amortization	—			—			(1		)
Curtailment recognition ⁽¹⁾	—			(15		)	—
	(1		)	(15		)	—
Regulatory adjustment ⁽²⁾	3			—			1
Net periodic benefit cost (credit)	$	2		$	(15	)	$	1

⁽¹⁾

Subsequent to the ETE Merger, the Company amended certain of its OPEB plans, which prospectively restrict participation in the plans for the impacted active employees. The plan amendments resulted in the plans becoming currently over-funded and, accordingly, the Company recorded a pre-tax curtailment gain of $75 million. Such gain was offset by establishment of a non-current refund liability in the amount of $60 million. As such, the net curtailment gain recognition was $15 million.

⁽²⁾

In the Distribution segment, the Company recovers certain qualified pension benefit plan and other postretirement benefit plan costs through rates charged to utility customers. Certain utility commissions require that the recovery of these costs be based on the Employee Retirement Income Security Act of 1974, as amended, or other utility commission specific guidelines. The difference between these regulatory-based amounts and the periodic benefit cost calculated pursuant to GAAP is deferred as a regulatory asset or liability and amortized to expense over periods in which this difference will be recovered in rates, as promulgated by the applicable utility commission.