Pension and Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2012

Pension and Postretirement Benefit Plans

Note 7. Pension and Postretirement Benefit Plans

We have a number of defined contribution and defined benefit, qualified and nonqualified, pension plans covering eligible employees. Other postretirement benefits (OPEB), including medical and life insurance, are provided for certain employees upon retirement.

Components of net periodic benefit costs —

	Pension
	2012						2011						OPEB - Non-U.S.
Three Months Ended June 30,	U.S.			Non-U.S.			U.S.			Non-U.S.			2012		2011
Interest cost	$	22		$	3		$	22		$	3		$	2	$	2
Expected return on plan assets		(29	)		(1	)		(26	)		(1	)
Service cost					1						2
Amortization of net actuarial loss		4						5
Settlement loss											4
Net periodic benefit cost	$	(3	)	$	3		$	1		$	8		$	2	$	2
Six Months Ended June 30,
Interest cost	$	43		$	6		$	46		$	7		$	3	$	4
Expected return on plan assets		(56	)		(1	)		(52	)		(2	)
Service cost					2						3
Amortization of net actuarial loss		7						10
Settlement loss											5
Net periodic benefit cost	$	(6	)	$	7		$	4		$	13		$	3	$	4

In January 2012, we made a voluntary contribution of $150 to the U.S. pension plans which we presently expect to be incremental to the minimum required contribution.

In January 2012, in accordance with our policy, we changed the amortization period related to deferred losses in accumulated other comprehensive income (AOCI) from the average remaining service period of active participants to the average remaining life expectancy of inactive participants for one of our U.S. plans as a result of almost all of the plan’s participants being inactive.

As a result of the closure of several facilities in Canada, we are required to settle the related pension obligations. During the first half of 2011, we settled portions of our Canadian pension benefit obligations by making lump-sum payments or by purchasing non-participating annuity contracts to cover vested benefits. As a result of these actions, we reduced the benefit obligations by $77 and also reduced the fair value of plan assets by $77. The related settlement loss of $5 representing the recognition of a portion of the actuarial loss deferred in AOCI was included in restructuring charges.