Pension and Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2012

Pension and Postretirement Benefit Plans

Note 8. 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 September 30,	U.S.			Non-U.S.			U.S.			Non-U.S.			2012		2011
Interest cost	$	21		$	3		$	23		$	3		$	1	$	1
Expected return on plan assets		(28	)					(26	)
Service cost					1						1
Amortization of net actuarial loss		4						5
Net periodic (benefit) cost	$	(3	)	$	4		$	2		$	4		$	1	$	1
Nine Months Ended September 30,
Interest cost	$	64		$	9		$	69		$	10		$	4	$	5
Expected return on plan assets		(84	)		(1	)		(78	)		(2	)
Service cost					3						4
Amortization of net actuarial loss		11						15
Settlement loss											5
Net periodic (benefit) cost	$	(9	)	$	11		$	6		$	17		$	4	$	5

In January 2012, we made a voluntary contribution of $150 to the U.S. pension plans. Through the end of September 2012, we have contributed an additional $48 to the U.S. pension plans.

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.

During the third quarter of 2012, we recorded a $6 charge to other comprehensive income (OCI) for the prior service cost of a plan amendment resulting from a change in the Venezuelan labor code. The prior service cost will be amortized as a component of net periodic pension cost over the future service periods of active participants.

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.