EMPLOYEE BENEFITS

6 Months Ended

Jun. 30, 2013

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

14. EMPLOYEE BENEFITS

The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:

	Pension									Postretirement
				Non-U.S. Plans									Non-U.S. Plans
(in millions)	U.S. Plans						Total			U.S. Plans					Total
Three Months Ended June 30, 2013
Components of net periodic benefit cost:
Service cost	$	44		$	12		$	56		$	2		$	1	$	3
Interest cost		49			7			56			2			1		3
Expected return on assets		(64	)		(5	)		(69	)		–			–		–
Amortization of prior service (credit) cost		(9	)		–			(9	)		(2	)		–		(2	)
Amortization of net (gain) loss		33			3			36			–			–		–
Net periodic benefit cost	$	53		$	17		$	70		$	2		$	2	$	4
Three Months Ended June 30, 2012
Components of net periodic benefit cost:
Service cost	$	39		$	13		$	52		$	2		$	–	$	2
Interest cost		50			9			59			2			1		3
Expected return on assets		(60	)		(5	)		(65	)		–			–		–
Amortization of prior service (credit) cost		(9	)		(1	)		(10	)		(2	)		–		(2	)
Amortization of net (gain) loss		29			3			32			–			–		–
Net periodic benefit cost	$	49		$	19		$	68		$	2		$	1	$	3
Six Months Ended June 30, 2013
Components of net periodic benefit cost:
Service cost	$	88		$	24		$	112		$	3		$	2	$	5
Interest cost		98			15			113			4			1		5
Expected return on assets		(129	)		(10	)		(139	)		–			–		–
Amortization of prior service (credit) cost		(17	)		(1	)		(18	)		(5	)		–		(5	)
Amortization of net (gain) loss		66			6			72			1			–		1
Net periodic benefit cost	$	106		$	34		$	140		$	3		$	3	$	6
Six Months Ended June 30, 2012
Components of net periodic benefit cost:
Service cost	$	76		$	26		$	102		$	3		$	1	$	4
Interest cost		100			17			117			5			1		6
Expected return on assets		(120	)		(10	)		(130	)		–			–		–
Amortization of prior service (credit) cost		(17	)		(2	)		(19	)		(5	)		–		(5	)
Amortization of net (gain) loss		58			7			65			–			–		–
Net periodic benefit cost	$	97		$	38		$	135		$	3		$	2	$	5

For the six-month period ended June 30, 2013, we contributed $64 million to our U.S. and non-U.S. pension plans and estimate that we will contribute an additional $36 million for the remainder of 2013. These estimates are subject to change because contribution decisions are affected by various factors, including our liquidity, market performance and management discretion.