BENEFIT PLANS

6 Months Ended

Jun. 30, 2011

BENEFIT PLANS

Note 11 – BENEFIT PLANS

The company has noncontributory defined benefit pension plans covering most employees. Pension benefits under these plans are based on years of service and compensation. The company also provides certain non-pension postretirement benefits, primarily health care and life insurance benefits, for retired employees. The company’s non-pension postretirement plan liabilities predominately relate to plans in the United States.

The components of net periodic pension cost consisted of the following:

	Three Months Ended June 30, 2011						Three Months Ended June 30, 2010
(In Millions of Dollars)	U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total
Service cost	$	5.8	$	2.5	$	8.3	$	4.4	$	2.1	$	6.5
Interest cost on projected benefit obligation		7.7		3.9		11.6		6.8		3.6		10.4
Expected return on plan assets		(7.2)		(3.9)		(11.1)		(6.0)		(3.5)		(9.5)
Amortization of prior service costs		0.6		0.1		0.7		0.6		0.1		0.7
Recognized net actuarial loss		2.6		0.6		3.2		1.0		0.5		1.5
Net periodic pension cost	$	9.5	$	3.2	$	12.7	$	6.8	$	2.8	$	9.6

	Six Months Ended June 30, 2011						Six Months Ended June 30, 2010
(In Millions of Dollars)	U.S. Plans		Non- U.S. Plans		Total		U.S. Plans		Non- U.S. Plans		Total
Service cost	$	11.6	$	4.9	$	16.5	$	10.2	$	4.3	$	14.5
Interest cost on projected benefit obligation		15.4		7.8		23.2		13.9		7.4		21.3
Expected return on plan assets		(14.4)		(7.7)		(22.1)		(12.1)		(7.2)		(19.3)
Amortization of prior service costs		1.1		0.2		1.3		1.2		0.2		1.4
Recognized net actuarial loss		5.2		1.2		6.4		2.4		0.9		3.3
Net periodic pension cost	$	18.9	$	6.4	$	25.3	$	15.6	$	5.6	$	21.2

The components of net periodic non-pension postretirement benefit cost consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
(In Millions of Dollars)	2011		2010		2011		2010
Service cost	$	0.4	$	0.4	$	0.8	$	0.8
Interest cost on projected benefit obligation		1.3		1.4		2.6		2.8
Amortization of prior service credits		(1.4)		(1.4)		(2.9)		(2.8)
Amortization of initial net obligation		0.1		0.1		0.2		0.2
Recognized net actuarial loss		0.2		0.1		0.4		0.3
Net periodic non-pension postretirement benefit cost	$	0.6	$	0.6	$	1.1	$	1.3