Retirement Benefits

6 Months Ended

Jun. 30, 2012

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Retirement Benefits

Retirement Benefits

The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. The Company’s policy for funding its tax qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans.

The target asset allocation for the U.S. Plan is 58% equities and equity alternatives and 42% fixed income. At the end of the second quarter of 2012, the actual allocation for the U.S. Plan was 57% equities and equity alternatives and 43% fixed income. The target asset allocation for the U.K. Plans, which comprises approximately 80% of non-U.S. Plan assets, is 53% equities and equity alternatives and 47% fixed income. At the end of the second quarter of 2012, the actual allocation for the U.K. Plan was 51% equities and equity alternatives and 49% fixed income. The assets of the Company's defined benefit plans are well-diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' real return within acceptable risk parameters. The Company uses threshold-based portfolio re-balancing to ensure the actual portfolio remains consistent with target asset allocation ranges.

The components of the net periodic benefit cost for defined benefit and other post-retirement plans are as follows:

Combined U.S. and significant non-U.S. Plans	Pension						Postretirement
For the Three Months Ended June 30,	Benefits						Benefits
(In millions of dollars)	2012			2011			2012			2011
Service cost	$	60		$	58		$	—		$	1
Interest cost	149			153			3			4
Expected return on plan assets	(225		)	(224		)	—			—
Amortization of prior service credit	(5		)	(4		)	(3		)	(4		)
Recognized actuarial loss	68			53			—			—
Net periodic benefit cost	$	47		$	36		$	—		$	1
Combined U.S. and significant non-U.S. Plans	Pension						Postretirement
For the Six Months Ended June 30,	Benefits						Benefits
(In millions of dollars)	2012			2011			2012			2011
Service cost	$	121		$	114		$	2		$	3
Interest cost	297			305			6			7
Expected return on plan assets	(451		)	(445		)	—			—
Amortization of prior service credit	(10		)	(9		)	(6		)	(7		)
Recognized actuarial loss	134			108			—			—
Net periodic benefit cost	$	91		$	73		$	2		$	3
U.S. Plans only	Pension						Postretirement
For the Three Months Ended June 30,	Benefits						Benefits
(In millions of dollars)	2012			2011			2012			2011
Service cost	$	23		$	21		$	—		$	1
Interest cost	58			57			2			3
Expected return on plan assets	(80		)	(78		)	—			—
Amortization of prior service credit	(4		)	(4		)	(3		)	(4		)
Recognized actuarial loss (credit)	39			24			(1		)	—
Net periodic benefit cost (credit)	$	36		$	20		$	(2	)	$	—

U.S. Plans only	Pension						Postretirement
For the Six Months Ended June 30,	Benefits						Benefits
(In millions of dollars)	2012			2011			2012			2011
Service cost	$	47		$	42		$	1		$	2
Interest cost	115			115			4			5
Expected return on plan assets	(161		)	(157		)	—			—
Amortization of prior service credit	(8		)	(8		)	(6		)	(7		)
Recognized actuarial loss (credit)	76			50			(1		)	—
Net periodic benefit cost (credit)	$	69		$	42		$	(2	)	$	—

Significant non-U.S. Plans only	Pension						Postretirement
For the Three Months Ended June 30,	Benefits						Benefits
(In millions of dollars)	2012			2011			2012		2011
Service cost	$	37		$	37		$	—	$	—
Interest cost	91			96			1		1
Expected return on plan assets	(145		)	(146		)	—		—
Amortization of prior service cost	(1		)	—			—		—
Recognized actuarial loss	29			29			1		—
Net periodic benefit cost	$	11		$	16		$	2	$	1

Significant non-U.S. Plans only	Pension						Postretirement
For the Six Months Ended June 30,	Benefits						Benefits
(In millions of dollars)	2012			2011			2012		2011
Service cost	$	74		$	72		$	1	$	1
Interest cost	182			190			2		2
Expected return on plan assets	(290		)	(288		)	—		—
Amortization of prior service cost	(2		)	(1		)	—		—
Recognized actuarial loss	58			58			1		—
Net periodic benefit cost	$	22		$	31		$	4	$	3

The weighted average actuarial assumptions utilized to calculate the net periodic benefit costs for the U.S. and significant non-U.S. defined benefit plans are as follows:

Combined U.S. and significant non-U.S. Plans	Pension Benefits				Postretirement Benefits
June 30	2012		2011		2012		2011
Weighted average assumptions:
Expected return on plan assets	8.04	%	8.18	%	—	%	—	%
Discount rate	4.91	%	5.59	%	5.05	%	5.84	%
Rate of compensation increase	3.09	%	4.09	%	—	%	—	%

The Company made $347 million of contributions to its U.S. and non-U.S. defined benefit plans in the first six months of 2012, including discretionary contributions of $100 million to its U.S. qualified defined benefit plan and $100 million to its U.K. plans, and expects to contribute approximately $172 million to its non-qualified U.S. and non-U.S. defined benefit plans during the remainder of 2012.