Retirement Benefits

3 Months Ended

Mar. 31, 2013

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. As of March 31, 2013, the actual allocation for the U.S. Plan was 60% equities and equity alternatives and 40% fixed income. The target asset allocation for the U.K. Plans, which comprises approximately 82% of non-U.S. Plan assets, is 53% equities and equity alternatives and 47% fixed income. As of March 31, 2013, the actual allocation for the U.K. Plan was 55% equities and equity alternatives and 45% fixed income. The assets of the Company's defined benefit plans are 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 March 31,	Benefits						Benefits
(In millions of dollars)	2013			2012			2013		2012
Service cost	$	64		$	61		$	2	$	2
Interest cost	145			148			3		3
Expected return on plan assets	(228		)	(226		)	—		—
Amortization of prior service credit	(5		)	(5		)	—		(3		)
Recognized actuarial loss	78			66			—		—
Net periodic benefit cost	$	54		$	44		$	5	$	2
U.S. Plans only	Pension						Postretirement
For the Three Months Ended March 31,	Benefits						Benefits
(In millions of dollars)	2013			2012			2013		2012
Service cost	$	27		$	24		$	1	$	1
Interest cost	57			57			2		2
Expected return on plan assets	(81		)	(81		)	—		—
Amortization of prior service credit	(4		)	(4		)	—		(3		)
Recognized actuarial loss	51			37			—		—
Net periodic benefit cost	$	50		$	33		$	3	$	—

Significant non-U.S. Plans only	Pension						Postretirement
For the Three Months Ended March 31,	Benefits						Benefits
(In millions of dollars)	2013			2012			2013		2012
Service cost	$	37		$	37		$	1	$	1
Interest cost	88			91			1		1
Expected return on plan assets	(147		)	(145		)	—		—
Amortization of prior service credit	(1		)	(1		)	—		—
Recognized actuarial loss	27			29			—		—
Net periodic benefit cost	$	4		$	11		$	2	$	2

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
March 31	2013		2012		2013		2012
Weighted average assumptions:
Expected return on plan assets	7.66	%	8.04	%	—	%	—	%
Discount rate	4.38	%	4.91	%	4.32	%	5.05	%
Rate of compensation increase	2.43	%	3.09	%	—	%	—	%

The Company made approximately $402 million of contributions to its U.S. and non-U.S. defined benefit plans in the first three months of 2013, including $250 million and $70 million of discretionary contributions to its U.K. and Canadian pension plans, respectively, and expects to contribute approximately $246 million to its non-qualified U.S. pension and non-U.S. pensions plans during the remainder of 2013.