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Retirement Benefits
 6 Months Ended
Jun. 30, 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 June 30, 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 June 30, 2013, the actual allocation for the U.K. Plan was 53% equities and equity alternatives and 47% 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 June 30,
Benefits
 
Benefits
(In millions of dollars)
2013

 
2012

 
2013

 
2012

Service cost
$
61

 
$
60

 
$
—

 
$
—

Interest cost
144

 
149

 
3

 
3

Expected return on plan assets
(225
)
 
(225
)
 
—

 
—

Amortization of prior service credit
(6
)
 
(5
)
 
—

 
(3
)
Recognized actuarial loss
80

 
68

 
1

 
—

Net periodic benefit cost
$
54

 
$
47

 
$
4

 
$
—

 
 
 
 
 
 
 
 
Combined U.S. and significant non-U.S. Plans
Pension
 
Postretirement
For the Six Months Ended June 30,
Benefits
 
Benefits
(In millions of dollars)
2013

 
2012

 
2013

 
2012

Service cost
$
125

 
$
121

 
$
2

 
$
2

Interest cost
289

 
297

 
6

 
6

Expected return on plan assets
(453
)
 
(451
)
 
—

 
—

Amortization of prior service credit
(11
)
 
(10
)
 
—

 
(6
)
Recognized actuarial loss
158

 
134

 
1

 
—

Net periodic benefit cost
$
108

 
$
91

 
$
9

 
$
2

 
 
 
 
 
 
 
 
U.S. Plans only
Pension
 
Postretirement
For the Three Months Ended June 30,
Benefits
 
Benefits
(In millions of dollars)
2013

 
2012

 
2013

 
2012

Service cost
$
25

 
$
23

 
$
—

 
$
—

Interest cost
57

 
58

 
2

 
2

Expected return on plan assets
(81
)
 
(80
)
 
—

 
—

Amortization of prior service credit
(4
)
 
(4
)
 
—

 
(3
)
Recognized actuarial loss (gain)
53

 
39

 
—

 
(1
)
Net periodic benefit cost (credit)
$
50

 
$
36

 
$
2

 
$
(2
)
U.S. Plans only
Pension
 
Postretirement
For the Six Months Ended June 30,
Benefits
 
Benefits
(In millions of dollars)
2013

 
2012

 
2013

 
2012

Service cost
$
52

 
$
47

 
$
1

 
$
1

Interest cost
114

 
115

 
4

 
4

Expected return on plan assets
(162
)
 
(161
)
 
—

 
—

Amortization of prior service credit
(8
)
 
(8
)
 
—

 
(6
)
Recognized actuarial loss (gain)
104

 
76

 
—

 
(1
)
Net periodic benefit cost (credit)
$
100

 
$
69

 
$
5

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant non-U.S. Plans only
Pension
 
Postretirement
For the Three Months Ended June 30,
Benefits
 
Benefits
(In millions of dollars)
2013

 
2012

 
2013

 
2012

Service cost
$
36

 
$
37

 
$
—

 
$
—

Interest cost
87

 
91

 
1

 
1

Expected return on plan assets
(144
)
 
(145
)
 
—

 
—

Amortization of prior service credit
(2
)
 
(1
)
 
—

 
—

Recognized actuarial loss
27

 
29

 
1

 
1

Net periodic benefit cost
$
4

 
$
11

 
$
2

 
$
2


Significant non-U.S. Plans only
Pension
 
Postretirement
For the Six Months Ended June 30,
Benefits
 
Benefits
(In millions of dollars)
2013

 
2012

 
2013

 
2012

Service cost
$
73

 
$
74

 
$
1

 
$
1

Interest cost
175

 
182

 
2

 
2

Expected return on plan assets
(291
)
 
(290
)
 
—

 
—

Amortization of prior service cost
(3
)
 
(2
)
 
—

 
—

Recognized actuarial loss
54

 
58

 
1

 
1

Net periodic benefit cost
$
8

 
$
22

 
$
4

 
$
4

 
 
 
 
 
 
 
 
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,
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 $473 million of contributions to its U.S. and non-U.S. defined benefit plans in the first six months of 2013, including $250 million and $70 million of discretionary contributions to its U.K. and Canadian pension plans, respectively. The Company expects to contribute approximately $175 million to its non-qualified U.S. pension and non-U.S. pension plans during the remainder of 2013.