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Retirement Benefits
6 Months Ended
Jun. 30, 2011
Retirement Benefits  
Retirement Benefits

11.    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 42% fixed income. At the end of the second quarter of 2011, the actual allocation for the U.S. Plan was 62% equities and 38% fixed income. The target asset allocation for the U.K. Plan, which comprises approximately 82% of non-U.S. Plan assets, is 58% equities and 42% fixed income. At the end of the second quarter of 2011, the actual allocation for the U.K. Plan was 55% equities and 45% fixed income.

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

 

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
 
      2011     2010     2011     2010  

Weighted average assumptions:

        

Expected return on plan assets

     8.2     8.1              

Discount rate

     5.6     6.0     5.8     6.3

Rate of compensation increase

     4.1     4.2              

The Company made $170 million of contributions to its U.S. non-qualified and non-U.S. pension plans in the first half of 2011 and expects to contribute approximately $150 million for the remainder of 2011 for these plans.