The Company and certain of its subsidiaries provide pension, health care and life insurance defined benefits to eligible retired employees, spouses and other eligible dependents through various domestic and foreign plans. The effect of its foreign pension and other postretirement benefit plans is immaterial to the Company's results of operations, liquidity and financial position. The Company froze its defined benefit postretirement medical plan in the first quarter of 2013 and its primary domestic pension plans in 2009.

In the first quarter of 2013, the Company also announced a change in the cost sharing arrangement with retirees for pharmacy subsidy payments received from the U.S. Government effective January 1, 2014, resulting in a reduced other postretirement benefit obligation of $57 million. This reduction was recorded in accumulated other comprehensive income, net of deferred taxes, resulting in an after-tax increase to shareholders' equity of $37 million.

For the six months ended June 30, 2014, the Company's unrecognized actuarial losses and prior service costs (reported in accumulated other comprehensive income) decreased by $ 36 million pre-tax in the aggregate ($ 23 million after-tax) resulting in an increase in shareholders' equity. This change was primarily a result of normal amortization, and the settlement loss related to the non-qualified pension plan caused by lump sum payments that exceeded the expected annual interest cost.

Pension and Other Postretirement Benefits. Components of net pension and net other postretirement benefit costs were as follows:


	Pension Benefits								Other Postretirement Benefits
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
(In millions)	2014		2013		2014		2013		2014		2013		2014		2013
Service cost	$	1	$	-	$	1	$	1	$		$	-	$	-	$	-
Interest cost		52		46		103		91		3		3		6		6
Expected long-term return on plan assets		(66)		(68)		(132)		(136)				-		-		-
Amortization of:
Net loss from past experience		15		18		29		37				-		-		-
Prior service cost				-		-		-		-		(1)		(1)		(3)
Curtailment gain				-		-		-				-		-		(19)
Settlement loss				-		6		-				-		-		-
Net cost	$	2	$	(4)	$	7	$	(7)	$	3	$	2	$	5	$	(16)

The Company funds its domestic qualified pension plans at least at the minimum amount required by the Pension Protection Act of 2006. For the six months ended June 30, 2014, the Company made required contributions of $113 million and is not required to make additional contributions for the remainder of 2014.