Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

d. Net periodic pension expense (income) for the three and six months ended June 30, 2011 and 2010 is presented below (in millions of dollars):

	Three Months Ended June 30, 2011									Three Months Ended June 30, 2010
	Total			U.S. Plans			Int'l. Plans			Total			U.S. Plans			Int'l. Plans
Service cost	$	2.4		$	—		$	2.4		$	3.3		$	—		$	3.3
Interest cost		98.1			65.5			32.6			97.8			69.0			28.8
Expected return on plan assets		(118.3	)		(83.5	)		(34.8	)		(122.0	)		(90.9	)		(31.1	)
Amortization of prior service cost		—			.2			(.2	)		—			.1			(.1	)
Recognized net actuarial loss		26.5			19.8			6.7			19.7			13.3			6.4
Net periodic pension expense (income)	$	8.7		$	2.0		$	6.7		$	(1.2	)	$	(8.5	)	$	7.3

	Six Months Ended June 30, 2011									Six Months Ended June 30, 2010
	Total			U.S. Plans			Int'l. Plans			Total			U.S. Plans			Int'l. Plans
Service cost	$	6.1		$	—		$	6.1		$	7.2		$	—		$	7.2
Interest cost		196.0			132.0			64.0			197.7			138.2			59.5
Expected return on plan assets		(237.1	)		(168.7	)		(68.4	)		(246.8	)		(182.5	)		(64.3	)
Amortization of prior service cost		.2			.4			(.2	)		.2			.3			(.1	)
Recognized net actuarial loss		52.5			39.2			13.3			40.2			27.2			13.0
Net periodic pension expense (income)	$	17.7		$	2.9		$	14.8		$	(1.5	)	$	(16.8	)	$	15.3

The company currently expects to make cash contributions of approximately $115 million to its worldwide defined benefit pension plans (principally international plans) in 2011 compared with $81.5 million in 2010. For the six months ended June 30, 2011 and 2010, $42.8 million and $39.5 million, respectively, of cash contributions have been made. In accordance with regulations governing contributions to U.S. defined benefit pension plans, the company is not required to fund its U.S. qualified defined benefit pension plan in 2011.

Net periodic postretirement benefit expense for the three and six months ended June 30, 2011 and 2010 is presented below (in millions of dollars):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Service cost	$	.1		$	.1		$	.2		$	.1
Interest cost		2.5			2.6			4.9			5.3
Expected return on assets		(.2	)		(.2	)		(.3	)		(.3	)
Amortization of prior service cost		.5			.3			.9			.7
Recognized net actuarial loss		1.0			1.0			2.0			1.9
Net periodic postretirement benefit expense	$	3.9		$	3.8		$	7.7		$	7.7

The company expects to make cash contributions of approximately $22 million to its postretirement benefit plan in 2011 compared with $23.9 million in 2010. For the six months ended June 30, 2011 and 2010, $8.8 million and $10.4 million, respectively, of cash contributions have been made.