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Pension and Postretirement Benefits
9 Months Ended
Sep. 30, 2013
Pension and Postretirement Benefits

b. Pension and Postretirement Benefits. Net periodic pension expense for the three and nine months ended September 30, 2013 and 2012 is presented below (in millions of dollars):

 

                                                                       
     Three Months
Ended Sept. 30, 2013
    Three Months
Ended Sept. 30, 2012
 
     Total     U.S.
Plans
    Int’l.
Plans
    Total     U.S.
Plans
    Int’l.
Plans
 

Service cost

   $ 2.6      $ —        $ 2.6      $ 2.3      $ —        $ 2.3   

Interest cost

     82.0        55.3        26.7        91.3        63.8        27.5   

Expected return on plan assets

     (108.5     (73.0     (35.5     (105.3     (71.4     (33.9

Amortization of prior service cost

     (.8     .2        (1.0     (.1     .1        (.2

Recognized net actuarial loss

     48.1        35.1        13.0        41.7        31.9        9.8   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension expense

   $ 23.4      $ 17.6      $ 5.8      $ 29.9      $ 24.4      $ 5.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

                                                                       
     Nine Months
Ended Sept. 30, 2013
    Nine Months
Ended Sept. 30, 2012
 
     Total     U.S.
Plans
    Int’l.
Plans
    Total     U.S.
Plans
    Int’l.
Plans
 

Service cost

   $ 7.8      $ —        $ 7.8      $ 6.5      $ —        $ 6.5   

Interest cost

     244.3        165.1        79.2        272.7        188.2        84.5   

Expected return on plan assets

     (323.9     (218.7     (105.2     (315.9     (214.3     (101.6

Amortization of prior service cost

     (1.2     .5        (1.7     .2        .5        (.3

Recognized net actuarial loss

     142.4        104.1        38.3        118.9        91.8        27.1   

Curtailment gain

     —          —          —          (5.7     —          (5.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic pension expense

   $ 69.4      $ 51.0      $ 18.4      $ 76.7      $ 66.2      $ 10.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

In 2013, the company estimates that it will make cash contributions of approximately $144 million to its worldwide defined benefit pension plans, which is comprised of $110 million primarily for non-U.S. defined benefit pension plans and $34 million for the company’s U.S. qualified defined benefit pension plan. In 2012, the company made cash contributions of $201.5 million to its worldwide defined benefit pension plans. For the nine months ended September 30, 2013 and 2012, $101.6 million and $175.1 million, respectively, of cash contributions have been made.

Net periodic postretirement benefit expense for the three and nine months ended September 30, 2013 and 2012 is presented below (in millions of dollars):

 

     Three Months
Ended Sept. 30
    Nine Months
Ended Sept. 30
 
     2013     2012     2013     2012  

Service cost

   $ .2      $ .2      $ .5      $ .4   

Interest cost

     2.0        2.2        6.0        6.7   

Expected return on assets

     (.2     (.1     (.4     (.4

Amortization of prior service cost

     .5        .4        1.4        1.3   

Recognized net actuarial loss

     1.4        1.1        4.1        3.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic postretirement benefit expense

   $ 3.9      $ 3.8      $ 11.6      $ 11.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

The company expects to make cash contributions of approximately $20 million to its postretirement benefit plan in 2013 compared with $20.4 million in 2012. For the nine months ended September 30, 2013 and 2012, $11.0 million and $12.1 million, respectively, of cash contributions have been made.