Pension and Postretirement Benefits

6 Months Ended

Jun. 30, 2015

Pension and Postretirement Benefits

c. Pension and Postretirement Benefits. Net periodic pension expense for the three and six months ended June 30, 2015 and 2014 is presented below (in millions of dollars):

	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
	Total			U.S. Plans			Int’l. Plans			Total			U.S. Plans			Int’l. Plans
Service cost	$	2.1		$	—		$	2.1		$	1.9		$	—		$	1.9
Interest cost		79.0			55.9			23.1			92.3			62.2			30.1
Expected return on plan assets		(102.2	)		(63.7	)		(38.5	)		(112.9	)		(72.0	)		(40.9	)
Amortization of prior service cost		(1.1	)		(.6	)		(.5	)		(.3	)		.2			(.5	)
Recognized net actuarial loss		48.6			32.7			15.9			37.5			27.0			10.5
Curtailment gain		—			—			—			(.6	)		—			(.6	)
Net periodic pension expense	$	26.4		$	24.3		$	2.1		$	17.9		$	17.4		$	.5

	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	Total			U.S. Plans			Int’l. Plans			Total			U.S. Plans			Int’l. Plans
Service cost	$	4.3		$	—		$	4.3		$	4.3		$	—		$	4.3
Interest cost		158.9			112.0			46.9			184.6			124.7			59.9
Expected return on plan assets		(204.9	)		(127.4	)		(77.5	)		(225.6	)		(144.0	)		(81.6	)
Amortization of prior service cost		(2.2	)		(1.2	)		(1.0	)		(.6	)		.4			(1.0	)
Recognized net actuarial loss		98.2			66.4			31.8			75.3			54.8			20.5
Curtailment gain		—			—			—			(.6	)		—			(.6	)
Net periodic pension expense	$	54.3		$	49.8		$	4.5		$	37.4		$	35.9		$	1.5

In 2015, the company expects that it will make cash contributions of approximately $150 million to its worldwide defined benefit pension plans, which is comprised of $59 million for the company’s U.S. qualified defined benefit pension plan and $91 million primarily for non-U.S. defined benefit pension plans. In 2014, the company made cash contributions of $183.4 million to its worldwide defined benefit pension plans. For the six months ended June 30, 2015 and 2014, $75.7 million and $103.1 million, respectively, of cash contributions have been made.

Net periodic postretirement benefit expense for the three and six months ended June 30, 2015 and 2014 is presented below (in millions of dollars):

	Three Months Ended June 30						Six Months Ended June 30
	2015			2014			2015			2014
Service cost	$	.2		$	.1		$	.3		$	.3
Interest cost		1.7			2.0			3.4			4.0
Expected return on assets		(.1	)		(.2	)		(.2	)		(.3	)
Amortization of prior service cost		.3			.5			.6			.9
Recognized net actuarial loss		.7			.9			1.4			1.7
Net periodic postretirement benefit expense	$	2.8		$	3.3		$	5.5		$	6.6

The company expects to make cash contributions of approximately $16 million to its postretirement benefit plan in 2015 compared with $15.3 million in 2014. For the six months ended June 30, 2015 and 2014, $6.9 million and $6.4 million, respectively, of cash contributions have been made.