Pension and Postretirement Benefit Plans

The following table provides the components of net periodic benefit cost:



	Pension Plans
	U.S. Qualified^(a)						U.S. Supplemental (Non-Qualified)^(b)						International^(c)						Postretirement Plans
(MILLIONS OF DOLLARS)	Sep 29, 2013			Sep 30, 2012			Sep 29, 2013			Sep 30, 2012			Sep 29, 2013			Sep 30, 2012			Sep 29, 2013			Sep 30, 2012
Three Months Ended
Net periodic benefit cost:
Service cost	$	75		$	86		$	7		$	8		$	50		$	50		$	15		$	16
Interest cost	166			170			26			15			92			97			42			46
Expected return on plan assets	(248		)	(247		)	—			—			(99		)	(103		)	(14		)	(12		)
Amortization of:
Actuarial losses	88			75			11			10			27			29			11			8
Prior service credits	(2		)	(2		)	(1		)	(2		)	(2		)	(3		)	(11		)	(13		)
Curtailments	—			—			—			—			(6		)	—			—			(3		)
Settlements	29			31			7			3			9			2			—			—
Special termination benefits	—			1			—			8			1			—			—			1
	$	108		$	114		$	50		$	42		$	72		$	72		$	43		$	43
Nine Months Ended
Net periodic benefit cost:
Service cost	$	227		$	272		$	20		$	27		$	155		$	151		$	46		$	51
Interest cost	501			528			53			47			279			297			125			137
Expected return on plan assets	(752		)	(738		)	—			—			(301		)	(314		)	(41		)	(35		)
Amortization of:
Actuarial losses	267			232			38			31			99			63			34			25
Prior service credits	(5		)	(8		)	(2		)	(3		)	(5		)	(6		)	(33		)	(37		)
Curtailments	(1		)	(56		)	—			(8		)	(6		)	(9		)	(9		)	(26		)
Settlements	92			113			35			21			14			4			—			—
Special termination benefits	—			8			—			23			3			3			—			5
	$	329		$	351		$	144		$	138		$	238		$	189		$	122		$	120

^(a)

The decrease in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. qualified plans was primarily driven by lower service cost resulting from the decision in 2012 to freeze the defined benefit plans in the U.S. and Puerto Rico, lower settlement activity and greater expected return on plan assets resulting from a higher plan asset base, partially offset by the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses.

^(b)

The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. supplemental (non-qualified) pension plans was primarily driven by higher settlement activity, an increase in the amounts amortized for actuarial losses resulting from the decrease in the discount rate and the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico, partially offset by special termination benefits in 2012.


^(c)	The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our international pension plans was primarily driven by an increase in the amounts amortized for actuarial losses resulting from decreases in discount rates and higher settlement activity.

For the nine months ended September 29, 2013, we contributed from our general assets: $5 million to our U.S. qualified pension plans, $146 million to our U.S. supplemental (non-qualified) pension plans, $246 million to our international pension plans and $178 million to our postretirement plans.

During 2013, we expect to contribute from our general assets a total of $5 million to our U.S. qualified pension plans,

$177 million to our U.S. supplemental (non-qualified) pension plans, $346 million to our international pension plans and $238 million to our postretirement plans. Contributions expected to be made for 2013 are inclusive of amounts contributed during the nine months ended September 29, 2013. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments.