Pension Benefit Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2014

Pension Benefit Plans and Other Postretirement Benefits

Pension Benefit Plans and Other Postretirement Benefits

7.  Pension Benefit Plans and Other Postretirement Benefits

The components of the net periodic pension cost for the three months ended September 30, 2014 and 2013 are as follows:

	U.S.						Non-U.S.
	2014			2013			2014			2013
Service cost	$	5		$	6		$	6		$	9
Interest cost	27			26			16			17
Expected asset return	(45		)	(45		)	(23		)	(23		)
Amortization:
Prior Service cost							(1		)
Actuarial loss	19			28			5			7
Net periodic pension cost	$	6		$	15		$	3		$	10

The components of the net periodic pension cost for the nine months ended September 30, 2014 and 2013 are as follows:

	U.S.						Non-U.S.
	2014			2013			2014			2013
Service cost	$	17		$	20		$	20		$	25
Interest cost	80			80			53			51
Expected asset return	(132		)	(137		)	(69		)	(68		)
Amortization:
Prior Service cost							(2		)
Actuarial loss	55			83			16			23
Net periodic pension cost	$	20		$	46		$	18		$	31

The U.S. pension expense for the nine months ended September 30, 2013 excludes $8 million of special termination benefits that were recorded in discontinued operations.

During the nine months ended September 30, 2013, the Company recorded a curtailment gain of $5 million related to modifications made to one of its U.S. postretirement benefit plans that reduced or eliminated certain health care and life insurance benefits.  These modifications also resulted in a $55 million reduction in the postretirement benefit obligation that was recognized in accumulated other comprehensive income.

On October 1, 2014, the Company settled the liability associated with its pension plan in the Netherlands.  The settlement is expected to result in a non-cash charge of approximately $35 million ($25 million after tax) in the fourth quarter of 2014.