Quarterly report pursuant to Section 13 or 15(d)

Pension and Other Postretirement Benefit Plans

v2.3.0.15
Pension and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2011
Pension and Other Postretirement Benefit Plans  
Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefit Plans
Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions):
 
Pension Benefits  
 
Other Benefits  
 
Three Months Ended
 
September 30,
2011

October 1,
2010

 
September 30,
2011

October 1,
2010

Service cost
$
62

$
28

 
$
8

$
5

Interest cost
97

54

 
11

7

Expected return on plan assets
(125
)
(62
)
 
(2
)
(2
)
Amortization of prior service cost (credit)
2

1

 
(15
)
(16
)
Amortization of net actuarial loss
22

14

 
—

1

Net periodic benefit cost (credit)
58

35

 
2

(5
)
Curtailment charge (credit)
—

—

 
—

—

Special termination benefits
—

—

 
—

—

Total cost (credit) recognized in statements of income
$
58

$
35

 
$
2

$
(5
)

 
Pension Benefits  
 
Other Benefits  
 
Nine Months Ended
 
September 30,
2011

October 1,
2010

 
September 30,
2011

October 1,
2010

Service cost
$
186

$
85

 
$
24

$
16

Interest cost
292

162

 
34

20

Expected return on plan assets
(371
)
(185
)
 
(6
)
(6
)
Amortization of prior service cost (credit)
5

3

 
(46
)
(46
)
Amortization of net actuarial loss
64

43

 
1

2

Net periodic benefit cost (credit)
176

108

 
7

(14
)
Curtailment charge (credit)
—

(1
)
 
—

—

Special termination benefits1
4

1

 
2

1

Total cost (credit) recognized in statements of income
$
180

$
108

 
$
9

$
(13
)
1 Primarily relate to the Company's productivity, integration and restructuring initiatives. Refer to Note 11 for additional information related to these initiatives.
We contributed $874 million to our pension plans during the nine months ended September 30, 2011, which primarily consisted of $360 million to our primary U.S. pension plans and $369 million to certain European pension plans whose assets are managed through one of our captive insurance companies. We anticipate making additional contributions of approximately $13 million to our pension plans during the remainder of 2011. The Company contributed $57 million to our pension plans during the nine months ended October 1, 2010.
On March 23, 2010, the Patient Protection and Affordable Care Act (HR 3590) was signed into law in the United States. As a result of this legislation, entities are no longer eligible to receive a tax deduction for the portion of prescription drug expenses reimbursed under the Medicare Part D subsidy. This change resulted in a reduction of our deferred tax assets and a corresponding charge to income tax expense of $14 million during the first quarter of 2010. Refer to Note 13.