The following table provides the annual cost (including costs reported as part of discontinued operations) and changes in Other comprehensive income/(loss) for our benefit plans: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Qualified(a) | U.S. Supplemental (Non-Qualified)(b) | International(c) | Postretirement Plans(d) | |||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Service cost | $ | 301 | $ | 357 | $ | 351 | $ | 26 | $ | 35 | $ | 36 | $ | 216 | $ | 215 | $ | 243 | $ | 61 | $ | 68 | $ | 68 | ||||||||||||||||||||||||
Interest cost | 666 | 697 | 734 | 67 | 62 | 72 | 378 | 406 | 443 | 166 | 182 | 195 | ||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (999 | ) | (983 | ) | (871 | ) | — | — | — | (407 | ) | (424 | ) | (437 | ) | (55 | ) | (46 | ) | (35 | ) | |||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial losses | 355 | 306 | 145 | 51 | 41 | 36 | 129 | 93 | 86 | 46 | 33 | 17 | ||||||||||||||||||||||||||||||||||||
Prior service credits | (7 | ) | (10 | ) | (8 | ) | (2 | ) | (3 | ) | (3 | ) | (5 | ) | (7 | ) | (5 | ) | (44 | ) | (49 | ) | (53 | ) | ||||||||||||||||||||||||
Curtailments | — | (62 | ) | (4 | ) | — | (9 | ) | (1 | ) | (20 | ) | (16 | ) | (14 | ) | (11 | ) | (65 | ) | (68 | ) | ||||||||||||||||||||||||||
Settlements | 113 | 145 | 99 | 40 | 33 | 24 | 22 | 7 | 14 | — | — | — | ||||||||||||||||||||||||||||||||||||
Special termination benefits | — | 8 | 23 | — | 30 | 26 | 4 | 5 | 5 | — | 6 | 3 | ||||||||||||||||||||||||||||||||||||
Net periodic benefit costs reported in Income | 429 | 458 | 469 | 182 | 189 | 190 | 317 | 279 | 335 | 163 | 129 | 127 | ||||||||||||||||||||||||||||||||||||
(Income)/cost reported in Other comprehensive income/(loss) | (3,044 | ) | 461 | 1,879 | (255 | ) | 110 | 36 | (569 | ) | 759 | (365 | ) | (736 | ) | 267 | 421 | |||||||||||||||||||||||||||||||
(Income)/cost recognized in Comprehensive income | $ | (2,615 | ) | $ | 919 | $ | 2,348 | $ | (73 | ) | $ | 299 | $ | 226 | $ | (252 | ) | $ | 1,038 | $ | (30 | ) | $ | (573 | ) | $ | 396 | $ | 548 | |||||||||||||||||||
(a) | 2013 v. 2012––The decrease in net periodic benefit cost for our U.S. qualified plans was primarily driven by (i) lower service cost resulting from cost reduction initiatives, (ii) lower settlements and (iii) higher expected return on plan assets resulting from an increased 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. 2012 v. 2011––The decrease in net periodic benefit cost for our U.S. qualified plans was primarily driven by (i) higher expected return on plan assets (resulting from contributions made to the plan in 2011 that increased the plan asset base), (ii) lower interest costs, (iii) a decrease in special termination benefits, and (iv) higher curtailments resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico largely offset by higher settlements and an increase in the amounts amortized for actuarial losses (resulting from a decrease in the discount rate and lower than expected actual returns in 2011). |
(b) | 2013 v. 2012––The decrease in net periodic benefit cost for our U.S. supplemental (non-qualified) pension plans was primarily driven by special termination benefits in 2012, partially offset by an increase in the amounts amortized for actuarial losses resulting from a 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. 2012 v. 2011––The net periodic benefit cost for our U.S. supplemental (non-qualified) pension plans was largely unchanged as the curtailment gain resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico was more than offset by higher settlement activity. |
(c) | 2013 v. 2012––The increase in net periodic benefit costs for our international pension plans was primarily driven by (i) an increase in the amounts amortized for actuarial losses resulting from changes in assumptions, (ii) lower expected return on plan assets driven by lower expected rate of return in certain significant plans, (iii) higher settlements and (iv) 2012 curtailment gains, partially offset by lower interest costs resulting from the decrease in discount rates. 2012 v. 2011––The decrease in net periodic benefit costs for our international pension plans was primarily driven by restructuring activities in the U.K. and Ireland in 2011. Also, the decrease in discount rates resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses. |
(d) | 2013 v. 2012––The increase in net periodic benefit cost for our postretirement plans was primarily driven by 2012 curtailment gains, partially offset by higher expected return on plan assets and 2012 special termination benefits. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses. 2012 v. 2011––The net periodic benefit cost for our postretirement plans was largely unchanged, as an increase in amounts amortized for actuarial plan losses was partially offset by higher expected return on plan assets. |