v2.3.0.11
Pension and Postretirement Benefit Plans
 6 Months Ended
Jul. 03, 2011
Pension and Postretirement Benefit Plans
Note 12. Pension and Postretirement Benefit Plans

The components of net periodic benefit costs of the U.S. and international pension plans and the postretirement plans, which provide medical and life insurance benefits to retirees and their eligible dependents, follow:
   
Pension Plans
        
   
U.S. Qualified(a)
    
U.S. Supplemental
(Non-Qualified)(b)
    
International(c)
    
Postretirement
Plans(d)
  
(millions of dollars)
  
July 3,
2011
    
July 4,
2010
    
July 3,
2011
    
July 4,
2010
    
July 3,
2011
    
July 4,
2010
    
July 3,
2011
    
July 4,
2010
  
Three Months Ended:
                                                
Service cost
   $ 89     $ 89     $ 10     $ 7     $ 65     $ 57     $ 18     $ 21  
Interest cost
     184       188       18       21       114       105       48       54  
Expected return on plan assets
     (220 )     (200 )     —       —       (112 )     (107 )     (8 )     (8 )
Amortization of:
                                                                
Actuarial losses
     35       38       9       8       22       16       4       —  
Prior service (credits)/costs
     (2 )     1       —       —       (1 )     (1 )     (13 )     (5 )
Curtailments and settlements––net
     34       (36 )     6       (8 )     6       (6 )     (20 )     (2 )
Special termination benefits
     5       36       6       62       —       2       1       6  
Net periodic benefit costs
   $ 125     $ 116     $ 49     $ 90     $ 94     $ 66     $ 30     $ 66  
                                                                 
Six Months Ended:
                                                                
Service cost
   $ 179     $ 183     $ 19     $ 15     $ 127     $ 117     $ 35     $ 43  
Interest cost
     369       379       37       40       225       216       97       108  
Expected return on plan assets
     (441 )     (402 )     —       —       (221 )     (219 )     (17 )     (16 )
Amortization of:
                                                                
Actuarial losses
     70       76       18       15       43       33       8       —  
Prior service (credits)/costs
     (4 )     1       (1 )     (1 )     (2 )     (2 )     (27 )     (9 )
Curtailments and settlements––net
     51       (69 )     18       (9 )     4       (5 )     (26 )     (2 )
Special termination benefits
     10       50       13       152       3       3       1       12  
Net periodic benefit costs
   $ 234     $ 218     $ 104     $ 212     $ 179     $ 143     $ 71     $ 136  
(a)
The increase in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010, for our U.S. qualified plans was primarily driven by higher settlement charges and lower curtailment gains associated with Wyeth-related restructuring initiatives partially offset by higher expected return on plan assets and special termination benefits recognized in the prior-year period for certain executives as part of Wyeth-related restructuring initiatives.
(b)
The decrease in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010, for our U.S. supplemental (non-qualified) pension plans was primarily driven by special termination benefits recognized in the prior-year period for certain executives as part of Wyeth-related restructuring initiatives.
(c)
The increase in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010. for our international pension plans was primarily driven by the decrease in the discount rate partially offset by higher expected return on plan assets.
(d)
The decrease in net periodic benefit costs in the first six months of 2011, compared to the first six months of 2010, for our postretirement plans was primarily driven by the harmonization of the postretirement plans and by higher curtailment gains and lower settlement charges associated with Wyeth-related restructuring initiatives.

For the first six months of 2011, we contributed from our general assets $401 million to our U.S. qualified pension plans, $214 million to our international pension plans, $119 million to our U.S. supplemental (non-qualified) pension plans and $118 million to our postretirement plans.

During 2011, we expect to contribute from our general assets a total of $486 million to our U.S. qualified pension plans, $471 million to our international pension plans, $247 million to our postretirement plans and $184 million to our U.S. supplemental (non-qualified) pension plans. Contributions expected to be made for 2011 are inclusive of amounts contributed during the first six months of 2011. The international pension plan, postretirement plan and U.S. supplemental (non-qualified) pension plan contributions from our general assets include direct employer benefit payments.