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Employee Benefits
 3 Months Ended
Mar. 31, 2012
Employee Benefits [Abstract]  
Employee Benefits
7.

Employee Benefits

 

We maintain non-contributory defined benefit pension plans for many of our employees. In addition, we maintain postretirement health care and life insurance plans for our retirees and their dependents, which are both contributory and non-contributory, and include a limit on our share of the cost for certain recent and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, actuarial gains and losses are recognized in operating results in the year in which they occur. These gains and losses are measured annually as of December 31 or upon a remeasurement event.

Net Periodic Benefit Cost

The following table summarizes the benefit (income) cost related to our pension and postretirement health care and life insurance plans:

 

(dollars in millions)    Pension     Health Care and Life  
Three Months Ended March 31,        2012         2011         2012         2011  

Service cost

    $     89     $     77     $     92     $     75  

Amortization of prior service cost (credit)

      (1 )      18       (9 )      (14 ) 
  

 

 

  

Subtotal

      88       95       83       61  

Expected return on plan assets

      (442 )      (494 )      (43 )      (41 ) 

Interest cost

      362       397       327       355  
  

 

 

  

Net periodic benefit (income) cost

    $ 8     $ (2 )    $ 367     $ 375  
  

 

 

  

Severance Payments

During the three months ended March 31, 2012, we paid severance benefits of $0.1 billion. At March 31, 2012, we had a remaining severance liability of $1.0 billion, a portion of which includes future contractual payments to employees separated as of March 31, 2012.

Employer Contributions

During the three months ended March 31, 2012, we contributed $0.4 billion to our qualified pension trusts, $0.1 billion to our nonqualified pension plans and $0.4 billion to our other postretirement benefit plans. There have been no material changes to the estimated qualified and nonqualified pension contributions in 2012 as previously disclosed in Part II. Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2011.