10. EMPLOYEE BENEFIT PLANS
Components of the net periodic benefit costs for the three and nine months ended September 30, 2014 and 2013 were as follows (dollars in millions):
Huntsman Corporation
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Defined
Benefit Plans |
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Other
Postretirement
Benefit Plans |
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Three months
ended
September 30, |
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Three months
ended
September 30, |
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2014 |
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2013 |
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2014 |
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2013 |
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Service cost
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$ |
14 |
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$ |
18 |
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$ |
1 |
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$ |
1 |
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Interest cost
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36 |
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32 |
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1 |
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2 |
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Expected return on assets
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(48 |
) |
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(44 |
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— |
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— |
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Amortization of prior service benefit
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(1 |
) |
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(1 |
) |
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(1 |
) |
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(1 |
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Amortization of actuarial loss
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13 |
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19 |
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— |
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1 |
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Special termination benefits
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— |
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2 |
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— |
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— |
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Settlement loss
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10 |
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6 |
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— |
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— |
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Net periodic benefit cost
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$ |
24 |
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$ |
32 |
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$ |
1 |
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$ |
3 |
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Defined
Benefit Plans |
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Other
Postretirement
Benefit Plans |
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Nine months
ended
September 30, |
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Nine months
ended
September 30, |
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2014 |
|
2013 |
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2014 |
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2013 |
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Service cost
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$ |
44 |
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$ |
51 |
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$ |
2 |
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$ |
3 |
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Interest cost
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|
110 |
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|
97 |
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4 |
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4 |
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Expected return on assets
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(146 |
) |
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(130 |
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— |
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— |
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Amortization of prior service benefit
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(4 |
) |
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(4 |
) |
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(3 |
) |
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(2 |
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Amortization of actuarial loss
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39 |
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59 |
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1 |
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2 |
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Special termination benefits
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3 |
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7 |
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— |
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— |
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Settlement loss
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11 |
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6 |
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— |
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— |
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Net periodic benefit cost
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$ |
57 |
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$ |
86 |
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$ |
4 |
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$ |
7 |
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Huntsman International
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Defined
Benefit Plans |
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Other
Postretirement
Benefit Plans |
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|
Three months
ended
September 30, |
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Three months
ended
September 30, |
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2014 |
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2013 |
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2014 |
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2013 |
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Service cost
|
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$ |
14 |
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$ |
17 |
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$ |
1 |
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$ |
1 |
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Interest cost
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36 |
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32 |
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1 |
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2 |
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Expected return on assets
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(48 |
) |
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(44 |
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— |
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— |
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Amortization of prior service benefit
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(1 |
) |
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(1 |
) |
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(1 |
) |
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(1 |
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Amortization of actuarial loss
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15 |
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22 |
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— |
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1 |
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Special termination benefits
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— |
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2 |
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— |
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— |
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Settlement loss
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10 |
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6 |
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— |
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— |
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Net periodic benefit cost
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$ |
26 |
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$ |
34 |
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$ |
1 |
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$ |
3 |
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Defined
Benefit Plans |
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Other
Postretirement
Benefit Plans |
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|
Nine months
ended
September 30, |
|
Nine months
ended
September 30, |
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2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
Service cost
|
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$ |
44 |
|
$ |
51 |
|
$ |
2 |
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$ |
3 |
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Interest cost
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|
110 |
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97 |
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4 |
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4 |
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Expected return on assets
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(146 |
) |
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(130 |
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— |
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— |
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Amortization of prior service benefit
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|
(4 |
) |
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(4 |
) |
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(3 |
) |
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(2 |
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Amortization of actuarial loss
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45 |
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64 |
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1 |
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2 |
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Special termination benefits
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3 |
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7 |
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— |
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— |
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Settlement loss
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11 |
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6 |
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— |
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— |
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Net periodic benefit cost
|
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$ |
63 |
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$ |
91 |
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$ |
4 |
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$ |
7 |
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During the nine months ended September 30, 2014 and 2013, we made contributions to our pension and other postretirement benefit plans of $113 million and $130 million, respectively. During the remainder of 2014, we expect to contribute an additional amount of approximately $30 million to these plans, excluding expected contributions to employee benefit plans assumed in the Rockwood Acquisition.
In connection with employee terminations related to restructuring programs, we recorded noncash pension settlement losses of $11 million and $6 million for the nine months ended September 30, 2014 and 2013, respectively.
Beginning July 1, 2014, the Huntsman Defined Benefit Pension Plan was closed to new, non-union entrants. New, non-union entrants will be provided with a defined contribution plan with a non-discretionary employer contribution and a company match.
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