Pension Benefits | Healthcare Benefits | ||||||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | ||||||||||||||||||||||||||||
(dollar amounts in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations | |||||||||||||||||||||||||||||||
Discount rate | 4.99 | % | 4.25 | % | 4.29 | % | 4.49 | % | 4.99 | % | 4.25 | % | 4.21 | % | 4.50 | % | |||||||||||||||
Rate of compensation increase | 3.00 | 3.00 | 3.71 | 3.49 | 3.00 | 3.00 | — | — | |||||||||||||||||||||||
Change in benefit obligation (a) | |||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | (4,093 | ) | $ | (3,639 | ) | $ | (880 | ) | $ | (684 | ) | $ | (226 | ) | $ | (288 | ) | $ | (6 | ) | $ | (4 | ) | |||||||
Service cost | (63 | ) | (59 | ) | (36 | ) | (32 | ) | (2 | ) | (2 | ) | — | — | |||||||||||||||||
Interest cost | (170 | ) | (169 | ) | (38 | ) | (35 | ) | (9 | ) | (12 | ) | — | — | |||||||||||||||||
Employee contributions | — | — | (1 | ) | (1 | ) | — | — | — | — | |||||||||||||||||||||
Amendments | — | — | (2 | ) | — | — | 98 | — | — | ||||||||||||||||||||||
Actuarial gain (loss) | 443 | (378 | ) | (66 | ) | (105 | ) | (5 | ) | (43 | ) | — | 1 | ||||||||||||||||||
(Acquisitions) divestitures | — | — | 1 | (12 | ) | — | — | — | (3 | ) | |||||||||||||||||||||
Curtailments | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Benefits paid | 171 | 152 | 21 | 16 | 18 | 21 | — | — | |||||||||||||||||||||||
Foreign exchange adjustment | N/A | N/A | (20 | ) | (27 | ) | N/A | N/A | (1 | ) | — | ||||||||||||||||||||
Benefit obligation at end of period | (3,712 | ) | (4,093 | ) | (1,021 | ) | (880 | ) | (224 | ) | (226 | ) | (7 | ) | (6 | ) | |||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||||||||
Fair value at beginning of period | 4,278 | 3,529 | 782 | 681 | 78 | 73 | — | — | |||||||||||||||||||||||
Actual return on plan assets | 589 | 487 | 107 | 60 | 8 | 5 | — | — | |||||||||||||||||||||||
Employer contributions | 25 | 414 | 43 | 26 | 18 | 21 | — | — | |||||||||||||||||||||||
Employee contributions | — | — | 1 | 1 | — | — | — | — | |||||||||||||||||||||||
Acquisitions (divestitures) | — | — | (1 | ) | — | — | — | — | — | ||||||||||||||||||||||
Benefit payments | (171 | ) | (152 | ) | (21 | ) | (16 | ) | (18 | ) | (21 | ) | — | — | |||||||||||||||||
Foreign exchange adjustment | N/A | N/A | 19 | 30 | N/A | N/A | — | — | |||||||||||||||||||||||
Fair value at end of period | 4,721 | 4,278 | 930 | 782 | 86 | 78 | — | — | |||||||||||||||||||||||
Funded status at end of period | $ | 1,009 | $ | 185 | $ | (91 | ) | $ | (98 | ) | $ | (138 | ) | $ | (148 | ) | $ | (7 | ) | $ | (6 | ) | |||||||||
Amounts recognized in accumulated other comprehensive (income) loss consist of: | |||||||||||||||||||||||||||||||
Net loss (gain) | $ | 1,174 | $ | 2,122 | $ | 256 | $ | 266 | $ | 150 | $ | 159 | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Prior service cost (credit) | (46 | ) | (62 | ) | 5 | 3 | (89 | ) | (99 | ) | — | — | |||||||||||||||||||
Net initial obligation (asset) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total (before tax effects) | $ | 1,128 | $ | 2,060 | $ | 261 | $ | 269 | $ | 61 | $ | 60 | $ | (1 | ) | $ | (1 | ) |
(a) | The benefit obligation for pension benefits is the projected benefit obligation and for healthcare benefits, it is the accumulated benefit obligation. |