Pension benefits
|
Postretirement benefits
|
||||||||||
December 31,
|
2013
|
2012
|
2013
|
2012
|
|||||||
Change in benefit obligation
|
|||||||||||
Benefit obligation at beginning of year
|
$
|
3,630
|
$
|
3,224
|
$
|
987
|
$
|
957
|
|||
Service cost
|
70
|
62
|
13
|
13
|
|||||||
Interest cost
|
131
|
154
|
39
|
45
|
|||||||
Plan participants’ contributions
|
1
|
1
|
14
|
12
|
|||||||
Amendments
|
3
|
(4)
|
|||||||||
Actuarial loss (gain)
|
(362)
|
409
|
(178)
|
20
|
|||||||
Other
|
2
|
5
|
5
|
1
|
|||||||
Benefits paid
|
(177)
|
(239)
|
(61)
|
(66)
|
|||||||
Medicare subsidy received
|
1
|
5
|
|||||||||
Foreign currency translation
|
5
|
11
|
(1)
|
||||||||
Benefit obligation at end of year
|
$
|
3,300
|
$
|
3,630
|
$
|
815
|
$
|
987
|
|||
Change in plan assets
|
|||||||||||
Fair value of plan assets at beginning of year
|
$
|
2,975
|
$
|
2,770
|
|||||||
Actual gain on plan assets
|
71
|
309
|
|||||||||
Employer contributions
|
20
|
122
|
|||||||||
Plan participants’ contributions
|
1
|
1
|
|||||||||
Benefits paid
|
(177)
|
(239)
|
|||||||||
Foreign currency translation
|
6
|
12
|
|||||||||
Fair value of plan assets at end of year
|
$
|
2,896
|
$
|
2,975
|
|||||||
Funded status at end of year
|
|||||||||||
Fair value of plan assets
|
$
|
2,896
|
$
|
2,975
|
|||||||
Benefit obligations
|
(3,300)
|
(3,630)
|
$
|
(815)
|
$
|
(987)
|
|||||
Funded status of plans
|
$
|
(404)
|
$
|
(655)
|
$
|
(815)
|
$
|
(987)
|
|||
Amounts recognized in the consolidated balance sheets consist of:
|
|||||||||||
Noncurrent asset
|
$
|
23
|
$
|
14
|
|||||||
Current liability
|
(15)
|
(31)
|
$
|
(49)
|
$
|
(57)
|
|||||
Noncurrent liability
|
(412)
|
(638)
|
(766)
|
(930)
|
|||||||
Recognized liability
|
$
|
(404)
|
$
|
(655)
|
$
|
(815)
|
$
|
(987)
|
|||
Amounts recognized in accumulated other comprehensive income consist of:
|
|||||||||||
Net actuarial loss (1)
|
$
|
132
|
$
|
363
|
$
|
82
|
$
|
274
|
|||
Prior service cost (credit)
|
21
|
25
|
(29)
|
(29)
|
|||||||
Amount recognized at end of year (1)
|
$
|
153
|
$
|
388
|
$
|
53
|
$
|
245
|
(1)
|
Amounts for prior years were revised for the change in our method of recognizing pension expense. See Note 1, Summary of Significant Accounting Policies, of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the year ended December 31, 2012.
|
December 31,
|
|||||
2013
|
2012
|
||||
Projected benefit obligation
|
$
|
447
|
$
|
3,371
|
|
Accumulated benefit obligation
|
$
|
417
|
$
|
3,196
|
|
Fair value of plan assets
|
$
|
20
|
$
|
2,702
|
Pension benefits
|
Postretirement benefits
|
||||||||||||||||
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
||||||||||||
Service cost
|
$
|
70
|
$
|
62
|
$
|
53
|
$
|
13
|
$
|
13
|
$
|
13
|
|||||
Interest cost
|
131
|
154
|
156
|
39
|
45
|
49
|
|||||||||||
Expected return on plan assets (1)
|
(169)
|
(161)
|
(167)
|
||||||||||||||
Amortization of net loss (1)
|
15
|
15
|
18
|
||||||||||||||
Amortization of prior service cost (credit)
|
5
|
8
|
9
|
(6)
|
(6)
|
(6)
|
|||||||||||
Recognition of actuarial (gain) loss (1)
|
(30)
|
217
|
64
|
||||||||||||||
Total net periodic benefit expense (1)
|
$
|
7
|
$
|
280
|
$
|
115
|
$
|
61
|
$
|
67
|
$
|
74
|
|||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
|
|||||||||||||||||
Current year actuarial loss (gain)
|
$
|
(264)
|
$
|
257
|
$
|
107
|
$
|
(178)
|
$
|
20
|
$
|
(31)
|
|||||
Recognition of actuarial gain (loss) (1)
|
30
|
(217)
|
(64)
|
||||||||||||||
Amortization of actuarial loss (1)
|
(15)
|
(16)
|
(18)
|
||||||||||||||
Current year prior service (credit)/loss
|
3
|
3
|
(5)
|
||||||||||||||
Amortization of prior service (cost) credit
|
(5)
|
(8)
|
(9)
|
6
|
6
|
6
|
|||||||||||
Total recognized in other comprehensive (income) loss (1)
|
$
|
(239)
|
$
|
35
|
$
|
37
|
$
|
(192)
|
$
|
10
|
$
|
(43)
|
|||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss (1)
|
$
|
(232)
|
$
|
315
|
$
|
152
|
$
|
(131)
|
$
|
77
|
$
|
31
|
(1)
|
Amounts for prior years were revised for the change in our method of recognizing pension expense. See Note 1, Summary of Significant Accounting Policies, of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the years ended December 31, 2012 and 2011.
|
Pension benefits
|
Postretirement benefits
|
||||||||||||||||
Domestic
|
International
|
Domestic
|
|||||||||||||||
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
|||||||||
Discount rate
|
4.75%
|
3.75%
|
4.75%
|
4.08%
|
4.48%
|
4.40%
|
4.75%
|
4.00%
|
4.75%
|
||||||||
Rate of compensation increase
|
4.00%
|
4.00%
|
4.25%
|
3.85%
|
3.45%
|
3.44%
|
Pension benefits
|
Postretirement benefits
|
||||||||||||||||
Domestic
|
International
|
Domestic
|
|||||||||||||||
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
2013
|
2012
|
2011
|
|||||||||
Discount rate
|
3.75%
|
4.75%
|
5.25%
|
4.48%
|
4.40%
|
4.75%
|
4.00%
|
4.75%
|
5.25%
|
||||||||
Expected return on plan assets
|
6.00%
|
6.00%
|
6.50%
|
3.73%
|
6.01%
|
5.59%
|
|||||||||||
Rate of compensation increase
|
4.00%
|
4.25%
|
4.25%
|
3.45%
|
3.44%
|
4.35%
|
Assumed health care trend rates at December 31
|
2013
|
2012
|
|
Health care cost trend rate assumed for next year
|
7%
|
7.5%
|
|
Rate that the cost trend rate gradually declines to
|
5%
|
5%
|
|
Year that the rate reaches the ultimate trend rate
|
2020
|
2018
|
One-percentage-point
increase
|
One-percentage-point
decrease
|
||
Effect on annual total of service and interest cost
|
$ 3
|
$ (3)
|
|
Effect on postretirement benefit obligation
|
$54
|
$(45)
|
Fair value measurements at reporting date using
|
|||||||||||
(in millions)
|
December 31,
2013
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
Significant
other
observable
inputs (Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||||||
Equity securities:
|
|||||||||||
U.S. companies
|
$
|
331
|
$
|
216
|
$
|
115
|
|||||
International companies
|
316
|
118
|
198
|
||||||||
Fixed income:
|
|||||||||||
U.S. corporate bonds
|
1,538
|
142
|
1,396
|
||||||||
International fixed income
|
245
|
185
|
60
|
||||||||
Other fixed income
|
|||||||||||
Private equity (1)
|
207
|
$
|
207
|
||||||||
Real estate (2)
|
93
|
93
|
|||||||||
Insurance contracts
|
6
|
6
|
|||||||||
Cash equivalents
|
60
|
60
|
|||||||||
Commodities (3)
|
100
|
100
|
|||||||||
Total
|
$
|
2,896
|
$
|
721
|
$
|
1,869
|
$
|
306
|
(1)
|
This category includes venture capital, leverage buyouts and distressed debt limited partnerships invested primarily in U.S. companies. The inputs are valued by internally generated Discounted Cash Flow Analysis and comparable sale analysis.
|
(2)
|
This category includes industrial, office, apartments, hotels, infrastructure, and retail investments which are limited partnerships predominately in the U.S. The inputs are valued by internally generated Discounted Cash Flow Analysis; comparable sale analysis and periodic external appraisals.
|
(3)
|
This category includes investments in energy, industrial metals, precious metals, agricultural and livestock primarily through futures, options, swaps, and exchange traded funds.
|
Fair value measurements at reporting date using
|
|||||||||||
(in millions)
|
December 31,
2012
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
Significant
other
observable
inputs (Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||||||
Equity securities:
|
|||||||||||
U.S. companies
|
$
|
313
|
$
|
185
|
$
|
128
|
|||||
International companies
|
314
|
96
|
218
|
||||||||
Fixed income:
|
|||||||||||
U.S. corporate bonds
|
1,624
|
151
|
1,473
|
||||||||
International fixed income
|
245
|
182
|
63
|
||||||||
Other fixed income
|
|||||||||||
Private equity (1)
|
221
|
$
|
221
|
||||||||
Real estate (2)
|
103
|
103
|
|||||||||
Insurance contracts
|
6
|
6
|
|||||||||
Cash equivalents
|
57
|
57
|
|||||||||
Commodities (3)
|
92
|
92
|
|||||||||
Total
|
$
|
2,975
|
$
|
671
|
$
|
1,974
|
$
|
330
|
(1)
|
This category includes venture capital, leverage buyouts and distressed debt limited partnerships invested primarily in U.S. companies. The inputs are valued by internally generated Discounted Cash Flow Analysis and comparable sale analysis.
|
(2)
|
This category includes industrial, office, apartments, hotels, infrastructure, and retail investments which are limited partnerships predominately in the U.S. The inputs are valued by internally generated Discounted Cash Flow Analysis; comparable sale analysis and periodic external appraisals.
|
(3)
|
This category includes investments in energy, industrial metals, precious metals, agricultural and livestock primarily through futures, options, swaps, and exchange traded funds.
|
Level 3 assets
|
||||||||
Year ended December 2013
|
||||||||
(in millions)
|
Private
equity
|
Real
estate
|
Insurance
contracts
|
|||||
Beginning balance at December 31, 2012
|
$
|
221
|
$
|
103
|
$
|
6
|
||
Actual return on plan assets relating to assets still held at the reporting date
|
25
|
9
|
||||||
Transfers in and/or out of level 3
|
(39)
|
(19)
|
||||||
Ending balance at December 31, 2013
|
$
|
207
|
$
|
93
|
$
|
6
|
Level 3 assets
|
||||||||
Year ended December 2012
|
||||||||
(in millions)
|
Private
equity
|
Real
estate
|
Insurance
contracts
|
|||||
Beginning balance at December 31, 2011
|
$
|
241
|
$
|
91
|
$
|
5
|
||
Actual return on plan assets relating to assets still held at the reporting date
|
26
|
11
|
||||||
Transfers in and/or out of level 3
|
(46)
|
1
|
1
|
|||||
Ending balance at December 31, 2012
|
$
|
221
|
$
|
103
|
$
|
6
|
Expected benefit payments
|
|||||
Pension
benefits
|
Postretirement
benefits
|
Expected federal subsidy payments
postretirement benefits
|
|||
2014
|
$ 193
|
$ 48
|
$ 3
|
||
2015
|
$ 214
|
$ 50
|
$ 3
|
||
2016
|
$ 199
|
$ 50
|
$ 3
|
||
2017
|
$ 203
|
$ 50
|
$ 3
|
||
2018
|
$ 207
|
$ 50
|
$ 3
|
||
2019-2023
|
$1,138
|
$245
|
$19
|