Defined Benefit Postretirement Plans and Defined Contribution Plan (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

Summary information for these defined benefit pension plans follows.

	December 31,
	2013			2012
(In millions)	U.S.			U.S.			Int’l
Projected benefit obligation	$	(933	)	$	(1,146	)	$	(565	)
Accumulated benefit obligation	(791		)	(937		)	(505		)
Fair value of plan assets	625			630			500

Summary Of Defined Benefit Pension Plans With Accumulated Benefit Obligations

The following summarizes the obligations and funded status for our defined benefit pension and other postretirement plans.

	Pension Benefits
	2013						2012						Other Benefits
(In millions)	U.S.			Int’l			U.S.			Int’l			2013			2012
Change in benefit obligations:
Beginning balance	$	1,146		$	565		$	986		$	465		$	311		$	301
Service cost	33			22			31			19			4			4
Interest cost	40			24			42			22			12			14
Actuarial loss (gain)	(140		)	40			196			49			(31		)	8
Foreign currency exchange rate changes	—			11			—			25			—			—
Benefits paid	(146		)	(13		)	(109		)	(15		)	(17		)	(16		)
Ending balance	$	933		$	649		$	1,146		$	565		$	279		$	311
Change in fair value of plan assets:
Beginning balance	$	630		$	500		$	516		$	412		$	—		$	—
Actual return on plan assets	65			74			66			57			—			—
Employer contributions	76			23			157			24			—			—
Foreign currency exchange rate changes	—			13			—			22			—			—
Benefits paid	(146		)	(13		)	(109		)	(15		)	—			—
Ending balance	$	625		$	597		$	630		$	500		$	—		$	—
Funded status of plans at December 31	$	(308	)	$	(52	)	$	(516	)	$	(65	)	$	(279	)	$	(311	)
Amounts recognized in the consolidated balance sheets:
Current liabilities	(16		)	—			(17		)	—			(19		)	(19		)
Noncurrent liabilities	(292		)	(52		)	(499		)	(65		)	(260		)	(292		)
Accrued benefit cost	$	(308	)	$	(52	)	$	(516	)	$	(65	)	$	(279	)	$	(311	)
Pretax amounts in accumulated other comprehensive loss:
Net loss (gain)	$	262		$	59		$	511		$	74		$	(8	)	$	23
Prior service cost (credit)	15			9			21			10			(5		)	(11		)

Schedule Of Net Periodic Benefit Cost And Other Comprehensive Income

Components of net periodic benefit cost and other comprehensive (income) loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive (income) loss for our defined benefit pension and other postretirement plans.

	Pension Benefits
	2013						2012						2011						Other Benefits
(In millions)	U.S.			Int’l			U.S.			Int’l			U.S.			Int’l			2013			2012			2011
Components of net periodic benefit cost:
Service cost	$	33		$	22		$	31		$	19		$	28		$	19		$	4		$	4		$	4
Interest cost	40			24			42			22			44			22			12			14			16
Expected return on plan assets	(43		)	(24		)	(43		)	(22		)	(43		)	(23		)	—			—			—
Amortization:
- prior service cost (credit)	6			1			7			1			6			—			(6		)	(7		)	(7		)
- actuarial loss	43			4			48			4			47			2			—			—			—
Net settlement loss(a)	45			—			45			—			30			—			—			—			—
Net periodic benefit cost(b)	$	124		$	27		$	130		$	24		$	112		$	20		$	10		$	11		$	13
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax):
Actuarial loss (gain)	$	(161	)	$	(11	)	$	172		$	15		$	97		$	24		$	(31	)	$	7		$	1
Amortization of actuarial (loss) gain	(88		)	(4		)	(93		)	(4		)	(77		)	(2		)	—			—			—
Prior service cost (credit)	—			—			—			1			—			(11		)	—			—			—
Amortization of prior service credit (cost)	(6		)	(1		)	(7		)	(1		)	(6		)	—			6			7			7
Spin-off downstream business (c)	—			—			—			—			(24		)	—			—			—			—
Total recognized in other comprehensive (income) loss	$	(255	)	$	(16	)	$	72		$	11		$	(10	)	$	11		$	(25	)	$	14		$	8
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	(131	)	$	11		$	202		$	35		$	102		$	31		$	(15	)	$	25		$	21

^(a)  Settlement losses are recorded when lump sum payments from a plan in a period exceed the plan’s total service and interest costs for the period. Such settlements occurred in one or more of our U.S. plans in 2013, 2012 and 2011.

^(b)  Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.

^(c)  Includes net inter-company transfers of (gains)/losses due to the spin-off of the downstream business.

Schedule of Assumptions Used

Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2013, 2012 and 2011.

	Pension Benefits
	2013					2012				2011				Other Benefits
(In millions)	U.S.			Int’l		U.S.		Int’l		U.S.		Int’l		2013		2012		2011
Weighted average assumptions used to determine benefit obligation:
Discount rate	4.28	%		4.60	%	3.44	%	4.40	%	4.45	%	4.70	%	4.85	%	4.06	%	4.90	%
Rate of compensation increase	5.00	%		4.90	%	5.00	%	4.50	%	5.00	%	4.30	%	5.00	%	5.00	%	5.00	%
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate	3.79	%		4.40	%	4.21	%	4.70	%	5.05	%	5.40	%	4.06	%	4.90	%	5.55	%
Expected long-term return on plan assets	7.25	%	(a)	4.90	%	7.75	%	5.20	%	8.50	%	5.86	%	—		—		—
Rate of compensation increase	5.00	%		4.50	%	5.00	%	4.30	%	5.00	%	5.10	%	5.00	%	5.00	%	5.00	%

^(a) Effective January 1, 2014, the expected long-term return on U.S. plan assets was changed from 7.25 percent to 6.75 percent.

Schedule of Health Care Cost Trend Rates

Assumed health care cost trend rates

	2013		2012		2011
Health care cost trend rate assumed for the following year:
Medical
Pre-65	7.50	%	8.00	%	7.50	%
Post-65	6.50	%	7.00	%	7.00	%
Prescription drugs	7.00	%	7.00	%	7.50	%
EGWP subsidy(a)	8.70	%	7.50	%	n/a
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate):
Medical
Pre-65	5.00	%	5.00	%	5.00	%
Post-65	5.00	%	5.00	%	5.00	%
Prescription drugs	5.00	%	5.00	%	5.00	%
EGWP subsidy(a)	5.00	%	5.00	%	n/a
Year that the rate reaches the ultimate trend rate:
Medical
Pre-65	2020		2020		2018
Post-65	2020		2018		2017
Prescription drugs	2020		2018		2018
EGWP subsidy(a)	2020		2020		n/a

^(a)  An employee group waiver plan ("EGWP") is a group Medicare Part D prescription drug plan. Effective January 1, 2013, we implemented the EGWP as a result of the Patient Protection and Affordable Care Act, which ended tax-free status of retiree drug subsidy programs but increased federal funding to Part D prescription drug plans.

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage-point change in assumed health care cost trend rates would have the following effects:

(In millions)	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on total of service and interest cost components	$	2	$	(2	)
Effect on other postretirement benefit obligations	$	30	$	(25	)

Fair Value of Defined Benefit Pension Plans Assets

The following tables present the fair values of our defined benefit pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2013 and 2012.

	December 31, 2013
(In millions)	Level 1				Level 2				Level 3				Total
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Cash and cash equivalents	$	19	$	1	$	1	$	—	$	—	$	—	$	20	$	1
Equity securities:
Common stock(a)	288		—		—		—		—		—		288		—
Preferred stock	4		—		—		—		—		—		4		—
Private equity	—		—		—		—		23		—		23		—
REIT	2		—		—		—		—		—		2		—
Mutual funds(b)	—		219		—		—		—		—		—		219
Pooled funds(c)	—		—		—		186		—		—		—		186
Fixed income securities:
U.S. treasury notes	63		—		—		—		—		—		63		—
Exchange traded funds	1		—		—		—		—		—		1		—
Corporate bonds(d)	—		—		127		—		—		—		127		—
Municipal bonds	—		—		1		—		—		—		1
Non-U.S. government bonds	—		—		7		—		—		—		7		—
Private placements	—		—		21		—		—		—		21		—
Taxable municipal bonds	—		—		13		—		—		—		13		—
Treasury inflation-protected securities	1		—		—		—		—		—		1		—
Yankee bonds	—		—		3		—		—		—		3		—
Commingled fund(e)	—		—		17		—		—		—		17		—
Pooled funds(f)	—		—		—		178		—		—		—		178
Real estate(g)	—		—		—		—		22		—		22		—
Other	—		—		—		13		12		—		12		13
Total investments, at fair value	$	378	$	220	$	190	$	377	$	57	$	—	$	625	$	597

	December 31, 2012
(In millions)	Level 1				Level 2				Level 3				Total
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Cash and cash equivalents	$	16	$	1	$	1	$	—	$	—	$	—	$	17	$	1
Equity securities:
Common stock(a)	312		—		—		—		—		—		312		—
Private equity	—		—		—		—		25		—		25		—
REIT	2		—		—		—		—		—		2		—
Investment trust	—		—		1		—		—		—		1		—
Mutual funds(b)	—		171		—		—		—		—		—		171
Pooled funds(c)	—		—		—		152		—		—		—		152
Fixed income securities:
U.S. treasury notes	67		—		—		—		—		—		67		—
Exchange traded funds	8		—		—		—		—		—		8		—
Corporate bonds(d)	—		—		96		—		—		—		96		—
Non-U.S. government bonds	—		—		5		—		—		—		5		—
Private placements	—		—		18		—		—		—		18		—
Taxable municipal bonds	—		—		14		—		—		—		14		—
Yankee bonds	—		—		2		—		—		—		2		—
Commingled fund(e)	—		—		28		—		—		—		28		—
Pooled funds(f)	—		—		—		166		—		—		—		166
Real estate(g)	—		—		—		—		23		—		23		—
Other	—		—		—		10		12		—		12		10
Total investments, at fair value	$	405	$	172	$	165	$	328	$	60	$	—	$	630	$	500

^(a)  Includes approximately 60 percent of investments held in U.S. and non-U.S. common stocks in the banking, pharmaceuticals, oil and gas, insurance, telecommunications, electric, aerospace/defense, retail, transportation, food processing, semiconductors, and chemicals sectors. The remaining 40 percent of common stock is held in various other sectors.

^(b)  Includes approximately 75 percent of investments held in U.S. and non-U.S. common stocks in the consumer staples, financial services, health care, energy, basic materials, leisure, and industrial goods and services sectors and 25 percent of investments held among various other sectors. The funds' objective is to outperform their respective benchmark indexes, FTSE ALL Share 5% Capped Index and MSCI World Index, as defined by the investment policy.

^(c)  Includes approximately 80 percent of investments held in non-U.S. publicly traded common stocks (specifically Asia Pacific, except Japan, and the U.K.) in the financial, consumer staples, information technology, materials, energy, industrials, and telecommunication services sectors and the remaining 20 percent of investments held among various other sectors. The funds' objective is to outperform their respective benchmark indexes, MSCI AC Asia Pacific ex Japan Index, FTSE Small Cap Index, and MSCI Emerging Markets Index, as defined by the investment policy.

^(d)  Includes approximately 70 percent of U.S. and non-U.S. corporate bonds in the banking and finance, utilities, oil and gas, news/media, and health care sectors. The remaining 30 percent of corporate bonds are in various other sectors.

^(e)  Includes approximately 90 percent of investments held in U.S. and non-U.S. corporate bonds in the consumer discretionary, financial, industrial, telecommunication services, energy, health care, information technology and materials sectors and 10 percent of investments held among various other sectors.

^(f)  Includes approximately 75 percent of investments held in U.S. and non-U.S. publicly traded investment grade government and corporate bonds which include gilts, treasuries, financial, corporates, and collateralized asset backed securities and 25 percent of investments held among various other sectors. The funds' objective is to outperform their respective benchmark indexes, as defined by the investment policy.

^(g)  Includes investments diversified by property type and location. The largest property sector holdings, which represent approximately 70 percent of investments held, are office, hotel, residential, and retail with the greatest percentage of investments made in the U.S. and Asia, which includes the emerging markets of China and India.

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The following is a reconciliation of the beginning and ending balances recorded for plan assets classified as Level 3 in the fair value hierarchy.

	2013
(In millions)	Private Equity			Real Estate			Other		Total
Beginning balance	$	25		$	23		$	12	$	60
Actual return on plan assets:
Realized gain	6			1			—		7
Unrealized gain (loss)	(1		)	1			—		—
Purchases	6			1			—		7
Sales	(13		)	(4		)	—		(17		)
Ending balance	$	23		$	22		$	12	$	57

	2012
(In millions)	Private Equity			Real Estate			Other			Total
Beginning balance	$	23		$	21		$	14		$	58
Actual return on plan assets:
Realized gain	2			—			—			2
Unrealized gain (loss)	1			1			(2		)	—
Purchases	4			3			—			7
Sales	(5		)	(2		)	—			(7		)
Ending balance	$	25		$	23		$	12		$	60

Schedule of Expected Benefit Payments

Estimated future benefit payments – The following gross benefit payments, which were estimated based on actuarial assumptions applied at December 31, 2013 and reflect expected future services, as appropriate, are to be paid in the years indicated.

	Pension Benefits				Other Benefits
(In millions)	U.S.		Int’l
2014(a)	$	96	$	14	$	19
2015	94		14		20
2016	95		16		20
2017	96		18		20
2018	92		21		20
2019 through 2023	368		120		98

^(a)  Primarily as a result of retirements effective January 1, 2014, actual 2014 U.S. gross benefit payments will exceed the actuarial estimate above, including approximately $163 million which will be paid during the first quarter of 2014.