Postemployment benefit plans (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of changes in projected benefit obligations



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Postretirement Benefits
(Millions of dollars)	2015			2014			2015			2014			2015			2014
Change in benefit obligation:
Benefit obligation, beginning of year	$	16,249		$	14,419		$	4,801		$	4,609		$	4,938		$	4,784
Service cost	181			157			110			109			101			82
Interest cost	608			648			146			185			181			213
Plan amendments	—			—			—			—			3			(1		)
Actuarial losses (gains)	(384		)	1,994			(152		)	570			(625		)	193
Foreign currency exchange rates	—			—			(307		)	(402		)	(43		)	(27		)
Participant contributions	—			—			8			9			52			61
Benefits paid - gross	(890		)	(963		)	(191		)	(206		)	(345		)	(377		)
Less: federal subsidy on benefits paid	—			—			—			—			11			14
Curtailments, settlements and termination benefits	28			(6		)	(60		)	(53		)	40			(4		)
Acquisitions, divestitures and other	—			—			—			(20		)	—			—
Benefit obligation, end of year	$	15,792		$	16,249		$	4,355		$	4,801		$	4,313		$	4,938
Accumulated benefit obligation, end of year	$	15,550		$	15,701		$	4,024		$	4,408

Weighted-average assumptions used to determine benefit obligation:
Discount rate	4.2		%	3.8		%	3.2		%	3.3		%	4.1		%	3.9		%
Rate of compensation increase	4.0		%	4.0		%	3.8		%	4.0		%	4.0		%	4.0		%

Schedule of assumptions used to determine benefit obligation



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Postretirement Benefits
(Millions of dollars)	2015			2014			2015			2014			2015			2014
Change in benefit obligation:
Benefit obligation, beginning of year	$	16,249		$	14,419		$	4,801		$	4,609		$	4,938		$	4,784
Service cost	181			157			110			109			101			82
Interest cost	608			648			146			185			181			213
Plan amendments	—			—			—			—			3			(1		)
Actuarial losses (gains)	(384		)	1,994			(152		)	570			(625		)	193
Foreign currency exchange rates	—			—			(307		)	(402		)	(43		)	(27		)
Participant contributions	—			—			8			9			52			61
Benefits paid - gross	(890		)	(963		)	(191		)	(206		)	(345		)	(377		)
Less: federal subsidy on benefits paid	—			—			—			—			11			14
Curtailments, settlements and termination benefits	28			(6		)	(60		)	(53		)	40			(4		)
Acquisitions, divestitures and other	—			—			—			(20		)	—			—
Benefit obligation, end of year	$	15,792		$	16,249		$	4,355		$	4,801		$	4,313		$	4,938
Accumulated benefit obligation, end of year	$	15,550		$	15,701		$	4,024		$	4,408

Weighted-average assumptions used to determine benefit obligation:
Discount rate	4.2		%	3.8		%	3.2		%	3.3		%	4.1		%	3.9		%
Rate of compensation increase	4.0		%	4.0		%	3.8		%	4.0		%	4.0		%	4.0		%

Effects of one-percentage point change in the assumed health care cost trend rates

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



(Millions of dollars)	One-percentage- point increase		One-percentage- point decrease
Effect on 2015 service and interest cost components of other postretirement benefit cost	$	37	$	(6	)
Effect on accumulated postretirement benefit obligation	$	244	$	(202	)

Change in plan assets



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Postretirement Benefits
(Millions of dollars)	2015			2014			2015			2014			2015			2014
Change in plan assets:
Fair value of plan assets, beginning of year	$	12,530		$	12,395		$	4,100		$	3,949		$	776		$	822
Actual return on plan assets	(225		)	849			107			493			3			75
Foreign currency exchange rates	—			—			(234		)	(338		)	—			—
Company contributions	30			255			156			265			164			195
Participant contributions	—			—			8			9			52			61
Benefits paid	(890		)	(963		)	(191		)	(206		)	(345		)	(377		)
Settlements and termination benefits	(5		)	(6		)	(56		)	(50		)	—			—
Acquisitions, divestitures and other	—			—			—			(22		)	—			—
Fair value of plan assets, end of year	$	11,440		$	12,530		$	3,890		$	4,100		$	650		$	776

Fair value of pension and other postretirement benefit plan assets, by category

The fair value of the pension and other postretirement benefit plan assets by category is summarized below:



	December 31, 2015
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	2,976	$	—	$	4	$	168	$	3,148
Non-U.S. equities	2,044		5		1		—		2,050

Fixed income securities:
U.S. corporate bonds	—		3,872		42		132		4,046
Non-U.S. corporate bonds	—		575		—		—		575
U.S. government bonds	—		526		—		—		526
U.S. governmental agency mortgage-backed securities	—		627		—		—		627
Non-U.S. government bonds	—		65		—		—		65

Real estate	—		—		—		9		9

Cash, short-term instruments and other	157		169		3		65		394
Total U.S. pension assets	$	5,177	$	5,839	$	50	$	374	$	11,440



	December 31, 2014
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	3,713	$	1	$	8	$	153	$	3,875
Non-U.S. equities	2,291		12		1		—		2,304

Fixed income securities:
U.S. corporate bonds	—		3,851		25		134		4,010
Non-U.S. corporate bonds	—		552		—		—		552
U.S. government bonds	—		528		—		—		528
U.S. governmental agency mortgage-backed securities	—		752		2		—		754
Non-U.S. government bonds	—		62		2		—		64

Real estate	—		—		—		9		9

Cash, short-term instruments and other	37		252		—		145		434
Total U.S. pension assets	$	6,041	$	6,010	$	38	$	441	$	12,530



	December 31, 2015
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	426	$	—	$	—	$	118	$	544
Non-U.S. equities	680		29		2		123		834
Global equities ¹	155		49		—		—		204

Fixed income securities:
U.S. corporate bonds	—		135		3		—		138
Non-U.S. corporate bonds	—		389		2		11		402
U.S. government bonds	—		64		—		—		64
Non-U.S. government bonds	—		1,083		—		—		1,083
Global fixed income ¹	—		166		—		175		341

Real estate	—		172		—		—		172

Cash, short-term instruments and other ²	61		47		—		—		108
Total non-U.S. pension assets	$	1,322	$	2,134	$	7	$	427	$	3,890



	December 31, 2014
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	552	$	—	$	—	$	—	$	552
Non-U.S. equities	794		37		—		213		1,044
Global equities ¹	218		52		—		—		270

Fixed income securities:
U.S. corporate bonds	—		81		9		—		90
Non-U.S. corporate bonds	—		493		2		10		505
U.S. government bonds	—		1		—		—		1
Non-U.S. government bonds	—		836		—		—		836
Global fixed income ¹	—		185		—		178		363

Real estate	—		182		39		9		230

Cash, short-term instruments and other ²	159		50		—		—		209
Total non-U.S. pension assets	$	1,723	$	1,917	$	50	$	410	$	4,100


¹	Includes funds that invest in both U.S. and non-U.S. securities.


²	Includes funds that invest in multiple asset classes, hedge funds and other.



	December 31, 2015
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	296	$	1	$	—	$	—	$	297
Non-U.S. equities	136		—		—		—		136

Fixed income securities:
U.S. corporate bonds	—		83		—		4		87
Non-U.S. corporate bonds	—		18		—		—		18
U.S. government bonds	—		31		—		—		31
U.S. governmental agency mortgage-backed securities	—		45		—		—		45
Non-U.S. government bonds	—		4		—		—		4

Cash, short-term instruments and other	17		15		—		—		32
Total other postretirement benefit assets	$	449	$	197	$	—	$	4	$	650



	December 31, 2014
(Millions of dollars)	Level 1		Level 2		Level 3		Measured at NAV		Total Assets at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	392	$	—	$	—	$	—	$	392
Non-U.S. equities	158		1		—		—		159

Fixed income securities:
U.S. corporate bonds	—		99		—		4		103
Non-U.S. corporate bonds	—		17		—		—		17
U.S. government bonds	—		30		—		—		30
U.S. governmental agency mortgage-backed securities	—		50		—		—		50
Non-U.S. government bonds	—		3		—		—		3

Cash, short-term instruments and other	9		13		—		—		22
Total other postretirement benefit assets	$	559	$	213	$	—	$	4	$	776

Roll forward of assets measured at fair value using level 3 inputs

Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2015 and 2014. These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions a market participant would use.



(Millions of dollars)	Equities			Fixed Income			Real Estate			Other
U.S. Pension
Balance at December 31, 2013	$	12		$	54		$	—		$	—
Unrealized gains (losses)	(6		)	—			—			—
Realized gains (losses)	8			3			—			—
Purchases, issuances and settlements, net	(5		)	(23		)	—			—
Transfers in and/or out of Level 3	—			(5		)	—			—
Balance at December 31, 2014	$	9		$	29		$	—		$	—
Unrealized gains (losses)	(1		)	(1		)	—			—
Realized gains (losses)	1			—			—			—
Purchases, issuances and settlements, net	(4		)	16			—			2
Transfers in and/or out of Level 3	—			(2		)	—			1
Balance at December 31, 2015	$	5		$	42		$	—		$	3

Non-U.S. Pension
Balance at December 31, 2013	$	—		$	21		$	103		$	—
Unrealized gains (losses)	—			(1		)	(24		)	—
Realized gains (losses)	—			—			22			—
Purchases, issuances and settlements, net	—			(1		)	(62		)	—
Transfers in and/or out of Level 3	—			(8		)	—			—
Balance at December 31, 2014	$	—		$	11		$	39		$	—
Unrealized gains (losses)	—			(1		)	(17		)	—
Realized gains (losses)	—			—			15			—
Purchases, issuances and settlements, net	—			—			(37		)	—
Transfers in and/or out of Level 3	2			(5		)	—			—
Balance at December 31, 2015	$	2		$	5		$	—		$	—

Defined benefit plan funded status, components of net amount recognized in financial position and accumulated other comprehensive income

The funded status of the plans, reconciled to the amount reported on Statement 3, is as follows:



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Postretirement Benefits
(Millions of dollars)	2015			2014			2015			2014			2015			2014
End of Year
Fair value of plan assets	$	11,440		$	12,530		$	3,890		$	4,100		$	650		$	776
Benefit obligations	15,792			16,249			4,355			4,801			4,313			4,938
Over (under) funded status recognized in financial position	$	(4,352	)	$	(3,719	)	$	(465	)	$	(701	)	$	(3,663	)	$	(4,162	)

Components of net amount recognized in financial position:
Other assets (non-current asset)	$	6		$	3		$	163		$	144		$	—		$	—
Accrued wages, salaries and employee benefits (current liability)	(32		)	(28		)	(19		)	(24		)	(161		)	(160		)
Liability for postemployment benefits (non-current liability)	(4,326		)	(3,694		)	(609		)	(821		)	(3,502		)	(4,002		)
Net liability recognized	$	(4,352	)	$	(3,719	)	$	(465	)	$	(701	)	$	(3,663	)	$	(4,162	)

Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Prior service cost (credit)	$	1		$	2		$	1		$	9		$	39		$	(31	)

Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost (pre-tax) in the next fiscal year

The estimated amount of prior service cost (credit) that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2015 into net periodic benefit cost (pre-tax) in 2016 are as follows:



(Millions of dollars)	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Postretirement Benefits
Prior service cost (credit)	$	—	$	—	$	(30	)

Schedule of pension plans with projected benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits

The following amounts relate to our pension plans with projected benefit obligations in excess of plan assets:



	U.S. Pension Benefits at Year-end				Non-U.S. Pension Benefits at Year-end
(Millions of dollars)	2015		2014		2015		2014
Projected benefit obligation	$	15,734	$	16,182	$	1,818	$	4,539
Accumulated benefit obligation	$	15,493	$	15,634	$	1,657	$	4,148
Fair value of plan assets	$	11,377	$	12,460	$	1,190	$	3,695

Schedule of pension plans with accumulated benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits

The following amounts relate to our pension plans with accumulated benefit obligations in excess of plan assets:



	U.S. Pension Benefits at Year-end				Non-U.S. Pension Benefits at Year-end
(Millions of dollars)	2015		2014		2015		2014
Projected benefit obligation	$	15,734	$	16,182	$	1,363	$	1,879
Accumulated benefit obligation	$	15,493	$	15,634	$	1,320	$	1,734
Fair value of plan assets	$	11,377	$	12,460	$	793	$	1,068

Information about the expected cash flow for the pension and other postretirement benefit plans

Information about the expected cash flow for the pension and other postretirement benefit plans is as follows:



(Millions of dollars)	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Postretirement Benefits
Employer contributions:
2016 (expected)	$	30	$	120	$	200

Expected benefit payments:
2016	$	990	$	220	$	310
2017	990		170		320
2018	980		170		310
2019	980		170		310
2020	980		170		300
2021-2025	4,890		990		1,480
Total	$	9,810	$	1,890	$	3,030

Expected Medicare Part D subsidy receipts

Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments are as follows:



(Millions of dollars)	2016		2017		2018		2019		2020		2021-2025		Total
Other postretirement benefits	$	15	$	15	$	20	$	20	$	20	$	100	$	190

Components of net periodic benefit cost, other changes in plan assets and benefits obligations recognized in other comprehensive income and weighted-average assumptions used to determine net cost



	U.S. Pension Benefits									Non-U.S. Pension Benefits									Other Postretirement Benefits
(Millions of dollars)	2015			2014			2013			2015			2014			2013			2015			2014			2013
Components of net periodic benefit cost:
Service cost	$	181		$	157		$	196		$	110		$	109		$	120		$	101		$	82		$	108
Interest cost	608			648			581			146			185			166			181			213			195
Expected return on plan assets ¹	(890		)	(943		)	(826		)	(273		)	(271		)	(224		)	(56		)	(58		)	(56		)
Other adjustments ²	—			—			31			—			—			—			—			—			(22		)
Curtailments and termination benefits ³	32			—			(2		)	(1		)	2			(24		)	27			(4		)	—
Amortization of:
Transition obligation (asset)	—			—			—			—			—			—			—			—			2
Prior service cost (credit) ⁴	1			17			18			—			—			1			(54		)	(55		)	(73		)
Actuarial loss (gain)	732			2,088			(2,348		)	8			345			(345		)	(561		)	191			(748		)
Total cost (benefit) included in operating profit	$	664		$	1,967		$	(2,350	)	$	(10	)	$	370		$	(306	)	$	(362	)	$	369		$	(594	)

Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	$	—		$	—		$	—		$	(8	)	$	(4	)	$	(7	)	$	16		(2		)	$	2
Amortization of prior service (cost) credit	(1		)	(17		)	(18		)	—			—			(1		)	54			55			73
Amortization of transition (obligation) asset	—			—			—			—			—			—			—			—			(2		)
Total recognized in other comprehensive income	(1		)	(17		)	(18		)	(8		)	(4		)	(8		)	70			53			73
Total recognized in net periodic cost and other comprehensive income	$	663		$	1,950		$	(2,368	)	$	(18	)	$	366		$	(314	)	$	(292	)	$	422		$	(521	)

Weighted-average assumptions used to determine net cost:
Discount rate	3.8		%	4.6		%	3.7		%	3.3		%	4.1		%	3.7		%	3.9		%	4.6		%	3.7		%
Expected rate of return on plan assets⁵	7.4		%	7.8		%	7.8		%	6.8		%	6.9		%	6.8		%	7.8		%	7.8		%	7.8		%
Rate of compensation increase	4.0		%	4.0		%	4.5		%	4.0		%	4.2		%	3.9		%	4.0		%	4.0		%	4.4		%


¹	Expected return on plan assets developed using the fair value of plan assets.


²	Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans and an adjustment to other postretirement benefits related to certain other benefits.


³	Curtailments and termination benefits were recognized in Other operating (income) expenses in Statement 1.

⁴

Prior service cost (credit) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period of active employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) are amortized using the straight-line method over the remaining life expectancy of those participants.


⁵	The weighted-average rates for 2016 are 6.9 percent and 6.1 percent for U.S. and non-U.S. pension plans, respectively.

Company costs related to U.S. and non-U.S. defined contribution plans

Total company costs related to U.S. and non-U.S. defined contribution plans were as follows:



(Millions of dollars)	2015		2014		2013
U.S. plans	$	267	$	301	$	308
Non-U.S. plans	76		85		64
	$	343	$	386	$	372

Summary of long-term liability for postemployment benefit plans



	December 31,
(Millions of dollars)	2015		2014
Pensions:
U.S. pensions	$	4,326	$	3,694
Non-U.S. pensions	609		821
Total pensions	4,935		4,515
Postretirement benefits other than pensions	3,502		4,002
Other postemployment benefits	104		112
Defined contribution	302		334
	$	8,843	$	8,963