Pension and Other Postretirement Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Changes in benefit obligations and plan assets and funded status amounts

The following table presents the changes in benefit obligations, plan assets and funded status amounts reported on the Consolidated balance sheets for the Firm’s U.S. and non-U.S. defined benefit pension and OPEB plans.

	Defined benefit pension plans
As of or for the year ended December 31,	U.S.							Non-U.S.						OPEB plans(d)
(in millions)	2015			2014				2015			2014			2015			2014
Change in benefit obligation
Benefit obligation, beginning of year	$	(12,536	)	$	(10,776	)		$	(3,640	)	$	(3,433	)	$	(842	)	$	(826	)
Benefits earned during the year	(340		)	(281		)		(37		)	(33		)	(1		)	—
Interest cost on benefit obligations	(498		)	(534		)		(112		)	(137		)	(31		)	(38		)
Plan amendments	—			(53		)		—			—			—			—
Special termination benefits	—			—				(1		)	(1		)	—			—
Curtailments	—			—				—			—			—			(3		)
Employee contributions	NA			NA				(7		)	(7		)	(25		)	(62		)
Net gain/(loss)	702			(1,669		)		146			(408		)	71			(58		)
Benefits paid	760			777				120			119			88			145
Expected Medicare Part D subsidy receipts	NA			NA				NA			NA			(6		)	(2		)
Foreign exchange impact and other	—			—				184			260			2			2
Benefit obligation, end of year	$	(11,912	)	$	(12,536	)		$	(3,347	)	$	(3,640	)	$	(744	)	$	(842	)
Change in plan assets
Fair value of plan assets, beginning of year	$	14,623		$	14,354			$	3,718		$	3,532		$	1,903		$	1,757
Actual return on plan assets	231			1,010				52			518			13			159
Firm contributions	31			36				45			46			2			3
Employee contributions	—			—				7			7			—			—
Benefits paid	(760		)	(777		)		(120		)	(119		)	(63		)	(16		)
Foreign exchange impact and other	—			—				(191		)	(266		)	—			—
Fair value of plan assets, end of year	$	14,125		$	14,623		(b)(c)	$	3,511		$	3,718		$	1,855		$	1,903
Net funded status(a)	$	2,213		$	2,087			$	164		$	78		$	1,111		$	1,061
Accumulated benefit obligation, end of year	$	(11,774	)	$	(12,375	)		$	(3,322	)	$	(3,615	)	NA			NA

(a) Represents plans with an aggregate overfunded balance of $4.1 billion and $3.9 billion at December 31, 2015 and 2014, respectively, and plans with an aggregate underfunded balance of $636 million and $708 million at December 31, 2015 and 2014, respectively.

(b) At December 31, 2015 and 2014, approximately $533 million and $336 million, respectively, of U.S. plan assets included participation rights under participating annuity contracts.

(c) At December 31, 2015 and 2014, defined benefit pension plan amounts not measured at fair value included $74 million and $106 million, respectively, of accrued receivables, and $123 million and $257 million, respectively, of accrued liabilities, for U.S. plans.

(d) Includes an unfunded accumulated postretirement benefit obligation of $32 million and $37 million at December 31, 2015 and 2014, respectively, for the U.K. plan.

Pretax pension and OPEB amounts recorded in AOCI

The following table presents pretax pension and OPEB amounts recorded in AOCI.

	Defined benefit pension plans
December 31,	U.S.						Non-U.S.						OPEB plans
(in millions)	2015			2014			2015			2014			2015		2014
Net gain/(loss)	$	(3,096	)	$	(3,346	)	$	(513	)	$	(628	)	$	109	$	130
Prior service credit/(cost)	68			102			9			11			—		—
Accumulated other comprehensive income/(loss), pretax, end of year	$	(3,028	)	$	(3,244	)	$	(504	)	$	(617	)	$	109	$	130

Components of net periodic benefit costs reported in the Consolidated Statements of Income and other comprehensive income

The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income and other comprehensive income for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans.

	Pension plans
	U.S.									Non-U.S.												OPEB plans
Year ended December 31, (in millions)	2015			2014			2013			2015				2014				2013				2015			2014			2013
Components of net periodic benefit cost
Benefits earned during the year	$	340		$	281		$	314		$	37			$	33			$	34			$	1		$	—		$	1
Interest cost on benefit obligations	498			534			447			112				137				125				31			38			35
Expected return on plan assets	(929		)	(985		)	(956		)	(150		)		(172		)		(142		)		(106		)	(101		)	(92		)
Amortization:
Net (gain)/loss	247			25			271			35				47				49				—			—			1
Prior service cost/(credit)	(34		)	(41		)	(41		)	(2		)		(2		)		(2		)		—			(1		)	—
Special termination benefits	—			—			—			1				—				—				—			—			—
Net periodic defined benefit cost	122			(186		)	35			33				43				64				(74		)	(64		)	(55		)
Other defined benefit pension plans(a)	14			14			15			10				6				14				NA			NA			NA
Total defined benefit plans	136			(172		)	50			43				49				78				(74		)	(64		)	(55		)
Total defined contribution plans	449			438			447			320				329				321				NA			NA			NA
Total pension and OPEB cost included in compensation expense	$	585		$	266		$	497		$	363			$	378			$	399			$	(74	)	$	(64	)	$	(55	)
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss arising during the year	$	(3	)	$	1,645		$	(1,817	)	$	(47	)		$	57			$	19			$	21		$	(5	)	$	(257	)
Prior service credit arising during the year	—			53			—			—				—				—				—			—			—
Amortization of net loss	(247		)	(25		)	(271		)	(35		)		(47		)		(49		)		—			—			(1		)
Amortization of prior service (cost)/credit	34			41			41			2				2				2				—			1			—
Foreign exchange impact and other	—			—			—			(33		)	(a)	(39		)	(a)	14			(a)	—			—			—
Total recognized in other comprehensive income	$	(216	)	$	1,714		$	(2,047	)	$	(113	)		$	(27	)		$	(14	)		$	21		$	(4	)	$	(258	)
Total recognized in net periodic benefit cost and other comprehensive income	$	(94	)	$	1,528		$	(2,012	)	$	(80	)		$	16			$	50			$	(53	)	$	(68	)	$	(313	)

(a) Includes various defined benefit pension plans which are individually immaterial.

Estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost

The estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost in 2016 are as follows.

	Defined benefit pension plans						OPEB plans
(in millions)	U.S.			Non-U.S.			U.S.		Non-U.S.
Net loss/(gain)	$	231		$	23		$	—	$	—
Prior service cost/(credit)	(34		)	(2		)	—		—
Total	$	197		$	21		$	—	$	—

Actual rate of return on plan assets

The following table presents the actual rate of return on plan assets for the U.S. and non-U.S. defined benefit pension and OPEB plans.

	U.S.						Non-U.S.
Year ended December 31,	2015		2014		2013		2015	2014	2013
Actual rate of return:
Defined benefit pension plans	0.88	%	7.29	%	15.95	%	(0.48) – 4.92%	5.62 – 17.69%	3.74 – 23.80%
OPEB plans	1.16		9.84		13.88		NA	NA	NA

Weighted-average assumptions used to determine benefit obligations

Weighted-average assumptions used to determine benefit obligations
	U.S.				Non-U.S.
December 31,	2015		2014		2015	2014
Discount rate:
Defined benefit pension plans	4.50	%	4.00	%	0.80 – 3.70%	1.00 – 3.60%
OPEB plans	4.40		4.10		—	—
Rate of compensation increase	3.50		3.50		2.25 – 4.30	2.75 – 4.20
Health care cost trend rate:
Assumed for next year	5.50		6.00		—	—
Ultimate	5.00		5.00		—	—
Year when rate will reach ultimate	2017		2017		—	—

Weighted-average assumptions used to determine net periodic benefit costs

Weighted-average assumptions used to determine net periodic benefit costs
	U.S.						Non-U.S.
Year ended December 31,	2015		2014		2013		2015	2014	2013
Discount rate:
Defined benefit pension plans	4.00	%	5.00	%	3.90	%	1.00 – 3.60%	1.10 – 4.40%	1.40 – 4.40%
OPEB plans	4.10		4.90		3.90		—	—	—
Expected long-term rate of return on plan assets:
Defined benefit pension plans	6.50		7.00		7.50		0.90 – 4.80	1.20 – 5.30	2.40 – 4.90
OPEB plans	6.00		6.25		6.25		NA	NA	NA
Rate of compensation increase	3.50		3.50		4.00		2.75 – 4.20	2.75 – 4.60	2.75 – 4.10
Health care cost trend rate:
Assumed for next year	6.00		6.50		7.00		—	—	—
Ultimate	5.00		5.00		5.00		—	—	—
Year when rate will reach ultimate	2017		2017		2017		—	—	—

Effect of a one-percentage-point change in the assumed health care cost trend rate on the Firm's total service and interest cost and accumulated postretirement benefit obligation

As of December 31, 2015, there was no material effect on total service and interest cost.

Year ended December 31, 2015 (in millions)	1-Percentage point increase		1-Percentage point decrease
Effect on accumulated postretirement benefit obligation	$	8	$	(7	)

Weighted-average asset allocation of the fair values of total plan assets

The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for the years indicated, as well as the respective approved range/target allocation by asset category, for the Firm’s U.S. and non-U.S. defined benefit pension and OPEB plans.

	Defined benefit pension plans
	U.S.					Non-U.S.						OPEB plans(c)
	Target	% of plan assets				Target		% of plan assets				Target		% of plan assets
December 31,	Allocation	2015		2014		Allocation		2015		2014		Allocation		2015		2014
Asset category
Debt securities(a)	0-80%	32	%	31	%	59	%	60	%	61	%	30-70%		50	%	50	%
Equity securities	0-85	48		46		40		38		38		30-70		50		50
Real estate	0-10	4		4		—		1		—		—		—		—
Alternatives(b)	0-35	16		19		1		1		1		—		—		—
Total	100%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

(a) Debt securities primarily include corporate debt, U.S. federal, state, local and non-U.S. government, and mortgage-backed securities.

(b) Alternatives primarily include limited partnerships.

(c) Represents the U.S. OPEB plan only, as the U.K. OPEB plan is unfunded.

Pension and OPEB plan assets and liabilities measured at fair value

For information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value hierarchy and the valuation methods employed by the Firm, see Note 3.

Pension and OPEB plan assets and liabilities measured at fair value
	U.S. defined benefit pension plans											Non-U.S. defined benefit pension plans(g)
December 31, 2015 (in millions)	Level 1		Level 2			Level 3		Total fair value				Level 1		Level 2			Total fair value
Cash and cash equivalents	$	112	$	—		$	—	$	112			$	114	$	1		$	115
Equity securities	4,826		5			2		4,833				1,002		157			1,159
Common/collective trust funds(a)	339		—			—		339				135		—			135
Limited partnerships(b)	53		—			—		53				—		—			—
Corporate debt securities(c)	—		1,619			2		1,621				—		758			758
U.S. federal, state, local and non-U.S. government debt securities	580		108			—		688				212		504			716
Mortgage-backed securities	—		67			1		68				2		26			28
Derivative receivables	—		104			—		104				—		209			209
Other(d)	1,760		27			534		2,321				257		53			310
Total assets measured at fair value	$	7,670	$	1,930		$	539	$	10,139		(e)	$	1,722	$	1,708		$	3,430
Derivative payables	$	—	$	(35	)	$	—	$	(35	)		$	—	$	(153	)	$	(153	)
Total liabilities measured at fair value	$	—	$	(35	)	$	—	$	(35	)	(f)	$	—	$	(153	)	$	(153	)

	U.S. defined benefit pension plans											Non-U.S. defined benefit pension plans(g)
December 31, 2014 (in millions)	Level 1		Level 2			Level 3		Total fair value				Level 1		Level 2			Total fair value
Cash and cash equivalents	$	87	$	—		$	—	$	87			$	128	$	1		$	129
Equity securities	5,286		20			4		5,310				1,019		169			1,188
Common/collective trust funds(a)	345		—			—		345				112		—			112
Limited partnerships(b)	70		—			—		70				—		—			—
Corporate debt securities(c)	—		1,454			9		1,463				—		724			724
U.S. federal, state, local and non-U.S. government debt securities	446		161			—		607				235		540			775
Mortgage-backed securities	1		73			1		75				2		77			79
Derivative receivables	—		114			—		114				—		258			258
Other(d)	2,031		27			337		2,395				283		58			341
Total assets measured at fair value	$	8,266	$	1,849		$	351	$	10,466		(e)	$	1,779	$	1,827		$	3,606
Derivative payables	$	—	$	(23	)	$	—	$	(23	)		$	—	$	(139	)	$	(139	)
Total liabilities measured at fair value	$	—	$	(23	)	$	—	$	(23	)	(f)	$	—	$	(139	)	$	(139	)

Note: Effective April 1, 2015, the Firm adopted new accounting guidance for certain investments where the Firm measures fair value using the net asset value per share (or its equivalent) as a practical expedient and excluded them from the fair value hierarchy. Accordingly, such investments are not included within these tables. At December 31, 2015 and 2014, the fair values of these investments, which include certain limited partnerships and common/collective trust funds, were $4.1 billion and $4.3 billion, respectively, of U.S. defined benefit pension plan investments, and $234 million and $251 million, respectively, of non-U.S. defined benefit pension plan investments. Of these investments $1.3 billion and $3.0 billion, respectively, of U.S. defined benefit pension plan investments had been previously classified in level 2 and level 3, respectively, and $251 million of non-U.S. defined benefit pension plan investments had been previously classified in level 2 at December 31, 2014. The guidance was required to be applied retrospectively, and accordingly, prior period amounts have been revised to conform with the current period presentation.

(a) At December 31, 2015 and 2014, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international equity investments (including index) and real estate funds.

(b) Unfunded commitments to purchase limited partnership investments for the plans were $895 million and $1.2 billion for 2015 and 2014, respectively.

(c) Corporate debt securities include debt securities of U.S. and non-U.S. corporations.

(d) Other consists of money markets funds, exchange-traded funds and participating and non-participating annuity contracts. Money markets funds and exchange-traded funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating and non-participating annuity contracts are classified within level 3 of the fair value hierarchy due to lack of market mechanisms for transferring each policy and surrender restrictions.

(e) At December 31, 2015 and 2014, excluded U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of $74 million and $106 million, respectively.

(f) At December 31, 2015 and 2014, excluded $106 million and $241 million, respectively, of U.S. defined benefit pension plan payables for investments purchased; and $17 million and $16 million, respectively, of other liabilities.

(g) There were zero assets or liabilities classified as level 3 for the non-U.S. defined benefit pension plans as of December 31, 2015 and 2014.

Changes in level 3 fair value measurements using significant unobservable inputs

Changes in level 3 fair value measurements using significant unobservable inputs
Year ended December 31, 2015 (in millions)	Fair value, January 1, 2015		Actual return on plan assets					Purchases, sales and settlements, net			Transfers in and/or out of level 3		Fair value, December 31, 2015
			Realized gains/(losses)		Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	4	$	—	$	(2	)	$	—		$	—	$	2
Corporate debt securities	9		—		—			(7		)	—		2
Mortgage-backed securities	1		—		—			—			—		1
Other	337		—		197			—			—		534
Total U.S. defined benefit pension plans	$	351	$	—	$	195		$	(7	)	$	—	$	539
OPEB plans
COLI	$	1,903	$	—	$	(48	)	$	—		$	—	$	1,855
Total OPEB plans	$	1,903	$	—	$	(48	)	$	—		$	—	$	1,855

Year ended December 31, 2014 (in millions)	Fair value, January 1, 2014		Actual return on plan assets						Purchases, sales and settlements, net		Transfers in and/or out of level 3			Fair value, December 31, 2014
			Realized gains/(losses)			Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	4	$	—		$	—		$	—	$	—		$	4
Corporate debt securities	7		(2		)	2			4		(2		)	9
Mortgage-backed securities	—		—			—			1		—			1
Other	430		—			(93		)	—		—			337
Total U.S. defined benefit pension plans	$	441	$	(2	)	$	(91	)	$	5	$	(2	)	$	351
OPEB plans
COLI	$	1,749	$	—		$	154		$	—	$	—		$	1,903
Total OPEB plans	$	1,749	$	—		$	154		$	—	$	—		$	1,903

Year ended December 31, 2013 (in millions)	Fair value, January 1, 2013		Actual return on plan assets				Purchases, sales and settlements, net		Transfers in and/or out of level 3		Fair value, December 31, 2013
			Realized gains/(losses)		Unrealized gains/(losses)
U.S. defined benefit pension plans
Equities	$	4	$	—	$	—	$	—	$	—	$	4
Corporate debt securities	1		—		—		—		6		7
Mortgage-backed securities	—		—		—		—		—		—
Other	420		—		10		—		—		430
Total U.S. defined benefit pension plans	$	425	$	—	$	10	$	—	$	6	$	441
OPEB plans
COLI	$	1,554	$	—	$	195	$	—	$	—	$	1,749
Total OPEB plans	$	1,554	$	—	$	195	$	—	$	—	$	1,749

Estimated future benefit payments

The following table presents benefit payments expected to be paid, which include the effect of expected future service, for the years indicated. The OPEB medical and life insurance payments are net of expected retiree contributions.

Year ended December 31, (in millions)	U.S. defined benefit pension plans		Non-U.S. defined benefit pension plans		OPEB before Medicare Part D subsidy		Medicare Part D subsidy
2016	$	762	$	107	$	68	$	1
2017	798		110		66		1
2018	927		119		63		1
2019	966		123		61		1
2020	1,009		129		59		1
Years 2021–2025	4,409		722		259		4