Pension and Other Postretirement Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2010

Pension and Other Postretirement Employee Benefit Plans (Tables) [Abstract]

Changes in benefit obligations and plan assets and funded status amounts

	Defined benefit pension plans
As of or for the year ended December 31,	U.S.						Non-U.S.						OPEB plans(f)
(in millions)	2010			2009			2010			2009			2010			2009
Change in benefit obligation
Benefit obligation, beginning of year	$	(7,977	)	$	(7,796	)	$	(2,536	)	$	(2,007	)	$	(1,025	)	$	(1,095	)
Benefits earned during the year		(230	)		(313	)		(30	)		(30	)		(2	)		(3	)
Interest cost on benefit obligations		(468	)		(514	)		(128	)		(122	)		(55	)		(64	)
Plan amendments		—			384			10			1			—			—
Business combinations		—			(4	)(b)		(12	)(b)		—			—			(40	)(b)
Employee contributions	NA			NA				(4	)		(3	)		(70	)		(64	)
Net gain/(loss)		(249	)		(408	)		(71	)		(287	)		13			101
Benefits paid		604			674			96			95			168			160
Expected Medicare Part D subsidy receipts	NA			NA			NA			NA				(10	)		(9	)
Curtailments		—			—			—			1			—			(7	)
Settlements		—			—			5			4			—			—
Special termination benefits		—			—			(1	)		(1	)		—			—
Foreign exchange impact and other		—			—			71			(187	)		1			(4	)
Benefit obligation, end of year	$	(8,320	)	$	(7,977	)	$	(2,600	)	$	(2,536	)	$	(980	)	$	(1,025	)
Change in plan assets
Fair value of plan assets, beginning of year	$	10,218		$	6,948		$	2,432		$	2,008		$	1,269		$	1,126
Actual return on plan assets		1,179			1,145			228			218			137			172
Firm contributions		35			2,799			157			115			3			2
Employee contributions		—			—			4			3			—			—
Benefits paid		(604	)		(674	)		(96	)		(95	)		(28	)		(31	)
Settlements		—			—			(5	)		(4	)		—			—
Foreign exchange impact and other		—			—			(73	)		187			—			—
Fair value of plan assets, end of year	$	10,828	(c)(d)	$	10,218	(c)(d)	$	2,647	(d)	$	2,432	(d)	$	1,381		$	1,269
Funded/(unfunded) status(a)	$	2,508	(e)	$	2,241	(e)	$	47		$	(104	)	$	401		$	244
Accumulated benefit obligation, end of year	$	(8,271	)	$	(7,964	)	$	(2,576	)	$	(2,510	)	NA			NA

(a)	Represents overfunded plans with an aggregate balance of $3.5 billion and $3.0 billion at December 31, 2010 and 2009, respectively, and underfunded plans with an aggregate balance of $561 million and $623 million at December 31, 2010 and 2009, respectively.
(b)	Represents change resulting from RBS Sempra Commodities business in 2010 and from the Washington Mutual plan in 2009.
(c)	At December 31, 2010 and 2009, approximately $385 million and $332 million, respectively, of U.S. plan assets included participation rights under participating annuity contracts.
(d)	At December 31, 2010 and 2009, defined benefit pension plan amounts not measured at fair value include $52 million and $82 million, respectively, of accrued receivables, and $187 million and $189 million, respectively, of accrued liabilities, for U.S. plans; and $9 million and $8 million, respectively, of accrued receivables for non-U.S. plans.
(e)	Does not include any amounts attributable to the Washington Mutual Qualified Pension plan. The disposition of this plan remained subject to litigation and was not determinable.
(f)	Includes an unfunded accumulated postretirement benefit obligation of $36 million and $29 million at December 31, 2010 and 2009, respectively, for the U.K. plan.

Pretax pension and OPEB amounts recorded in AOCI

	Defined benefit pension plans
December 31,	U.S.						Non-U.S.						OPEB plans
(in millions)	2010			2009			2010			2009			2010			2009
Net gain/(loss)	$	(2,627	)	$	(3,039	)	$	(566	)	$	(666	)	$	(119	)	$	(171	)
Prior service credit/(cost)		321			364			13			3			9			22
Accumulated other comprehensive income/ (loss), pretax, end of year	$	(2,306	)	$	(2,675	)	$	(553	)	$	(663	)	$	(110	)	$	(149	)

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

	Pension plans
	U.S.									Non-U.S.									OPEB plans
Year ended December 31, (in millions)	2010			2009			2008			2010			2009			2008			2010			2009			2008
Components of net periodic benefit cost
Benefits earned during the year	$	230		$	313		$	278		$	31		$	28		$	29		$	2		$	3		$	5
Interest cost on benefit obligations		468			514			488			128			122			142			55			65			74
Expected return on plan assets		(742	)		(585	)		(719	)		(126	)		(115	)		(152	)		(96	)		(97	)		(98	)
Amortization:
Net loss		225			304			—			56			44			25			(1	)		—			—
Prior service cost/(credit)		(43	)		4			4			(1	)		—			—			(13	)		(14	)		(16	)
Curtailment (gain)/loss		—			1			1			—			—			—			—			5			4
Settlement (gain)/loss		—			—			—			1			1			—			—			—			—
Special termination benefits		—			—			—			1			1			3			—			—			—
Net periodic benefit cost		138			551			52			90			81			47			(53	)		(38	)		(31	)
Other defined benefit pension plans(a)		14			15			11			11			12			14		NA			NA			NA
Total defined benefit plans		152			566			63			101			93			61			(53	)		(38	)		(31	)
Total defined contribution plans		332			359			263			251			226			286		NA			NA			NA
Total pension and OPEB cost included in compensation expense	$	484		$	925		$	326		$	352		$	319		$	347		$	(53	)	$	(38	)	$	(31	)
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain)/loss arising during the year	$	(187	)	$	(168	)	$	3,243		$	(21	)	$	183		$	235		$	(54	)	$	(176	)	$	248
Prior service credit arising during the year		—			(384	)		—			(10	)		(1	)		—			—			—			—
Amortization of net loss		(225	)		(304	)		—			(56	)		(44	)		(27	)		1			—			—
Amortization of prior service (cost)/credit		43			(6	)		(5	)		1			—			—			13			15			15
Curtailment (gain)/loss		—			—			—			—			—			—			—			2			3
Settlement loss/(gain)		—			—			—			(1	)		(1	)		—			—			—			—
Foreign exchange impact and other		—			18			—			(23	)		36			(150	)		1			(1	)		3
Total recognized in other comprehensive income		(369	)		(844	)		3,238			(110	)		173			58			(39	)		(160	)		269
Total recognized in net periodic benefit cost and other comprehensive income	$	(231	)	$	(293	)	$	3,290		$	(20	)	$	254		$	105		$	(92	)	$	(198	)	$	238

(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

	Defined benefit pension plans						OPEB plans
(in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.
Net loss	$	168		$	44		$	—		$	—
Prior service cost/(credit)		(43	)		(1	)		(8	)		—
Total	$	125		$	43		$	(8	)	$	—

Actual rate of return on plan assets

	U.S.									Non-U.S.
December 31,	2010			2009			2008			2010			2009			2008
Actual rate of return:
Defined benefit pension plans		12.23	%		13.78	%		(25.17	)%		0.77-10.65	%		3.17-22.43	%		(21.58)-5.06	%
OPEB plans		11.23			15.93			(17.89	)	NA			NA			NA

Weighted-average assumptions used to determine benefit obligations

	U.S.						Non-U.S.
December 31,	2010			2009			2010			2009
Discount rate:
Defined benefit pension plans		5.50	%		6.00	%		1.60-5.50	%		2.00-5.70	%
OPEB plans		5.50			6.00			5.50			5.70
Rate of compensation increase		4.00			4.00			3.00-4.50			3.00-4.50
Health care cost trend rate:
Assumed for next year		7.00			7.75			6.50			5.40
Ultimate		5.00			5.00			6.00			4.50
Year when rate will reach ultimate		2017			2014			2015			2014

Weighted-average assumptions used to determine net periodic benefit costs

	U.S.									Non-U.S.
Year ended December 31,	2010			2009			2008			2010			2009			2008
Discount rate:
Defined benefit pension plans		6.00	%		6.65	%		6.60	%		2.00-5.70	%		2.00-6.20	%		2.25-5.80	%
OPEB plans		6.00			6.70			6.60			5.70			6.20			5.80
Expected long-term rate of return on plan assets:
Defined benefit pension plans		7.50			7.50			7.50			2.40-6.20			2.50-6.90			3.25-5.75
OPEB plans		7.00			7.00			7.00		NA			NA			NA
Rate of compensation increase		4.00			4.00			4.00			3.00-4.50			3.00-4.00			3.00-4.25
Health care cost trend rate:
Assumed for next year		7.75			8.50			9.25			5.40			7.00			5.75
Ultimate		5.00			5.00			5.00			4.50			5.50			4.00
Year when rate will reach ultimate		2014			2014			2014			2014			2012			2010

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

	1-Percentage-		1-Percentage-
Year ended December 31, 2010	point		point
(in millions)	increase		decrease
Effect on total service and interest cost	$	2	$	(2	)
Effect on accumulated postretirement benefit obligation		36		(31	)

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

	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			2010			2009			Allocation			2010			2009			Allocation			2010			2009
Asset category
Debt securities(a)		10-30	%		29	%		29	%		72	%		71	%		75	%		50	%		50	%		50	%
Equity securities		25-60			40			40			26			28			23			50			50			50
Real estate		5-20			4			4			1			—			1			—			—			—
Alternatives(b)		15-50			27			27			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

Pension and OPEB plan assets and liabilities measured at fair value

	U.S. defined benefit pension plans										Non-U.S. defined benefit pension plans
December 31, 2010								Total										Total
(in millions)	Level 1		Level 2			Level 3		fair value			Level 1		Level 2			Level 3		fair value
Cash and cash equivalents	$	—	$	—		$	—	$	—		$	81	$	—		$	—	$	81
Equity securities:
Capital equipment		748		9			—		757			68		13			—		81
Consumer goods		712		—			—		712			75		21			—		96
Banks and finance companies		414		1			—		415			113		9			—		122
Business services		444		—			—		444			53		10			—		63
Energy		195		—			—		195			59		6			—		65
Materials		205		—			—		205			50		13			—		63
Real Estate		21		—			—		21			1		—			—		1
Other		857		6			—		863			194		16			—		210
Total equity securities		3,596		16			—		3,612			613		88			—		701
Common/collective trust funds(a)		1,195		756			—		1,951			46		180			—		226
Limited partnerships:
Hedge funds		—		959			1,102		2,061			—		—			—		—
Private equity funds		—		—			1,232		1,232			—		—			—		—
Real estate		—		—			304		304			—		—			—		—
Total limited partnerships		—		959			2,638		3,597			—		—			—		—
Corporate debt securities(b)		—		424			1		425			—		718			—		718
U.S. federal, state, local and non-U.S. government debt securities		—		453			—		453			—		864			—		864
Mortgage-backed securities(c)		188		55			—		243			1		—			—		1
Derivative receivables(d)		2		194			—		196			—		3			—		3
Other		218		58			387		663			18		51			—		69
Total assets measured at fair value(e)(f)	$	5,199	$	2,915		$	3,026	$	11,140		$	759	$	1,904		$	—	$	2,663
Derivative payables		—		(177	)		—		(177	)		—		(25	)		—		(25	)
Total liabilities measured at fair value	$	—	$	(177	)	$	—	$	(177	)(g)	$	—	$	(25	)	$	—	$	(25	)

	U.S. defined benefit pension plans										Non-U.S. defined benefit pension plans
December 31, 2009								Total										Total
(in millions)	Level 1		Level 2			Level 3		fair value			Level 1		Level 2			Level 3		fair value
Cash and cash equivalents	$	71	$	—		$	—	$	71		$	27	$	—		$	—	$	27
Equity securities:
Capital equipment		608		13			—		621			49		16			—		65
Consumer goods		554		—			—		554			64		18			—		82
Banks and finance companies		324		—			—		324			90		12			—		102
Business services		322		—			—		322			39		13			—		52
Energy		188		—			—		188			45		13			—		58
Materials		186		—			—		186			35		3			—		38
Real estate		19		—			—		19			—		—			—		—
Other		571		1			—		572			171		—			—		171
Total equity securities		2,772		14			—		2,786			493		75			—		568
Common/collective trust funds(a)		1,868		610			—		2,478			23		185			—		208
Limited partnerships:
Hedge funds		—		912			627		1,539			—		—			—		—
Private equity funds		—		—			874		874			—		—			—		—
Real estate		—		—			196		196			—		—			—		—
Total limited partnerships		—		912			1,697		2,609			—		—			—		—
Corporate debt securities(b)		—		941			—		941			—		685			—		685
U.S. federal, state, local and non-U.S. government debt securities		—		406			—		406			—		841			—		841
Mortgage-backed securities(c)		169		54			—		223			—		—			—		—
Derivative receivables(d)		—		90			—		90			—		5			—		5
Other		348		115			334		797			18		89			13		120
Total assets measured at fair value(e)(f)	$	5,228	$	3,142		$	2,031	$	10,401		$	561	$	1,880		$	13	$	2,454
Derivative payables		—		(76	)		—		(76	)		—		(30	)		—		(30	)
Total liabilities measured at fair value	$	—	$	(76	)	$	—	$	(76	)(g)	$	—	$	(30	)	$	—	$	(30	)

(a)	At December 31, 2010 and 2009, common/collective trust funds generally include commingled funds that primarily included 22% and 39%, respectively, of short-term investment funds; 21% and 24%, respectively, of equity (index) investments; and 16% and 15%, respectively, of international investments.
(b)	Corporate debt securities include debt securities of U.S. and non-U.S. corporations.
(c)	At December 31, 2010 and 2009, mortgage-backed securities were generally invested 77% and 72%, respectively, in debt securities issued by U.S. government agencies.
(d)	At December 31, 2010 and 2009, derivative receivables primarily included 89% and 80%, respectively, of foreign exchange contracts; and 11% and 16%, respectively, of equity warrants.
(e)	At December 31, 2010 and 2009, the fair value of investments valued at NAV were $4.1 billion and $4.2 billion, respectively, which were classified within the valuation hierarchy as follows: $1.3 billion and $2.0 billion in level 1, $1.7 billion and $1.6 billion in level 2 and $1.1 billion and $600 million in level 3.
(f)	At December 31, 2010 and 2009, excluded U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of $52 million and $82 million, respectively; and excluded non-U.S. defined benefit pension plan receivables for dividends and interest receivables of $9 million and $8 million, respectively.
(g)	At December 31, 2010 and 2009, excluded $149 million and $177 million, respectively, of U.S. defined benefit pension plan payables for investments purchased; and $38 million and $12 million, respectively, of other liabilities.

Changes in level 3 fair value measurements using significant unobservable inputs

Year ended			Total realized/								Fair value,
December 31, 2010	Fair value,		unrealized			Purchases, sales			Transfers in and/or		December 31,
(in millions)	January 1, 2010		gains/(losses)(a)			and settlements, net			out of level 3		2010
U.S. defined benefit pension plans
Limited partnerships:
Hedge funds	$	627	$	8		$	388		$	79	$	1,102
Private equity funds		874		111			235			12		1,232
Real estate		196		19			89			—		304
Total limited partnerships	$	1,697	$	138		$	712		$	91	$	2,638
Corporate debt securities		—		—			—			1		1
Other		334		53			—			—		387
Total U.S. plans	$	2,031	$	191		$	712		$	92	$	3,026
Non-U.S. defined benefit pension plans
Other	$	13	$	(1	)	$	(12	)	$	—	$	—
Total non-U.S. plans	$	13	$	(1	)	$	(12	)	$	—	$	—
OPEB plans
COLI	$	1,269	$	137		$	(25	)	$	—	$	1,381
Total OPEB plans	$	1,269	$	137		$	(25	)	$	—	$	1,381

Year ended			Total realized/									Fair value,
December 31, 2009	Fair value,		unrealized			Purchases, sales			Transfers in and/or			December 31,
(in millions)	January 1, 2009		gains/(losses)(a)			and settlements, net			out of level 3			2009
U.S. defined benefit pension plans
Limited partnerships:
Hedge funds	$	524	$	112		$	(9	)	$	—		$	627
Private equity funds		810		(1	)		80			(15	)		874
Real estate		203		(107	)		100			—			196
Total limited partnerships	$	1,537	$	4		$	171		$	(15	)	$	1,697
Corporate debt securities		—		—			—			—			—
Other		315		19			—			—			334
Total U.S. plans	$	1,852	$	23		$	171		$	(15	)	$	2,031
Non-U.S. defined benefit pension plans
Other	$	14	$	(1	)	$	—		$	—		$	13
Total non-U.S. plans	$	14	$	(1	)	$	—		$	—		$	13
OPEB plans
COLI	$	1,126	$	172		$	(29	)	$	—		$	1,269
Total OPEB plans	$	1,126	$	172		$	(29	)	$	—		$	1,269

(a) For the years ended December 31, 2010, and 2009, respectively, total realized (unrealized) gains/(losses) are the changes in unrealized gains or losses relating to assets held at December 31, 2010 and 2009, respectively.

Estimated future benefit payments

	U.S.		Non-U.S.
Year ended December 31,	defined benefit		defined benefit		OPEB before		Medicare
(in millions)	pension plans		pension plans		Medicare Part D subsidy		Part D subsidy
2011	$	1,001	$	84	$	99	$	10
2012		1,011		92		97		11
2013		587		98		95		12
2014		593		102		94		13
2015		592		111		92		14
Years 2016—2020		3,013		640		418		78