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Pensions and Other Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost
Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans for 2017, 2016 and 2015 include the following components:
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Service cost
 
$
1,080

 
949

 
1,037

 
247

 
224

 
257

Interest cost
 
927

 
927

 
988

 
159

 
158

 
186

Expected return on plan assets
 
(2,041
)
 
(1,962
)
 
(1,809
)
 
(6
)
 
(6
)
 
(7
)
Amortization of prior service cost (credit)
 
2

 
1

 
2

 
(30
)
 
(34
)
 
(33
)
Recognized actuarial losses
 
609

 
496

 
745

 
138

 
135

 
201

Curtailments and settlements
 
17

 
11

 
8

 
—

 
—

 
—

Net periodic benefit cost
 
$
594

 
422

 
971

 
508

 
477

 
604
Amounts Expected to be Recognized in Net Periodic Benefit Cost
Amounts expected to be recognized in net periodic benefit cost in the coming year for the Company’s defined benefit retirement plans and other post-retirement plans:
(Dollars in Millions)
 
Amortization of net transition obligation
$
—

Amortization of net actuarial losses
931

Amortization of prior service credit
30
Rates Used to Develop Actuarial Present Value of Projected Benefit Obligation
The following table represents the weighted-average actuarial assumptions:
 
 
Retirement Plans
 
Other Benefit Plans
Worldwide Benefit Plans
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost discount rate
 
3.59
%
 
3.98
 
3.78
 
4.63
 
4.77
 
4.31
Interest cost discount rate
 
3.98
%
 
4.24
 
3.78
 
3.94
 
4.10
 
4.31
Rate of increase in compensation levels
 
4.01
%
 
4.02
 
4.05
 
4.31
 
4.32
 
4.11
Expected long-term rate of return on plan assets
 
8.43
%
 
8.55
 
8.53
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.30
%
 
3.78
 
4.11
 
3.78
 
4.42
 
4.63
Rate of increase in compensation levels
 
3.99
%
 
4.02
 
4.01
 
4.30
 
4.29
 
4.28
Assumed Health Care Cost Trend Rates
The following table displays the assumed health care cost trend rates, for all individuals:
Health Care Plans
 
2017
 
2016
Health care cost trend rate assumed for next year
 
6.33
%
 
6.32
%
Rate to which the cost trend rate is assumed to decline (ultimate trend)
 
4.55
%
 
4.50
%
Year the rate reaches the ultimate trend rate
 
2038

 
2038
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 effect:
 
 
One-Percentage-
 
One-Percentage-
(Dollars in Millions)
 
Point Increase
 
Point Decrease
Health Care Plans
 
 

 
 

Total interest and service cost
 
$
29

 
(23
)
Post-retirement benefit obligation
 
$
355

 
(291
)
Schedule of Net Funded Status
The following table sets forth information related to the benefit obligation and the fair value of plan assets at year-end 2017 and 2016 for the Company’s defined benefit retirement plans and other post-retirement plans:
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2017
 
2016
 
2017
 
2016
Change in Benefit Obligation
 
 
 
 
 
 
 
 
Projected benefit obligation — beginning of year
 
$
28,116

 
25,855

 
4,605

 
4,669

Service cost
 
1,080

 
949

 
247

 
224

Interest cost
 
927

 
927

 
159

 
158

Plan participant contributions
 
60

 
54

 
—

 
—

Amendments
 
(7
)
 
(48
)
 
(17
)
 
—

Actuarial (gains) losses
 
2,996

 
2,302

 
(166
)
 
(73
)
Divestitures & acquisitions
 
201

 
(24
)
 
88

 
—

Curtailments, settlements & restructuring
 
(35
)
 
(25
)
 
2

 
—

Benefits paid from plan*
 
(1,050
)
 
(1,210
)
 
(351
)
 
(378
)
Effect of exchange rates
 
933

 
(664
)
 
15

 
5

Projected benefit obligation — end of year
 
$
33,221

 
28,116

 
4,582

 
4,605

Change in Plan Assets
 
 
 
 
 
 
 
 
Plan assets at fair value — beginning of year
 
$
23,633

 
22,254

 
75

 
74

Actual return on plan assets
 
4,274

 
2,286

 
12

 
7

Company contributions
 
664

 
838

 
545

 
372

Plan participant contributions
 
60

 
54

 
—

 
—

Settlements
 
(32
)
 
(25
)
 
—

 
—

Divestitures & acquisitions
 
173

 
(24
)
 
—

 
—

Benefits paid from plan assets*
 
(1,050
)
 
(1,210
)
 
(351
)
 
(378
)
Effect of exchange rates
 
682

 
(540
)
 
—

 
—

Plan assets at fair value — end of year
 
$
28,404

 
23,633

 
281

 
75

Funded status — end of year
 
$
(4,817
)
 
(4,483
)
 
(4,301
)
 
(4,530
)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
 
 
 
 
 
 
 
 
Non-current assets
 
$
526

 
227

 
—

 
—

Current liabilities
 
(92
)
 
(86
)
 
(228
)
 
(315
)
Non-current liabilities
 
(5,251
)
 
(4,624
)
 
(4,073
)
 
(4,215
)
Total recognized in the consolidated balance sheet — end of year
 
$
(4,817
)
 
(4,483
)
 
(4,301
)
 
(4,530
)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
 
 
 
 
 
 
 
 
Net actuarial loss
 
$
8,140

 
7,749

 
1,500

 
1,804

Prior service cost (credit)
 
(25
)
 
(12
)
 
(137
)
 
(150
)
Unrecognized net transition obligation
 
—

 
—

 
—

 
—

Total before tax effects
 
$
8,115

 
7,737

 
1,363

 
1,654

 
 
 
 
 
 
 
 
 
Accumulated Benefit Obligations — end of year
 
$
29,793

 
25,319

 
 
 
 
 
 
 
 
 
 
 
 
 
*In 2016, the Company offered a voluntary lump-sum payment option below a pre-determined threshold for certain eligible former employees who are vested participants of the U.S. Qualified Defined Benefit Pension Plan. The distribution of the lump-sums was completed by the end of fiscal 2017. The amounts distributed in 2017 and 2016 were approximately $127 million and $420 million, respectively. These distributions from the plan did not have a material impact on the Company’s financial position.

 
 
 
 
 
 
 
 
 
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2017
 
2016
 
2017
 
2016
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
 
 
 
 
 
 
 
 
Net periodic benefit cost
 
$
594

 
422

 
508

 
477

Net actuarial (gain) loss
 
740

 
1,965

 
(169
)
 
(72
)
Amortization of net actuarial loss
 
(609
)
 
(496
)
 
(138
)
 
(135
)
Prior service cost (credit)
 
(7
)
 
(48
)
 
(17
)
 
—

Amortization of prior service (cost) credit
 
(2
)
 
(1
)
 
30

 
34

Effect of exchange rates
 
256

 
(218
)
 
3

 
(1
)
Total loss/(income) recognized in other comprehensive income, before tax
 
$
378

 
1,202

 
(291
)
 
(174
)
Total recognized in net periodic benefit cost and other comprehensive income
 
$
972

 
1,624

 
217

 
303
Information Related to the Benefit Obligation and the Fair Value of Plan Assets
The following table displays the funded status of the Company's U.S. Qualified & Non-Qualified pension plans and international funded and unfunded pension plans at December 31, 2017 and December 31, 2016, respectively:

 
U.S. Plans
International Plans
 
Qualified Plans
Non-Qualified Plans
Funded Plans
Unfunded Plans
(Dollars in Millions)
2017
2016
2017
2016
2017
2016
2017
2016
Plan Assets
$
18,681

16,057

—

—

9,723

7,576

—

—

Projected Benefit Obligation
19,652

16,336

2,257

1,905

10,863

9,502

449

373

Accumulated Benefit Obligation
17,654

14,759

1,849

1,568

9,893

8,663

397

329

Over (Under) Funded Status
 
 
 
 
 
 
 
 
Projected Benefit Obligation
$
(971
)
(279
)
(2,257
)
(1,905
)
(1,140
)
(1,926
)
(449
)
(373
)
Accumulated Benefit Obligation
1,027

1,298

(1,849
)
(1,568
)
(170
)
(1,087
)
(397
)
(329
)
Projected Future Benefit Payments from Company's Retirement and Other Benefit Plans
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions)
 
2018
 
2019
 
2020
 
2021
 
2022
 
2023-2027
Projected future benefit payments
 
 
 
 
 
 
 
 
 
 
 
 
Retirement plans
 
$
970

 
1,007

 
1,057

 
1,131

 
1,190

 
7,062

Other benefit plans 
 
$
322

 
312

 
306

 
301

 
297

 
1,395
Projected Future Minimum Contributions to the Company's U.S. and International Unfunded Retirement Plans
The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions)
 
2018
 
2019
 
2020
 
2021
 
2022
 
2023-2027
Projected future contributions
 
$
88

 
89

 
94

 
100

 
108

 
651
Company' Retirement Plan Asset Allocation and Target Allocations
The Company’s retirement plan asset allocation at the end of 2017 and 2016 and target allocations for 2018 are as follows:
 
 
Percent of
Plan Assets
 
Target
Allocation
 
 
2017
 
2016
 
2018
Worldwide Retirement Plans
 
 
 
 
 
 
Equity securities
 
76
%
 
75
%
 
73
%
Debt securities
 
24

 
25

 
27

Total plan assets
 
100
%
 
100
%
 
100
%
Schedule of Defined Benefit Plans Disclosures
The following table sets forth the Retirement Plans' investments measured at fair value as of December 31, 2017 and December 31, 2016:
 
 
Quoted Prices
in Active
Markets for
Identical Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs(a)
 
Investments Measured at Net Asset Value
 
 
 
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
Total Assets
(Dollars in Millions)
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Short-term investment funds
 
$
429

 
145

 
427

 
652

 
—

 
—

 
—

 
—

 
856

 
797

Government and agency securities
 
—

 
—

 
3,094

 
2,655

 
—

 
—

 
—

 
—

 
3,094

 
2,655

Debt instruments
 
—

 
—

 
2,013

 
1,237

 
—

 
—

 
—

 
—

 
2,013

 
1,237

Equity securities
 
13,848

 
11,433

 
—

 
12

 
—

 
—

 
—

 
—

 
13,848

 
11,445

Commingled funds
 
—

 
—

 
1,780

 
1,316

 
57

 
—

 
6,158

 
5,767

 
7,995

 
7,083

Insurance contracts
 
—

 
—

 
—

 
—

 
199

 
24

 
—

 
—

 
199

 
24

Other assets
 
—

 
—

 
121

 
—

 
—

 
—

 
278

 
392

 
399

 
392

Investments at fair value
 
$
14,277

 
11,578

 
7,435

 
5,872

 
256

 
24

 
6,436

 
6,159

 
28,404

 
23,633



(a) The activity for the Level 3 assets is not significant for all years presented.