Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Defined Contribution Savings Plans

Expense recognized for defined contribution savings plans, included in compensation and benefits and discontinued operations in the consolidated statements of income

The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income, as follows (in millions):

Years ended December 31	2012		2011		2010
U.S.	$	115	$	104	$	65
U.K.		41		43		35
	$	156	$	147	$	100

Pension Plans, Defined Benefit

Defined Benefit Plan Disclosure

Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status, for the U.S. plans and material U.K. and non-U.S. pension plans

	U.K. and Non-U.S.						U.S.
(millions)	2012			2011			2012			2011
Change in projected benefit obligation
At January 1	$	5,583		$	4,812		$	2,657		$	2,376
Service cost		15			19			—			—
Interest cost		265			267			119			122
Participant contributions		1			1			—			—
Plan amendment		—			12			—			—
Plan transfer and acquisitions		—			17			—			—
Actuarial loss (gain)		(139	)		(32	)		29			51
Benefit payments		(195	)		(181	)		(123	)		(115	)
Change in discount rate		562			651			202			223
Foreign currency revaluation		175			17			—			—
At December 31	$	6,267		$	5,583		$	2,884		$	2,657
Accumulated benefit obligation at end of year	$	6,186		$	5,508		$	2,884		$	2,657
Change in fair value of plan assets
At January 1	$	5,098		$	4,288		$	1,325		$	1,244
Actual return on plan assets		392			595			203			83
Participant contributions		1			1			—			—
Employer contributions		412			364			226			113
Plan transfer and acquisitions		—			13			—			—
Benefit payments		(195	)		(181	)		(123	)		(115	)
Foreign currency revaluation		161			18			—			—
At December 31	$	5,869		$	5,098		$	1,631		$	1,325
Market related value at end of year	$	5,869		$	5,098		$	1,566		$	1,410

Amounts recognized in the Consolidated Statements of Financial Position

	U.K. and Non-U.S.						U.S.
(millions)	2012			2011			2012			2011
Amount recognized in Statement of Financial Position at December 31
Funded status	$	(398	)	$	(485	)	$	(1,253	)	$	(1,332	)
Unrecognized prior-service cost		28			28			—			—
Unrecognized loss		2,472			2,109			1,591			1,480
Net amount recognized	$	2,102		$	1,652		$	338		$	148

	U.K. and Non-U.S.						U.S.
	2012			2011			2012			2011
Prepaid benefit cost (included in Other non-current assets)	$	302		$	159		$	—		$	—
Accrued benefit liability (included in Pension, other post retirement, and post employment liabilities)		(700	)		(644	)		(1,253	)		(1,332	)
Accumulated other comprehensive loss		2,500			2,137			1,591			1,480
Net amount recognized	$	2,102		$	1,652		$	338		$	148

Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost

Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2012 and 2011 consist of (in millions):

	U.K. and Non-U.S.				U.S.
	2012		2011		2012		2011
Net loss	$	2,472	$	2,109	$	1,591	$	1,480
Prior service cost		28		28		—		—
	$	2,500	$	2,137	$	1,591	$	1,480

Components of net periodic benefit cost for the pension plans

The following table provides the components of net periodic benefit cost for the plans (in millions):

	U.K. and Non-U.S.									U.S.
	2012			2011			2010			2012			2011			2010
Service cost	$	15		$	19		$	15		$	—		$	—		$	—
Interest cost		265			267			249			119			122			124
Expected return on plan assets		(323	)		(287	)		(240	)		(127	)		(120	)		(118	)
Amortization of prior-service cost		1			1			1			—			—			—
Amortization of net actuarial loss		60			53			54			43			31			24
Net periodic benefit cost	$	18		$	53		$	79		$	35		$	33		$	30

Weighted-average assumptions used to determine future benefit obligations and net periodic benefit cost

 The weighted-average assumptions used to determine future benefit obligations are as follows:

	U.K. and Non-U.S.						U.S.
	2012			2011			2012			2011
Discount rate		3.25 – 4.45	%		4.40 – 4.94	%		3.73 – 4.05	%		4.33 – 4.60	%
Rate of compensation increase		2.25 – 3.85	%		2.25 – 3.55	%		N/A			N/A
Underlying price inflation		2.00 – 2.95	%		2.00 – 3.05	%		N/A			N/A

        The weighted-average assumptions used to determine the net periodic benefit cost are as follows:

	U.K. and Non-U.S.									U.S.
	2012			2011			2010			2012			2011			2010
Discount rate		4.40 – 4.94	%		4.70 – 5.50	%		4.00 – 6.19	%		4.33 – 4.60	%		4.35% – 5.34	%		5.22 – 5.98	%
Expected return on plan assets		4.90 – 6.75			3.20 – 7.20			4.70 – 7.00			8.80			8.80			8.80
Rate of compensation increase		2.25 – 3.55			2.00 – 4.00			2.50 – 3.60			N/A			N/A			N/A

Estimated Future Benefit Payments

  Estimated future benefit payments for plans are as follows at December 31, 2012 (in millions):

	U.K. and Non-U.S.		U.S.
2013	$	184	$	145
2014		190		141
2015		199		147
2016		213		154
2017		221		153
2018 – 2022		1,336		787

U.S. Pension Plan

Defined Benefit Plan Disclosure

Fair values of pension plan assets

The fair values of the Company's U.S. pension plan assets at December 31, 2012 and December 31, 2011, by asset category, are as follows (in millions):

			Fair Value Measurements Using
Asset Category	Balance at December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents (1)	$	22	$	22	$	—	$	—
Equity investments: (2)
Large cap domestic		233		233		—		—
Small cap domestic		44		—		44		—
Large cap international		188		59		129		—
Equity derivatives		226		69		157		—
Fixed income investments: (3)
Corporate bonds		421		—		421		—
Government and agency bonds		97		—		97		—
Asset-backed securities		18		—		18		—
Fixed income derivatives		52		—		52		—
Other investments:
Alternative investments (4)		262		—		—		262
Commodity derivatives (5)		17		—		17		—
Real estate and REITS (6)		51		51		—		—
Total	$	1,631	$	434	$	935	$	262

(1)

Consists of cash and institutional short-term investment funds.

(2)

Consists of equity securities, equity derivatives, and pooled equity funds.

(3)

Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives.

(4)

Consists of limited partnerships, private equity and hedge funds.

(5)

Consists of long-dated options on a commodity index.

(6)

Consists of exchange traded REITS.

			Fair Value Measurements Using
Asset Category	Balance at December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents (1)	$	22	$	22	$	—	$	—
Equity investments: (2)
Large cap domestic		151		151		—		—
Small cap domestic		58		—		58		—
Large cap international		97		9		88		—
Equity derivatives		173		63		110		—
Fixed income investments: (3)
Corporate bonds		355		—		355		—
Government and agency bonds		116		—		116		—
Asset-backed securities		18		—		18		—
Fixed income derivatives		83		—		83		—
Other investments:
Alternative investments (4)		191		—		—		191
Commodity derivatives (5)		19		—		19		—
Real estate and REITS (6)		42		42		—		—
Total	$	1,325	$	287	$	847	$	191

(1)

Consists of cash and institutional short-term investment funds.

(2)

Consists of equity securities, equity derivatives, and pooled equity funds.

(3)

Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives.

(4)

Consists of limited partnerships, private equity and hedge funds.

(5)

Consists of long-dated options on a commodity index.

(6)

Consists of exchange traded REITS.

Changes in the Level 3 fair-value category

 The following table presents the changes in the Level 3 fair-value category in the Company's U.S. pension plans for the years ended December 31, 2012 and December 31, 2011 (in millions):

	Fair Value Measurement Using Level 3 Inputs
Balance at January 1, 2011	$	193
Actual return on plan assets:
Relating to assets still held at December 31, 2011		(8	)
Relating to assets sold during 2011		1
Purchases, sales and settlements—net		5
Transfer in/(out) of Level 3		—
Balance at December 31, 2011		191
Actual return on plan assets:
Relating to assets still held at December 31, 2012		22
Relating to assets sold during 2012		1
Purchases, sales and settlements—net		48
Transfer in/(out) of Level 3		—
Balance at December 31, 2012	$	262

U.K. And non-U.S. Pension Plan

Defined Benefit Plan Disclosure

Fair values of pension plan assets

   The fair values of the Company's major U.K. and non-U.S. pension plan assets at December 31, 2012 and December 31, 2011, by asset category, are as follows (in millions):

			Fair Value Measurements Using
	Balance at December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	303	$	303	$	—	$	—
Equity investments:
Pooled funds: (1)
Global		1,241		—		1,241		—
Europe		319		—		319		—
North America		65		—		65		—
Equity securities — global (2)		137		137		—		—
Derivatives (2)		103		—		103		—
Fixed income investments:
Pooled funds: (1)
Fixed income securities		973		—		973		—
Derivatives		23		—		23		—
Fixed income securities (3)		1,298		1,235		63		—
Annuities		568		—		—		568
Derivatives (3)		245		—		245		—
Other investments:
Pooled funds: (1)
Commodities		30		—		30		—
REITS		5		—		5		—
Real estate (4)		87		—		—		87
Derivatives		15		—		15		—
Alternative investments (5)		457		—		—		457
Total	$	5,869	$	1,675	$	3,082	$	1,112

(1)

Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.

(2)

Consists of equity securities and equity derivatives.

(3)

Consists of corporate and government bonds and fixed income derivatives.

(4)

Consists of property funds and trusts holding direct real estate investments.

(5)

Consists of limited partnerships, private equity and hedge funds.

			Fair Value Measurements Using
	Balance at December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	276	$	276	$	—	$	—
Equity investments:
Pooled funds: (1)
Global		960		—		960		—
Europe		347		—		347		—
North America		56		—		56		—
Equity securities — global (2)		128		128		—		—
Derivatives (2)		11		—		11		—
Fixed income investments:
Pooled funds: (1)
Fixed income securities		823		—		823		—
Derivatives		21		—		21		—
Fixed income securities (3)		1,355		1,299		56		—
Annuities		419		—		—		419
Derivatives (3)		178		—		178		—
Other investments:
Pooled funds: (1)
Commodities		26		—		26		—
REITS		4		—		4		—
Real estate (4)		134		—		—		134
Derivatives		14		—		14		—
Alternative investments (5)		346		—		—		346
Total	$	5,098	$	1,703	$	2,496	$	899

(1)

Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles.

(2)

Consists of equity securities and equity derivatives.

(3)

Consists of corporate and government bonds and fixed income derivatives.

(4)

Consists of property funds and trusts holding direct real estate investments.

(5)

Consists of limited partnerships, private equity and hedge funds.

Changes in the Level 3 fair-value category

 The following table presents the changes in the Level 3 fair-value category in the Company's U.K. and non-U.S. pension plans for the years ended December 31, 2012 and December 31, 2011 (in millions):

	Fair Value Measurements Using Level 3 Inputs
	Global			Fixed			Annuities			Real Estate			Alternative Investments		Total
Balance at January 1, 2011	$	162		$	40		$	380		$	127		$	218	$	927
Actual return on plan assets:
Relating to assets still held at December 31, 2011		—			—			35			3			—		38
Relating to assets sold during 2011		—			—			—			—			1		1
Purchases, sales and settlements—net		—			—			—			2			86		88
Transfers in/(out) of Level 3 (1)		(162	)		(40	)		—			1			41		(160	)
Foreign exchange		—			—			4			1			—		5
Balance at December 31, 2011		—			—			419			134			346		899
Actual return on plan assets:
Relating to assets still held at December 31, 2012		—			—			(4	)		(1	)		19		14
Relating to assets sold during 2012		—			—			—			1			11		12
Purchases, sales and settlements—net		—			—			137			(32	)		68		173
Transfers in/(out) of Level 3		—			—			—			(18	)		—		(18	)
Foreign exchange		—			—			16			3			13		32
Balance at December 31, 2012	$	—		$	—		$	568		$	87		$	457	$	1,112

(1)

During 2011, a pooled global equity fund with a fair value of $162 million was transferred from Level 3 to Level 2 due to increased observability of the inputs. Additionally, a fund of funds with a fair value of $40 million was reclassified within Level 3 to be consistent with other similar fund of funds classified as Alternative Investments within the fair value hierarchy.

U.S. and Canadian Other Post-Retirement Benefits

Defined Benefit Plan Disclosure

Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status, for the U.S. plans and material U.K. and non-U.S. pension plans

 The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2012 and 2011 for the Company's other post-retirement benefit plans located in the U.S. and Canada (in millions):

	2012			2011
Accumulated projected benefit obligation	$	134		$	134
Fair value of plan assets		20			20
Funded status		(114	)		(114	)
Unrecognized prior-service credit		(15	)		(8	)
Unrecognized loss		37			25
Net amount recognized	$	(92	)	$	(97	)

Other information related to the Company's other post-retirement benefit plans

	2012			2011			2010
Net periodic benefit cost recognized (millions)	$	1		$	6		$	4
Weighted-average discount rate used to determine future benefit obligations		3.67 – 4.00	%		4.33 – 5.00	%		4.92 – 6.00	%
Weighted-average discount rate used to determine net periodic benefit costs		4.33 – 5.00	%		4.92 – 6.00	%		5.90 – 6.19	%