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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]  
Summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and post-retirement plans
A summary of the benefit obligation and the fair value of plan assets, as well as the funded status for the retirement and postretirement plans as of December 31, is as follows (benefits paid in the table below include only those amounts contributed directly to or paid directly from plan assets): 
(in millions)
Retirement Plans
 
Postretirement Plans
 
2012
 
2011
 
2012
 
2011
Net benefit obligation at beginning of year
$
1,834

 
$
1,794

 
$
129

 
$
144

Service cost
24

 
67

 
3

 
3

Interest cost
93

 
99

 
5

 
6

Plan participants’ contributions
1

 
1

 
5

 
5

Actuarial loss (gain)
287

 
59

 
3

 
(14
)
Gross benefits paid
(71
)
 
(63
)
 
(17
)
 
(16
)
Plan amendments 1
—

 
(129
)
 
—

 
—

Foreign currency effect
11

 
3

 
—

 
—

Federal subsidy benefits received
—

 
—

 
1

 
1

Other adjustments
(8
)
 
3

 
—

 
—

Net benefit obligation at end of year
2,171

 
1,834

 
129

 
129

Fair value of plan assets at beginning of year
1,505

 
1,567

 
—

 
—

Actual return on plan assets
212

 
(31
)
 
—

 
—

Employer contributions
193

 
29

 
12

 
10

Plan participants’ contributions
1

 
1

 
5

 
6

Gross benefits paid
(71
)
 
(63
)
 
(17
)
 
(16
)
Foreign currency effect
11

 
2

 
—

 
—

Fair value of plan assets at end of year
1,851

 
1,505

 
—

 
—

Funded status
$
(320
)
 
$
(329
)
 
$
(129
)
 
$
(129
)
Amounts recognized in consolidated balance sheets
 
 
 
 
 
 
 
Non-current assets
$
97

 
$
68

 
$
—

 
$
—

Current liabilities
(6
)
 
(6
)
 
(11
)
 
(9
)
Non-current liabilities
(411
)
 
(391
)
 
(118
)
 
(120
)
 
$
(320
)
 
$
(329
)
 
$
(129
)
 
$
(129
)
Accumulated benefit obligation
$
2,093

 
$
1,773

 
 
 
 
Plans with accumulated benefit obligation in excess of the fair value of plan assets
 
 
 
 
 
 
 
Projected benefit obligation
$
1,773

 
$
1,487

 
 
 
 
Accumulated benefit obligation
$
1,756

 
$
1,480

 
 
 
 
Fair value of plan assets
$
1,356

 
$
1,090

 
 
 
 
Amounts recognized in accumulated other comprehensive loss, net of tax
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
455

 
$
359

 
$
(3
)
 
$
(5
)
Prior service credit
(4
)
 
(6
)
 
(1
)
 
(2
)
Total recognized
$
451

 
$
353

 
$
(4
)
 
$
(7
)
1 
In December 2011, our Board of Directors approved a plan amendment that froze our U.S. ERP effective on April 1, 2012. This amendment decreased our pension benefit liabilities by $129 million, and resulted in an after-tax decrease in accumulated other comprehensive loss of $82 million. We also recorded an immaterial amount of pension plan curtailment expense in 2011 as a result of the plan amendment.
Components of net periodic cost for defined benefit plans and post-retirement healthcare and other benefits plan
A summary of net periodic benefit cost for our retirement and postretirement plans for the years ended December 31, is as follows: 
(in millions)
Retirement Plans
 
Postretirement Plans
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Service cost
$
24

 
$
67

 
$
61

 
$
3

 
$
3

 
$
3

Interest cost
93

 
99

 
94

 
5

 
6

 
7

Expected return on assets
(124
)
 
(127
)
 
(112
)
 
—

 
—

 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Actuarial loss
32

 
31

 
15

 
—

 
—

 
—

Prior service credit
(1
)
 
—

 
—

 
(1
)
 
(1
)
 
(1
)
Net periodic benefit cost
$
24

 
$
70

 
$
58

 
$
7

 
$
8

 
$
9
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax
Other changes in plan assets and benefit obligations recognized in other comprehensive income, net of tax for the years ended December 31, are as follows: 
(in millions)
Retirement Plans
 
Postretirement Plans
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Net actuarial loss (gain)
$
116

 
$
65

 
$
41

 
$
2

 
$
(12
)
 
$
(6
)
Recognized actuarial gain
(20
)
 
(18
)
 
(9
)
 
—

 
—

 
—

Prior service credit
2

 
—

 
—

 
1

 
1

 
1

Total recognized
$
98

 
$
47

 
$
32

 
$
3

 
$
(11
)
 
$
(5
)
Assumptions
 
Retirement Plans
 
Postretirement Plans
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Benefit obligation: 1
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.1
%
 
5.1
%
 
5.4
%
 
3.45
%
 
4.45
%
 
4.7
%
Compensation increase factor
N/A

 
4.5
%
 
4.5
%
 
 
 
 
 
 
Net periodic cost:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average healthcare cost rate 2
 
 
 
 
 
 
7.5
%
 
8.0
%
 
8.0
%
Discount rate - U.S. plan 3
5.1
%
 
5.4
%
 
5.95
%
 
4.45
%
 
4.65
%
 
5.3
%
Discount rate - U.K. plan 3
5.1
%
 
5.5
%
 
5.9
%
 
 
 
 
 
 
Compensation increase factor - U.S. plan
4.5
%
 
4.5
%
 
5.5
%
 
 
 
 
 
 
Compensation increase factor - U.K. plan
5.85
%
 
6.25
%
 
6.25
%
 
 
 
 
 
 
Return on assets 4
7.75
%
 
8.0
%
 
8.0
%
 
 
 
 
 
 
1 
These assumptions for the retirement plans relate to our U.S. ERP and a compensation increase factor is no longer applicable for 2012 because there are no further salary increases as the U.S. ERP was frozen in April 2012.
2 
The assumed weighted-average healthcare cost trend rate will decrease ratably from 7.5% in 2012 to 5% in 2018 and remain at that level thereafter. Assumed healthcare cost trends have an effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend creates the following effects:
(in millions)
1% point
increase
 
1% point
decrease
Effect on postretirement obligation
$
4

 
$
(4
)

3 
Effective January 1, 2013, we changed our discount rate assumption on our U.S. retirement plans to 4.1% from 5.1% in 2012 and changed our discount rate assumption on our U.K. plan to 4.8% from 5.1% in 2012.
4 
The expected return on assets assumption is calculated based on the plan’s asset allocation strategy and projected market returns over the long-term. Effective January 1, 2013, we changed our return on assets assumption to 7.25% from 7.75% in 2012.
Effects created by one percentage point change in assumed healthcare cost trend
(in millions)
1% point
increase
 
1% point
decrease
Effect on postretirement obligation
$
4

 
$
(4
)
Information about the expected cash flows for retirement and post-retirement plans and impact of the Medicare subsidy
Information about the expected cash flows for our retirement and postretirement plans and the impact of the Medicare subsidy is as follows: 
(in millions)
 
 
Postretirement Plans 2
 
Retirement
Plans 1
 
Gross
payments
 
Retiree
contributions
 
Medicare
subsidy
 
Net
payments
2013
$
72

 
$
19

 
$
(7
)
 
$
(1
)
 
$
11

2014
75

 
21

 
(8
)
 
(1
)
 
12

2015
78

 
22

 
(10
)
 
(1
)
 
11

2016
82

 
24

 
(12
)
 
(1
)
 
11

2017
86

 
25

 
(14
)
 
(1
)
 
10

2018-2022
484

 
151

 
(98
)
 
(3
)
 
50

1 
Reflects the total benefits expected to be paid from the plans or from our assets including both our share of the benefit cost and the participants’ share of the cost.
2 
Reflects the total benefits expected to be paid from our asset
Fair value of defined benefit plans assets by asset class
The fair value of our defined benefit plans assets as of December 31, 2012 and 2011, by asset class is as follows:
(in millions)
December 31, 2012
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash and short-term investments, and other
$
180

 
$
2

 
$
178

 
$
—

Equity securities:
 
 
 
 
 
 
 
U.S. indexes 1
399

 
119

 
280

 
—

U.S. growth and value
344

 
307

 
37

 
—

U.K.
154

 
85

 
69

 
—

International, excluding U.K.
225

 
137

 
87

 
1

Fixed income securities:
 
 
 
 
 
 
 
Long duration strategy 2
370

 
—

 
370

 
—

Intermediate duration securities
3

 
—

 
3

 
—

Agency mortgage backed securities
13

 
—

 
13

 
—

Asset backed securities
10

 
—

 
10

 
—

Non-agency mortgage backed securities 3
52

 
—

 
52

 
—

U.K. 4
41

 
—

 
41

 
—

International, excluding U.K.
43

 
—

 
43

 
—

Real estate:
 
 
 
 
 
 
 
U.K. 5
17

 
—

 
—

 
17

Total
$
1,851

 
$
650

 
$
1,183

 
$
18

(in millions)
December 31, 2011
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash and short-term investments, and other
$
32

 
$
2

 
$
30

 
$
—

Equity securities:
 
 
 
 
 
 
 
U.S. indexes 1
306

 
125

 
181

 
—

U.S. growth and value
370

 
370

 
—

 
—

U.K.
144

 
78

 
66

 
—

International, excluding U.K.
297

 
157

 
139

 
1

Fixed income securities:
 
 
 
 
 
 
 
Long duration strategy 2
195

 
—

 
195

 
—

Non-agency mortgage backed securities 3
66

 
—

 
66

 
—

U.K. 4
45

 
—

 
45

 
—

International, excluding U.K.
28

 
—

 
28

 
—

Real estate:
 
 
 
 
 
 
 
U.K. 5
22

 
—

 
—

 
22

Total
$
1,505

 
$
732

 
$
750

 
$
23

1 
Includes securities that are tracked in the following indexes: S&P 500, S&P MidCap 400, S&P MidCap 400 Growth and S&P Smallcap 600.
2 
Includes securities that are investment grade obligations of issuers in the U.S.
3 
Includes U.S. mortgage-backed securities that are not backed by the U.S. government.
4 
Includes securities originated by the government of and other issuers from the U.K.
5 
Includes a fund which holds real estate properties in the U.
Information of plan assets using significant unobservable inputs
. The following tables details further information our plan assets where we have used significant unobservable inputs (Level 3): 
(in millions)
 
Beginning balance as of December 31, 2011
$
23

Capital distributions
(5
)
Ending balance as of December 31, 2012
$
18