Pension Plans, Other Postretirement Benefits, and Defined-Contribution Plans (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Changes in Benefit Obligations, Fair Value of Plan Assets, and Funded Status of the Plans

The following sets forth changes in the benefit obligations and fair value of plan assets for the Company’s pension and other postretirement benefit plans for the years ended December 31, 2013 and 2012, as well as the funded status of the plans and amounts recognized in the financial statements at December 31, 2013 and 2012:



	Pension Benefits						Other Benefits
millions	2013			2012			2013			2012
Change in benefit obligation
Benefit obligation at beginning of year	$	2,297		$	2,024		$	359		$	354
Service cost	85			76			9			9
Interest cost	78			85			14			16
Actuarial (gain) loss	(156		)	224			(74		)	(1		)
Participant contributions	—			1			4			3
Benefit payments	(149		)	(117		)	(18		)	(22		)
Foreign-currency exchange-rate changes	3			4			—			—
Benefit obligation at end of year (1)	$	2,158		$	2,297		$	294		$	359



Change in plan assets
Fair value of plan assets at beginning of year	$	1,462		$	1,308		$	—		$	—
Actual return on plan assets	278			159			—			—
Employer contributions	160			107			14			19
Participant contributions	—			1			4			3
Benefit payments	(149		)	(117		)	(18		)	(22		)
Foreign-currency exchange-rate changes	3			4			—			—
Fair value of plan assets at end of year	$	1,754		$	1,462		$	—		$	—

Funded status of the plans at end of year	$	(404	)	$	(835	)	$	(294	)	$	(359	)

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⁽¹⁾	The accumulated benefit obligation for all defined-benefit pension plans was $1.8 billion at December 31, 2013, and $2.1 billion at December 31, 2012.

Schedule of Amounts Recognized in Balance Sheet



Total recognized amounts in the balance sheet consist of
Other assets	$	37		$	30		$	—		$	—
Accrued expenses	(19		)	(44		)	(15		)	(16		)
Other long-term liabilities—other	(422		)	(821		)	(279		)	(343		)
Total	$	(404	)	$	(835	)	$	(294	)	$	(359	)

Schedule of Total Recognized Amounts in Accumulated Other Comprehensive Income



Total recognized amounts in accumulated other comprehensive income consist of
Prior service cost (credit)	$	(1	)	$	(2	)	$	2		$	3
Net actuarial (gain) loss	441			916			(78		)	(4		)
Total	$	440		$	914		$	(76	)	$	(1	)

Schedule of Defined-Benefit Pension Plans With Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

The following summarizes the Company’s defined-benefit pension plans with accumulated benefit obligations in excess of plan assets for the years ended December 31:



millions	2013		2012
Projected benefit obligation	$	2,047	$	2,198
Accumulated benefit obligation	1,742		2,054
Fair value of plan assets	1,606		1,333

Components of Net Periodic Benefit Cost Table

The following summarizes the Company’s pension and other postretirement benefit cost and amounts recognized in other comprehensive income (before tax benefit) for the years ended December 31:



	Pension Benefits									Other Benefits
millions	2013			2012			2011			2013		2012		2011
Components of net periodic benefit cost
Service cost	$	85		$	76		$	78		$	9	$	9	$	9
Interest cost	78			85			85			14		16		16
Expected return on plan assets	(91		)	(91		)	(85		)	—		—		—
Amortization of net actuarial loss (gain)	118			93			85			—		—		—
Amortization of net prior service cost (credit)	—			—			2			1		2		—
Settlement loss	14			—			—			—		—		—
Net periodic benefit cost	$	204		$	163		$	165		$	24	$	27	$	25

Schedule of Amounts Recognized in Other Comprehensive Income



Amounts recognized in other comprehensive income (expense)
Net actuarial gain (loss)	$	342	$	(156	)	$	(183	)	$	74	$	1	$	(30	)
Amortization of net actuarial (gain) loss	118		93			85			—		—		—
Net prior service (cost) credit	—		—			12			—		—		—
Amortization of net prior service cost (credit)	—		—			2			1		2		—
Settlement loss	14		—			—			—		—		—
Total amounts recognized in other comprehensive income (expense)	$	474	$	(63	)	$	(84	)	$	75	$	3	$	(30	)

Schedule of Assumptions Used

The following summarizes the weighted-average assumptions used by the Company in determining the pension and other postretirement benefit obligations at December 31:



	Pension Benefits				Other Benefits
	2013		2012		2013		2012
Discount rate	4.75	%	3.50	%	5.25	%	4.00	%
Rates of increase in compensation levels	5.00	%	4.50	%	5.25	%	4.50	%

The following summarizes the weighted-average assumptions used by the Company in determining the net periodic pension and other postretirement benefit cost:



	Pension Benefits						Other Benefits
	2013		2012		2011		2013		2012		2011
Discount rate	3.50	%	4.50	%	4.75	%	4.00	%	4.75	%	5.25	%
Long-term rate of return on plan assets	7.00	%	7.00	%	7.00	%	N/A		N/A		N/A
Rates of increase in compensation levels	4.50	%	4.50	%	5.00	%	4.50	%	4.50	%	5.00	%

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A 1% change in the assumed health care cost trend rate over the projected period would have the following effects:



millions	1% Increase		1% Decrease
Effect on total of service and interest cost components	$	3	$	(2	)
Effect on other postretirement benefit obligation	$	23	$	(20	)

Fair Value Hierarchy of Plan Assets Table

The fair value of the Company’s pension plan assets by asset class and input level within the fair-value hierarchy were as follows:



millions
December 31, 2013	Level 1			Level 2		Level 3		Total
Investments
Cash and cash equivalents	$	17		$	80	$	—	$	97
Fixed income
Mortgage-backed securities	—			54		—		54
U.S. government securities	—			52		—		52
Other fixed-income securities ⁽¹⁾	42			197		—		239
Equity securities
Domestic	445			116		—		561
International	148			303		—		451
Other
Real estate	—			47		86		133
Private equity	—			—		72		72
Hedge funds and other alternative strategies	31			—		79		110
Total investments ⁽²⁾	$	683		$	849	$	237	$	1,769
Liabilities
Hedge funds and other alternative strategies	$	(17	)	$	—	$	—	$	(17	)
Total liabilities	$	(17	)	$	—	$	—	$	(17	)

December 31, 2012
Investments
Cash and cash equivalents	$	23		$	36	$	—	$	59
Fixed income
Mortgage-backed securities	—			63		—		63
U.S. government securities	—			54		—		54
Other fixed-income securities ⁽¹⁾	40			196		—		236
Equity securities
Domestic	313			109		—		422
International	112			238		—		350
Other
Real estate	—			46		78		124
Private equity	—			—		64		64
Hedge funds and other alternative strategies	20			—		77		97
Total investments⁽²⁾	$	508		$	742	$	219	$	1,469
Liabilities
Hedge funds and other alternative strategies	$	(11	)	$	—	$	—	$	(11	)
Total liabilities	$	(11	)	$	—	$	—	$	(11	)

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⁽¹⁾	Amounts include investments in diversified fixed-income collective investment funds with exposure to mortgage-backed securities, government-issued securities, corporate debt, and other fixed-income securities.


⁽²⁾	Amount excludes net receivables of $2 million for 2013 and $4 million for 2012, primarily related to Level 1 investments.

Schedule of Changes in Level 3 Fair Value of Investments

The following summarizes changes in the fair value of investments based on Level 3 inputs:



millions	Hedge Funds and Other Alternative Strategies			Private Equity		Real Estate		Total
Balance at January 1, 2012	$	64		$	55	$	72	$	191
Acquisitions (dispositions), net	9			4		2		15
Actual return on plan assets
Relating to assets sold during the reporting period	(2		)	2		—		—
Relating to assets still held at the reporting date	6			3		4		13
Balance at December 31, 2012	$	77		$	64	$	78	$	219
Acquisitions (dispositions), net	(6		)	—		2		(4		)
Actual return on plan assets
Relating to assets sold during the reporting period	1			4		—		5
Relating to assets still held at the reporting date	7			4		6		17
Balance at December 31, 2013	$	79		$	72	$	86	$	237

Schedule of Expected Future Benefit Payments

The following summarizes estimated benefit payments for the next ten years, including benefit increases due to continuing employee service:



millions	Pension Benefit Payments		Other Benefit Payments
2014	$	139	$	15
2015	148		16
2016	163		16
2017	185		17
2018	181		18
2019-2023	1,065		98