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RETIREMENT BENEFITS (Tables)
 6 Months Ended
Jun. 30, 2014
Defined Benefit Plan Disclosure  
Assumptions used in determining benefit obligations and net benefit expense
The discount rates used in determining the pension and postretirement net (benefit) expense and benefit obligations for the Significant Plans are shown in the following tables:
 
Three Months Ended
Year Ended
During the period(1)
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
U.S. plans
 
 
 
Pension
4.55%
4.75%
4.80%
Postretirement
4.15
4.35
4.30
Non-U.S. plans
 
 
 
Pension
4.40-8.50
4.50 - 8.80
4.50 - 8.90
Weighted average
6.21
6.41
6.49
Postretirement
8.90
9.40
8.90

(1)
Effective April 1, 2013, the Company changed to a quarterly remeasurement approach for its six largest plans, including the U.S. qualified pension and postretirement plans. For the Significant Plans, the 2013 rates shown above were utilized to calculate the fourth quarter expense in 2013. The 2014 rates shown above for the three months ended March 31, 2014 and June 30, 2014 were utilized to calculate the first and second quarter expense for 2014, respectively.

 
Three Months Ended
Year Ended
At period ended (1)
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
U.S. plans
 
 
Pension
4.25%
4.55%
4.75%
Postretirement
3.95
4.15
4.35
Non-U.S. plans
 
 
 
Pension
4.30-8.00
4.40 - 8.50
4.50 - 8.80
Weighted average
5.95
6.21
6.41
Postretirement
8.40
8.90
9.40

(1)
For the Significant Plans, the June 30, 2014 rates shown above are utilized to calculate the June 30, 2014 benefit obligation and will be utilized to calculate the 2014 third quarter expense. The rates shown above for the year ended 2013 were utilized to calculate the first quarter 2014 expense. The March 31, 2014 rates were utilized to calculate the 2014 second quarter expense.
Effect of one-percentage-point change in the discount rates on pension expense
The following table summarizes the estimated effect on the Company’s Significant Plans quarterly pension expense of a one-percentage-point change in the discount rate:
 
Three Months Ended June 30, 2014
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
U.S. plans
$6
$(10)
Non-U.S. plans
(3)
4
Significant Plans Measured Quarterly
  
Defined Benefit Plan Disclosure  
Summary of the funded status and amounts recognized in the Consolidated Balance Sheet for the Company's U.S. qualified, non-qualified plans and plans outside the U.S.
The following table summarizes the funded status and amounts recognized in the Consolidated Balance Sheet for the Company’s Significant Plans.

Net Amount Recognized
 
Six months ended June 30, 2014
 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
Change in projected benefit obligation
 

 
 

 
 

 
 

Projected benefit obligation at beginning of year
$
12,829

 
$
7,194

 
$
780

 
$
1,411

Plans measured annually
(692
)
 
(3,473
)
 
—

 
(357
)
Projected benefit obligation at beginning of year - Significant plans
$
12,137

 
$
3,721

 
$
780

 
$
1,054

First quarter activity
215

 
69

 
1

 
56

Projected benefit obligation at March 31, 2014 - Significant plans
$
12,352

 
$
3,790

 
$
781

 
$
1,110

Benefits earned during the period
1

 
10

 
—

 
3

Interest cost on benefit obligation
138

 
58

 
9

 
25

Actuarial (gain) loss
383

 
98

 
68

 
86

Benefits paid, net of participants’ contributions
(172
)
 
(41
)
 
(15
)
 
(16
)
Foreign exchange impact and other
—

 
66

 
—

 
8

Projected benefit obligation at period end - Significant plans
$
12,702

 
$
3,981

 
$
843

 
$
1,216


 
Six Months Ended June 30, 2014
 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
Change in plan assets
 

 
 

 
 

 
 

Plan assets at fair value at beginning of year
$
12,731

 
$
6,918

 
$
32

 
$
1,472

Plans measured annually
—

 
(2,589
)
 
—

 
(11
)
Plan assets at fair value at beginning of year - Significant Plans
$
12,731

 
$
4,329

 
$
32

 
$
1,461

First quarter activity
96

 
69

 
(4
)
 
(10
)
Plan assets at fair value at March 31, 2014 - Significant Plans
$
12,827

 
$
4,398

 
$
28

 
$
1,451

Actual return on plan assets
364

 
190

 
1

 
95

Company contributions
—

 
13

 
10

 
—

Benefits paid
(172
)
 
(41
)
 
(15
)
 
(16
)
Foreign exchange impact and other
—

 
79

 
—

 
10

Plan assets at fair value at period end - Significant plans
$
13,019

 
$
4,639

 
$
24

 
$
1,540

Funded status of the plans at period end (1) - Significant plans
$
317

 
$
658

 
$
(819
)
 
$
324

Net amount recognized
 

 
 

 
 

 
 

Benefit asset
$
317

 
$
658

 
$
—

 
$
324

Benefit liability
—

 
—

 
(819
)
 
—

Net amount recognized on the balance sheet - Significant plans
$
317

 
$
658

 
$
(819
)
 
$
324

Amounts recognized in Accumulated other comprehensive income (loss)
 

 
 

 
 

 
 

Prior service benefit (cost)
$
5

 
$
28

 
$
—

 
$
166

Net actuarial gain (loss)
(4,294
)
 
(1,136
)
 
52

 
(520
)
Net amount recognized in equity (pretax) - Significant plans
$
(4,289
)
 
$
(1,108
)
 
$
52

 
$
(354
)
Accumulated benefit obligation at period end - Significant plans
$
12,694

 
$
3,867

 
N/A

 
N/A

(1)
The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act (ERISA) funding rules as of January 1, 2014 and no minimum required funding is expected for 2014.
Pension Plans and Postretirement Benefit Plans
  
Defined Benefit Plan Disclosure  
Components of net (benefit) expense
Net (Benefit) Expense
The following table summarizes the components of net (benefit) expense recognized in the Consolidated Statement of Income for the Company’s U.S. qualified and nonqualified pension plans, postretirement plans and plans outside the United States, for Significant Plans and All Other Plans, for the periods indicated.

 
Three Months Ended June 30,
 
Pension plans
 
Postretirement benefit plans
 
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
In millions of dollars
2014
2013
 
2014
2013
 
2014
2013
 
2014
2013
Qualified plans
 

 

 
 

 

 
 

 

 
 

 

Benefits earned during the period
$
1

$
3

 
$
47

$
53

 
$
—

$
—

 
$
3

$
15

Interest cost on benefit obligation
138

132

 
98

97

 
9

8

 
31

39

Expected return on plan assets
(219
)
(215
)
 
(98
)
(104
)
 
—

(1
)
 
(31
)
(41
)
Amortization of unrecognized
 

 

 
 

 

 
 

 

 
 

 

Prior service (benefit) cost
(1
)
(1
)
 
1

1

 
—

—

 
(3
)
—

Net actuarial loss
26

28

 
20

24

 
1

—

 
11

11

Curtailment loss (1)
—

—

 
17

—

 
—

—

 
—

—

Settlement (gain) loss (1)
—

—

 
13

—

 
—

—

 
(2
)
—

Net qualified plans (benefit) expense
$
(55
)
$
(53
)

$
98

$
71


$
10

$
7


$
9

$
24

Nonqualified plans expense
$
12

$
12

 
$
—

$
—

 
$
—

$
—

 
$
—

$
—

Total net (benefit) expense
$
(43
)
$
(41
)
 
$
98

$
71

 
$
10

$
7

 
$
9

$
24

Cumulative effect of change in accounting policy(2)
—

(23
)
 
—

—

 
—

—

 
—

3

Total adjusted net (benefit) expense
$
(43
)
$
(64
)
 
$
98

$
71

 
$
10

$
7

 
$
9

$
27

(1)
Curtailment and settlement losses relate to repositioning actions in certain countries outside the U.S.
(2)
See Note 1 to the Consolidated Financial Statements for additional information on the change in accounting policy.
 
Six Months Ended June 30,
 
Pension plans
 
Postretirement benefit plans
 
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
In millions of dollars
2014
2013
 
2014
2013
 
2014
2013
 
2014
2013
Qualified plans
 

 

 
 

 

 
 

 

 
 

 

Benefits earned during the period
$
3

$
6

 
$
93

$
107

 
$
—

$
—

 
$
7

$
25

Interest cost on benefit obligation
278

258

 
194

192

 
17

17

 
60

76

Expected return on plan assets
(436
)
(429
)
 
(193
)
(205
)
 
(1
)
(2
)
 
(61
)
(72
)
Amortization of unrecognized
 

 

 
 
 

 
 

 

 
 
 

Prior service (benefit) cost
(2
)
(2
)
 
2

2

 
—

—

 
(6
)
—

Net actuarial loss
49

59

 
40

46

 
—

—

 
20

22

Curtailment loss (1)
—

—

 
17

—

 
—

—

 
—

—

Settlement (gain) loss (1)
—

—

 
13

—

 
—

—

 
(2
)
—

Net qualified plans (benefit) expense
$
(108
)
$
(108
)
 
$
166

$
142

 
$
16

$
15

 
$
18

$
51

Nonqualified plans expense
$
24

$
24

 
$
—

$
—

 
$
—

$
—

 
$
—

$
—

Total net (benefit) expense
$
(84
)
$
(84
)
 
$
166

$
142

 
$
16

$
15

 
$
18

$
51

Cumulative effect of change in accounting policy(2)
—

(23
)
 
—

—

 
—

—

 
—

3

Total adjusted net (benefit) expense
$
(84
)
$
(107
)
 
$
166

$
142

 
$
16

$
15

 
$
18

$
54

(1)
Curtailment and settlement losses relate to voluntary early retirement programs in certain countries outside the U.S.
(2)
See Note 1 to the Consolidated Financial Statements for additional information on the change in accounting policy.

Change in Accumulated other comprehensive income (loss)
The following table shows the change in Accumulated other comprehensive income (loss) related to pension and postretirement benefit plans, for Significant Plans and All Other Plans, for the periods indicated.
 
Three Months Ended
Six Months Ended
In millions of dollars
June 30, 2014
June 30, 2014
Beginning of period balance, net of tax (1) (2)
$
(4,022
)
$
(3,989
)
Actuarial assumptions changes and plan experience
(635
)
(1,011
)
Net asset gain (loss) due to difference between actual and expected returns
336

431

Net amortizations
54

99

Curtailment/ settlement loss (3)
28

28

Foreign exchange impact and other
(22
)
159

Change in deferred taxes, net
95

117

Change, net of tax
$
(144
)
$
(177
)
End of period balance, net of tax (1) (2)
$
(4,166
)
$
(4,166
)

(1)    See Note 18 to the Consolidated Financial Statements for further discussion of net Accumulated other comprehensive income (loss) balance.
(2)   Includes net-of-tax amounts for certain profit sharing plans outside the United States.
(3)
Curtailment and settlement losses relate to repositioning actions in certain countries outside the U.S.
Summary of entity's contributions
Summary of Company Contributions
 
Pension plans
Postretirement benefit plans
 
U.S. plans (1)
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2014
2013
2014
2013
2014
2013
2014
2013
Company contributions(2) for the six months ended June 30
$
23

$
21

$
87

$
125

$
20

$
28

$
8

$
168

Company contributions expected for the remainder of the year
$
22

$
21

$
95

$
88

$
29

$
28

$
91

$
5


(1)
The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plans.     
(2)
Company contributions are composed of cash contributions made to the plans and benefits paid directly to participants by the Company.
Postemployment Plans
  
Defined Benefit Plan Disclosure  
Components of net (benefit) expense
The following table summarizes the components of net expense recognized in the Consolidated Statement of Income for the Company’s U.S. postemployment plans.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
In millions of dollars
2014
 
2013
 
2014
 
2013
Service related expense
 
 
 
 
 
 
 
Benefits earned during the period
$
—

 
$
6

 
$
—

 
$
13

Interest cost on benefit obligation
1

 
3

 
2

 
6

Amortization of unrecognized
 
 
 
 
 
 
 
Prior service cost
(8
)
 
2

 
(15
)
 
4

Net actuarial loss
3

 
3

 
7

 
6

Total service related expense
$
(4
)
 
$
14

 
$
(6
)
 
$
29

Non-service related expense
$
8

 
$
6

 
$
17

 
$
13

Total net expense
$
4

 
$
20

 
$
11

 
$
42