RETIREMENT BENEFITS (Tables)

9 Months Ended

Sep. 30, 2013

Defined Benefit Plan Disclosure

Retirement benefits, components of net (benefit) expense

	Three Months Ended September 30,
	Pension plans												Postretirement benefit plans
	U.S. plans						Non-U.S. plans						U.S. plans						Non-U.S. plans
In millions of dollars	2013			2012			2013			2012			2013			2012			2013			2012
Benefits earned during the period	$	—		$	3		$	51		$	50		$	—		$	—		$	6		$	7
Interest cost on benefit obligation		140			141			95			93			8			11			31			29
Expected return on plan assets		(216	)		(224	)		(93	)		(101	)		1			(1	)		(29	)		(27	)
Amortization of unrecognized
Prior service cost (benefit)		(1	)		—			2			1			(1	)		—			—			—
Net actuarial loss		23			24			24			19			—			1			9			6
Curtailment loss		17			—			—			4			—			—			—			—
Special termination benefits		—			—			1			—			—			—			—			—
Net qualified plans (benefit) expense	$	(37	)	$	(56	)	$	80		$	66		$	8		$	11		$	17		$	15
U.S. nonqualified plans expense	$	10		$	11		$	—		$	—		$	—		$	—		$	—		$	—
Total net (benefit) expense	$	(27	)	$	(45	)	$	80		$	66		$	8		$	11		$	17		$	15
Cumulative effect of change in accounting policy(1)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total adjusted net (benefit) expense	$	(27	)	$	(45	)	$	80		$	66		$	8		$	11		$	17		$	15

	Nine Months Ended September 30,
	Pension plans												Postretirement benefit plans
	U.S. plans						Non-U.S. plans						U.S. plans						Non-U.S. plans
In millions of dollars	2013			2012			2013			2012			2013			2012			2013			2012
Benefits earned during the period	$	6		$	9		$	158		$	150		$	—		$	—		$	31		$	21
Interest cost on benefit obligation		398			423			287			277			25			33			107			87
Expected return on plan assets		(645	)		(672	)		(298	)		(302	)		(1	)		(3	)		(101	)		(81	)
Amortization of unrecognized
Prior service cost (benefit)		(3	)		—			4			3			(1	)		(1	)		—			—
Net actuarial loss		82			72			70			58			—			3			31			19
Curtailment loss		17			—			—			12			—			—			—			—
Special termination benefits		—			—			1			—			—			—			—			—
Net qualified plans (benefit) expense	$	(145	)	$	(168	)	$	222		$	198		$	23		$	32		$	68		$	46
U.S. nonqualified plans expense	$	34		$	31		$	—		$	—		$	—		$	—		$	—		$	—
Total net (benefit) expense	$	(111	)	$	(137	)	$	222		$	198		$	23		$	32		$	68		$	46
Cumulative effect of change in accounting policy(1)	$	(23	)	$	—		$	—		$	—		$	—		$	—		$	3		$	—
Total adjusted net (benefit) expense	$	(134	)	$	(137	)	$	222		$	198		$	23		$	32		$	71		$	46

(1)

See Note 1 to the Consolidated Financial Statements for additional information on the change in accounting policy.

Change in Accumulated other comprehensive income (loss)

In millions of dollars(1)	Three Months Ended Sept. 30, 2013			Nine Months Ended Sept. 30, 2013
Beginning of period balance, net of tax	$	(4,615	)	$	(5,270	)
Cumulative effect of change in accounting policy		—			(22	)
Actuarial assumptions changes and plan experience		315			1,911
Net asset gain due to actual returns exceeding expected returns		(204	)		(1,141	)
Net amortizations		64			209
Prior service credit(2)		161			161
Curtailment/settlement impact		(2	)		(2	)
Foreign exchange impact and other		(8	)		207
Change in deferred taxes, net		(28	)		(370	)
Change, net of tax	$	298		$	953
End of period balance, net of tax(1)	$	(4,317	)	$	(4,317	)

(1)

See Note 17 to the Consolidated Financial Statements for further discussion of net Accumulated other comprehensive income (loss) balance.

(2)

Relates to the modification to health continuation benefits for employees on long-term disability.

Assumptions used in determining pension and postretirement benefit obligations and net benefit expense

At period ended(1)	Sept. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
U.S. plans(2)
Pension	4.80%	4.75%	3.90%
Postretirement	4.30%	4.40	3.60
Non-U.S. plans
Pension	4.50% to 8.90%	4.70 to 8.40	4.50 to 7.70
Weighted average	6.49%	6.52	6.21
Postretirement	8.90%	8.40	7.70

	Three months ended
During the period(1)	Sept. 30, 2013	Jun. 30, 2013	Year ended Dec. 31, 2012
U.S. plans(2)
Pension	4.75%	4.20%	4.70%
Postretirement	4.40	3.60	4.30
Non-U.S. plans
Pension	4.70% to 8.40%	4.40 to 7.40	5.20 to 8.50
Weighted average	6.52%	6.09	6.79
Postretirement	8.40%	7.40	8.50

(1)

Per the quarterly remeasurement process, only discount rates for the Significant Plans are listed above. For plan assumptions for All Other Plans, please refer to Note 9 to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10-K.

(2)

Weighted-average rates for the U.S. plans equal the stated rates.

Effect of one-percentage-point change in the discount rates on pension expense

	One-percentage- point increase
In millions of dollars	2013			2012
U.S. plans	$	16		$	18
Non-U.S. plans		(26	)		(19	)

	One-percentage- point decrease
In millions of dollars	2013			2012
U.S. plans	$	(56	)	$	(36	)
Non-U.S. plans		34			25

Summary of entity's 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	2013		2012		2013		2012		2013		2012		2013		2012
Company contributions(2) for the nine months ended September 30	$	32	$	35	$	282	$	213	$	49	$	41	$	244	$	4
Company contributions expected for the remainder of the year	$	11	$	11	$	57	$	100	$	16	$	14	$	1	$	86

(1)

The U.S. pension plans include qualified and nonqualified plans.

(2)

Company contributions are composed of cash contributions made to the plans and benefits paid directly to participants by the Company.

Significant plans measured quarterly

Defined Benefit Plan Disclosure

Summary of the funded status and amounts recognized in the Consolidated Balance Sheet for the entity's significant plans

	Nine Months Ended September 30,
	Pension plans						Postretirement plans
In millions of dollars	U.S. plans			Non-U.S. plans			U.S. plans			Non-U.S. plans
Change in projected benefit obligation (PBO)
Projected benefit obligation at the beginning of the period(1)	$	12,198		$	3,687		$	784		$	1,468
Benefits earned during the period		1			12			—			5
Interest cost on benefit obligation		140			57			9			26
Actuarial (gain) loss		(109	)		(66	)		25			(151	)
Benefits paid net participant contributions		(179	)		(44	)		(23	)		(13	)
Foreign exchange impact and other		—			114			—			(15	)
Curtailment		19			—			—			—
Projected benefit obligation at period end for Significant Plans	$	12,070		$	3,760		$	795		$	1,320
Change in plan assets
Plan assets at fair value at the beginning of the period for Significant Plans(1)	$	12,551		$	3,979		$	42		$	1,386
Actual return on plan assets		(31	)		86			—			37
Company contributions		—			129			20			78
Benefits paid		(179	)		(44	)		(23	)		(13	)
Foreign exchange impact and other		—			139			—			(16	)
Plan assets at fair value at period end for Significant Plans	$	12,341		$	4,289		$	39		$	1,472
Funded status of Significant Plans at period end	$	271		$	529		$	(756	)	$	152
Net amount recognized
Benefit asset	$	271		$	529		$	—		$	152
Benefit liability		—			—			(756	)		—
Net amount recognized on the balance sheet	$	271		$	529		$	(756	)	$	152
Amounts recognized in Accumulated other comprehensive income (loss)
Prior service benefit	$	(8	)	$	(2	)	$	(1	)	$	(3	)
Net actuarial loss (gain)		4,185			1,188			(114	)		530
Net amount recognized in equity—pretax	$	4,177		$	1,186		$	(115	)	$	527
Accumulated benefit obligation at period end	$	12,054		$	3,275		$	N/A		$	N/A

(1)

Only Significant Plans are measured quarterly. All Other Plans are only measured annually.

Postemployment Plans

Defined Benefit Plan Disclosure

Retirement benefits, components of net (benefit) expense

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2013		2012		2013		2012
Service related expense
Benefits earned during the year		6		5		19		17
Interest cost on benefit obligation		3		4		9		11
Amortization of unrecognized
Prior service cost		1		2		5		6
Net actuarial loss		4		3		10		9
Total service related expense		14		14		43		43
Non-service related expense		7		7		20		19
Total net expense		21		21		63		62