XML 88 R55.htm IDEA: XBRL DOCUMENT v3.8.0.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Funded status of pension and other postretirement benefit plans
The funded status of the company’s pension and OPEB plans for 2017 and 2016 follows:
 
Pension Benefits
 
 
 
 
2017
 
 
 
2016
 
 
Other Benefits
 
 
U.S.

 
Int’l.

 
 
U.S.

 
Int’l.

 
2017

 
 
2016

Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at January 1
$
13,271

 
$
5,169

 
 
$
13,563

 
$
5,336

 
$
2,549

 
 
$
3,324

Service cost
489

 
151

 
 
494

 
159

 
32

 
 
60

Interest cost
366

 
219

 
 
377

 
261

 
95

 
 
128

Plan participants' contributions
—

 
4

 
 
—

 
5

 
78

 
 
148

Plan amendments
—

 
1

 
 
—

 
—

 
—

 
 
(345
)
Actuarial (gain) loss
1,168

 
(37
)
 
 
903

 
426

 
266

 
 
(437
)
Foreign currency exchange rate changes
—

 
374

 
 
—

 
(524
)
 
10

 
 
8

Benefits paid
(1,714
)
 
(310
)
 
 
(2,066
)
 
(494
)
 
(229
)
 
 
(337
)
Divestitures
—

 
(31
)
 
 
—

 
—

 
(13
)
 
 
—

Benefit obligation at December 31
13,580

 
5,540

 
 
13,271

 
5,169

 
2,788

 
 
2,549

Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
9,550

 
4,174

 
 
10,274

 
4,109

 
—

 
 
—

Actual return on plan assets
1,384

 
319

 
 
936

 
642

 
—

 
 
—

Foreign currency exchange rate changes
—

 
358

 
 
—

 
(552
)
 
—

 
 
—

Employer contributions
728

 
252

 
 
406

 
464

 
151

 
 
189

Plan participants' contributions
—

 
4

 
 
—

 
5

 
78

 
 
148

Benefits paid
(1,714
)
 
(310
)
 
 
(2,066
)
 
(494
)
 
(229
)
 
 
(337
)
Divestitures
—

 
(31
)
 
 
—

 
—

 
—

 
 
—

Fair value of plan assets at December 31
9,948

 
4,766

 
 
9,550

 
4,174

 
—

 
 
—

Funded status at December 31
$
(3,632
)
 
$
(774
)
 
 
$
(3,721
)
 
$
(995
)
 
$
(2,788
)
 
 
$
(2,549
)
Consolidated Balance Sheet for pension and other postretirement benefit plans
Amounts recognized on the Consolidated Balance Sheet for the company’s pension and OPEB plans at December 31, 2017 and 2016, include:
 
Pension Benefits
 
 
 
 
2017
 
 
 
2016
 
 
Other Benefits
 
 
U.S.

 
Int’l.

 
 
U.S.

 
Int’l.

 
2017

 
 
2016

Deferred charges and other assets
$
21

 
$
448

 
 
$
16

 
$
199

 
$
—

 
 
$
—

Accrued liabilities
(188
)
 
(100
)
 
 
(222
)
 
(75
)
 
(174
)
 
 
(163
)
Noncurrent employee benefit plans
(3,465
)
 
(1,122
)
 
 
(3,515
)
 
(1,119
)
 
(2,614
)
 
 
(2,386
)
Net amount recognized at December 31
$
(3,632
)
 
$
(774
)
 
 
$
(3,721
)
 
$
(995
)
 
$
(2,788
)
 
 
$
(2,549
)
Before tax basis amount in accumulated other comprehensive loss
Amounts recognized on a before-tax basis in “Accumulated other comprehensive loss” for the company’s pension and OPEB plans were $5,286 and $5,511 at the end of 2017 and 2016, respectively. These amounts consisted of:
 
Pension Benefits
 
 
 
 
2017
 
 
 
2016
 
 
Other Benefits
 
 
U.S.

 
Int’l.

 
 
U.S.

 
Int’l.

 
2017

 
 
2016

Net actuarial loss
$
4,258

 
$
1,005

 
 
$
4,653

 
$
1,145

 
$
207

 
 
$
(82
)
Prior service (credit) costs
9

 
94

 
 
4

 
106

 
(287
)
 
 
(315
)
Total recognized at December 31
$
4,267

 
$
1,099

 
 
$
4,657

 
$
1,251

 
$
(80
)
 
 
$
(397
)
Pension plans with accumulated benefit obligation in excess of plan assets
Information for U.S. and international pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016, was:
 
Pension Benefits
 
 
2017
 
 
 
2016
 
 
U.S.

 
Int’l.

 
 
U.S.

 
Int’l.

Projected benefit obligations
$
13,514

 
$
1,590

 
 
$
13,208

 
$
1,449

Accumulated benefit obligations
12,129

 
1,326

 
 
11,891

 
1,258

Fair value of plan assets
9,862

 
413

 
 
9,471

 
287
Components of net periodic benefit cost and amounts recognized in other comprehensive income
The components of net periodic benefit cost and amounts recognized in the Consolidated Statement of Comprehensive Income for 2017, 2016 and 2015 are shown in the table below:
 
Pension Benefits
 
 
 
 
 
 
 
 
 
2017
 
 
 
2016
 
2015
 
 
Other Benefits
 
 
U.S.

Int’l.

 
 
U.S.

Int’l.

U.S.

Int’l.

 
2017

 
 
2016

 
2015

Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
489

$
151

 
 
$
494

$
159

$
538

$
185

 
$
32

 
 
$
60

 
$
72

Interest cost
366

219

 
 
377

261

502

277

 
95

 
 
128

 
151

Expected return on plan assets
(597
)
(239
)
 
 
(723
)
(243
)
(783
)
(262
)
 
—

 
 
—

 
—

Amortization of prior service costs (credits)
(5
)
13

 
 
(9
)
14

(8
)
22

 
(28
)
 
 
14

 
14

Recognized actuarial losses
340

44

 
 
335

47

356

78

 
(5
)
 
 
19

 
34

Settlement losses
436

2

 
 
511

6

320

6

 
—

 
 
—

 
—

Curtailment losses (gains)
—

—

 
 
—

—

—

(14
)
 
—

 
 
—

 
—

Total net periodic benefit cost
1,029

190

 
 
985

244

925

292

 
94

 
 
221

 
271

Changes Recognized in Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial (gain) loss during period
381

(94
)
 
 
690

55

513

(260
)
 
284

 
 
(430
)
 
(362
)
Amortization of actuarial loss
(776
)
(46
)
 
 
(846
)
(53
)
(676
)
(84
)
 
5

 
 
(19
)
 
(34
)
Prior service (credits) costs during period
—

1

 
 
—

—

—

(6
)
 
—

 
 
(345
)
 
—

Amortization of prior service (costs) credits
5

(13
)
 
 
9

(14
)
8

(24
)
 
28

 
 
(14
)
 
(14
)
Total changes recognized in other
comprehensive income
(390
)
(152
)
 
 
(147
)
(12
)
(155
)
(374
)
 
317

 
 
(808
)
 
(410
)
Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
$
639

$
38

 
 
$
838

$
232

$
770

$
(82
)
 
$
411

 
 
$
(587
)
 
$
(139
)
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs
The following weighted-average assumptions were used to determine benefit obligations and net periodic benefit costs for years ended December 31:
 
Pension Benefits
 
 
 
 
 
 
 
 
 
2017
 
 
 
2016
 
 
2015
 
 
 
 
 
Other Benefits
 
 
U.S.

Int’l.

 
 
U.S.

Int’l.

 
U.S.

Int’l.

 
2017

 
 
2016

 
2015

Assumptions used to determine benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.5
%
3.9
%
 
 
3.9
%
4.3
%
 
4.0
%
5.3
%
 
3.8
%
 
 
4.3
%
 
4.6
%
Rate of compensation increase
4.5
%
4.0
%
 
 
4.5
%
4.5
%
 
4.5
%
4.8
%
 
N/A

 
 
N/A

 
N/A

Assumptions used to determine net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate for service cost
4.2
%
4.3
%
 
 
4.4
%
5.3
%
 
3.7
%
5.0
%
 
4.6
%
 
 
4.9
%
 
4.3
%
Discount rate for interest cost
3.0
%
4.3
%
 
 
3.0
%
5.3
%
 
3.7
%
5.0
%
 
3.8
%
 
 
4.0
%
 
4.3
%
Expected return on plan assets
6.8
%
5.5
%
 
 
7.3
%
6.3
%
 
7.5
%
6.3
%
 
N/A

 
 
N/A

 
N/A

Rate of compensation increase
4.5
%
4.5
%
 
 
4.5
%
4.8
%
 
4.5
%
5.1
%
 
N/A

 
 
N/A

 
N/A
Effects of change in the assumed health care cost-trend rates
A 1-percentage-point change in the assumed health care cost-trend rates would have the following effects on worldwide plans:
 
 1 Percent Increase

 
1 Percent Decrease

Effect on total service and interest cost components
$
12

 
$
(10
)
Effect on postretirement benefit obligation
$
188

 
$
(155
)
Fair value measurements of the Company's pension plans
The fair value measurements of the company’s pension plans for 2017 and 2016 are below:
 
U.S.
 
 
 
Int’l.
 
 
Total

 
Level 1

 
Level 2

 
Level 3

 
NAV1

 
 
Total

 
Level 1

 
Level 2

 
Level 3

 
NAV1

At December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.2
$
1,217

 
$
1,217

 
$
—

 
$
—

 
—

 
 
$
565

 
$
564

 
$
1

 
$
—

 
$
—

International
1,832

 
1,822

 
10

 
—

 
—

 
 
576

 
576

 
—

 
—

 
—

Collective Trusts/Mutual Funds3
1,132

 
24

 
—

 
—

 
1,108

 
 
196

 
8

 
2

 
—

 
186

Fixed Income
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 

Government4
222

 
—

 
222

 
—

 
—

 
 
286

 
51

 
235

 
—

 
—

Corporate4
1,356

 
—

 
1,356

 
—

 
—

 
 
509

 
22

 
468

 
19

 
—

Bank Loans
118

 
—

 
107

 
11

 
—

 
 
—

 
—

 
—

 
—

 
—

Mortgage/Asset Backed
1

 
—

 
1

 
—

 
—

 
 
10

 
—

 
10

 
—

 
—

Collective Trusts/Mutual Funds3,4
1,031

 
—

 
—

 
—

 
1,031

 
 
1,278

 
—

 
17

 
—

 
1,261

Mixed Funds5
—

 
—

 
—

 
—

 
—

 
 
72

 
2

 
70

 
—

 
—

Real Estate6
1,367

 
—

 
—

 
—

 
1,367

 
 
331

 
—

 
—

 
60

 
271

Alternative Investments7
955

 
—

 
—

 
—

 
955

 
 
—

 
—

 
—

 
—

 
—

Cash and Cash Equivalents
252

 
243

 
9

 
—

 
—

 
 
331

 
325

 
6

 
—

 
—

Other8
67

 
(9
)
 
25

 
42

 
9

 
 
20

 
—

 
18

 
2

 
—

Total at December 31, 2016
$
9,550

 
$
3,297

 
$
1,730

 
$
53

 
4,470

 
 
$
4,174

 
$
1,548

 
$
827

 
$
81

 
$
1,718

At December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.2
$
1,331

 
$
1,331

 
$
—

 
$
—

 
$
—

 
 
$
652

 
$
651

 
$
1

 
$
—

 
$
—

International
2,060

 
2,057

 
3

 
—

 
—

 
 
691

 
691

 
—

 
—

 
—

Collective Trusts/Mutual Funds3
1,089

 
22

 
—

 
—

 
1,067

 
 
204

 
19

 
4

 
—

 
181

Fixed Income
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 

Government
274

 
—

 
274

 
—

 
—

 
 
296

 
77

 
219

 
—

 
—

Corporate
1,492

 
—

 
1,492

 
—

 
—

 
 
593

 
—

 
563

 
30

 
—

Bank Loans
117

 
—

 
106

 
11

 
—

 
 
—

 
—

 
—

 
—

 
—

Mortgage/Asset Backed
1

 
—

 
1

 
—

 
—

 
 
8

 
—

 
8

 
—

 
—

Collective Trusts/Mutual Funds3
1,130

 
—

 
—

 
—

 
1,130

 
 
1,481

 
—

 
16

 
—

 
1,465

Mixed Funds5
—

 
—

 
—

 
—

 
—

 
 
80

 
1

 
79

 
—

 
—

Real Estate6
1,096

 
—

 
—

 
—

 
1,096

 
 
376

 
—

 
—

 
56

 
320

Alternative Investments7
1,022

 
—

 
—

 
—

 
1,022

 
 
—

 
—

 
—

 
—

 
—

Cash and Cash Equivalents
260

 
255

 
5

 
—

 
—

 
 
366

 
362

 
4

 
—

 
—

Other8
76

 
(2
)
 
28

 
43

 
7

 
 
19

 
(2
)
 
18

 
3

 
—

Total at December 31, 2017
$
9,948

 
$
3,663

 
$
1,909

 
$
54

 
$
4,322

 
 
$
4,766

 
$
1,799

 
$
912

 
$
89

 
$
1,966

1 
2016 has been adjusted to conform to the 2017 presentation of investments measured at Net Asset Value (NAV).
2 
U.S. equities include investments in the company’s common stock in the amount of $12 at December 31, 2017, and $12 at December 31, 2016.
3 
Collective Trusts/Mutual Funds for U.S. plans are entirely index funds; for International plans, they are mostly unit trust and index funds.
4 
Certain International Fixed Income investments previously disclosed as Government or Corporate have been reclassified to Collective Trusts/Mutual Funds to conform to the 2017 presentation.
5 
Mixed funds are composed of funds that invest in both equity and fixed-income instruments in order to diversify and lower risk.
6 
The year-end valuations of the U.S. real estate assets are based on third-party appraisals that occur at least once a year for each property in the portfolio.
7 
Alternative investments focus on market-neutral strategies that have a low expected correlation to traditional asset classes.
8 
The “Other” asset class includes net payables for securities purchased but not yet settled (Level 1); dividends and interest- and tax-related receivables (Level 2); insurance contracts (Level 3); and investments in private-equity limited partnerships (NAV).
The effect of fair-value measurements using significant unobservable inputs on changes in Level 3 plan assets for the period
The effects of fair value measurements using significant unobservable inputs on changes in Level 3 plan assets are outlined below:
 
Fixed Income
 
 
 
 
 
 
 
 
 
 
 
Corporate

 
 
Bank Loans
 
 
Real Estate

 
 
Other

 
 
Total

Total at December 31, 20151
$
25

 
 
$
—

 
 
$
97

 
 
$
43

 
 
$
165

Actual Return on Plan Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
   Assets held at the reporting date
1

 
 
—

 
 
(33
)
 
 
—

 
 
(32
)
   Assets sold during the period
—

 
 
—

 
 
1

 
 
—

 
 
1

Purchases, Sales and Settlements
(7
)
 
 
11

 
 
(5
)
 
 
1

 
 
—

Transfers in and/or out of Level 3
—

 
 
—

 
 
—

 
 
—

 
 
—

Total at December 31, 20161
$
19

 
 
$
11

 
 
$
60

 
 
$
44

 
 
$
134

Actual Return on Plan Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
   Assets held at the reporting date
1

 
 
—

 
 
1

 
 
—

 
 
2

   Assets sold during the period
—

 
 
—

 
 
—

 
 
—

 
 
—

Purchases, Sales and Settlements
10

 
 
3

 
 
(5
)
 
 
2

 
 
10

Transfers in and/or out of Level 3
—

 
 
(3
)
 
 
—

 
 
—

 
 
(3
)
Total at December 31, 2017
$
30

 
 
$
11

 
 
$
56

 
 
$
46

 
 
$
143


1 
2015 and 2016 have been adjusted to conform to the 2017 presentation.
Benefit payments, which include estimated future service that are expected to be paid by the company in the next 10 years
The following benefit payments, which include estimated future service, are expected to be paid by the company in the next 10 years:
 
Pension Benefits
 
 
Other

 
U.S.

 
Int’l.

 
Benefits

2018
$
1,465

 
$
387

 
$
174

2019
$
1,331

 
$
279

 
$
175

2020
$
1,296

 
$
289

 
$
175

2021
$
1,261

 
$
277

 
$
175

2022
$
1,234

 
$
290

 
$
174

2023-2027
$
5,487

 
$
1,609

 
$
850