Postretirement benefit plans (Tables)

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of expense related to defined benefit and retiree health care benefit plans

Expense related to defined benefit and retiree health care benefit plans was as follows:

	U.S. Defined Benefit									U.S. Retiree Health Care									Non-U.S. Defined Benefit
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Service cost	$	21		$	26		$	24		$	4		$	5		$	5		$	39		$	41		$	45
Interest cost	45			45			44			22			20			25			68			61			75
Expected return on plan assets	(42		)	(48		)	(50		)	(20		)	(24		)	(23		)	(80		)	(67		)	(78		)
Amortization of prior service cost (credit)	—			1			1			4			4			3			(2		)	(3		)	(4		)
Recognized net actuarial loss	26			21			16			7			11			13			24			31			41
Net periodic benefit costs	50			45			35			17			16			23			49			63			79
Settlement losses (a) (b)	5			41			—			—			—			—			1			4			193
Curtailment gain	—			—			—			—			—			(1		)	(2		)	(7		)	—
Special termination benefit gains (b)	—			—			(1		)	—			—			—			—			—			(337		)
Total, including other postretirement losses (gains)	$	55		$	86		$	34		$	17		$	16		$	22		$	48		$	60		$	(65	)

(a) Includes non-restructuring and restructuring-related settlement losses.

(b) Transfer of Japan substitutional pension in 2012: In Japan, we maintain employee pension fund plans (EPFs) pursuant to the Japanese Welfare Pension Insurance Law (JWPIL). An EPF consists of two portions: a substitutional portion based on JWPIL-determined minimum old-age pension benefits similar to Social Security benefits in the United States and a corporate portion established at the discretion of each employer. Employers and employees are exempt from contributing to the Japanese Pension Insurance (JPI) if the substitutional portion is funded by an EPF.

The JWPIL was amended to permit each EPF to separate the substitutional portion and transfer those obligations and related assets to the government of Japan. After such a transfer, the employer is required to contribute periodically to JPI, and the government of Japan is responsible for future benefit payments relating to the substitutional portion.

During the third quarter of 2012, our EPF received final approval for such a separation and transferred the obligations and assets of its substitutional portion to the government of Japan. On a pre-tax basis, this resulted in a net gain of $144 million recorded in Restructuring charges/other on our Consolidated Statements of Income and included in Other, as shown in Note 4. This net gain of $144 million consisted of two parts - a gain of $337 million, representing the difference between the fair values of the obligations settled of $533 million and the assets transferred from the pension trust to the government of Japan of $196 million, offset by a settlement loss of $193 million related to the recognition of previously unrecognized actuarial losses included in AOCI.

Schedule of changes in the benefit obligations and plan assets for the defined benefit and retiree health care benefit plans

Changes in the benefit obligations and plan assets for the defined benefit and retiree health care benefit plans were as follows:

	U.S. Defined Benefit						U.S. Retiree Health Care						Non-U.S. Defined Benefit
	2014			2013			2014			2013			2014			2013
Change in plan benefit obligation:
Benefit obligation at beginning of year	$	955		$	1,098		$	472		$	509		$	2,276		$	2,414
Service cost	21			26			4			5			39			41
Interest cost	45			45			22			20			68			61
Participant contributions	—			—			19			18			5			1
Benefits paid	(66		)	(9		)	(45		)	(47		)	(84		)	(81		)
Medicare subsidy	—			—			4			3			—			—
Actuarial loss (gain)	133			(27		)	37			(36		)	275			96
Settlements	(12		)	(178		)	—			—			(7		)	(30		)
Curtailments	—			—			—			—			(11		)	(28		)
Effects of exchange rate changes	—			—			—			—			(245		)	(237		)
Other	—			—			—			—			—			39
Benefit obligation at end of year (BO)	$	1,076		$	955		$	513		$	472		$	2,316		$	2,276
Change in plan assets:
Fair value of plan assets at beginning of year	$	941		$	1,071		$	485		$	517		$	2,179		$	2,218
Actual return on plan assets	132			1			24			41			295			201
Employer contributions (funding of qualified plans)	75			43			10			—			64			62
Employer contributions (payments for non-qualified plans)	12			13			—			—			—			—
Participant contributions	—			—			19			18			5			1
Benefits paid	(66		)	(9		)	(45		)	(45		)	(84		)	(81		)
Medicare subsidy	—			—			4			—			—			—
Settlements	(12		)	(178		)	—			—			(7		)	(30		)
Effects of exchange rate changes	—			—			—			—			(239		)	(232		)
Other	—			—			—			(46		)	—			40
Fair value of plan assets at end of year (FVPA)	$	1,082		$	941		$	497		$	485		$	2,213		$	2,179
Funded status (FVPA – BO) at end of year	$	6		$	(14	)	$	(16	)	$	13		$	(103	)	$	(97	)

Schedule of amounts recognized in balance sheet

Amounts recognized on the Consolidated Balance Sheets as of December 31, 2014, were as follows:

	U.S. Defined Benefit			U.S. Retiree Health Care			Non-U.S. Defined Benefit			Total
Overfunded retirement plans	$	72		$	—		$	55		$	127
Accrued expenses and other liabilities	(9		)	—			(6		)	(15		)
Underfunded retirement plans	(57		)	(16		)	(152		)	(225		)
Funded status (FVPA – BO) at end of year	$	6		$	(16	)	$	(103	)	$	(113	)

Amounts recognized on the Consolidated Balance Sheets as of December 31, 2013, were as follows:

	U.S. Defined Benefit			U.S. Retiree Health Care			Non-U.S. Defined Benefit			Total
Overfunded retirement plans	$	44		$	16		$	70		$	130
Accrued expenses and other liabilities	(7		)	—			(5		)	(12		)
Underfunded retirement plans	(51		)	(3		)	(162		)	(216		)
Funded status (FVPA – BO) at end of year	$	(14	)	$	13		$	(97	)	$	(98	)

Schedule of amounts recognized in other comprehensive income (loss)

The amounts recorded in AOCI for the years ended December 31, 2014 and 2013, are detailed below by plan type:

	U.S. Defined Benefit						U.S. Retiree Health Care						Non-U.S. Defined Benefit						Total
	Net Actuarial Loss			Prior Service Credit			Net Actuarial Loss			Prior Service Cost			Net Actuarial Loss			Prior Service Credit			Net Actuarial Loss			Prior Service Credit
AOCI balance, net of taxes, December 31, 2013	$	149		$	(2	)	$	71		$	10		$	305		$	(9	)	$	525		$	(1	)
Changes in AOCI by category
Adjustments	37			—			29			—			5			1			71			1
Recognized within Net income	(31		)	3			(7		)	(3		)	(25		)	—			(63		)	—
Tax effect	(2		)	(1		)	(8		)	1			6			—			(4		)	—
Total change to AOCI	4			2			14			(2		)	(14		)	1			4			1
AOCI balance, net of taxes, December 31, 2014	$	153		$	—		$	85		$	8		$	291		$	(8	)	$	529		$	—

Schedule of allocation of plan assets

Weighted average asset allocations as of December 31, are as follows:

	U.S. Defined Benefit		U.S. Retiree Health Care		Non-U.S. Defined Benefit
Asset Category	2014	2013	2014	2013	2014	2013
Fixed income securities and cash equivalents	65%	65%	49%	49%	73%	70%
Equity securities	35%	35%	51%	51%	27%	30%

The table below shows target allocation ranges for the plans that hold a substantial majority of the defined benefit assets.

Asset Category	U.S. Defined Benefit	U.S. Retiree Health Care	Non-U.S. Defined Benefit
Fixed income securities and cash equivalents	65%	50%	60% - 100%
Equity securities	35%	50%	0% - 40%

The tables below set forth the fair value of our plan assets as of December 31, 2014 and 2013, using the same three-level hierarchy of fair-value inputs described in Note 9.

	Fair Value December 31, 2014		Level 1		Level 2		Level 3
Assets of U.S. defined benefit plan
Fixed income securities and cash equivalents	$	707	$	—	$	707	$	—
Equity securities	375		—		375		—
Other	—		—		—		—
Total	$	1,082	$	—	$	1,082	$	—
Assets of U.S. retiree health care plan
Fixed income securities and cash equivalents	$	243	$	200	$	43	$	—
Equity securities	254		—		254		—
Total	$	497	$	200	$	297	$	—
Assets of non-U.S. defined benefit plans
Fixed income securities and cash equivalents	$	1,608	$	430	$	1,178	$	—
Equity securities	600		6		594		—
Other	5		—		—		5
Total	$	2,213	$	436	$	1,772	$	5

	Fair Value December 31, 2013		Level 1		Level 2		Level 3
Assets of U.S. defined benefit plan
Fixed income securities and cash equivalents	$	607	$	—	$	607	$	—
Equity securities	297		—		297		—
Other	37		—		—		37
Total	$	941	$	—	$	904	$	37
Assets of U.S. retiree health care plan
Fixed income securities and cash equivalents	$	238	$	193	$	45	$	—
Equity securities	247		—		247		—
Total	$	485	$	193	$	292	$	—
Assets of non-U.S. defined benefit plans
Fixed income securities and cash equivalents	$	1,521	$	397	$	1,124	$	—
Equity securities	650		6		644		—
Other	8		—		—		8
Total	$	2,179	$	403	$	1,768	$	8

Schedule of effect of significant unobservable inputs, changes in plan assets

The following table summarizes the change in the fair values for Level 3 plan assets for the years ending December 31, 2014 and 2013:

	Level 3 Plan Assets
	U.S. Defined Benefit			Non-U.S. Defined Benefit
Balance, December 31, 2012	$	37		$	19
Redemptions	—			(10		)
Unrealized loss	—			(1		)
Balance, December 31, 2013	37			8
Redemptions and sales	(45		)	(2		)
Unrealized gain (loss)	8			(1		)
Balance, December 31, 2014	$	—		$	5

Schedule of assumptions used

Assumptions and investment policies

	Defined Benefit		U.S. Retiree Health Care
	2014	2013	2014	2013
Weighted average assumptions used to determine benefit obligations:
U.S. discount rate	4.23%	5.11%	4.07%	4.83%
Non-U.S. discount rate	2.34%	3.01%
U.S. average long-term pay progression	3.30%	3.50%
Non-U.S. average long-term pay progression	3.27%	3.11%
Weighted average assumptions used to determine net periodic benefit cost:
U.S. discount rate	5.11%	4.59%	4.83%	3.94%
Non-U.S. discount rate	3.01%	2.74%
U.S. long-term rate of return on plan assets	5.25%	5.25%	4.50%	4.75%
Non-U.S. long-term rate of return on plan assets	3.75%	3.34%
U.S. average long-term pay progression	3.50%	3.60%
Non-U.S. average long-term pay progression	3.11%	3.01%

Schedule of expected benefit payments

The following table shows the benefits we expect to pay to participants from the plans in the next 10 years and assumes that retirement eligible participants take their benefits immediately. Almost all of the payments will be made from plan assets and not from company assets.

	U.S. Defined Benefit		U.S. Retiree Health Care		Medicare Subsidy			Non-U.S. Defined Benefit
2015	$	217	$	36	$	(4	)	$	76
2016	95		37		(4		)	78
2017	91		39		(4		)	82
2018	93		40		(5		)	85
2019	93		40		(5		)	89
2020 - 2024	435		194		(9		)	501

Schedule of effect of one-percentage-point change in assumed health care cost trend rates

Assumed health care cost trend rates for the U.S. retiree health care benefit plan at December 31 are as follows:

	2014	2013
Assumed health care cost trend rate for next year	7.0%	7.0%
Ultimate trend rate	5.0%	5.0%
Year in which ultimate trend rate is reached	2023	2022