PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2015



Net Periodic Benefit Cost for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2015			2014			2013			2015			2014			2013
Service cost	$	44		$	30		$	31		$	1		$	1		$	2
Interest cost	164			183			165			10			13			14
Expected return on plan assets	(226		)	(232		)	(232		)	—			—			—
Amortization of prior service cost (credit)	(1		)	6			7			(1		)	—			(1		)
Amortization of net (gain) loss	87			66			88			(10		)	(10		)	—
Net periodic benefit cost	$	68		$	53		$	59		$	—		$	4		$	15



Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss for all Plans
	Defined Benefit Pension Plans									Other Postretirement Benefits
In millions	2015			2014			2013			2015		2014			2013
Net (gain) loss	$	34		$	450		$	(283	)	$	19	$	(12	)	$	(102	)
Prior service cost (credit) arising during period	4			(38		)	—			—		—			—
Amortization of prior service (cost) credit	1			(6		)	(7		)	1		—			1
Amortization of net gain (loss)	(87		)	(66		)	(88		)	10		10			—
Total recognized in other comprehensive (income) loss	$	(48	)	$	340		$	(378	)	$	30	$	(2	)	$	(101	)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	20		$	393		$	(319	)	$	30	$	2		$	(86	)



Change in Projected Benefit Obligations, Plan Assets and Funded Status for all Plans
In millions	Defined Benefit Pension Plans						Other Postretirement Benefits
Change in projected benefit obligation:	2015			2014			2015			2014
Benefit obligation at beginning of year	$	4,345		$	3,995		$	270		$	302
Service cost	44			30			1			1
Interest cost	164			183			10			13
Plan amendments	4			(38		)	—			—
Actuarial changes in assumptions and experience	(178		)	531			19			(13		)
Benefits paid	(293		)	(340		)	(24		)	(33		)
Other (1)	(93		)	(16		)	—			—
Benefit obligation at end of year	$	3,993		$	4,345		$	276		$	270

Change in plan assets:
Fair value of plan assets at beginning of year	$	3,543		$	3,586		$	—		$	—
Actual return on plan assets	14			312			—			—
Employer contributions	2			2			—			—
Asset transfer (1)	(93		)	(17		)	—			—
Benefits paid	(293		)	(340		)	—			—
Fair value of plan assets at end of year	$	3,173		$	3,543		$	—		$	—

Funded status at end of year	$	(820	)	$	(802	)	$	(276	)	$	(270	)



Net amounts recognized in the consolidated balance sheets at December 31:
Current liabilities	$	(2	)	$	(1	)	$	(26	)	$	(27	)
Noncurrent liabilities	(818		)	(801		)	(250		)	(243		)
Net amounts recognized in the consolidated balance sheets	$	(820	)	$	(802	)	$	(276	)	$	(270	)

Pretax amounts recognized in AOCL at December 31:
Net loss (gain)	$	1,902		$	1,955		$	(80	)	$	(109	)
Prior service credit	(14		)	(19		)	—			(1		)
Pretax balance in AOCL at end of year	$	1,888		$	1,936		$	(80	)	$	(110	)


(1)	The 2015 impact includes the transfer of benefit obligations of $71 million through the purchase of annuity contracts from an insurance company.



Estimated Future Benefit Payments at December 31, 2015
In millions	Defined Benefit Pension Plans		Other Postretirement Benefits
2016	$	274	$	26
2017	274		25
2018	273		24
2019	273		23
2020	271		23
2021 through 2025	1,326		93
Total	$	2,691	$	214



Strategic Target Allocation of Plan Assets
Asset Category	Target Allocation
Equity securities	23	%
Fixed income securities	45	%
Alternative investments	27	%
Other	5	%
Total	100	%



Basis of Fair Value Measurements at December 31, 2015 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	1	$	173	$	—	$	174
Equity securities:
U.S. equity	$	237	$	35	$	—	$	272
Non-U.S. equity - developed countries	71		136		—		207
Emerging markets	45		90		5		140
Equity derivatives	—		3		—		3
Total equity securities	$	353	$	264	$	5	$	622
Fixed income securities:
U.S. government and municipalities	$	—	$	574	$	—	$	574
U.S. agency mortgage backed securities	—		56		—		56
Corporates - investment grade	—		677		—		677
Non-U.S. governments - developed countries	—		5		—		5
Non-U.S. corporates - developed countries	—		146		—		146
Emerging markets debt	—		12		—		12
Other asset-backed securities	—		13		—		13
Other fixed income funds	—		—		51		51
Fixed income derivatives	—		15		—		15
High yield bonds	—		3		—		3
Total fixed income securities	$	—	$	1,501	$	51	$	1,552
Alternative investments:
Real estate	$	—	$	—	$	284	$	284
Private equity	—		—		220		220
Absolute return	—		114		165		279
Total alternative investments	$	—	$	114	$	669	$	783
Total other securities	$	—	$	20	$	22	$	42
Total pension plan assets at fair value	$	354	$	2,072	$	747	$	3,173



Basis of Fair Value Measurements at December 31, 2014 In millions	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	3	$	131		$	—	$	134
Equity securities:
U.S. equity	$	360	$	78		$	1	$	439
Non-U.S. equity - developed countries	166		160			—		326
Emerging markets	40		62			3		105
Equity derivatives	—		(1		)	—		(1		)
Total equity securities	$	566	$	299		$	4	$	869
Fixed income securities:
U.S. government and municipalities	$	—	$	673		$	—	$	673
U.S. agency mortgage backed securities	—		66			—		66
Corporates - investment grade	—		743			—		743
Non-U.S. governments - developed countries	—		6			—		6
Non-U.S. corporates - developed countries	—		160			—		160
Emerging markets debt	—		14			—		14
Other asset-backed securities	—		11			1		12
Other fixed income funds	—		—			32		32
High yield bonds	—		2			—		2
Total fixed income securities	$	—	$	1,675		$	33	$	1,708
Alternative investments:
Real estate	$	—	$	—		$	288	$	288
Private equity	—		—			233		233
Absolute return	—		126			166		292
Total alternative investments	$	—	$	126		$	687	$	813
Total other securities	$	—	$	(3	)	$	22	$	19
Total pension plan assets at fair value	$	569	$	2,228		$	746	$	3,543



Pension Plan Assumptions	Benefit Obligations at December 31						Net Periodic Costs for the Year
	2015		2014		2013		2015		2014		2013
Discount rate	4.26	%	3.90	%	4.75	%	3.90	%	4.75	%	3.85	%
Rate of increase in future compensation levels	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%
Expected long-term rate of return on plan assets	—		—		—		6.80	%	6.80	%	6.90	%



Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets at December 31
In millions	2015		2014
Projected benefit obligation	$	3,993	$	4,345
Accumulated benefit obligation	$	3,960	$	4,302
Fair value of plan assets	$	3,173	$	3,543



Fair Value Measurement of Level 3	Equity Securities			Fixed Income Securities			Alternative Investments			Other Securities		Total
Pension Plan Assets
In millions
Balance at January 1, 2014	$	2		$	14		$	623		$	22	$	661
Actual return on plan assets:
Relating to assets held at Dec 31, 2014	(2		)	—			(22		)	—		(24		)
Relating to assets sold during 2014	—			—			35			—		35
Purchases, sales and settlements	4			20			53			—		77
Transfers out of Level 3, net	—			(1		)	—			—		(1		)
Foreign currency impact	—			—			(2		)	—		(2		)
Balance at December 31, 2014	$	4		$	33		$	687		$	22	$	746
Actual return on plan assets:
Relating to assets held at Dec 31, 2015	2			(4		)	(35		)	—		(37		)
Relating to assets sold during 2015	—			1			60			—		61
Purchases, sales and settlements	—			21			(42		)	—		(21		)
Transfers out of Level 3, net	(1		)	—			—			—		(1		)
Foreign currency impact	—			—			(1		)	—		(1		)
Balance at December 31, 2015	$	5		$	51		$	669		$	22	$	747