|
Benefit Plans (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
|
Defined benefit pension plans
|
|
| Pension and postretirement benefit plans |
|
| Schedule of funded status |
|
|
|
US Plans |
|
Non-US Plans |
|
|
(in millions) |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
Benefit obligation |
|
|
|
|
|
|
|
|
|
|
At January 1 |
|
$ |
323 |
|
$ |
271 |
|
$ |
272 |
|
$ |
216 |
|
|
Service cost |
|
8 |
|
7 |
|
9 |
|
8 |
|
|
Interest cost |
|
11 |
|
12 |
|
12 |
|
13 |
|
|
Benefits paid |
|
(14 |
) |
(15 |
) |
(12 |
) |
(12 |
) |
|
Actuarial (gain) loss |
|
(36 |
) |
48 |
|
(15 |
) |
34 |
|
|
Business combinations / transfers |
|
1 |
|
— |
|
— |
|
12 |
|
|
Curtailment / settlement |
|
— |
|
— |
|
(2 |
) |
(4 |
) |
|
Foreign currency translation |
|
— |
|
— |
|
(14 |
) |
5 |
|
|
Benefit obligation at December 31 |
|
$ |
293 |
|
$ |
323 |
|
$ |
250 |
|
$ |
272 |
|
|
Fair value of plan assets |
|
|
|
|
|
|
|
|
|
|
At January 1 |
|
$ |
257 |
|
$ |
222 |
|
$ |
189 |
|
$ |
156 |
|
|
Actual return on plan assets |
|
41 |
|
27 |
|
16 |
|
12 |
|
|
Employer contributions |
|
13 |
|
23 |
|
43 |
|
15 |
|
|
Benefits paid |
|
(14 |
) |
(15 |
) |
(12 |
) |
(12 |
) |
|
Business combinations / transfers |
|
— |
|
— |
|
— |
|
15 |
|
|
Foreign currency translation |
|
— |
|
— |
|
(13 |
) |
3 |
|
|
Fair value of plan assets at December 31 |
|
$ |
297 |
|
$ |
257 |
|
$ |
223 |
|
$ |
189 |
|
|
Funded status |
|
$ |
4 |
|
$ |
(66 |
) |
$ |
(27 |
) |
$ |
(83 |
) |
|
| Schedule of amounts recognized in the consolidated balance sheets |
|
|
|
US Plans |
|
Non-US Plans |
|
|
(in millions) |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
Non-current asset |
|
$ |
16 |
|
$ |
— |
|
$ |
26 |
|
$ |
1 |
|
|
Current liabilities |
|
(1 |
) |
(1 |
) |
(3 |
) |
(3 |
) |
|
Non-current liabilities |
|
(11 |
) |
(65 |
) |
(50 |
) |
(81 |
) |
|
Net asset (liability) recognized |
|
$ |
4 |
|
$ |
(66 |
) |
$ |
(27 |
) |
$ |
(83 |
) |
|
| Schedule of amounts recognized in accumulated other comprehensive loss |
|
|
|
US Plans |
|
Non-US Plans |
|
|
(in millions) |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
Net actuarial loss |
|
$ |
7 |
|
$ |
67 |
|
$ |
59 |
|
$ |
92 |
|
|
Transition obligation |
|
— |
|
— |
|
2 |
|
2 |
|
|
Net amount recognized |
|
$ |
7 |
|
$ |
67 |
|
$ |
61 |
|
$ |
94 |
|
|
| Schedule of plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets |
|
|
|
US Plans |
|
Non-US Plans |
|
|
(in millions) |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
Projected benefit obligation |
|
$ |
10 |
|
$ |
323 |
|
$ |
52 |
|
$ |
262 |
|
|
Accumulated benefit obligation |
|
8 |
|
314 |
|
42 |
|
227 |
|
|
Fair value of plan assets |
|
— |
|
257 |
|
3 |
|
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Components of Net Periodic Benefit Cost |
|
|
|
US Plans |
|
Non-US Plans |
|
|
(in millions) |
|
2013 |
|
2012 |
|
2011 |
|
2013 |
|
2012 |
|
2011 |
|
|
Service cost |
|
$8 |
|
$7 |
|
$7 |
|
$9 |
|
$8 |
|
$5 |
|
|
Interest cost |
|
11 |
|
12 |
|
13 |
|
12 |
|
13 |
|
15 |
|
|
Expected return on plan assets |
|
(18 |
) |
(16 |
) |
(15 |
) |
(12 |
) |
(13 |
) |
(11 |
) |
|
Amortization of actuarial loss |
|
2 |
|
1 |
|
1 |
|
5 |
|
4 |
|
2 |
|
|
Amortization of transition obligation |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
1 |
|
|
Settlement/Curtailment |
|
— |
|
— |
|
2 |
|
— |
|
1 |
|
— |
|
|
Net periodic benefit cost |
|
$3 |
|
$4 |
|
$8 |
|
$14 |
|
$14 |
|
$12 |
|
|
| Schedule of amounts recorded in other comprehensive income and net periodic benefit cost |
|
(in millions, pre-tax) |
|
US Plans |
|
Non-US Plans |
|
|
Net actuarial gain |
|
$ |
(58 |
) |
$ |
(23 |
) |
|
Amortization of actuarial loss |
|
(2 |
) |
(5 |
) |
|
Foreign currency translation |
|
— |
|
(5 |
) |
|
Total recorded in other comprehensive income |
|
(60 |
) |
(33 |
) |
|
Net periodic benefit cost |
|
3 |
|
14 |
|
|
Total recorded in other comprehensive income and net periodic benefit cost |
|
$ |
(57 |
) |
$ |
(19 |
) |
|
| Schedule of weighted average assumptions used to determine the company's obligations |
|
|
|
US Plans |
|
Non-US Plans |
|
|
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
Discount rate |
|
4.60 |
% |
3.60 |
% |
5.60 |
% |
4.85 |
% |
|
Rate of compensation increase |
|
4.22 |
% |
4.19 |
% |
4.39 |
% |
4.35 |
% |
|
| Schedule of weighted average assumptions used to determine the company's net periodic benefit cost |
|
|
|
US Plans |
|
Non-US Plans |
|
|
|
|
2013 |
|
2012 |
|
2011 |
|
2013 |
|
2012 |
|
2011 |
|
|
Discount rate |
|
3.60 |
% |
4.50 |
% |
5.35 |
% |
4.88 |
% |
5.68 |
% |
5.73 |
% |
|
Expected long-term return on plan assets |
|
7.25 |
% |
7.25 |
% |
7.25 |
% |
6.69 |
% |
6.81 |
% |
6.73 |
% |
|
Rate of compensation increase |
|
4.19 |
% |
4.19 |
% |
2.75 |
% |
4.35 |
% |
4.51 |
% |
3.79 |
% |
|
| Schedule of weighted average asset allocation |
|
|
|
US Plans |
|
Non-US Plans |
|
|
Asset Category |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
Equity securities |
|
62 |
% |
61 |
% |
51 |
% |
42 |
% |
|
Debt securities |
|
36 |
% |
38 |
% |
39 |
% |
47 |
% |
|
Cash and other |
|
2 |
% |
1 |
% |
10 |
% |
11 |
% |
|
Total |
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
|
| Schedule of fair values of the company's plan assets, by asset category and level |
|
|
|
Fair Value Measurements at December 31, 2013 |
|
|
Asset Category
(in millions) |
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) |
|
Significant
Observable
Inputs
(Level 2) |
|
Significant
Unobservable
Inputs
(Level 3) |
|
Total |
|
|
US Plans: |
|
|
|
|
|
|
|
|
|
|
Equity index: |
|
|
|
|
|
|
|
|
|
|
US (a) |
|
|
|
$ |
151 |
|
|
|
$ |
151 |
|
|
International (b) |
|
|
|
32 |
|
|
|
32 |
|
|
Real estate (c) |
|
|
|
3 |
|
|
|
3 |
|
|
Fixed income index: |
|
|
|
|
|
|
|
|
|
|
Intermediate bond (d) |
|
|
|
57 |
|
|
|
57 |
|
|
Long bond (e) |
|
|
|
50 |
|
|
|
50 |
|
|
Cash (f) |
|
|
|
4 |
|
|
|
4 |
|
|
Total US Plans |
|
|
|
$ |
297 |
|
|
|
$ |
297 |
|
|
Non-US Plans: |
|
|
|
|
|
|
|
|
|
|
Equity index: |
|
|
|
|
|
|
|
|
|
|
US (a) |
|
|
|
$ |
38 |
|
|
|
$ |
38 |
|
|
Canada (g) |
|
|
|
38 |
|
|
|
38 |
|
|
International (b) |
|
|
|
39 |
|
|
|
39 |
|
|
Fixed income index: |
|
|
|
|
|
|
|
|
|
|
Intermediate bond (d) |
|
|
|
1 |
|
|
|
1 |
|
|
Long bond (h) |
|
|
|
85 |
|
|
|
85 |
|
|
Other (i) |
|
|
|
19 |
|
|
|
19 |
|
|
Cash (f) |
|
3 |
|
|
|
|
|
3 |
|
|
Total Non-US Plans |
|
$ |
3 |
|
$ |
220 |
|
|
|
$ |
223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) This category consists of a passively managed equity index fund that tracks the return of large capitalization US equities.
(b) This category consists of a passively managed equity index fund that tracks an index of returns on international developed market equities.
(c) This category consists of a passively managed equity index fund that tracks a US real estate equity securities index that includes equities of real estate investment trusts and real estate operating companies.
(d) This category consists of a passively managed fixed income index fund that tracks the return of intermediate duration government and investment grade corporate bonds.
(e) This category consists of a passively managed fixed income fund that tracks the return of long duration US government and investment grade corporate bonds.
(f) This category represents cash or cash equivalents.
(g) This category consists of a passively managed equity index fund that tracks the return of large and mid-sized capitalization equities traded on the Toronto Stock Exchange.
(h) This category consists of a passively managed fixed income index fund that tracks the return of the universe of Canada government and investment grade corporate bonds.
(i) This category mainly consists of investment products provided by an insurance company that offers returns that are subject to a minimum guarantee.
|
| Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made |
|
(in millions) |
|
US Plans |
|
Non-US Plans |
|
|
2014 |
|
$ |
18 |
|
$ |
15 |
|
|
2015 |
|
17 |
|
14 |
|
|
2016 |
|
17 |
|
14 |
|
|
2017 |
|
19 |
|
14 |
|
|
2018 |
|
20 |
|
15 |
|
|
Years 2019 - 2023 |
|
105 |
|
79 |
|
|
|
|
|
|
|
|
|
|
|
Postretirement Benefit Plans
|
|
| Pension and postretirement benefit plans |
|
| Schedule of funded status |
|
(in millions) |
|
2013 |
|
2012 |
|
|
Accumulated postretirement benefit obligation |
|
|
|
|
|
|
At January 1 |
|
$ |
74 |
|
$ |
54 |
|
|
Service cost |
|
3 |
|
2 |
|
|
Interest cost |
|
4 |
|
3 |
|
|
Curtailment / settlement |
|
(1 |
) |
— |
|
|
Actuarial (gain) loss |
|
(15 |
) |
17 |
|
|
Benefits paid |
|
(3 |
) |
(2 |
) |
|
Foreign currency translation |
|
(5 |
) |
— |
|
|
At December 31 |
|
$ |
57 |
|
$ |
74 |
|
|
Fair value of plan assets |
|
— |
|
— |
|
|
Funded status |
|
$ |
(57 |
) |
$ |
(74 |
) |
|
| Schedule of amounts recognized in the consolidated balance sheets |
|
(in millions) |
|
2013 |
|
2012 |
|
|
Current liabilities |
|
$ |
(2 |
) |
$ |
(2 |
) |
|
Non-current liabilities |
|
(55 |
) |
(72 |
) |
|
Net liability recognized |
|
$ |
(57 |
) |
$ |
(74 |
) |
|
| Schedule of amounts recognized in accumulated other comprehensive loss |
|
(in millions) |
|
2013 |
|
2012 |
|
|
Net actuarial loss |
|
$ |
7 |
|
$ |
26 |
|
|
Prior service cost |
|
— |
|
1 |
|
|
Net amount recognized |
|
$ |
7 |
|
$ |
27 |
|
|
| Components of Net Periodic Benefit Cost |
|
(in millions) |
|
2013 |
|
2012 |
|
2011 |
|
|
Service cost |
|
$ |
3 |
|
$ |
2 |
|
$ |
2 |
|
|
Interest cost |
|
4 |
|
3 |
|
4 |
|
|
Amortization of actuarial loss (gain) |
|
1 |
|
1 |
|
(1 |
) |
|
Amortization of prior service cost |
|
— |
|
— |
|
1 |
|
|
Settlement / curtailment |
|
— |
|
— |
|
(31 |
) |
|
Net periodic benefit cost |
|
$ |
8 |
|
$ |
6 |
|
$ |
(25 |
) |
|
| Schedule of amounts recorded in other comprehensive income and net periodic benefit cost |
|
(in millions, pre-tax) |
|
2013 |
|
|
Net actuarial gain |
|
$ |
(15 |
) |
|
Amortization of actuarial loss |
|
(1 |
) |
|
Amortization of prior service cost |
|
(1 |
) |
|
Foreign currency translation |
|
(3 |
) |
|
Total recorded in other comprehensive income |
|
(20 |
) |
|
Net periodic benefit cost |
|
8 |
|
|
Total recorded in other comprehensive income and net periodic benefit cost |
|
$ |
(12 |
) |
|
| Schedule of weighted average assumptions used to determine the company's obligations |
|
|
|
2013 |
|
2012 |
|
|
Discount rate |
|
6.47 |
% |
5.44 |
% |
|
| Schedule of weighted average assumptions used to determine the company's net periodic benefit cost |
|
|
|
2013 |
|
2012 |
|
2011 |
|
|
Discount rate |
|
5.44 |
% |
6.23 |
% |
5.69 |
% |
|
| Schedule of assumptions made in measuring the company's postretirement benefit obligation |
|
|
|
US |
|
Canada |
|
Brazil |
|
|
2014 Increase in per capita cost |
|
6.90 |
% |
7.20 |
% |
8.66 |
% |
|
Ultimate trend |
|
4.50 |
% |
4.50 |
% |
8.66 |
% |
|
Year ultimate trend reached |
|
2028 |
|
2031 |
|
2013 |
|
|
| Sensitivity to Trend Assumptions |
|
|
|
2013 |
|
|
One-percentage point increase in trend rates: |
|
|
|
|
· Increase in service cost and interest cost components |
|
$ |
1 million |
|
|
· Increase in year-end benefit obligations |
|
$ |
6 million |
|
|
|
|
|
|
|
One-percentage point decrease in trend rates: |
|
|
|
|
· Decrease in service cost and interest cost components |
|
$ |
(1 million) |
|
|
· Decrease in year-end benefit obligations |
|
$ |
(4 million) |
|
|
| Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made |
|
(in millions) |
|
|
|
|
2014 |
|
$ |
2 |
|
|
2015 |
|
3 |
|
|
2016 |
|
3 |
|
|
2017 |
|
3 |
|
|
2018 |
|
3 |
|
|
Years 2019 - 2023 |
|
$ |
21 |
|
|