Pension and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Obligations and Funded Status at End of Year



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2014			2013			2014			2013			2014			2013
Funded status
Fair value of plan assets	$	3,042		$	2,835		$	640		$	206		$	—		$	—
Benefit obligations	3,796			3,546			1,026			439			502			509
Funded status	$	(754	)	$	(711	)	$	(386	)	$	(233	)	$	(502	)	$	(509	)
Amounts recognized in the consolidated balance sheet
Noncurrent asset	$	—		$	—		$	8		$	7		$	—		$	—
Current liability	(9		)	(7		)	(16		)	(14		)	(56		)	(51		)
Noncurrent liability	(745		)	(704		)	(378		)	(226		)	(446		)	(458		)
Amount recognized	$	(754	)	$	(711	)	$	(386	)	$	(233	)	$	(502	)	$	(509	)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
Net actuarial loss	$	1,368		$	1,215		$	118		$	98		$	53		$	42
Prior service (credit) cost	(14		)	(17		)	—			3			(120		)	(169		)
Amount recognized	$	1,354		$	1,198		$	118		$	101		$	(67	)	$	(127	)

Change in Benefit Obligation



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2014			2013			2014			2013			2014			2013
Benefit obligation, beginning of year	$	3,546		$	4,196		$	439		$	448		$	509		$	477
Service cost	2			2			5			6			3			4
Interest cost	167			162			22			17			24			18
Plan participants’ contributions	—			—			1			1			7			8
Actuarial loss (gain)	384			(420		)	59			(7		)	9			(31		)
Benefits paid	(303		)	(281		)	(24		)	(23		)	(60		)	(68		)
Plan amendments	—			—			(3		)	—			14			2
Acquisitions(1)	—			—			610			—			—			—
Transfer of benefits	—			(105		)	—			—			—			105
Settlements / curtailment (gain)	—			(8		)	(15		)	(6		)	—			—
Foreign currency exchange rates	—			—			(68		)	3			(4		)	(6		)
Benefit obligation, end of year	$	3,796		$	3,546		$	1,026		$	439		$	502		$	509
Accumulated benefit obligation, end of year	$	3,786		$	3,536		$	964		$	424		N/A			N/A

⁽¹⁾ Pension obligation acquired through acquisition of Indesit

Change in Plan Assets



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2014			2013			2014			2013			2014			2013
Fair value of plan assets, beginning of year	$	2,835		$	2,790		$	206		$	197		$	—		$	—
Actual return on plan assets	381			207			33			13			—			—
Employer contribution	129			127			30			24			53			60
Plan participants’ contributions	—			—			1			1			7			8
Benefits paid	(303		)	(281		)	(24		)	(23		)	(60		)	(68		)
Acquisitions(1)	—			—			437			—			—			—
New Plans	—			—			—			2			—			—
Settlements	—			(8		)	(10		)	(6		)	—			—
Foreign currency exchange rates	—			—			(33		)	(2		)	—			—
Fair value of plan assets, end of year	$	3,042		$	2,835		$	640		$	206		$	—		$	—

⁽¹⁾ Pension assets acquired through acquisition of Indesit

Components of Net Periodic Benefit Cost



	United States Pension Benefits									Foreign Pension Benefits									Other Postretirement Benefits
Millions of dollars	2014			2013			2012			2014			2013			2012			2014			2013			2012
Service cost	$	2		$	2		$	2		$	5		$	6		$	6		$	3		$	4		$	5
Interest cost	167			162			178			22			17			20			24			18			21
Expected return on plan assets	(193		)	(191		)	(194		)	(16		)	(10		)	(11		)	—			—			—
Amortization:
Actuarial loss	43			62			46			5			6			4			—			1			1
Prior service cost (credit)	(3		)	(3		)	(3		)	1			1			1			(36		)	(39		)	(42		)
Curtailment gain	—			—			—			—			—			—			—			—			(52		)
Settlement loss	—			3			5			4			1			3			—			—			—
Net periodic benefit cost	$	16		$	35		$	34		$	21		$	21		$	23		$	(9	)	$	(16	)	$	(67	)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2012

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2014



Millions of dollars	United States Pension Benefits			Foreign Pension Benefits			Other Postretirement Benefits
Current year actuarial loss	$	196		$	36		$	10
Actuarial (loss) recognized during the year	(43		)	(15		)	—
Current year prior service cost (credit)	—			(3		)	14
Prior service credit (cost) recognized during the year	3			(1		)	36
Total recognized in other comprehensive loss (pre-tax)	$	156		$	17		$	60
Total recognized in net periodic benefit costs and other comprehensive loss (pre-tax)	$	172		$	38		$	51

Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2013

Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2015



Millions of dollars	United States Pension Benefits			Foreign Pension Benefits		Other Postretirement Benefits
Actuarial loss	$	53		$	6	$	—
Prior service (credit)	(3		)	—		(35		)
Total	$	50		$	6	$	(35	)

Weighted-average assumptions used to determine benefit obligation at the end of the year and net periodic cost

Weighted-Average Assumptions used to Determine Benefit Obligation at End of Year



	United States Pension Benefits				Foreign Pension Benefits				Other Postretirement Benefits
	2014		2013		2014		2013		2014		2013
Discount rate	4.05	%	4.95	%	3.32	%	4.16	%	4.27	%	4.95	%
Rate of compensation increase	4.50	%	4.50	%	3.23	%	3.40	%	N/A		N/A

Weighted-Average Assumptions used to Determine Net Periodic Cost



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2014		2013		2012		2014		2013		2012		2014		2013		2012
Discount rate	4.95	%	4.05	%	4.80	%	3.89	%	3.93	%	5.04	%	5.25	%	4.03	%	5.03	%
Expected long-term rate of return on plan assets	7.25	%	7.50	%	7.50	%	5.44	%	5.40	%	5.44	%	N/A		N/A		N/A
Rate of compensation increase	4.50	%	4.50	%	4.50	%	3.35	%	3.51	%	3.48	%	N/A		N/A		N/A
Health care cost trend rate
Initial rate	N/A		N/A		N/A		N/A		N/A		N/A		7.00	%	7.00	%	8.00	%
Ultimate rate	N/A		N/A		N/A		N/A		N/A		N/A		5.00	%	5.00	%	5.00	%
Year that ultimate rate will be reached	N/A		N/A		N/A		N/A		N/A		N/A		2017		2017		2015

Estimated impact of one percentage-point change in assumed health care cost trend rate

A one percentage point change in assumed health care cost trend rates would have the following effects on our health care plan:



Millions of dollars	One Percentage Point Increase		One Percentage Point Decrease
Effect on total of service and interest cost	$	—	$	—
Effect on postretirement benefit obligations	4		(4		)

Expected Employer Contributions to Funded Plans



Millions of dollars	United States Pension Benefits⁽¹⁾		Foreign Pension Benefits
2015	$	80	$	18

⁽¹⁾ Contributions include $80 million of minimum contributions required by law.

Expected Benefit Payments



Millions of dollars	United States Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
2015	$	278	$	49	$	56
2016	253		38		49
2017	250		41		48
2018	249		41		44
2019	252		44		41
2020-2024	1,219		216		171

Schedule of Allocation of Plan Assets

The fair values of our pension plan assets at December 31, 2014 and 2013, by asset category were as follows:



	December 31,
	Quoted prices (Level 1)				Other significant observable inputs (Level 2)				Significant unobservable inputs (Level 3)				Total
Millions of dollars	2014		2013		2014		2013		2014		2013		2014		2013
Cash and equivalents	$	29	$	23	$	—	$	—	$	—	$	—	$	29	$	23
Government and government agency securities^(a)
U.S. securities	—		—		579		432		—		—		579		432
International securities	—		—		253		131		—		—		253		131
Corporate bonds and notes ^(a)
U.S. companies	—		—		1,000		850		—		—		1,000		850
International companies	—		—		321		193		—		—		321		193
Equity securities ^(b)
U.S. companies	12		12		—		—		—		—		12		12
International companies	427		223		—		—		—		—		427		223
Mutual funds ^(c)	67		77		—		—		—		—		67		77
Common and collective funds ^(d)
U.S. equity securities	—		—		651		718		—		—		651		718
International equity securities	—		—		66		79		—		—		66		79
Short-term investment fund	—		—		63		87		—		—		63		87
Limited partnerships ^(e)
U.S. private equity investments	—		—		—		—		140		145		140		145
Diversified fund of funds	—		—		—		—		32		35		32		35
Emerging growth	—		—		—		—		23		18		23		18
Real estate ^(f)	—		—		10		11		—		—		10		11
All other investments	—		—		9		7		—		—		9		7
	$	535	$	335	$	2,952	$	2,508	$	195	$	198	$	3,682	$	3,041


(a)	Valued using pricing vendors who use proprietary models to estimate the price a dealer would pay to buy a security using significant observable inputs, such as interest rates, yield curves, and credit risk.


(b)	Valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year.


(c)	Valued using the net asset value (NAV) of the fund, which is based on the fair value of underlying securities. The fund primarily invests in a diversified portfolio of equity securities issued by non-U.S. companies.


(d)	Valued using the NAV of the fund, which is based on the fair value of underlying securities.


(e)	Valued at estimated fair value based on the proportionate share of the limited partnership's fair value, as determined by the general partner.


(f)	Valued using the NAV of the fund, which is based on the fair value of underlying assets.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)



Millions of dollars	Limited Partnerships
Balance, December 31, 2013	$	198
Realized gains (net)	23
Unrealized gains (net)	11
Purchases	9
Settlements	(46		)
Balance, December 31, 2014	$	195

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2014 and 2013 were as follows:



	United States Pension Benefits				Foreign Pension Benefits
Millions of dollars	2014		2013		2014		2013
Projected benefit obligation	$	3,796	$	3,546	$	872	$	397
Fair value of plan assets	3,042		2,835		487		157

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2014 and 2013 were as follows:



	United States Pension Benefits				Foreign Pension Benefits
Millions of dollars	2014		2013		2014		2013
Projected benefit obligation	$	3,796	$	3,546	$	872	$	347
Accumulated benefit obligation	3,786		3,536		825		340
Fair value of plan assets	3,042		2,835		487		110