Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

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

We sponsor numerous defined benefit and defined contribution pension and other post-retirement benefit plans, primarily retiree health care, in our domestic and international operations. December 31 is the measurement date for all of our post-retirement benefit plans.



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2014			2013			2014			2013			2014			2013
Change in Benefit Obligation:
Benefit obligation, January 1	$	3,893		$	5,033		$	6,664		$	6,708		$	856		$	989
Service cost	9			10			34			91			9			9
Interest cost	281			154			272			260			36			33
Plan participants' contributions	—			—			5			6			16			14
Actuarial loss (gain)	813			(440		)	1,069			(203		)	119			(88		)
Currency exchange rate changes	—			—			(594		)	98			(13		)	(10		)
Curtailments	(7		)	—			—			(10		)	—			—
Benefits paid/settlements	(273		)	(864		)	(279		)	(264		)	(86		)	(91		)
Other	—			—			(5		)	(22		)	—			—
Benefit Obligation, December 31	$	4,716		$	3,893		$	7,166		$	6,664		$	937		$	856

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,876		$	3,573		$	5,789		$	5,431		$	—		$	—
Actual return on plan assets	398			139			899			326			—			—
Employer contribution	124			27			160			203			70			77
Plan participants' contributions	—			—			5			6			16			14
Currency exchange rate changes	—			—			(484		)	88			—			—
Benefits paid/settlements	(273		)	(864		)	(279		)	(264		)	(86		)	(91		)
Other	1			1			(2		)	(1		)	—			—
Fair Value of Plan Assets, December 31	$	3,126		$	2,876		$	6,088		$	5,789		$	—		$	—

Net Funded Status at December 31⁽¹⁾	$	(1,590	)	$	(1,017	)	$	(1,078	)	$	(875	)	$	(937	)	$	(856	)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—		$	—		$	17		$	55		$	—		$	—
Accrued compensation and benefit costs	(24		)	(25		)	(28		)	(30		)	(72		)	(71		)
Pension and other benefit liabilities	(1,566		)	(992		)	(1,040		)	(900		)	—			—
Post-retirement medical benefits	—			—			—			—			(865		)	(785		)
Discontinued Operations ⁽²⁾	—			—			(27		)	—			—			—
Net Amounts Recognized	$	(1,590	)	$	(1,017	)	$	(1,078	)	$	(875	)	$	(937	)	$	(856	)

_______________


(1)	Includes under-funded and un-funded plans.

(2)

Represents the net un-funded pension obligations related to our ITO business which is held for sale and being reported as a discontinued operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. The net pension cost associated with these plans is immaterial. Refer to Note 4 - Divestitures for additional information regarding this pending sale.

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

Benefit plans pre-tax amounts recognized in AOCL at December 31:



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2014			2013			2014			2013			2014			2013
Net actuarial loss	$	1,301		$	672		$	2,036		$	1,741		$	122		$	6
Prior service credit	(13		)	(15		)	(20		)	(20		)	(42		)	(85		)
Total Pre-tax Loss (Gain)	$	1,288		$	657		$	2,016		$	1,721		$	80		$	(79	)

Accumulated Benefit Obligation	$	4,716		$	3,887		$	6,883		$	6,368

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

Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below:



	December 31, 2014						December 31, 2013
	Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets		Projected benefit obligation		Accumulated benefit obligation		Fair value of plan assets
Underfunded Plans:
U.S.	$	4,351	$	4,351	$	3,126	$	3,571	$	3,565	$	2,876
Non U.S.	6,376		6,125		5,848		5,350		5,104		4,964

Unfunded Plans:
U.S.	$	365	$	365	$	—	$	322	$	322	$	—
Non U.S.	567		551		—		540		526		—

Total Underfunded and Unfunded Plans:
U.S.	$	4,716	$	4,716	$	3,126	$	3,893	$	3,887	$	2,876
Non U.S.	6,943		6,676		5,848		5,890		5,630		4,964
Total	$	11,659	$	11,392	$	8,974	$	9,783	$	9,517	$	7,840

Schedule of Defined Benefit Pension Assets and Obligations by Geography

Our pension plan assets and benefit obligations at December 31, 2014 were as follows:



(in billions)	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	3.1	$	4.4	$	(1.3	)
U.S. unfunded	—		0.3		(0.3		)
Total U.S.	$	3.1	$	4.7	$	(1.6	)
U.K.	3.9		4.2		(0.3		)
Canada	0.8		0.9		(0.1		)
Other funded	1.4		1.6		(0.2		)
Other unfunded	—		0.5		(0.5		)
Total	$	9.2	$	11.9	$	(2.7	)

Schedule of Components of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations

The components of Net periodic benefit cost and other changes in plan assets and benefit obligations were as follows:



	Year Ended December 31,
	Pension Benefits
	U.S. Plans									Non-U.S. Plans									Retiree Health
	2014			2013			2012			2014			2013			2012			2014			2013			2012
Components of Net Periodic Benefit Costs:
Service cost	$	9		$	10		$	112		$	34		$	91		$	83		$	9		$	9		$	9
Interest cost⁽¹⁾	281			154			282			272			260			270			36			33			42
Expected return on plan assets⁽²⁾	(290		)	(179		)	(306		)	(342		)	(317		)	(307		)	—			—			—
Recognized net actuarial loss	17			19			53			54			77			53			1			2			1
Amortization of prior service credit	(2		)	(2		)	(23		)	(1		)	—			—			(43		)	(43		)	(41		)
Recognized settlement loss	51			162			82			—			—			1			—			—			—
Recognized curtailment gain	—			—			—			(1		)	(8		)	—			—			—			—
Defined Benefit Plans	66			164			200			16			103			100			3			1			11
Defined contribution plans ⁽³⁾	58			64			28			44			25			33			n/a			n/a			n/a
Net Periodic Benefit Cost	124			228			228			60			128			133			3			1			11

Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial loss (gain)	697			(403		)	427			481			(224		)	416			119			(88		)	18
Prior service credit	—			—			(2		)	(6		)	(14		)	(1		)	—			—			(6		)
Amortization of net actuarial loss	(68		)	(181		)	(135		)	(54		)	(77		)	(54		)	(1		)	(2		)	(1		)
Amortization of net prior service credit	2			2			23			1			—			—			43			43			41
Curtailment gain	—			—			—			2			—			—			n/a			n/a			n/a
Total Recognized in Other Comprehensive Income	631			(582		)	313			424			(315		)	361			161			(47		)	52
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	755		$	(354	)	$	541		$	484		$	(187	)	$	494		$	164		$	(46	)	$	63

_______________


(1)	Interest cost includes interest expense on non-TRA obligations of $371, $349 and $382 and interest expense directly allocated to TRA participant accounts of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively.


(2)	Expected return on plan assets includes expected investment income on non-TRA assets of $450, $431 and $443 and actual investment income on TRA assets of $182, $65 and $170 for the years ended December 31, 2014, 2013 and 2012, respectively.


(3)	Excludes contributions related to our ITO business, which is held for sale and reported as a discontinued operation at December 31, 2014. Refer to Note 4 - Divestitures for additional information regarding this pending sale.

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables presents the defined benefit plans assets measured at fair value and the basis for that measurement:



	December 31, 2014
	U.S. Plans													Non-U.S. Plans
Asset Class	Level 1			Level 2			Level 3		Total			%		Level 1		Level 2			Level 3		Total			%
Cash and cash equivalents	$	52		$	—		$	—	$	52		2	%	$	608	$	—		$	—	$	608		10	%
Equity Securities:
U.S. large cap	332			15			—		347			11	%	253		52			—		305			5	%
U.S. mid cap	73			—			—		73			2	%	10		—			—		10			—	%
U.S. small cap	52			39			—		91			3	%	28		—			—		28			—	%
International developed	195			92			—		287			9	%	1,065		162			—		1,227			20	%
Emerging markets	140			113			—		253			8	%	276		69			—		345			6	%
Global Equity	2			7			—		9			—	%	4		6			—		10			—	%
Total Equity Securities	794			266			—		1,060			33	%	1,636		289			—		1,925			31	%
Fixed Income Securities:
U.S. treasury securities	—			145			—		145			5	%	7		26			—		33			1	%
Debt security issued by government agency	—			225			—		225			7	%	25		1,536			—		1,561			26	%
Corporate bonds	—			988			—		988			32	%	23		850			—		873			15	%
Asset backed securities	—			10			—		10			—	%	—		1			—		1			—	%
Total Fixed Income Securities	—			1,368			—		1,368			44	%	55		2,413			—		2,468			42	%
Derivatives:
Interest rate contracts	—			(1		)	—		(1		)	—	%	—		128			—		128			2	%
Foreign exchange contracts	—			1			—		1			—	%	—		(5		)	—		(5		)	—	%
Equity contracts	—			—			—		—			—	%	—		—			—		—			—	%
Other contracts	—			—			—		—			—	%	—		14			—		14			—	%
Total Derivatives	—			—			—		—			—	%	—		137			—		137			2	%
Real estate	46			39			25		110			4	%	—		29			279		308			5	%
Private equity/venture capital	—			—			497		497			16	%	—		—			499		499			8	%
Guaranteed insurance contracts	—			—			—		—			—	%	—		—			129		129			2	%
Other⁽¹⁾	(1		)	40			—		39			1	%	6		8			—		14			—	%
Total Fair Value of Plan Assets	$	891		$	1,713		$	522	$	3,126		100	%	$	2,305	$	2,876		$	907	$	6,088		100	%

_____________________________


(1)	Other Level 1 assets include net non-financial assets of $(1) U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses.



	December 31, 2013
	U.S. Plans												Non-U.S. Plans
Asset Class	Level 1		Level 2			Level 3		Total			%		Level 1		Level 2		Level 3		Total		%
Cash and cash equivalents	$	48	$	—		$	—	$	48		1	%	$	688	$	—	$	—	$	688	12	%
Equity Securities:
U.S. large cap	319		13			—		332			12	%	220		55		—		275		5	%
U.S. mid cap	71		—			—		71			2	%	13		—		—		13		—	%
U.S. small cap	48		46			—		94			3	%	40		—		—		40		1	%
International developed	182		123			—		305			11	%	1,314		212		—		1,526		26	%
Emerging markets	171		69			—		240			8	%	262		76		—		338		6	%
Global Equity	2		7			—		9			—	%	5		—		—		5		—	%
Total Equity Securities	793		258			—		1,051			36	%	1,854		343		—		2,197		38	%
Fixed Income Securities:
U.S. treasury securities	—		74			—		74			3	%	4		16		—		20		—	%
Debt security issued by government agency	—		180			—		180			6	%	31		1,189		—		1,220		21	%
Corporate bonds	—		908			—		908			32	%	146		660		—		806		14	%
Asset backed securities	—		10			—		10			—	%	—		1		—		1		—	%
Total Fixed Income Securities	—		1,172			—		1,172			41	%	181		1,866		—		2,047		35	%
Derivatives:
Interest rate contracts	—		(17		)	—		(17		)	(1	)%	—		62		—		62		1	%
Foreign exchange contracts	—		(12		)	—		(12		)	—	%	14		30		—		44		1	%
Equity contracts	—		—			—		—			—	%	—		—		—		—		—	%
Other contracts	—		—			—		—			—	%	62		—		—		62		1	%
Total Derivatives	—		(29		)	—		(29		)	(1	)%	76		92		—		168		3	%
Real estate	40		34			29		103			4	%	32		35		269		336		6	%
Private equity/venture capital	—		—			451		451			16	%	—		—		212		212		4	%
Guaranteed insurance contracts	—		—			—		—			—	%	—		—		135		135		2	%
Other⁽¹⁾	10		70			—		80			3	%	6		—		—		6		—	%
Total Fair Value of Plan Assets	$	891	$	1,505		$	480	$	2,876		100	%	$	2,837	$	2,336	$	616	$	5,789	100	%

_____________________________


(1)	Other Level 1 assets include net non-financial liabilities of $9 U.S. and $6 Non-U.S., such as due to/from broker, interest receivables and accrued expenses.

The following tables represents a roll-forward of the defined benefit plans assets measured using significant unobservable inputs (Level 3 assets):



	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	U.S. Defined Benefit Plans Assets									Non-U.S. Defined Benefit Plans Assets
	Real Estate			Private Equity/Venture Capital			Total			Real Estate			Private Equity/Venture Capital			Guaranteed Insurance Contracts			Total
Balance at December 31, 2012	$	58		$	300		$	358		$	332		$	3		$	131		$	466
Purchases	1			177			178			64			193			3			260
Sales	(36		)	(59		)	(95		)	(128		)	—			(5		)	(133		)
Net transfers in from Level 1	—			—			—			—			—			(1		)	(1		)
Realized gains (losses)	24			46			70			17			2			4			23
Unrealized gains (losses)	(18		)	(13		)	(31		)	(21		)	2			(2		)	(21		)
Currency translation	—			—			—			5			12			5			22
Balance at December 31, 2013	29			451			480			269			212			135			616
Purchases	1			44			45			74			279			22			375
Sales	(6		)	(59		)	(65		)	(64		)	—			(25		)	(89		)
Realized gains (losses)	(7		)	41			34			20			—			15			35
Unrealized gains (losses)	8			20			28			(1		)	38			—			37
Currency translation	—			—			—			(19		)	(30		)	(18		)	(67		)
Balance at December 31, 2014	$	25		$	497		$	522		$	279		$	499		$	129		$	907

Schedule of Allocation of Plan Assets

The target asset allocations for our worldwide defined benefit pension plans were:



	2014		2013
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	33%	34%	36%	41%
Fixed income investments	43%	47%	44%	47%
Real estate	8%	9%	5%	9%
Private equity	9%	6%	14%	—%
Other	7%	4%	1%	3%
Total Investment Strategy	100%	100%	100%	100%

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years:



	Pension Benefits
	U.S.		Non-U.S.		Total		Retiree Health
2015	$	643	$	251	$	894	$	71
2016	343		252		595		70
2017	336		261		597		70
2018	333		269		602		69
2019	326		279		605		68
Years 2020-2023	1,681		1,539		3,220		323

Schedule of Assumptions Used

Weighted-average assumptions used to determine benefit obligations at the plan measurement dates:



	Pension Benefits
	2014				2013				2012
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.9	%	3.1	%	4.8	%	4.2	%	3.7	%	4.0	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%



	Retiree Health
	2014		2013		2012
Discount rate	3.8	%	4.5	%	3.6	%

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:



	Pension Benefits
	2015				2014				2013				2012
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.9	%	3.1	%	4.8	%	4.2	%	3.7	%	4.0	%	4.8	%	4.6	%
Expected return on plan assets	7.5	%	5.2	%	7.8	%	6.1	%	7.8	%	6.1	%	7.8	%	6.2	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%	3.5	%	2.7	%



	Retiree Health
	2015		2014		2013		2012
Discount rate	3.8	%	4.5	%	3.6	%	4.5	%

_____________________________

Note: Expected return on plan assets is not applicable to retiree health benefits as these plans are not funded. Rate of compensation increase is not applicable to retiree health benefits as compensation levels do not impact earned benefits.

Schedule of Health Care Cost Trend Rates

Assumed health care cost trend rates were as follows:



	December 31,
	2014		2013
Health care cost trend rate assumed for next year	7.0	%	7.2	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.9	%	4.9	%
Year that the rate reaches the ultimate trend rate	2023		2023

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:



	1% increase		1% decrease
Effect on total service and interest cost components	$	1	$	(1	)
Effect on post-retirement benefit obligation	46		(39		)