Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Pension Plans

Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans

The projected benefit obligations, plan assets and funded status of our pension plans at December 31, 2013 and 2012 were:

	U.S. Plans						Non-U.S. Plans
	2013			2012			2013			2012
	(in millions)
Benefit obligation at January 1	$	1,389		$	7,472		$	9,786		$	9,581
Service cost		71			142			172			172
Interest cost		60			275			358			425
Benefits paid		(14	)		(241	)		(420	)		(459	)
Settlements paid		(59	)		(211	)		–			–
Actuarial (gains) / losses		(182	)		1,157			(184	)		1,060
Spin-Off impact		–			(7,207	)		–			(1,387	)
Currency		–			–			183			350
Other		1			2			25			44
Benefit obligation at December 31		1,266			1,389			9,920			9,786
Fair value of plan assets at January 1		903			5,829			7,381			7,600
Actual return on plan assets		111			663			675			684
Contributions		178			349			350			353
Benefits paid		(14	)		(241	)		(420	)		(459	)
Settlements paid		(59	)		(211	)		–			–
Spin-Off impact		–			(5,486	)		–			(1,064	)
Currency		–			–			136			267
Other		(1	)		–			–			–
Fair value of plan assets at December 31		1,118			903			8,122			7,381
Net pension liability recognized at December 31	$	(148	)	$	(486	)	$	(1,798	)	$	(2,405	)

Pension Plans Resulted in Net Pension Liability

We recognized these amounts in our consolidated balance sheets at December 31, 2013 and 2012 as follows:

	2013			2012
	(in millions)
Prepaid pension assets	$	54		$	18
Other accrued liabilities		(38	)		(24	)
Accrued pension costs		(1,962	)		(2,885	)
	$	(1,946	)	$	(2,891	)

Projected Benefit Obligations, Accumulated Benefit Obligations and Fair Value of Plan Assets

For these plans, the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets at December 31, 2013 and 2012 were:

	U.S. Plans				Non-U.S. Plans
	2013		2012		2013		2012
	(in millions)
Projected benefit obligation	$	86	$	1,389	$	8,379	$	9,539
Accumulated benefit obligation		73		1,218		8,197		9,230
Fair value of plan assets		2		903		6,571		7,119

Components of Net Costs

Net pension cost consisted of the following for the years ended December 31, 2013, 2012, and 2011:

	U.S. Plans									Non-U.S. Plans
	2013			2012			2011			2013			2012			2011
	(in millions)
Service cost	$	71		$	142		$	146		$	172		$	172		$	170
Interest cost		60			275			364			358			425			458
Expected return on plan assets		(67	)		(358	)		(496	)		(435	)		(494	)		(536	)
Amortization:
Net loss from experience differences		55			253			225			136			121			101
Prior service cost		2			6			7			1			3			2
Other expenses		1			113			105			3			22			14
Net pension costs related to discontinued operations		–			(263	)		(233	)		–			(29	)		(29	)
Net pension cost included in continuing operations	$	122		$	168		$	118		$	235		$	220		$	180

Fair Values of Pension Plan Assets

The fair value of pension plan assets at December 31, 2013 was determined using the following fair value measurements:

Asset Category	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
U.S. equity securities	$	104	$	104	$	–	$	–
Non-U.S. equity securities		665		665		–		–
Pooled funds-equity securities		2,571		799		1,772		–
Total equity securities		3,340		1,568		1,772		–
Government bonds		1,560		308		1,252		–
Pooled funds-fixed-income securities		1,176		311		850		15
Corporate bonds and other fixed-income securities		1,350		108		462		780
Total fixed-income securities		4,086		727		2,564		795
Real estate		381		110		4		267
Hedge funds		820		–		–		820
Private equity		227		–		–		227
Cash		251		251		–		–
Other		54		–		54		–
Total	$	9,159	$	2,656	$	4,394	$	2,109

The fair value of pension plan assets at December 31, 2012 was determined using the following fair value measurements:

Asset Category	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
U.S. equity securities	$	186	$	185	$	1	$	–
Non-U.S. equity securities		932		932		–		–
Pooled funds-equity securities		1,673		590		1,083		–
Total equity securities		2,791		1,707		1,084		–
Government bonds		1,440		209		1,231		–
Pooled funds-fixed-income securities		963		285		668		10
Corporate bonds and other fixed-income securities		1,969		210		965		794
Total fixed-income securities		4,372		704		2,864		804
Real estate		342		97		6		239
Hedge funds		263		–		–		263
Private equity		210		–		–		210
Cash		210		210		–		–
Other		17		–		17		–
Total	$	8,205	$	2,718	$	3,971	$	1,516

The percentage of fair value of pension plan assets at December 31, 2013 and 2012 was:

	U.S. Plans				Non-U.S. Plans
Asset Category	2013		2012		2013		2012
Equity securities		53%		57%		34%		31%
Fixed-income securities		44%		40%		45%		54%
Real estate		3%		3%		4%		4%
Hedge funds		–		–		10%		4%
Private equity		–		–		3%		3%
Cash		–		–		3%		3%
Other		–		–		1%		1%
Total		100%		100%		100%		100%

Schedule of Changes in Level 3 Plan Assets

Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings / (losses), for the year ended December 31, 2013 included:

Asset Category	January 1, 2013 Balance		Net Realized and Unrealized Gains/(Losses)			Net Purchases, Issuances and Settlements			Net Transfers Into/(Out of) Level 3			Currency Impact		December 31, 2013 Balance
	(in millions)
Pooled funds- fixed-income securities	$	10	$	(1	)	$	2		$	4		$	–	$	15
Corporate bond and other fixed-income securities		794		17			(48	)		(1	)		18		780
Real estate		239		10			12			–			6		267
Hedge funds		263		(11	)		535			–			33		820
Private equity		210		15			(4	)		–			6		227
Total Level 3 investments	$	1,516	$	30		$	497		$	3		$	63	$	2,109

The increases in Level 3 pension plan investments during 2013 were primarily due to net purchases in hedge funds.

Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings / (losses), for the year ended December 31, 2012 included:

Asset Category	January 1, 2012 Balance		Net Realized and Unrealized Gains/(Losses)			Net Purchases, Issuances and Settlements			Net Transfers Into/(Out of) Level 3			Currency Impact		December 31, 2012 Balance
	(in millions)
Pooled funds- fixed-income securities	$	7	$	–		$	–		$	3		$	–	$	10
Corporate bond and other fixed-income securities		758		61			(52	)		(3	)		30		794
Real estate		255		9			149			(181	)		7		239
Hedge funds		188		78			(12	)		–			9		263
Private equity		197		4			2			(1	)		8		210
Other		6		(6	)		–			–			–		–
Total Level 3 investments	$	1,411	$	146		$	87		$	(182	)	$	54	$	1,516

Estimated Future Benefit Payments

The estimated future benefit payments from our pension plans at December 31, 2013 were (in millions):

Year ending:	2014		2015		2016		2017		2018		2019-2023
U.S. Plans	$	71	$	72	$	83	$	95	$	105	$	597
Non-U.S. Plans	$	409	$	410	$	416	$	435	$	441	$	2,383

Schedule of Individually Significant Multiemployer Pension Plan

The following is the only individually significant multiemployer plan we participate in as of December 31, 2013:

									Expiration Date
			Pension		FIP / RP				of Collective-
	EIN / Pension		Protection Act		Status Pending /		Surcharge		Bargaining
Pension Fund	Plan Number		Zone Status		Implemented		Imposed		Agreements
Bakery and Confectionery Union and Industry International Pension Fund		526118572		Red		Implemented		Yes		2/29/2016

Pension Plans | Benefit Obligation

Weighted Average Assumptions

We used the following weighted-average assumptions to determine our benefit obligations under the pension plans at December 31:

	U.S. Plans				Non-U.S. Plans
	2013		2012		2013		2012
Discount rate		5.10%		4.20%		4.00%		3.81%
Expected rate of return on plan assets		7.75%		7.75%		6.18%		6.08%
Rate of compensation increase		4.00%		4.00%		3.61%		3.47%

Pension Plans | Net Pension Cost

Weighted Average Assumptions

We used the following weighted-average assumptions to determine our net pension cost for the years ended December 31:

	U.S. Plans						Non-U.S. Plans
	2013		2012		2011		2013		2012		2011
Discount rate		4.20%		4.56%		5.53%		3.81%		4.62%		5.11%
Expected rate of return on plan assets		7.75%		8.00%		7.95%		6.08%		6.47%		6.77%
Rate of compensation increase		4.00%		4.00%		4.00%		3.47%		3.58%		3.68%

Postretirement Benefit Plans

Weighted Average Assumptions

We used the following weighted-average assumptions to determine our net postretirement cost for the years ended December 31:

	U.S. Plans			Non-U.S. Plans
	2013	2012	2011	2013	2012	2011
Discount rate	4.20%	4.47%	5.30%	4.39%	4.14%	5.02%
Health care cost trend rate	7.50%	7.00%	7.50%	6.47%	6.21%	7.62%

Components of Net Costs

Net postretirement health care costs consisted of the following for the years ended December 31, 2013, 2012 and 2011:

	2013			2012			2011
	(in millions)
Service cost	$	15		$	35		$	36
Interest cost		20			121			165
Amortization:
Net loss from experience differences		12			65			60
Prior service credit		(12	)		(31	)		(32	)
Other(1)		–			29			–
Net postretirement health care costs related to discontinued operations		–			(135	)		(163	)
Net postretirement health care costs included within continuing operations	$	35		$	84		$	66

(1) In 2012, we recorded a $23 million unfunded U.S. postretirement plan obligation related to long-term disability benefits.

Estimated Future Benefit Payments

Our estimated future benefit payments for our postretirement health care plans at December 31, 2013 were (in millions):

Year ending:	2014	2015	2016	2017	2018	2019-2023
U.S. Plans	$5	$7	$8	$10	$12	$84
Non-U.S. Plans	$5	$5	$5	$5	$5	$30

Benefit Obligation of Postretirement Benefit Plans

The changes in and the amount of the accrued benefit obligation at December 31, 2013 and 2012 were:

	2013			2012
	(in millions)
Accrued benefit obligation at January 1	$	458		$	3,453
Service cost		15			35
Interest cost		20			121
Benefits paid		(7	)		(142	)
Plan amendments		(3	)		(51	)
Currency		(7	)		8
Assumption changes		(56	)		519
Actuarial (gains) / losses		(4	)		47
Impact of Spin-Off		–			(3,561	)
Other		6			29
Accrued benefit obligation at December 31	$	422		$	458

Weighted-Average Assumptions to Determine Benefit Obligations

We used the following weighted-average assumptions to determine our postretirement benefit obligations at December 31:

	U.S. Plans				Non-U.S. Plans
	2013		2012		2013		2012
Discount rate		5.10%		4.20%		4.81%		4.08%
Health care cost trend rate assumed for next year		7.00%		7.50%		4.76%		6.47%
Ultimate trend rate		5.00%		5.00%		5.54%		5.36%
Year that the rate reaches the ultimate trend rate		2018		2018		2019		2018

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

A one-percentage-point change in assumed health care cost trend rates would have the following effects as of December 31, 2013:

	One-Percentage-Point
	Increase		Decrease
	(in millions)
Effect on postretirement benefit obligation	$	66	$	(53	)
Effect on annual service and interest cost	$	6	$	(5	)

Changes in Accumulated Postemployment Benefit Obligations

Our postemployment plans are primarily not funded. The changes in and the amount of the accrued benefit obligation at December 31, 2013 and 2012 were:

	2013			2012
	(in millions)
Accrued benefit obligation at January 1	$	100		$	166
Service cost		8			12
Interest cost		5			8
Benefits paid		(21	)		(44	)
Assumption changes		(2	)		7
Actuarial losses		13			14
Spin-Off Impact		–			(63	)
Accrued benefit obligation at December 31	$	103		$	100

Postemployment Benefit Plans

Components of Net Costs

Net postemployment costs consisted of the following for the years ended December 31, 2013, 2012 and 2011:

	2013			2012			2011
	(in millions)
Service cost	$	8		$	12		$	11
Interest cost		5			8			9
Amortization of net (gains) / losses		(1	)		(3	)		(2	)
Other		(1	)		3			33
Net postemployment costs related to discontinued operations		–			(5	)		(2	)
Net postemployment costs included in continuing operations	$	11		$	15		$	49