PENSION AND POSTRETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits [Text Block]

PENSION AND POSTRETIREMENT BENEFIT PLANS

The net periodic benefit cost of defined benefit pension and postretirement benefit plans includes:

	Three Months Ended June 30,												Six Months Ended June 30,
	Pension Benefits						Other Benefits						Pension Benefits						Other Benefits
Dollars in Millions	2013			2012			2013			2012			2013			2012			2013			2012
Service cost – benefits earned during the year	$	9		$	7		$	2		$	2		$	19		$	17		$	3		$	4
Interest cost on projected benefit obligation	75			79			4			5			149			158			7			11
Expected return on plan assets	(131		)	(126		)	(7		)	(6		)	(263		)	(252		)	(13		)	(13		)
Amortization of prior service cost/(benefit)	(1		)	(1		)	(1		)	—			(2		)	(1		)	(1		)	(1		)
Amortization of net actuarial loss	37			32			—			2			75			65			—			6
Settlements	101			—			—			—			101			—			—			—
Net periodic (benefit)/cost	$	90		$	(9	)	$	(2	)	$	3		$	79		$	(13	)	$	(4	)	$	7

Pension settlement charges of $101 million were recognized in the second quarter of 2013 after determining that the annual lump sum payments will exceed the annual interest and service costs for certain pension plans, including the primary U.S. pension plan. The charge included the acceleration of a portion of unrecognized actuarial losses. The applicable pension benefit obligation and pension plan assets were remeasured as of June 30, 2013 resulting in a decrease in pension liabilities and a corresponding credit to other comprehensive income of $935 million ($605 million net of taxes). The weighted average discount rate assumed in remeasuring the pension benefit obligations was 4.5%.

Contributions to the U.S. pension plans are expected to approximate $185 million during 2013, of which $170 million was contributed in the six months ended June 30, 2013. Contributions to the international plans are expected to range from $60 million to $70 million in 2013, of which $46 million was contributed in the six months ended June 30, 2013.

The expense attributed to defined contribution plans in the U.S. was $43 million and $48 million for the three months ended June 30, 2013 and 2012, respectively and $90 million and $96 million for the six months ended June 30, 2013 and 2012, respectively.