PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2011

	Pension Benefits						Other Benefits
Dollars in Millions	2011		2010		2009		2011		2010		2009
Service cost — benefits earned during the year	$	43	$	44	$	178	$	8	$	6	$	6
Interest cost on projected benefit obligation		337		347		381		26		30		37
Expected return on plan assets		(464)		(453)		(453)		(26)		(24)		(19)
Amortization of prior service cost/(benefit)		(1)		-		4		(3)		(3)		(3)
Amortization of net actuarial loss		112		95		94		7		10		10
Curtailments		(3)		5		24		(1)		-		-
Settlements		15		22		29		-		-		-
Special termination benefits		-		1		-		-		-		-
Total net periodic benefit cost	$	39	$	61	$	257	$	11	$	19	$	31

Continuing operations	$	39	$	61	$	242	$	11	$	19	$	28
Discontinued operations		-		-		15		-		-		3
Total net periodic benefit cost	$	39	$	61	$	257	$	11	$	19	$	31

	Pension Benefits				Other Benefits
Dollars in Millions	2011		2010		2011		2010
Benefit obligations at beginning of year	$	6,704	$	6,386	$	589	$	579
Service cost—benefits earned during the year		43		44		8		6
Interest cost		337		347		26		30
Plan participants’ contributions		3		3		25		25
Curtailments		(3)		2		(1)		-
Settlements		(41)		(50)		(2)		-
Plan amendments		(40)		-		(1)		-
Actuarial losses		876		397		6		16
Retiree Drug Subsidy		-		-		12		10
Benefits paid		(386)		(377)		(79)		(78)
Special termination benefits		-		1		-		-
Exchange rate losses/(gains)		6		(49)		(1)		1
Benefit obligations at end of year	$	7,499	$	6,704	$	582	$	589

Fair value of plan assets at beginning of year	$	5,766	$	5,103	$	315	$	278
Actual return on plan assets		66		697		10		37
Employer contributions		432		431		24		43
Plan participants’ contributions		3		3		25		25
Settlements		(41)		(50)		(2)		-
Retiree Drug Subsidy		-		-		12		10
Benefits paid		(386)		(377)		(79)		(78)
Exchange rate gains/(losses)		2		(41)		-		-
Fair value of plan assets at end of year	$	5,842	$	5,766	$	305	$	315

Funded status	$	(1,657)	$	(938)	$	(277)	$	(274)

Assets/Liabilities recognized:
Other assets	$	39	$	37	$	-	$	-
Accrued expenses		(33)		(33)		(12)		(13)
Pension and other postretirement liabilities		(1,663)		(942)		(265)		(261)
Funded status	$	(1,657)	$	(938)	$	(277)	$	(274)

Recognized in accumulated other comprehensive loss:
Net actuarial loss	$	4,297	$	3,150	$	166	$	151
Net obligation at adoption		1		1		-		-
Prior service cost/(benefit)		(39)		-		(8)		(10)
Total	$	4,259	$	3,151	$	158	$	141

Dollars in Millions		2011		2010
Pension plans with projected benefit obligations in excess of plan assets:
	Projected benefit obligation	$	7,236	$	6,436
	Fair value of plan assets		5,540		5,461
Pension plans with accumulated benefit obligations in excess of plan assets:
	Accumulated benefit obligation	$	6,867	$	6,112
	Fair value of plan assets		5,327		5,415

	Pension Benefits		Other Benefits
	2011	2010	2011	2010
Discount rate	4.4%	5.2%	4.1%	4.8%
Rate of compensation increase	2.3%	2.4%	2.0%	2.0%

	Pension Benefits			Other Benefits
	2011	2010	2009	2011	2010	2009
Discount rate	5.2%	5.6%	6.9%	4.8%	5.5%	7.0%
Expected long-term return on plan assets	8.3%	8.3%	8.2%	8.8%	8.8%	8.8%
Rate of compensation increase	2.4%	3.7%	3.6%	2.0%	3.5%	3.5%

	2011	2010	2009
Healthcare cost trend rate assumed for next year	7.4%	7.9%	8.4%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.5%	4.5%	4.5%
Year that the rate reaches the ultimate trend rate	2018	2018	2018

	1-Percentage-		1-Percentage-
Dollars in Millions	Point Increase		Point Decrease
Effect on total of service and interest cost	$	1	$	(1)
Effect on postretirement benefit obligation		15		(11)

	December 31, 2011								December 31, 2010
Dollars in Millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Equity Funds	$	236	$	1,559	$	4	$	1,799	$	237	$	1,665	$	7	$	1,909
Equity Securities		1,679		-		-		1,679		1,752		-		-		1,752
Fixed Income Funds		203		419		-		622		181		367		-		548
Venture Capital and Limited Partnerships		-		-		408		408		-		-		415		415
Government Mortgage Backed Securities		-		372		8		380		-		391		-		391
Corporate Debt Securities		-		315		10		325		-		309		14		323
Short-Term Investment Funds		-		306		-		306		-		244		-		244
U.S. Treasury and Agency Securities		-		304		-		304		26		112		-		138
Insurance Contracts		-		-		125		125		-		-		144		144
Event Driven Hedge Funds		-		86		-		86		-		86		-		86
Collateralized Mortgage Obligation Bonds		-		63		7		70		-		87		10		97
State and Municipal Bonds		-		34		-		34		-		24		-		24
Asset Backed Securities		-		17		4		21		-		24		7		31
Real Estate		-		12		-		12		-		11		-		11
Cash and Cash Equivalents		(24)		-		-		(24)		(32)		-		-		(32)
Total plan assets at fair value	$	2,094	$	3,487	$	566	$	6,147	$	2,164	$	3,320	$	597	$	6,081