Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Employee Benefits

Schedule of estimated future benefit payments

The estimated benefit payments provided below are based on actuarial assumptions using the demographics of the employee and retiree populations and have been reduced by estimated participant contributions.

	Pension Plans		Post-Retirement Benefit Plans	Medicare Part D Subsidy Receipts
	(Dollars in millions)
Estimated future benefit payments:
2015	$	1,061	309	(7	)
2016	1,011		300	(7	)
2017	996		292	(7	)
2018	980		285	(7	)
2019	965		279	(7	)
2020 - 2024	4,568		1,276	(31	)

Schedule of actuarial assumptions used to compute net periodic benefit expense

The actuarial assumptions used to compute the net periodic benefit expense for our qualified pension, non-qualified pension and post-retirement benefit plans are based upon information available as of the beginning of the year, as presented in the following table.

	Pension Plans						Post-Retirement Benefit Plans
	2014		2013		2012		2014		2013		2012
Actuarial assumptions at beginning of year:
Discount rate	4.20% - 5.10%		3.50% - 4.20%		4.25% - 5.10%		4.50	%	3.60	%	4.60% - 4.80%
Rate of compensation increase	3.25	%	3.25	%	3.25	%	N/A		N/A		N/A
Expected long-term rate of return on plan assets	7.50	%	7.50	%	7.50	%	6.00% - 7.50%		6.00% - 7.30%		6.00% - 7.50%
Initial health care cost trend rate	N/A		N/A		N/A		6.00% - 6.50%		6.50% - 7.00%		8.00	%
Ultimate health care cost trend rate	N/A		N/A		N/A		4.50	%	4.50	%	5.00	%
Year ultimate trend rate is reached	N/A		N/A		N/A		2024		2022		2018

_______________________________________________________________________________

N/A-Not applicable

Schedule of actuarial assumptions used to compute the funded status for the plans

The actuarial assumptions used to compute the funded status for the plans are based upon information available as of December 31, 2014 and 2013 and are as follows:

	Pension Plans				Post-Retirement Benefit Plans
	December 31,				December 31,
	2014		2013		2014		2013
Actuarial assumptions at end of year:
Discount rate	3.50% - 4.10%		4.20% - 5.10%		3.80	%	4.50	%
Rate of compensation increase	3.25	%	3.25	%	N/A		N/A
Initial health care cost trend rate	N/A		N/A		6.00% / 6.50%		6.50% / 7.00%
Ultimate health care cost trend rate	N/A		N/A		4.50	%	4.50	%
Year ultimate trend rate is reached	N/A		N/A		2024		2022 / 2024

_______________________________________________________________________________

N/A-Not applicable

Schedule of change in plan assets

The following tables summarize the change in the fair value of plan assets for the pension and post-retirement benefit plans:

	Pension Plans Years Ended December 31,
	2014			2013		2012
	(Dollars in millions)
Change in plan assets
Fair value of plan assets at beginning of year	$	12,346		12,321		11,814
Return on plan assets	1,373			810		1,476
Employer contributions	157			146		32
Settlements	(460		)	—		—
Benefits paid from plan assets	(845		)	(931	)	(1,001	)
Fair value of plan assets at end of year	$	12,571		12,346		12,321

Schedule of gross notional exposure of the derivative instruments directly held by the plans

The gross notional exposure of the derivative instruments directly held by the plans is shown below. The notional amount of the derivatives corresponds to market exposure but does not represent an actual cash investment.

	Gross Notional Exposure
	Pension Plans			Post-Retirement Benefit Plans
	Years Ended December 31,
	2014		2013	2014	2013
	(Dollars in millions)
Derivative instruments:
Exchange-traded U.S. equity futures	$	134	95	7	16
Exchange-traded non-U.S. equity futures	—		—	—	—
Exchange-traded Treasury futures	2,451		3,011	—	—
Interest rate swaps	579		556	—	—
Credit default swaps	382		253	—	—
Foreign exchange forwards	1,195		938	13	29
Options	529		261	—	—

Schedule of the unfunded status of the benefit plans

The following table presents the unfunded status of the pensions and post-retirement benefit plans:

	Pension Plans					Post-Retirement Benefit Plans
	Years Ended December 31,					Years Ended December 31,
	2014			2013		2014		2013
	(Dollars in millions)
Benefit obligation	$	(15,042	)	(13,401	)	(3,830	)	(3,688	)
Fair value of plan assets	12,571			12,346		353		535
Unfunded status	(2,471		)	(1,055	)	(3,477	)	(3,153	)
Current portion of unfunded status	$	(6	)	(5	)	(134	)	(154	)
Non-current portion of unfunded status	$	(2,465	)	(1,050	)	(3,343	)	(2,999	)

Schedule of items not recognized as a component of net periodic benefits expense

The items not recognized as a component of net periodic benefits expense have been recorded on our consolidated balance sheets in accumulated other comprehensive loss:

	As of and for the Years Ended December 31,
	2013			Recognition of Net Periodic Benefits Expense		Deferrals		Net Change in AOCL		2014
	(Dollars in millions)
Accumulated other comprehensive loss:
Pension plans:
Net actuarial (loss) gain	$	(1,058	)	85		(1,787	)	(1,702	)	(2,760	)
Prior service (cost) benefit	(33		)	5		(4	)	1		(32	)
Deferred income tax benefit (expense)	422			(34	)	684		650		1,072
Total pension plans	(669		)	56		(1,107	)	(1,051	)	(1,720	)
Post-retirement benefit plans:
Net actuarial (loss) gain	(37		)	—		(240	)	(240	)	(277	)
Prior service (cost) benefit	(163		)	20		(23	)	(3	)	(166	)
Deferred income tax benefit (expense)	78			(8	)	101		93		171
Total post-retirement benefit plans	(122		)	12		(162	)	(150	)	(272	)
Total accumulated other comprehensive loss	$	(791	)	68		(1,269	)	(1,201	)	(1,992	)

Schedule of estimated items to be recognized in 2013 as a component of net periodic benefit expense

The following table presents estimated items to be recognized in 2015 as a component of net periodic benefit expense of the pension, non-qualified pension and post-retirement benefit plans:

	Pension Plans			Post-Retirement Plans
	(Dollars in millions)
Estimated recognition of net periodic benefit expense in 2015:
Net actuarial loss	$	(148	)	—
Prior service cost	(5		)	(19	)
Deferred income tax benefit	58			7
Estimated net periodic benefit expense to be recorded in 2015 as a component of other comprehensive income (loss)	$	(95	)	(12	)

Pension Plans

Employee Benefits

Schedule of components of net periodic pension income and post-retirement benefit expense

Net periodic (income) expense for our qualified and non-qualified pension plans include the following components:

	Pension Plans Years Ended December 31,
	2014			2013		2012
	(Dollars in millions)
Service cost	$	77		91		87
Interest cost	602			544		625
Expected return on plan assets	(891		)	(896	)	(847	)
Settlements	63			—		—
Recognition of prior service cost	5			5		4
Recognition of actuarial loss	22			84		35
Net periodic pension benefit income	$	(122	)	(172	)	(96	)

Schedule of change in benefit obligation

The following tables summarize the change in the benefit obligations for the pension and post-retirement benefit plans:

	Pension Plans Years Ended December 31,
	2014			2013		2012
	(Dollars in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	13,401		14,881		13,596
Service cost	77			91		87
Interest cost	602			544		625
Plan amendments	4			—		14
Actuarial loss (gain)	2,269			(1,179	)	1,565
Settlements	(460		)	—		—
Benefits paid by company	(6		)	(5	)	(5	)
Benefits paid from plan assets	(845		)	(931	)	(1,001	)
Benefit obligation at end of year	$	15,042		13,401		14,881

Schedule of change in plan assets

	Post-Retirement Benefit Plans Years Ended December 31,
	2014			2013		2012
	(Dollars in millions)
Change in plan assets
Fair value of plan assets at beginning of year	$	535		626		693
Return on plan assets	37			45		80
Benefits paid from plan assets	(219		)	(136	)	(147	)
Fair value of plan assets at end of year	$	353		535		626

Schedule of fair value of the plans' assets by asset category

The tables below present the fair value of plan assets by category and the input levels used to determine those fair values at December 31, 2014. It is important to note that the asset allocations do not include market exposures that are gained with derivatives. Investments include dividend and interest receivables, pending trades and accrued expenses.

	Fair Value of Pension Plan Assets at December 31, 2014
	Level 1		Level 2	Level 3	Total
	(Dollars in millions)
Investment grade bonds (a)	$	1,013	1,480	—	$	2,493
High yield bonds (b)	—		1,480	33	1,513
Emerging market bonds (c)	208		434	—	642
Convertible bonds (d)	—		14	—	14
Diversified strategies (e)	—		718	—	718
U.S. stocks (f)	1,389		87	—	1,476
Non-U.S. stocks (g)	1,169		384	—	1,553
Emerging market stocks (h)	—		102	—	102
Private equity (i)	—		—	673	673
Private debt (j)	—		—	395	395
Market neutral hedge funds (k)	—		928	100	1,028
Directional hedge funds (k)	—		530	28	558
Real estate (l)	—		483	216	699
Derivatives (m)	—		17	—	17
Cash equivalents and short-term investments (n)	—		690	—	690
Total investments	$	3,779	7,347	1,445	12,571
Total pension plan assets					$	12,571

The tables below present the fair value of plan assets by category and the input levels used to determine those fair values at December 31, 2013. It is important to note that the asset allocations do not include market exposures that are gained with derivatives. Investments include dividend and interest receivable, pending trades and accrued expenses.

	Fair Value of Pension Plan Assets at December 31, 2013
	Level 1		Level 2		Level 3	Total
	(Dollars in millions)
Investment grade bonds (a)	$	813	1,504		—	$	2,317
High yield bonds (b)	—		1,265		26	1,291
Emerging market bonds (c)	196		367		—	563
Convertible bonds (d)	—		389		—	389
Diversified strategies (e)	—		723		—	723
U.S. stocks (f)	1,408		92		—	1,500
Non-U.S. stocks (g)	1,159		299		—	1,458
Emerging market stocks (h)	—		110		—	110
Private equity (i)	—		—		721	721
Private debt (j)	—		—		436	436
Market neutral hedge funds (k)	—		867		99	966
Directional hedge funds (k)	—		582		32	614
Real estate (l)	—		306		265	571
Derivatives (m)	—		(34	)	—	(34		)
Cash equivalents and short-term investments (n)	—		721		—	721
Total investments	$	3,576	7,191		1,579	12,346
Total pension plan assets						$	12,346

Summary of changes in fair value of defined benefit plans' Level 3 assets

The table below presents a rollforward of the pension plan assets valued using Level 3 inputs:

	Pension Plan Assets Valued Using Level 3 Inputs
	High Yield Bonds			Private Equity		Private Debt		Market Neutral Hedge Fund		Directional Hedge Funds		Real Estate		Total
	(Dollars in millions)
Balance at December 31, 2012	$	59		711		465		—		194		337		1,766
Net transfers	—			—		—		—		(165	)	—		(165	)
Acquisitions	5			82		71		100		—		9		267
Dispositions	(43		)	(179	)	(144	)	—		(1	)	(97	)	(464	)
Actual return on plan assets:
Gains relating to assets sold during the year	12			68		18		—		—		11		109
(Losses) gains relating to assets still held at year-end	(7		)	39		26		(1	)	4		5		66
Balance at December 31, 2013	26			721		436		99		32		265		1,579
Net transfers	6			4		—		—		—		(4	)	6
Acquisitions	14			125		109		—		—		5		253
Dispositions	(16		)	(246	)	(111	)	—		—		(61	)	(434	)
Actual return on plan assets:
Gains relating to assets sold during the year	8			115		25		—		—		3		151
(Losses) gains relating to assets still held at year-end	(5		)	(46	)	(64	)	1		(4	)	8		(110	)
Balance at December 31, 2014	$	33		673		395		100		28		216		1,445

Post-Retirement Benefit Plans

Employee Benefits

Schedule of effects of a 100 basis point change in assumed health care cost rates

A change of 100 basis points in the assumed initial health care cost trend rate would have had the following effects in 2014:

	100 Basis Points Change
	Increase		(Decrease)
	(Dollars in millions)
Effect on the aggregate of the service and interest cost components of net periodic post-retirement benefit expense (consolidated statement of operations)	$	4	(3	)
Effect on benefit obligation (consolidated balance sheet)	92		(82	)

Schedule of components of net periodic pension income and post-retirement benefit expense

Net periodic expense (income) for our post-retirement benefit plans include the following components:

	Post-Retirement Plans Years Ended December 31,
	2014			2013		2012
	(Dollars in millions)
Service cost	$	22		24		22
Interest cost	159			140		173
Expected return on plan assets	(33		)	(39	)	(45	)
Recognition of prior service cost	20			—		—
Recognition of actuarial loss	—			4		—
Net periodic post-retirement benefit expense	$	168		129		150

Schedule of change in benefit obligation

	Post-Retirement Benefit Plans Years Ended December 31,
	2014			2013		2012
	(Dollars in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	3,688		4,075		3,930
Service cost	22			24		22
Interest cost	159			140		173
Participant contributions	69			96		86
Plan amendments	23			141		—
Direct subsidy receipts	9			13		19
Actuarial loss (gain)	245			(399	)	260
Benefits paid by company	(166		)	(266	)	(268	)
Benefits paid from plan assets	(219		)	(136	)	(147	)
Benefit obligation at end of year	$	3,830		3,688		4,075

Schedule of fair value of the plans' assets by asset category

	Fair Value of Post-Retirement Plan Assets at December 31, 2014
	Level 1		Level 2	Level 3	Total
	(Dollars in millions)
Investment grade bonds (a)	$	5	72	—	$	77
High yield bonds (b)	—		15	—	15
Emerging market bonds (c)	—		1	—	1
Diversified strategies (e)	—		89	—	89
U.S. stocks (f)	35		—	—	35
Non-U.S. stocks (g)	33		—	—	33
Emerging market stocks (h)	6		—	—	6
Private equity (i)	—		—	28	28
Private debt (j)	—		—	3	3
Market neutral hedge funds (k)	—		25	—	25
Directional hedge funds (k)	—		1	—	1
Real estate (l)	—		24	4	28
Cash equivalents and short-term investments (n)	—		12	—	12
Total investments	$	79	239	35	353
Total post-retirement plan assets					$	353

	Fair Value of Post-Retirement Plan Assets at December 31, 2013
	Level 1		Level 2	Level 3	Total
	(Dollars in millions)
Investment grade bonds (a)	$	21	56	—	$	77
High yield bonds (b)	—		56	—	56
Emerging market bonds (c)	—		37	—	37
Diversified strategies (e)	—		86	—	86
U.S. stocks (f)	56		—	—	56
Non-U.S. stocks (g)	58		—	—	58
Emerging market stocks (h)	—		12	—	12
Private equity (i)	—		—	40	40
Private debt (j)	—		—	5	5
Market neutral hedge funds (k)	—		35	—	35
Directional hedge funds (k)	—		14	—	14
Real estate (l)	—		22	12	34
Cash equivalents and short-term investments (n)	—		24	—	24
Total investments	$	135	342	57	534
Contribution receivable					1
Total post-retirement plan assets					$	535

Summary of changes in fair value of defined benefit plans' Level 3 assets

The table below presents a rollforward of the post-retirement plan assets valued using Level 3 inputs:

	Post-Retirement Plan Assets Valued Using Level 3 Inputs
	Private Equity			Private Debt		Real Estate		Total
	(Dollars in millions)
Balance at December 31, 2012	$	45		6		28		79
Acquisitions	1			—		—		1
Dispositions	(11		)	(1	)	(18	)	(30	)
Actual return on plan assets:
Gains (losses) relating to assets sold during the year	4			—		(1	)	3
Gains relating to assets still held at year-end	1			—		3		4
Balance at December 31, 2013	40			5		12		57
Acquisitions	1			—		—		1
Dispositions	(15		)	(2	)	(8	)	(25	)
Actual return on plan assets:
Gains relating to assets sold during the year	7			1		—		8
Losses relating to assets still held at year-end	(5		)	(1	)	—		(6	)
Balance at December 31, 2014	$	28		3		4		35