RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Financial information related to pension and postretirement health care plans

	U.S. PENSION(a)						INTERNATIONAL PENSION						U.S. POSTRETIREMENT HEALTH CARE
MILLIONS	2012			2011			2012			2011			2012			2011
Accumulated Benefit Obligation, end of year	$	1,889.2		$	1,683.5		$	1,075.2		$	896.0		$	281.5		$	277.3
Projected Benefit Obligation
Projected benefit obligation, beginning of year	1,892.4			1,154.7			978.6			579.4			277.3			159.4
Service cost	50.5			46.7			29.6			23.1			5.1			2.2
Interest	89.3			63.4			48.3			28.2			12.9			9.0
Participant contributions							4.1			3.7			10.0			4.4
Medicare subsidies received													1.9			0.7
Curtailments and settlements							(4.8		)	(5.4		)
Plan amendments	(24.8		)				(8.3		)	(3.7		)	(1.8		)	0.1
Actuarial loss (gain)	173.0			128.9			165.5			(43.0		)	0.7			(6.2		)
Assumed through acquisitions				537.4			6.9			402.8						121.4
Benefits paid	(75.3		)	(38.7		)	(35.2		)	(26.3		)	(24.6		)	(13.7		)
Foreign currency translation							(4.1		)	19.8
Projected benefit obligation, end of year	2,105.1			1,892.4			1,180.6			978.6			281.5			277.3
Plan Assets
Fair value of plan assets, beginning of year	1,352.1			988.9			612.6			318.5			16.6			19.6
Actual returns on plan assets	174.0			7.3			57.3			9.7			1.9			0.2
Company contributions	182.7			104.4			52.5			44.0			19.7			8.2
Participant contributions							4.1			3.7			1.5			2.3
Assumed through acquisitions				290.2						257.6
Settlements							(3.5		)	(4.3		)
Benefits paid	(75.3		)	(38.7		)	(35.2		)	(26.3		)	(24.6		)	(13.7		)
Foreign currency translation							1.5			9.7
Fair value of plan assets, end of year	1,633.5			1,352.1			689.3			612.6			15.1			16.6
Funded Status, end of year	(471.6		)	(540.3		)	(491.3		)	(366.0		)	(266.4		)	(260.7		)

Amounts recognized in Consolidated Balance Sheet:
Other assets							7.0			22.3
Other current liabilities	(9.8		)	(10.6		)	(13.1		)	(11.4		)	(7.4		)	(8.0		)
Postretirement healthcare and pension benefits	(461.8		)	(529.7		)	(485.2		)	(376.9		)	(259.0		)	(252.7		)
Net liability	(471.6		)	(540.3		)	(491.3		)	(366.0		)	(266.4		)	(260.7		)

Amounts recognized in Accumulated
Other Comprehensive Loss:
Unrecognized net actuarial loss	769.1			690.4			241.3			102.8			12.3			12.9
Unrecognized net prior service costs (benefits)	(54.5		)	(33.9		)	(7.1		)	(2.5		)	(1.5		)	0.3
Tax benefit	(273.0		)	(251.7		)	(67.1		)	(30.8		)	(5.7		)	(6.2		)
Accumulated other comprehensive loss, net of tax	441.6			404.8			167.1			69.5			5.1			7.0

Change in Accumulated Other Comprehensive Loss:
Amortization of net actuarial loss (gain)	(45.1		)	(31.8		)	(6.2		)	(8.1		)	(0.4		)	(0.2		)
Amortization of prior service costs (benefits)	4.2			4.2			(0.3		)	(0.1		)	(0.1		)	(0.1		)
Current period net actuarial loss (gain)	126.2			222.2			143.4			(30.2		)	(0.1		)	(5.0		)
Current period prior service costs (benefits)	(24.8		)				(4.3		)	(3.7		)	(1.8		)	0.1
Settlement	(2.4		)
Tax expense (benefit)	(21.3		)	(72.4		)	(36.3		)	10.5			0.5			1.9
Foreign currency translation							1.3			6.6
Other comprehensive loss (income)	36.8			122.2			97.6			(25.0		)	(1.9		)	(3.3		)

(a) Includes qualified and non-qualified plans

Estimated amounts in accumulated other comprehensive loss expected to be reclassified to net period cost during 2013

	U.S.		INTERNATIONAL		U.S. POSTRETIREMENT
MILLIONS	PENSION (a)		PENSION		HEALTH CARE

Net actuarial loss	$	62.3	$	11.1	$	0.6
Net prior service costs/(benefits)	(6.9)		(0.5)		(0.3)
Total	$	55.4	$	10.6	$	0.3

(a) Includes qualified and non-qualified plans

Aggregate projected benefit obligation, accumulated benefit obligation and fair value of pension plan assets for plans with accumulated benefit obligations in excess of plan assets

DECEMBER 31 (MILLIONS)	2012		2011
Aggregate projected benefit obligation	$	2,931.8	$	2,638.2
Accumulated benefit obligation	2,635.0		2,378.2
Fair value of plan assets	1,972.1		1,727.8

U.S. Level 3 plan assets rollforward

MILLIONS	HEDGE FUNDS		PRIVATE EQUITY
Balance at December 31, 2010	$	55.4	$	10.6
Assumed through Nalco merger	25.9		21.0
Unrealized gains (losses)	(0.9)		2.7
Purchases, sales and settlements, net	46.7		7.2
Transfers in and/or out	—		—
Balance at December 31, 2011	$	127.1	$	41.5
Unrealized gains	7.5		1.0
Realized gains	—		3.3
Purchases, sales and settlements, net	—		2.4
Transfers in and/or out	—		—
Balance at December 31, 2012	$	134.6	$	48.2

Net periodic pension and postretirement health care benefit costs

	U.S. PENSION(a)									INTERNATIONAL PENSION									U.S. POSTRETIREMENT HEALTH CARE
MILLIONS	2012			2011			2010			2012			2011			2010			2012			2011			2010
Service cost - employee benefits earned during the year	$	50.5		$	46.7		$	50.6		$	29.6		$	23.1		$	18.9		$	5.1		$	2.2		$	2.0
Interest cost on benefit obligation	89.3			63.4			62.6			48.3			28.2			26.7			12.9			9.0			8.8
Expected return on plan assets	(127.1		)	(100.6		)	(90.1		)	(42.3		)	(22.5		)	(17.0		)	(1.2		)	(1.4		)	(1.5		)
Recognition of net actuarial loss	45.1			31.8			24.7			3.9			5.7			4.0			0.4			0.2			0.2
Amortization of prior service cost (benefit)	(4.2		)	(4.2		)	0.5			0.2			0.1			0.4			0.1			0.1			(0.4		)
Settlements/Curtailments	2.4			—			0.3			1.6			1.3			0.1			—			—			—
Total expense	$	56.0		$	37.1		$	48.6		$	41.3		$	35.9		$	33.1		$	17.3		$	10.1		$	9.1

(a) Includes qualified and non-qualified plans

Plan Assumptions

	U.S. PENSION(a)						INTERNATIONAL PENSION						U.S. POSTRETIREMENT HEALTH CARE
PERCENT	2012		2011		2010		2012		2011		2010		2012		2011		2010
Weighted-average actuarial assumptions used to determine benefit obligations as of year end:
Discount rate	4.14	%	4.86	%	5.41	%	4.04	%	5.02	%	4.62	%	3.95	%	4.80	%	5.41	%
Projected salary increase	4.32		4.08		4.32		2.74		2.98		3.40
Weighted-average actuarial assumptions used to determine net cost:
Discount rate	4.85		5.23		5.84		5.66		4.26		5.21		4.80		5.34		5.84
Expected return on plan assets	8.25		8.44		8.50		6.87		6.37		6.22		8.25		8.50		8.50
Projected salary increase	4.08		4.07		4.32		3.59		3.62		3.38

(a) Includes qualified and non-qualified plans

Effects of one-percentage point change in the assumed health care cost trend rates

	1-PERCENTAGE POINT
MILLIONS	INCREASE			DECREASE
Effect on total of service and interest cost components	$	(0.1	)	$	0.1
Effect on postretirement benefit obligation	2.3			(2.9		)

Estimated future benefits payments

			MEDICARE SUBSIDY
MILLIONS	ALL PLANS		RECEIPTS
2013	$	169	$	2
2014	170		2
2015	171		—
2016	184		—
2017	200		—
2018-2022	1,075		—

U.S. Pension and Postretirement Health Care Benefits

Pension and Postretirement Plans

Allocation and fair value of plan assets for defined benefit pension and postretirement health care benefit plans

ASSET CATEGORY	TARGET ASSET ALLOCATION PERCENTAGE				PERCENTAGE OF PLAN ASSETS
DECEMBER 31 (%)	2012		2011		2012		2011
Equity securities:
Large cap equity	34	%	34	%	36	%	38	%
Small cap equity	9		9		10		10
International equity	13		13		14		12
Fixed income:
Core fixed income	18		22		19		22
High-yield bonds	5		2		5		2
Emerging markets	2		—		2		—
Other:
Real estate	4		4		3		4
Hedge funds	9		10		8		9
Private equity	6		6		3		3
Total	100	%	100	%	100	%	100	%

MILLIONS

FAIR VALUE AS OF
DECEMBER 31, 2012

LEVEL 1

LEVEL 2

LEVEL 3

TOTAL

Cash

8.8

Equity securities:

Large cap equity

594.2

Small cap equity

159.9

International equity

223.7

Fixed income:

Core fixed income

308.9

High-yield bonds

81.8

Emerging markets

32.6

Other:

Real estate

55.5

Hedge funds

134.6

Private equity

48.2

Other

0.4

Total

1,409.9

55.9

182.8

1,648.6

MILLIONS	FAIR VALUE AS OF DECEMBER 31, 2011
	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL
Equity securities:
Large cap equity	$	525.1					525.1
Small cap equity	131.0						131.0
International equity	161.8						161.8
Fixed income:
Core fixed income	303.5						303.5
High-yield bonds	21.0						21.0
Emerging markets	6.1						6.1
Other:
Real estate			$	49.4			49.4
Hedge funds					$	127.1	127.1
Private equity					41.5		41.5
Other	1.7		0.5				2.2
Total	$	1,150.2	$	49.9	$	168.6	$	1,368.7

International Pension Benefits

Pension and Postretirement Plans

Allocation and fair value of plan assets for defined benefit pension and postretirement health care benefit plans

ASSET CATEGORY	PERCENTAGE OF PLAN ASSETS
	2012		2011
DECEMBER 31 (%)
Cash	1	%	1	%
Equity securities:
International equity	42		41
Fixed income:
Corporate bonds	23		22
Government bonds	18		20
Total fixed income	41		42
Other:
Insurance contracts	14		15
Real estate	2		1
Other	—		—
Total	100	%	100	%

MILLIONS

FAIR VALUE AS OF
DECEMBER 31, 2012

LEVEL 1

LEVEL 2

LEVEL 3

TOTAL

Cash

8.0

Equity securities:

International equity

288.8

288.8

Fixed income:

Corporate bonds

5.2

150.7

155.9

Government bonds

8.1

117.4

125.5

Other:

Insurance contracts

96.4

Real estate

10.7

Other

0.5

3.5

4.0

Total

21.8

667.5

689.3

MILLIONS	FAIR VALUE AS OF DECEMBER 31, 2011
	LEVEL 1		LEVEL 2		LEVEL 3	TOTAL
Cash	$	6.7				$	6.7
Equity securities:
International equity			$	248.0		248.0
Fixed income:
Corporate bonds	10.9		126.1			137.0
Government bonds	17.1		102.3			119.4
Other:
Insurance contracts			92.5			92.5
Real estate			9.0			9.0
Total	$	34.7	$	577.9		$	612.6