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Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]  
Pension and other postretirement benefit costs
Summarized information regarding the Company’s significant defined benefit pension and other postretirement benefit plans related to both continuing and discontinued operations is as follows:

 
 
Pension
 
Other Postretirement Benefits
In millions
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
70

 
$
80

 
$
87

 
$
11

 
$
10

 
$
12

Interest cost
 
92

 
103

 
100

 
24

 
24

 
24

Expected return on plan assets
 
(151
)
 
(159
)
 
(157
)
 
(25
)
 
(25
)
 
(22
)
Amortization of actuarial (gain) loss
 
60

 
48

 
65

 
(1
)
 
(4
)
 
1

Amortization of prior service cost
 
1

 
1

 
—

 
1

 
1

 
1

Settlement/curtailment (gain) loss
 
—

 
1

 
49

 
—

 
(9
)
 
—

 
 
$
72

 
$
74

 
$
144

 
$
10

 
$
(3
)
 
$
16


Net periodic benefit cost was included in the statement of income as follows:

 
 
Pension
 
Other Postretirement Benefits
In millions
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Income from continuing operations
 
$
72

 
$
69

 
$
131

 
$
10

 
$
6

 
$
14

Income from discontinued operations
 
—

 
5

 
13

 
—

 
(9
)
 
2

 
 
$
72

 
$
74

 
$
144

 
$
10

 
$
(3
)
 
$
16
Change in benefit obligation
The following tables provide a rollforward of the plan benefit obligations, plan assets and a reconciliation of funded status for the years ended December 31, 2015 and 2014 for continuing and discontinued operations:

 
 
Pension
 
Other Postretirement Benefits
In millions
 
2015
 
2014
 
2015
 
2014
Change in benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation at January 1
 
$
2,607

 
$
2,545

 
$
591

 
$
519

Service cost
 
70

 
80

 
11

 
10

Interest cost
 
92

 
103

 
24

 
24

Plan participants’ contributions
 
3

 
3

 
13

 
13

Amendments
 
1

 
(5
)
 
—

 
—

Actuarial (gain) loss
 
(82
)
 
240

 
(43
)
 
97

Acquisitions and divestitures
 
—

 
(97
)
 
—

 
(18
)
Benefits paid
 
(169
)
 
(192
)
 
(46
)
 
(46
)
Medicare subsidy received
 
—

 
—

 
2

 
2

Settlement/curtailment (gain) loss
 
—

 
(2
)
 
—

 
(10
)
Foreign currency translation
 
(60
)
 
(68
)
 
—

 
—

Benefit obligation at December 31
 
$
2,462

 
$
2,607

 
$
552

 
$
591
Change in plan assets
 
 
Pension
 
Other Postretirement Benefits
In millions
 
2015
 
2014
 
2015
 
2014
Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
 
$
2,557

 
$
2,487

 
$
372

 
$
370

Actual return on plan assets
 
16

 
264

 
(3
)
 
28

Company contributions
 
97

 
127

 
6

 
7

Plan participants’ contributions
 
3

 
3

 
13

 
13

Acquisitions/divestitures
 
—

 
(65
)
 
—

 
—

Benefits paid
 
(169
)
 
(192
)
 
(46
)
 
(46
)
Foreign currency translation
 
(63
)
 
(67
)
 
—

 
—

Fair value of plan assets at December 31
 
$
2,441

 
$
2,557

 
$
342

 
$
372

Funded status
 
$
(21
)
 
$
(50
)
 
$
(210
)
 
$
(219
)
Other immaterial plans
 
(50
)
 
(52
)
 
(5
)
 
(5
)
Net liability at December 31
 
$
(71
)
 
$
(102
)
 
$
(215
)
 
$
(224
)
The amounts recognized in the statement of financial position as of December 31 consist of:
 
 
 
 
 
 
 
 
Other assets
 
$
191

 
$
165

 
$
—

 
$
—

Accrued expenses
 
(11
)
 
(10
)
 
(4
)
 
(4
)
Other noncurrent liabilities
 
(251
)
 
(257
)
 
(211
)
 
(220
)
Net liability at end of year
 
$
(71
)
 
$
(102
)
 
$
(215
)
 
$
(224
)
The pre-tax amounts recognized in accumulated other comprehensive income consist of:
 
 
 
 
 
 
 
 
Net actuarial (gain) loss
 
$
631

 
$
638

 
$
(20
)
 
$
(6
)
Prior service cost
 
—

 
1

 
(1
)
 
(1
)
 
 
$
631

 
$
639

 
$
(21
)
 
$
(7
)
Accumulated benefit obligation
 
$
2,297

 
$
2,361

 
 
 
 
Plans with accumulated benefit obligation in excess of plan assets as of December 31:
 
 
 
 
 
 
 
 
Projected benefit obligation
 
$
164

 
$
168

 
 
 
 
Accumulated benefit obligation
 
$
152

 
$
154

 
 
 
 
Fair value of plan assets
 
$
25

 
$
26

 
 
 
 
Weighted-average assumptions used in the valuations of pension and other postretirement benefits
The weighted-average assumptions used in the valuations of pension and other postretirement benefits were as follows:

 
Pension
 
Other Postretirement Benefits
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Assumptions used to determine benefit obligations at December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.95
%
 
3.70
%
 
4.32
%
 
4.55
%
 
4.15
%
 
4.95
%
Rate of compensation increases
3.72
%
 
3.72
%
 
3.72
%
 
—
%
 
—
%
 
—
%
Assumptions used to determine net periodic benefit cost for years ended December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.70
%
 
4.32
%
 
3.85
%
 
4.15
%
 
4.95
%
 
4.15
%
Expected return on plan assets
6.54
%
 
7.02
%
 
7.28
%
 
7.00
%
 
7.00
%
 
7.00
%
Rate of compensation increases
3.72
%
 
3.72
%
 
3.86
%
 
—
%
 
—
%
 
—
%
Postretirement benefit obligation
The assumed health care cost trend rates used to determine the postretirement benefit obligation at December 31 were as follows:

 
2015
 
2014
 
2013
Health care cost trend rate assumed for the next year
6.00
%
 
8.00
%
 
8.00
%
Ultimate trend rate
4.50
%
 
4.50
%
 
5.00
%
Year the rate reaches the ultimate trend rate
2021

 
2022

 
2020
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 impact:

In millions
 
1 Percentage-Point Increase
 
1 Percentage-Point Decrease
Change in service cost and interest cost for 2015
 
$
—

 
$
(1
)
Change in postretirement benefit obligation at December 31, 2015
 
$
7

 
$
(14
)
Defined benefit plan assets for plan benefits
The following tables present the fair value of the Company’s pension and other postretirement benefit plan assets at December 31, 2015 and 2014, by asset category and valuation methodology. Level 1 assets are valued using unadjusted quoted prices for identical assets in active markets. Level 2 assets are valued using quoted prices or other observable inputs for similar assets. Level 3 assets are valued using unobservable inputs, but reflect the assumptions market participants would be expected to use in pricing the assets. Each financial instrument’s categorization is based on the lowest level of input that is significant to the fair value measurement.

 
 
2015
In millions
 
Total
 
Level 1
 
Level 2
 
Level 3
Pension Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
53

 
$
53

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
Domestic
 
1

 
1

 
—

 
—

Foreign
 
62

 
62

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Government securities
 
285

 
—

 
285

 
—

Corporate debt securities
 
483

 
—

 
483

 
—

Investment contracts with insurance companies
 
1

 
—

 
—

 
1

Commingled funds:
 
 
 
 
 
 
 
 
Mutual funds
 
145

 
145

 
—

 
—

Collective trust funds
 
1,347

 


 


 


Partnerships/private equity interests
 
66

 


 


 


Other
 
(2
)
 
—

 
(2
)
 
—

 
 
$
2,441

 
$
261

 
$
766

 
$
1

Other Postretirement Benefit Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
8

 
$
8

 
$
—

 
$
—

Life insurance policies
 
334

 


 


 


 
 
$
342

 
$
8

 
$
—

 
$
—


 
 
2014
In millions
 
Total
 
Level 1
 
Level 2
 
Level 3
Pension Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
164

 
$
164

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
Domestic
 
1

 
1

 
—

 
—

Foreign
 
72

 
72

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Government securities
 
286

 
—

 
286

 
—

Corporate debt securities
 
378

 
—

 
378

 
—

Mortgage-backed securities
 
8

 
—

 
8

 
—

Investment contracts with insurance companies
 
1

 
—

 
—

 
1

Commingled funds:
 
 
 
 
 
 
 
 
Mutual funds
 
317

 
317

 
—

 
—

Collective trust funds
 
1,252

 


 


 


Partnerships/private equity interests
 
77

 


 


 


Other
 
1

 
—

 
—

 
1

 
 
$
2,557

 
$
554

 
$
672

 
$
2

Other Postretirement Benefit Plan Assets:
 
 
 
 
 
 
 
 
Cash and equivalents
 
$
11

 
$
11

 
$
—

 
$
—

Life insurance policies
 
361

 


 


 


 
 
$
372

 
$
11

 
$
—

 
$
—
Portion of the benefit payments are expected to be paid
The Company’s portion of the benefit payments that are expected to be paid during the years ending December 31 is as follows:

In millions
 
Pension
 
Other Postretirement Benefits
2016
 
$
173

 
$
35

2017
 
176

 
37

2018
 
178

 
38

2019
 
180

 
39

2020
 
178

 
39

Years 2021-2025
 
872

 
199