XML 69 R48.htm IDEA: XBRL DOCUMENT v3.6.0.2
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Schedule of Changes in Accumulated Postemployment Benefit Obligations [Table Text Block]
We use a measurement date of December 31 to develop the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the consolidated balance sheets at December 31 for our defined benefit pension and retiree health benefit plans, which were as follows:
 
Defined Benefit
Pension Plans
 
Retiree Health
Benefit Plans
  
2016
 
2015
 
2016
 
2015
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
11,719.2

 
$
12,012.4

 
$
1,467.4

 
$
1,553.5

Benefit obligation assumed in Novartis AH acquisition
—

 
334.7

 
—

 
9.9

Service cost
277.7

 
315.7

 
39.1

 
45.1

Interest cost
420.8

 
476.8

 
53.2

 
62.6

Actuarial (gain) loss
806.5

 
(812.4
)
 
50.9

 
(113.5
)
Benefits paid
(454.5
)
 
(437.8
)
 
(59.8
)
 
(77.5
)
Plan amendments
—

 
(0.4
)
 
(35.8
)
 
—

Foreign currency exchange rate changes and other adjustments
(313.8
)
 
(169.8
)
 
(20.4
)
 
(12.7
)
Benefit obligation at end of year
12,455.9

 
11,719.2

 
1,494.6

 
1,467.4
Schedule of Changes in Fair Value of Plan Assets [Table Text Block]
Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
9,995.6

 
9,835.7

 
1,943.7

 
1,918.7

Fair value of plan assets assumed in Novartis AH acquisition
—

 
235.9

 
—

 
—

Actual return on plan assets
853.4

 
90.4

 
68.9

 
85.1

Employer contribution
110.2

 
404.1

 
8.4

 
17.4

Benefits paid
(454.5
)
 
(437.8
)
 
(59.8
)
 
(77.5
)
Foreign currency exchange rate changes and other adjustments
(325.0
)
 
(132.7
)
 
—

 
—

Fair value of plan assets at end of year
10,179.7

 
9,995.6

 
1,961.2

 
1,943.7
Schedule of Net Funded Status [Table Text Block]
Funded status
(2,276.2
)
 
(1,723.6
)
 
466.6

 
476.3

Unrecognized net actuarial loss
4,915.7

 
4,552.7

 
458.8

 
347.9

Unrecognized prior service (benefit) cost
21.7

 
32.5

 
(525.1
)
 
(574.8
)
Net amount recognized
$
2,661.2

 
$
2,861.6

 
$
400.3

 
$
249.4
Schedule of Amounts Recognized in Balance Sheet [Table Text Block]
Amounts recognized in the consolidated balance sheet consisted of:
 
 
 
 
 
 
 
Sundry
$
29.7

 
$
261.6

 
$
689.3

 
$
722.1

Other current liabilities
(68.0
)
 
(63.8
)
 
(6.7
)
 
(6.9
)
Accrued retirement benefits
(2,237.9
)
 
(1,921.4
)
 
(216.0
)
 
(238.9
)
Accumulated other comprehensive (income) loss before income taxes
4,937.4

 
4,585.2

 
(66.3
)
 
(226.9
)
Net amount recognized
$
2,661.2

 
$
2,861.6

 
$
400.3

 
$
249.4
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]
During 2017, we expect the following components of accumulated other comprehensive loss to be recognized as components of net periodic benefit cost:
 
Defined Benefit
Pension Plans
 
Retiree Health
Benefit Plans
Unrecognized net actuarial loss
$
289.5

 
$
16.1

Unrecognized prior service (benefit) cost
5.4

 
(90.0
)
Total
$
294.9

 
$
(73.9
)
Schedule of Assumptions Used [Table Text Block]
The following represents our weighted-average assumptions as of December 31:
 
Defined Benefit
Pension Plans
 
Retiree Health
Benefit Plans
(Percents)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate for benefit obligation
3.9
%
 
4.3
%
 
4.0
%
 
4.3
%
 
4.5
%
 
4.1
%
Discount rate for net benefit costs
4.3

 
4.0

 
4.9

 
4.5

 
4.1

 
5.0

Rate of compensation increase for benefit obligation
3.4

 
3.4

 
3.4

 
 
 
 
 
 
Rate of compensation increase for net benefit costs
3.4

 
3.4

 
3.4

 
 
 
 
 
 
Expected return on plan assets for net benefit costs
7.4

 
7.4

 
8.1

 
8.0

 
8.0

 
8.5
Schedule of Expected Benefit Payments [Table Text Block]
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:
 
2017
 
2018
 
2019
 
2020
 
2021
 
2022-2026
Defined benefit pension plans
$
464.5

 
$
471.3

 
$
486.1

 
$
505.3

 
$
526.9

 
$
3,016.3

Retiree health benefit plans
72.8

 
75.5

 
78.1

 
80.8

 
83.9

 
465.6
Schedule of Net Benefit Costs [Table Text Block]
Net pension and retiree health benefit expense included the following components:
 
Defined Benefit
Pension Plans
 
Retiree Health
Benefit Plans
  
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Components of net periodic (benefit) cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
277.7

 
$
315.7

 
$
240.9

 
$
39.1

 
$
45.1

 
$
33.0

Interest cost
420.8

 
476.8

 
472.6

 
53.2

 
62.6

 
85.6

Expected return on plan assets
(752.1
)
 
(782.3
)
 
(756.6
)
 
(150.2
)
 
(150.0
)
 
(146.4
)
Amortization of prior service (benefit) cost
11.8

 
10.4

 
3.6

 
(85.8
)
 
(91.1
)
 
(37.6
)
Recognized actuarial loss
285.6

 
383.2

 
282.3

 
19.1

 
38.0

 
20.7

Net periodic (benefit) cost
$
243.8

 
$
403.8

 
$
242.8

 
$
(124.6
)
 
$
(95.4
)
 
$
(44.7
)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]
The following represents the amounts recognized in other comprehensive income (loss) for the years ended December 31, 2016, 2015, and 2014:
 
Defined Benefit
Pension Plans
 
Retiree Health
Benefit Plans
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Actuarial gain (loss) arising during period
$
(725.2
)
 
$
120.4

 
$
(1,939.3
)
 
$
(132.2
)
 
$
48.6

 
$
(282.9
)
Plan amendments during period
—

 
0.4

 
2.4

 
35.8

 
—

 
533.6

Amortization of prior service (benefit) cost included in net income
11.8

 
10.4

 
3.6

 
(85.8
)
 
(91.1
)
 
(37.6
)
Amortization of net actuarial loss included in net income
285.6

 
383.2

 
282.3

 
19.1

 
38.0

 
20.7

Foreign currency exchange rate changes and other
75.6

 
58.8

 
89.6

 
2.5

 
4.2

 
—

Total other comprehensive income (loss) during period
$
(352.2
)
 
$
573.2

 
$
(1,561.4
)
 
$
(160.6
)
 
$
(0.3
)
 
$
233.8

Details about Accumulated Other
Comprehensive Loss Components
Year Ended December 31,
Affected Line Item in the Consolidated Statements of Operations
2016
 
2015
 
2014
Amortization of retirement benefit items:
 
 
 
 
 
 
Prior service benefits, net
$
(74.0
)
 
$
(80.7
)
 
$
(34.0
)
(1) 
Actuarial losses
304.7

 
421.2

 
303.0

(1) 
Total before tax
230.7

 
340.5

 
269.0

 
Tax benefit
(71.5
)
 
(105.6
)
 
(83.4
)
Income taxes
Net of tax
159.2

 
234.9

 
185.6

 
 
 
 
 
 
 
 
Unrealized gains/losses on available-for-sale securities:
 
 
 
 
 
 
Realized gains, net
(16.1
)
 
(209.3
)
 
(324.1
)
Other—net, (income) expense
Impairment losses
27.3

 
12.0

 
—

Other—net, (income) expense
Total before tax
11.2

 
(197.3
)
 
(324.1
)
 
Tax expense
(4.0
)
 
69.1

 
113.4

Income taxes
Net of tax
7.2

 
(128.2
)
 
(210.7
)
 
 
 
 
 
 
 
 
Other, net of tax (2)
84.3

 
9.5

 
5.9

Other—net, (income) expense
Total reclassifications for the period, net of tax
$
250.7

 
$
116.2

 
$
(19.2
)
 

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 14).
Schedule of Allocation of Plan Assets [Table Text Block]
The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2016 by asset category are as follows:
 
 
 
Fair Value Measurements Using
 
 
Asset Class
Total
 
Quoted Prices in Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable 
Inputs
(Level 2)
 
Significant
Unobservable Inputs
(Level 3)
 
Investments Valued at Net Asset Value(1)
Defined Benefit Pension Plans
 
 
 
 
 
 
 
 
 
Public equity securities:
 
 
 
 
 
 
 
 
 
U.S.
$
402.4

 
$
165.5

 
$
—

 
$
—

 
$
236.9

International
2,285.6

 
770.5

 
—

 
—

 
1,515.1

Fixed income:
 
 
 
 
 
 
 
 
 
Developed markets
2,631.3

 
27.2

 
1,983.0

 
—

 
621.1

Developed markets - repurchase agreements
(1,024.4
)
 
—

 
(1,024.4
)
 
—

 
—

Emerging markets
450.0

 
—

 
180.1

 
0.3

 
269.6

Private alternative investments:
 
 
 
 
 
 
 
 
 
Hedge funds
2,904.6

 
—

 
—

 
—

 
2,904.6

Equity-like funds
1,355.0

 
—

 
0.2

 
16.8

 
1,338.0

Real estate
504.1

 
344.5

 
—

 
—

 
159.6

Other
671.1

 
365.0

 
108.1

 
—

 
198.0

Total
$
10,179.7

 
$
1,672.7

 
$
1,247.0

 
$
17.1

 
$
7,242.9

 
 
 
 
 
 
 
 
 
 
Retiree Health Benefit Plans
 
 
 
 
 
 
 
 
 
Public equity securities:
 
 
 
 
 
 
 
 
 
U.S.
$
38.7

 
$
16.7

 
$
—

 
$
—

 
$
22.0

International
146.3

 
52.0

 
—

 
—

 
94.3

Fixed income:
 
 
 
 
 
 
 
 
 
Developed markets
68.0

 
—

 
58.4

 
—

 
9.6

Emerging markets
42.6

 
—

 
18.2

 
—

 
24.4

Private alternative investments:
 
 
 
 
 
 
 
 
 
Hedge funds
261.0

 
—

 
—

 
—

 
261.0

Equity-like funds
116.0

 
—

 
—

 
1.7

 
114.3

Cash value of trust owned insurance contract
1,208.3

 
—

 
1,208.3

 
—

 
—

Real estate
34.8

 
34.8

 
—

 
—

 
—

Other
45.5

 
28.1

 
3.7

 
—

 
13.7

Total
$
1,961.2

 
$
131.6

 
$
1,288.6

 
$
1.7

 
$
539.3

The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2015 by asset category are as follows:
 
 
 
Fair Value Measurements Using
 
 
Asset Class
Total
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Investments Valued at Net Asset Value(1)
Defined Benefit Pension Plans
 
 
 
 
 
 
 
 
 
Public equity securities:
 
 
 
 
 
 
 
 
 
U.S.
$
414.3

 
$
180.1

 
$
—

 
$
—

 
$
234.2

International
2,261.7

 
751.5

 
—

 
—

 
1,510.2

Fixed income:
 
 
 
 
 
 
 
 
 
Developed markets
1,309.9

 
—

 
745.9

 
—

 
564.0

Emerging markets
472.3

 
—

 
151.5

 
0.3

 
320.5

Private alternative investments:
 
 
 
 
 
 
 
 
 
Hedge funds
3,073.2

 
2.4

 
—

 
—

 
3,070.8

Equity-like funds
1,221.6

 
—

 
0.3

 
16.8

 
1,204.5

Real estate
541.1

 
329.6

 
—

 
—

 
211.5

Other
701.5

 
255.6

 
94.4

 
—

 
351.5

Total
$
9,995.6

 
$
1,519.2

 
$
992.1

 
$
17.1

 
$
7,467.2

 
 
 
 
 
 
 
 
 
 
Retiree Health Benefit Plans
 
 
 
 
 
 
 
 
 
Public equity securities:
 
 
 
 
 
 
 
 
 
U.S.
$
40.1

 
$
18.2

 
$
—

 
$
—

 
$
21.9

International
144.7

 
51.5

 
—

 
—

 
93.2

Fixed income:
 
 
 
 
 
 
 
 
 
Developed markets
61.2

 
—

 
52.9

 
—

 
8.3

Emerging markets
36.9

 
—

 
15.3

 
—

 
21.6

Private alternative investments:
 
 
 
 
 
 
 
 
 
Hedge funds
272.3

 
—

 
—

 
—

 
272.3

Equity-like funds
104.5

 
—

 
—

 
1.7

 
102.8

Cash value of trust owned insurance contract
1,208.2

 
—

 
1,208.2

 
—

 
—

Real estate
33.2

 
33.2

 
—

 
—

 
—

Other
42.6

 
25.0

 
0.5

 
—

 
17.1

Total
$
1,943.7

 
$
127.9

 
$
1,276.9

 
$
1.7

 
$
537.2
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]
Amounts relating to defined benefit pension plans with projected benefit obligations in excess of plan assets were as follows at December 31:
 
2016
 
2015
Projected benefit obligation
$
10,597.0

 
$
10,054.1

Fair value of plan assets
8,291.2

 
8,069.7
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]
Amounts relating to defined benefit pension plans and retiree health benefit plans with accumulated benefit obligations in excess of plan assets were as follows at December 31:
 
Defined Benefit
Pension Plans
 
Retiree Health
Benefit Plans
 
2016
 
2015
 
2016
 
2015
Accumulated benefit obligation
$
9,805.4

 
$
2,028.1

 
$
222.7

 
$
245.8

Fair value of plan assets
8,285.2

 
844.9

 
—

 
—