Employee Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2012

Changes in the projected benefit obligation and fair value of plan assets, and the funded status of the Company’s defined-benefit pension plans were as follows, in millions:


	2012						2011
	Qualified			Non-Qualified			Qualified			Non-Qualified
Changes in projected benefit obligation:
Projected benefit obligation at January 1	$	943		$	174		$	868		$	163
Service cost		2			—			2			—
Interest cost		42			7			44			8
Actuarial loss (gain), net		100			11			70			13
Foreign currency exchange		9			—			(2	)		—
Benefit payments		(40	)		(11	)		(39	)		(10	)

Projected benefit obligation at December 31	$	1,056		$	181		$	943		$	174

Changes in fair value of plan assets:
Fair value of plan assets at January 1	$	504		$	—		$	509		$	—
Actual return on plan assets		75			—			(1	)		—
Foreign currency exchange		4			—			—			—
Company contributions		55			11			38			10
Expenses, other		(4	)		—			(3	)		—
Benefit payments		(40	)		(11	)		(39	)		(10	)

Fair value of plan assets at December 31	$	594		$	—		$	504		$	—

Funded status at December 31:	$	(462	)	$	(181	)	$	(439	)	$	(174	)

Consolidated Balance Sheets

Amounts in the Company’s consolidated balance sheets were as follows, in millions:


	At December 31, 2012						At December 31, 2011
	Qualified			Non-Qualified			Qualified			Non-Qualified
Accrued liabilities	$	(3	)	$	(12	)	$	(3	)	$	(12	)
Deferred income taxes and other		(459	)		(169	)		(436	)		(162	)

Total net liability	$	(462	)	$	(181	)	$	(439	)	$	(174	)

Summary of Accumulated Other Comprehensive Income before Income Taxes

Amounts in accumulated other comprehensive income before income taxes were as follows, in millions:


	At December 31, 2012				At December 31, 2011
	Qualified		Non-Qualified		Qualified			Non-Qualified
Net loss	$	467	$	53	$	424		$	43
Net transition obligation		1		—		1			—
Net prior service cost		2		—		(1	)		—

Total	$	470	$	53	$	424		$	43

Information about Plan Assets

Information for defined-benefit pension plans with an accumulated benefit obligation in excess of plan assets was as follows, in millions:


	At December 31
	2012				2011
	Qualified		Non-Qualified		Qualified		Non-Qualified
Projected benefit obligation	$	1,056	$	181	$	943	$	174
Accumulated benefit obligation	$	1,054	$	181	$	941	$	174
Fair value of plan assets	$	594	$	—	$	504	$	—

Net Periodic Pension Cost for Defined-Benefit Pension Plans

Net periodic pension cost for the Company’s defined-benefit pension plans was as follows, in millions:


	2012					2011					2010
	Qualified			Non-Qualified		Qualified			Non-Qualified		Qualified			Non-Qualified
Service cost	$	2		$	—	$	2		$	—	$	3		$	—
Interest cost		42			7		44			8		45			9
Expected return on plan assets		(31	)		—		(33	)		—		(34	)		—
Recognized prior service cost		—			—		—			—		(1	)		—
Recognized net loss		14			2		10			1		10			—

Net periodic pension cost	$	27		$	9	$	23		$	9	$	23		$	9

Qualified Defined-Benefit Pension Plan Weighted Average Asset Allocation

Plan Assets. The Company’s qualified defined-benefit pension plan weighted average asset allocation, which is based upon fair value, was as follows:


	At December 31
	2012			2011
Equity securities		44	%		44	%
Debt securities		41	%		39	%
Other		15	%		17	%

Total		100	%		100	%

Qualified Defined-Benefit Pension Plan Assets at Fair Value

The following table sets forth by level, within the fair value hierarchy, the qualified defined-benefit pension plan assets at fair value as of December 31, 2012 and 2011, in millions.


	Assets at Fair Value as of December 31, 2012
	Level 1		Level 2		Level 3		Total
Common and Preferred Stocks:
United States	$	127	$	61	$	—	$	188
International		61		10		—		71
Private Equity and Hedge Funds
United States		—		—		52		52
International		—		—		11		11
Corporate Debt Securities:
United States		—		25		—		25
International		—		73		—		73
Government and Other Debt Securities:
United States		51		42		—		93
International		24		29		—		53
Common Collective Trust Fund—United States		—		12		—		12
Short-Term and Other Investments
United States		1		—		—		1
International		—		—		15		15

Total Assets at Fair Value	$	264	$	252	$	78	$	594


	Assets at Fair Value as of December 31, 2011
	Level 1		Level 2		Level 3		Total
Common and Preferred Stocks:
United States	$	119	$	38	$	—	$	157
International		56		9		—		65
Private Equity and Hedge Funds
United States		—		—		52		52
International		—		—		7		7
Corporate Debt Securities:
United States		—		15		—		15
International		—		55		—		55
Government and Other Debt Securities:
United States		46		31		—		77
International		24		29		—		53
Common Collective Trust Fund—United States		—		8		—		8
Short-Term and Other Investments
United States		2		—		—		2
International		—		—		13		13

Total Assets at Fair Value	$	247	$	185	$	72	$	504

Summary of Changes in Fair Value of Qualified Defined-Benefit Pension Plan

The table below sets forth a summary of changes in the fair value of the qualified defined-benefit pension plan level 3 assets, in millions.


	Year Ended December 31, 2012			Year Ended December 31, 2011
Fair Value, January 1	$	72		$	73
Purchases		9			10
Sales		(8	)		(12	)
Transfers from Level 2 to Level 3		—			2
Unrealized gains (losses)		5			(1	)

Fair Value, December 31	$	78		$	72

Major Assumptions Used in Defined-Benefit Pension Plans

Assumptions. Major assumptions used in accounting for the Company’s defined-benefit pension plans were as follows:


	December 31
	2012			2011			2010
Discount rate for obligations		3.80	%		4.40	%		5.30	%
Expected return on plan assets		7.25	%		7.25	%		7.25	%
Rate of compensation increase		—	%		—	%		1.00	%
Discount rate for net periodic pension cost		4.40	%		5.30	%		5.80	%

Benefits Expected to be Paid

At December 31, 2012, the benefits expected to be paid in each of the next five years, and in aggregate for the five years thereafter, relating to the Company’s defined-benefit pension plans, were as follows, in millions:


	Qualified Plans		Non-Qualified Plans
2013	$	44	$	12
2014	$	45	$	12
2015	$	46	$	12
2016	$	47	$	12
2017	$	49	$	12
2018-2022	$	265	$	58