Retirement Plans and Profit Sharing Arrangements (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plans

Components of Net Periodic Pension Cost

The components of the net periodic benefit cost for all pension plans were as follows:

	Years Ended December 31,
	2013			2012			2011
	(in millions)
Service cost	$	46		$	41		$	38
Interest cost	23			24			23
Expected return on plan assets	(33		)	(30		)	(26		)
Amortization of prior service costs	(1		)	(1		)	(1		)
Amortization of net loss	11			7			1
Other	2			4			4
Net periodic benefit cost	$	48		$	45		$	39

Amounts recognized in the Consolidated Balance Sheets

The following table provides the amounts recognized in the Consolidated Balance Sheets, which equal the funded status of the Company’s pension plans:

	December 31,
	2013			2012
	(in millions)
Benefit liability	$	(136	)	$	(214	)
Benefit asset	4			8
Net amount recognized	$	(132	)	$	(206	)

Accumulated benefit obligations that exceeded the fair value of plan assets

The accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations that exceeded the fair value of plan assets were as follows:

	December 31,
	2013		2012
	(in millions)
Accumulated benefit obligation	$	514	$	503
Fair value of plan assets	418		333

Projected benefit obligations that exceeded the fair value of plan assets

The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations that exceeded the fair value of plan assets were as follows:

	December 31,
	2013		2012
	(in millions)
Projected benefit obligation	$	554	$	547
Fair value of plan assets	418		333

Weighted average assumptions used to determine benefit obligations

The weighted average assumptions used to determine benefit obligations for pension plans were as follows:

	2013		2012
Discount rates	4.06	%	3.45	%
Rates of increase in compensation levels	4.38		4.36

Assumptions used to calculate Net Periodic Benefit Cost

The weighted average assumptions used to determine net periodic benefit cost for pension plans were as follows:

	2013		2012		2011
Discount rates	3.45	%	4.15	%	4.75	%
Rates of increase in compensation levels	4.36		4.27		4.25
Expected long-term rates of return on assets	7.62		7.69		8.00

Pension plan assets measured at fair value on a recurring basis

The following tables present the Company’s pension plan assets measured at fair value on a recurring basis:

	December 31, 2013
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	97	$	43	$	—	$	140
U.S. small cap stocks	55		1		—		56
Non-U.S. large cap stocks	21		35		—		56
Non-U.S. small cap stocks	21		—		—		21
Emerging markets	14		23		—		37
Debt securities:
U.S. investment grade bonds	17		14		—		31
U.S. high yield bonds	—		21		—		21
Non-U.S. investment grade bonds	—		14		—		14
Real estate investment trusts	—		—		2		2
Hedge funds	—		—		20		20
Pooled pension funds	—		126		—		126
Cash equivalents	20		—		—		20
Total	$	245	$	277	$	22	$	544

	December 31, 2012
Asset Category	Level 1		Level 2		Level 3		Total
	(in millions)
Equity securities:
U.S. large cap stocks	$	89	$	14	$	—	$	103
U.S. small cap stocks	43		1		—		44
Non-U.S. large cap stocks	17		30		—		47
Emerging markets	13		20		—		33
Debt securities:
U.S. investment grade bonds	20		12		—		32
U.S. high yield bonds	—		20		—		20
Non-U.S. investment grade bonds	—		15		—		15
Real estate investment trusts	—		—		12		12
Hedge funds	—		—		18		18
Pooled pension funds	—		104		—		104
Cash equivalents	9		—		—		9
Total	$	191	$	216	$	30	$	437

Summary of changes in Level 3 assets measured at fair value on a recurring basis

The following table provides a summary of changes in Level 3 assets measured at fair value on a recurring basis:

Asset Category	Real Estate Investment Trusts			Hedge Funds
	(in millions)
Balance at January 1, 2011	$	8		$	9
Actual return on plan assets:
Relating to assets still held at the reporting date	1			—
Purchases	2			11
Sales	—			(8		)
Balance at December 31, 2011	11			12
Actual return on plan assets:
Relating to assets still held at the reporting date	—			1
Purchases	1			5
Balance at December 31, 2012	12			18
Actual return on plan assets:
Relating to assets still held at the reporting date	—			2
Purchases	2			—
Sales	(12		)	—
Balance at December 31, 2013	$	2		$	20

Pension Plans

Defined Benefit Plans

Schedule of reconciliation of the changes in the defined postretirement benefit plan obligation

The following tables provide a reconciliation of the changes in the benefit obligation and fair value of assets for the pension plans:

	2013			2012
	(in millions)
Benefit obligation, January 1	$	643		$	546
Service cost	46			41
Interest cost	23			24
Benefits paid	(7		)	(7		)
Actuarial (gain) loss	(8		)	51
Settlements	(23		)	(15		)
Foreign currency rate changes	2			3
Benefit obligation, December 31	$	676		$	643

Reconciliation of the changes in the fair value of plan assets for the pension plans

	2013			2012
	(in millions)
Fair value of plan assets, January 1	$	437		$	362
Actual return on plan assets	85			49
Employer contributions	50			45
Benefits paid	(7		)	(7		)
Settlements	(23		)	(15		)
Foreign currency rate changes	2			3
Fair value of plan assets, December 31	$	544		$	437

Expected benefit payments to retirees under retirement plans

The Company’s pension plans expect to make benefit payments to retirees as follows:

	(in millions)
2014	$	60
2015	64
2016	61
2017	66
2018	69
2019-2023	289

Summary of unrealized losses included in other comprehensive income

The following is a summary of unrealized losses included in other comprehensive income (loss) related to the Company’s defined benefit plans:

	2013			2012			2011
	(in millions)
Net unrealized defined benefit losses at January 1	$	(91	)	$	(75	)	$	(24	)
Net gains (losses)	71			(23		)	(77		)
Prior service credit	(2		)	(2		)	(2		)
Income tax (provision) benefit	(24		)	9			28
Net unrealized defined benefit losses at December 31	$	(46	)	$	(91	)	$	(75	)

Other Postretirement Benefits

Defined Benefit Plans

Schedule of reconciliation of the changes in the defined postretirement benefit plan obligation

The following table provides a reconciliation of the changes in the defined benefit postretirement plan obligation:

	2013			2012
	(in millions)
Benefit obligation, January 1	$	20		$	19
Interest cost	1			1
Benefits paid	(4		)	(4		)
Participant contributions	2			3
Actuarial (gain) loss	(1		)	1
Benefit obligation, December 31	$	18		$	20

Weighted average assumptions used to determine benefit obligations

The weighted average assumptions used to determine benefit obligations for other postretirement benefits were as follows:

	2013		2012
	(in millions)
Discount rates	4.25	%	3.40	%
Healthcare cost increase rates:
Following year	6.00		6.50
Decreasing to the year 2016	5.00		5.00

Expected benefit payments to retirees under retirement plans

The Company’s defined benefit postretirement plans expect to make benefit payments to retirees as follows:

	(in millions)
2014	$	2
2015	2
2016	2
2017	2
2018	1
2019-2023	7