|
RETIREMENT BENEFITS (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Defined Benefit Plan Disclosure |
|
| Retirement benefits, components of net (benefit) expense |
|
|
Pension plans |
|
Postretirement benefit plans |
|
|
|
U.S. plans |
|
Non-U.S. plans |
|
U.S. plans |
|
Non-U.S. plans |
|
| In millions of dollars |
|
2012 |
|
2011 |
|
2010 |
|
2012 |
|
2011 |
|
2010 |
|
2012 |
|
2011 |
|
2010 |
|
2012 |
|
2011 |
|
2010 |
|
| Qualified Plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits earned during the year |
|
$ |
12 |
|
$ |
13 |
|
$ |
14 |
|
$ |
199 |
|
$ |
203 |
|
$ |
167 |
|
$ |
— |
|
$ |
— |
|
$ |
1 |
|
$ |
29 |
|
$ |
28 |
|
$ |
23 |
|
| Interest cost on benefit obligation |
|
|
565 |
|
|
612 |
|
|
644 |
|
|
367 |
|
|
382 |
|
|
342 |
|
|
44 |
|
|
53 |
|
|
59 |
|
|
116 |
|
|
118 |
|
|
105 |
|
| Expected return on plan assets |
|
|
(897 |
) |
|
(890 |
) |
|
(874 |
) |
|
(399 |
) |
|
(422 |
) |
|
(378 |
) |
|
(4 |
) |
|
(6 |
) |
|
(8 |
) |
|
(108 |
) |
|
(117 |
) |
|
(100 |
) |
| Amortization of unrecognized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net transition obligation |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Prior service cost (benefit) |
|
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
4 |
|
|
4 |
|
|
4 |
|
|
(1 |
) |
|
(3 |
) |
|
(3 |
) |
|
— |
|
|
— |
|
|
— |
|
| Net actuarial loss |
|
|
96 |
|
|
64 |
|
|
47 |
|
|
77 |
|
|
72 |
|
|
57 |
|
|
4 |
|
|
3 |
|
|
11 |
|
|
25 |
|
|
24 |
|
|
20 |
|
| Curtailment (gain) loss |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
4 |
|
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Settlement (gain) loss |
|
|
— |
|
|
— |
|
|
— |
|
|
35 |
|
|
10 |
|
|
7 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Special termination benefits |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
27 |
|
|
5 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Net qualified (benefit) expense |
|
$ |
(225 |
) |
$ |
(202 |
) |
$ |
(170 |
) |
$ |
294 |
|
$ |
279 |
|
$ |
204 |
|
$ |
43 |
|
$ |
47 |
|
$ |
60 |
|
$ |
62 |
|
$ |
53 |
|
$ |
48 |
|
| Nonqualified plans expense |
|
$ |
42 |
|
$ |
42 |
|
$ |
41 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| Total net (benefit) expense |
|
$ |
(183 |
) |
$ |
(160 |
) |
$ |
(129 |
) |
$ |
294 |
|
$ |
279 |
|
$ |
204 |
|
$ |
43 |
|
$ |
47 |
|
$ |
60 |
|
$ |
62 |
|
$ |
53 |
|
$ |
48 |
|
|
| Schedule of actual and estimated expected Company contributions |
|
|
Pension plans |
(1) |
Postretirement plans |
(1) |
|
|
U.S. plans |
(2) |
Non-U.S. plans |
|
U.S. plans |
|
Non-U.S. plans |
|
| In millions of dollars |
|
2013 |
|
2012 |
|
2011 |
|
2013 |
|
2012 |
|
2011 |
|
2013 |
|
2012 |
|
2011 |
|
2013 |
|
2012 |
|
2011 |
|
| Cash contributions paid by the Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
177 |
|
$ |
270 |
|
$ |
342 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
82 |
|
$ |
88 |
|
$ |
70 |
|
| Benefits paid directly by the Company |
|
|
54 |
|
|
54 |
|
|
51 |
|
|
47 |
|
|
82 |
|
|
47 |
|
|
57 |
|
|
54 |
|
|
53 |
|
|
5 |
|
|
4 |
|
|
5 |
|
| Total Company contributions |
|
$ |
54 |
|
$ |
54 |
|
$ |
51 |
|
$ |
224 |
|
$ |
352 |
|
$ |
389 |
|
$ |
57 |
|
$ |
54 |
|
$ |
53 |
|
$ |
87 |
|
$ |
92 |
|
$ |
75 |
|
| (1) |
|
Payments reported for 2013 are expected amounts. |
| (2) |
|
The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plan. |
|
| Summary of the funded status and amounts recognized in the Consolidated Balance Sheet for the Company's U.S. qualified, non-qualified plans and plans outside the U.S. |
|
|
Pension plans |
|
Postretirement plans |
|
|
|
U.S. plans |
(1) |
Non-U.S. plans |
|
U.S. plans |
|
Non-U.S. plans |
|
| In millions of dollars |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
| Change in projected benefit obligation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Projected benefit obligation at beginning of year |
|
$ |
12,377 |
|
$ |
11,730 |
|
$ |
6,262 |
|
$ |
6,189 |
|
$ |
1,127 |
|
$ |
1,179 |
|
$ |
1,368 |
|
$ |
1,395 |
|
| Benefits earned during the year |
|
|
12 |
|
|
13 |
|
|
199 |
|
|
203 |
|
|
— |
|
|
— |
|
|
29 |
|
|
28 |
|
| Interest cost on benefit obligation |
|
|
565 |
|
|
612 |
|
|
367 |
|
|
382 |
|
|
44 |
|
|
53 |
|
|
116 |
|
|
118 |
|
| Plan amendments |
|
|
(13 |
) |
|
— |
|
|
17 |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Actuarial (gain) loss |
|
|
965 |
|
|
655 |
|
|
923 |
|
|
59 |
|
|
(24 |
) |
|
(44 |
) |
|
457 |
|
|
29 |
|
| Benefits paid, net of participating contributions |
|
|
(638 |
) |
|
(633 |
) |
|
(306 |
) |
|
(282 |
) |
|
(85 |
) |
|
(79 |
) |
|
(54 |
) |
|
(54 |
) |
| Expected Medicare Part D subsidy |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
10 |
|
|
— |
|
|
— |
|
| Settlements |
|
|
— |
|
|
— |
|
|
(254 |
) |
|
(44 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Curtailment (gain) loss |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
3 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Special/contractual termination benefits |
|
|
— |
|
|
— |
|
|
1 |
|
|
27 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Foreign exchange impact and other |
|
|
— |
|
|
— |
|
|
198 |
|
|
(277 |
) |
|
— |
|
|
8 |
|
|
86 |
|
|
(148 |
) |
| Projected benefit obligation at year end |
|
$ |
13,268 |
|
$ |
12,377 |
|
$ |
7,399 |
|
$ |
6,262 |
|
$ |
1,072 |
|
$ |
1,127 |
|
$ |
2,002 |
|
$ |
1,368 |
|
| Change in plan assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Plan assets at fair value at beginning of year |
|
$ |
11,991 |
|
$ |
11,561 |
|
$ |
6,421 |
|
$ |
6,145 |
|
$ |
74 |
|
$ |
95 |
|
$ |
1,096 |
|
$ |
1,176 |
|
| Actual return on plan assets |
|
|
1,303 |
|
|
1,063 |
|
|
786 |
|
|
526 |
|
|
7 |
|
|
5 |
|
|
277 |
|
|
40 |
|
| Company contributions |
|
|
— |
|
|
— |
|
|
352 |
|
|
389 |
|
|
54 |
|
|
53 |
|
|
92 |
|
|
75 |
|
| Plan participants contributions |
|
|
— |
|
|
— |
|
|
6 |
|
|
6 |
|
|
58 |
|
|
65 |
|
|
— |
|
|
— |
|
| Settlements |
|
|
— |
|
|
— |
|
|
(254 |
) |
|
(44 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Benefits paid |
|
|
(638 |
) |
|
(633 |
) |
|
(312 |
) |
|
(288 |
) |
|
(143 |
) |
|
(144 |
) |
|
(54 |
) |
|
(54 |
) |
| Foreign exchange impact and other |
|
|
— |
|
|
— |
|
|
155 |
|
|
(313 |
) |
|
— |
|
|
— |
|
|
86 |
|
|
(141 |
) |
| Plan assets at fair value at year end |
|
$ |
12,656 |
|
$ |
11,991 |
|
$ |
7,154 |
|
$ |
6,421 |
|
$ |
50 |
|
$ |
74 |
|
$ |
1,497 |
|
$ |
1,096 |
|
| Funded status of the plan at year end (2) |
|
$ |
(612 |
) |
$ |
(386 |
) |
$ |
(245 |
) |
$ |
159 |
|
$ |
(1,022 |
) |
$ |
(1,053 |
) |
$ |
(505 |
) |
|
(272 |
) |
| Net amount recognized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefit asset |
|
$ |
— |
|
$ |
— |
|
$ |
763 |
|
$ |
874 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| Benefit liability |
|
|
(612 |
) |
|
(386 |
) |
|
(1,008 |
) |
|
(715 |
) |
|
(1,022 |
) |
|
(1,053 |
) |
|
(505 |
) |
|
(272 |
) |
| Net amount recognized on the balance sheet |
|
$ |
(612 |
) |
$ |
(386 |
) |
$ |
(245 |
) |
$ |
159 |
|
$ |
(1,022 |
) |
$ |
(1,053 |
) |
$ |
(505 |
) |
$ |
(272 |
) |
| Amounts recognized in Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net transition obligation |
|
$ |
— |
|
$ |
— |
|
$ |
(2 |
) |
$ |
1 |
|
$ |
— |
|
$ |
— |
|
$ |
(1 |
) |
$ |
(1 |
) |
| Prior service cost (benefit) |
|
|
13 |
|
|
1 |
|
|
(33 |
) |
|
(23 |
) |
|
1 |
|
|
3 |
|
|
5 |
|
|
5 |
|
| Net actuarial loss |
|
|
(4,904 |
) |
|
(4,440 |
) |
|
(1,936 |
) |
|
(1,454 |
) |
|
(123 |
) |
|
(152 |
) |
|
(802 |
) |
|
(509 |
) |
| Net amount recognized in equity—pretax |
|
$ |
(4,891 |
) |
$ |
(4,439 |
) |
$ |
(1,971 |
) |
$ |
(1,476 |
) |
$ |
(122 |
) |
$ |
(149 |
) |
$ |
(798 |
) |
|
(505 |
) |
| Accumulated benefit obligation at year end |
|
$ |
13,246 |
|
$ |
12,337 |
|
$ |
6,369 |
|
$ |
5,463 |
|
$ |
1,072 |
|
$ |
1,127 |
|
$ |
2,002 |
|
$ |
1,368 |
|
| (1) |
|
The U.S. plans exclude nonqualified pension plans, for which the aggregate projected benefit obligation was $769 million and $713 million and the aggregate accumulated benefit obligation was $738 million and $694 million at December 31, 2012 and 2011, respectively. These plans are unfunded. As such, the funded status of these plans is $(769) million and $(713) million at December 31, 2012 and 2011, respectively. Accumulated other comprehensive income (loss) reflects pretax charges of $298 million and $231 million at December 31, 2012 and 2011, respectively, that primarily relate to net actuarial loss. |
| (2) |
|
The U.S. qualified pension plan is fully funded under specified ERISA funding rules as of January 1, 2013 and no minimum required funding is expected for 2012 or 2013. |
|
| Change in Accumulated other comprehensive income (loss) |
| In millions of dollars |
|
2012 |
|
2011 |
|
| Balance, January 1, net of tax (1) |
|
$ |
(4,282 |
) |
$ |
(4,105 |
) |
| Actuarial assumptions changes and plan experience (2) |
|
|
(2,400 |
) |
|
(820 |
) |
| Net asset gain due to actual returns |
|
|
|
|
|
|
|
| exceeding expected returns |
|
|
963 |
|
|
197 |
|
| Net amortizations |
|
|
214 |
|
|
183 |
|
| Foreign exchange impact and other |
|
|
(155 |
) |
|
28 |
|
| Change in deferred taxes, net |
|
|
390 |
|
|
235 |
|
| Change, net of tax |
|
$ |
(988 |
) |
$ |
(177 |
) |
| Balance, December 31, net of tax (1) |
|
$ |
(5,270 |
) |
$ |
(4,282 |
) |
| (1) |
|
See Note 21 to the Consolidated Financial Statements for further discussion of net Accumulated other comprehensive income (loss) balance. |
| (2) |
|
Includes $62 million and $70 million in net actuarial losses related to U.S. nonqualified pension plans for 2012 and 2011, respectively. |
|
| Aggregate projected benefit obligation (PBO), accumulated benefit obligation (ABO), and fair value of plan assets for pension plans with a PBO or ABO that exceeds the fair value of plan assets |
|
|
PBO exceeds fair value of plan assets |
|
ABO exceeds fair value plan assets |
|
|
U.S. plans |
(1) |
Non-U.S. plans |
|
U.S. plans |
(1) |
Non-U.S. plans |
| In millions of dollars |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| Projected benefit obligation |
|
$ |
14,037 |
|
$ |
13,089 |
|
$ |
4,792 |
|
$ |
2,386 |
|
$ |
14,037 |
|
$ |
13,089 |
|
$ |
2,608 |
|
$ |
1,970 |
| Accumulated benefit obligation |
|
|
13,984 |
|
|
13,031 |
|
|
3,876 |
|
|
1,992 |
|
|
13,984 |
|
|
13,031 |
|
|
2,263 |
|
|
1,691 |
| Fair value of plan assets |
|
|
12,656 |
|
|
11,991 |
|
|
3,784 |
|
|
1,671 |
|
|
12,656 |
|
|
11,991 |
|
|
1,677 |
|
|
1,139 |
| (1) |
|
In 2012, the PBO and ABO of the U.S. plans include $13,268 million and $13,246 million, respectively, relating to the qualified plan and $769 million and $738 million, respectively, relating to the nonqualified plans. In 2011, the PBO and ABO of the U.S. plans include $12,377 million and $12,337 million, respectively, relating to the qualified plan and $712 million and $694 million, respectively, relating to the nonqualified plans. |
|
| Assumptions used in determining pension and postretirement benefit obligations and net benefit expense |
| At year end |
|
2012 |
|
2011 |
|
| Discount rate |
|
|
|
|
|
| U.S. plans (1) |
|
|
|
|
|
| Pension |
|
3.90 |
% |
4.70 |
% |
| Postretirement |
|
3.60 |
|
4.30 |
|
| Non-U.S. pension plans |
|
|
|
|
|
| Range |
|
1.50 to 28.00 |
|
1.75 to 13.25 |
|
| Weighted average |
|
5.24 |
|
5.94 |
|
| Future compensation increase rate |
|
|
|
|
|
| U.S. plans (2) |
|
N/A |
|
N/A |
|
| Non-U.S. pension plans |
|
|
|
|
|
| Range |
|
1.20 to 26.00 |
|
1.60 to 13.30 |
|
| Weighted average |
|
3.93 |
|
4.04 |
|
| Expected return on assets |
|
|
|
|
|
| U.S. plans |
|
7.00 |
|
7.50 |
|
| Non-U.S. pension plans |
|
|
|
|
|
| Range |
|
0.90 to 11.50 |
|
1.00 to 12.50 |
|
| Weighted average |
|
5.76 |
|
6.25 |
|
| |
| During the year |
|
2012 |
|
2011 |
|
| Discount rate |
|
|
|
|
|
| U.S. plans (1) |
|
|
|
|
|
| Pension |
|
4.70 |
% |
5.45 |
% |
| Postretirement |
|
4.30 |
|
5.10 |
|
| Non-U.S. pension plans |
|
|
|
|
|
| Range |
|
1.75 to 13.25 |
|
1.75 to 14.00 |
|
| Weighted average |
|
5.94 |
|
6.23 |
|
| Future compensation increase rate |
|
|
|
|
|
| U.S. plans (2) |
|
N/A |
|
N/A |
|
| Non-U.S. pension plans |
|
|
|
|
|
| Range |
|
1.60 to 13.30 |
|
1.00 to 11.00 |
|
| Weighted average |
|
4.04 |
|
4.66 |
|
| Expected return on assets |
|
|
|
|
|
| U.S. plans |
|
7.50 |
|
7.50 |
|
| Non-U.S. pension plans |
|
|
|
|
|
| Range |
|
1.00 to 12.50 |
|
1.00 to 12.50 |
|
| Weighted average |
|
6.25 |
|
6.89 |
|
| (1) |
|
Weighted-average rates for the U.S. plans equal the stated rates. |
| (2) |
|
Since the U.S. qualified pension plan was frozen, a compensation increase rate applies only to certain small groups of grandfathered employees accruing benefits under a final pay plan formula. Only the future compensation increases for these grandfathered employees will affect future pension expense and obligations. Compensation increase rates for these small groups of participants range from 3.00% to 4.00%. |
|
| Expected and actual rates of return on pension and postretirement plan assets |
|
|
2012 |
|
2011 |
|
2010 |
|
| Expected rate of return (1) |
|
7.50 |
% |
7.50 |
% |
7.75 |
% |
| Actual rate of return (2) |
|
11.79 |
% |
11.13 |
% |
14.11 |
% |
| (1) |
|
Effective December 31, 2012, the expected rate of return decreased from 7.50% to 7.00%. |
| (2) |
|
Actual rates of return are presented gross of fees. |
|
| Effect of one-percentage-point change in the discount rates on pension expense |
|
|
One-percentage-point increase |
|
| In millions of dollars |
|
2012 |
|
2011 |
|
2010 |
|
| U.S. plans |
|
$ |
18 |
|
$ |
19 |
|
$ |
19 |
|
| Non-U.S. plans |
|
|
(48 |
) |
|
(57 |
) |
|
(49 |
) |
| |
|
|
One-percentage-point decrease |
|
| In millions of dollars |
|
2012 |
|
2011 |
|
2010 |
|
| U.S. plans |
|
$ |
(36 |
) |
$ |
(34 |
) |
$ |
(34 |
) |
| Non-U.S. plans |
|
|
64 |
|
|
70 |
|
|
56 |
|
|
| Effect of one-percentage-point change in the expected rates of return on pension expense |
|
|
One-percentage-point increase |
|
| In millions of dollars |
|
2012 |
|
2011 |
|
2010 |
|
| U.S. plans |
|
$ |
(120 |
) |
$ |
(118 |
) |
$ |
(119 |
) |
| Non-U.S. plans |
|
|
(64 |
) |
|
(62 |
) |
|
(54 |
) |
|
|
One-percentage-point decrease |
|
| In millions of dollars |
|
2012 |
|
2011 |
|
2010 |
|
| U.S. plans |
|
$ |
120 |
|
$ |
118 |
|
$ |
119 |
|
| Non-U.S. plans |
|
|
64 |
|
|
62 |
|
|
54 |
|
|
| Assumed health-care cost-trend rates, U.S plans |
|
2012 |
|
2011 |
|
| Health-care cost increase rate for U.S. plans |
|
|
|
|
| Following year |
8.50 |
% |
9.00 |
% |
| Ultimate rate to which cost increase is assumed to decline |
5.00 |
|
5.00 |
|
| Year in which the ultimate rate is reached |
2020 |
|
2020 |
|
|
| Effect of one-percentage-point change in assumed health-care cost- trend rates |
|
|
|
|
|
|
|
|
One- |
|
|
|
One-percentage- |
|
percentage- |
|
|
|
point increase |
|
point decrease |
|
| In millions of dollars |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
| Effect on benefits earned and |
|
|
|
|
|
|
|
|
|
|
|
|
|
| interest cost for U.S. plans |
|
$ |
2 |
|
$ |
2 |
|
$ |
(1 |
) |
$ |
(2 |
) |
| Effect on accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
| postretirement benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
| obligation for U.S. plans |
|
|
44 |
|
|
43 |
|
|
(39 |
) |
|
(38 |
) |
|
| Estimated Future Benefit Payments |
|
Pension plans |
|
Postretirement benefit plans |
| In millions of dollars |
U.S. plans |
|
Non-U.S. plans |
|
U.S. plans |
|
Non-U.S. plans |
| 2013 |
$ |
774 |
|
$ |
366 |
|
$ |
88 |
|
$ |
58 |
| 2014 |
|
796 |
|
|
356 |
|
|
86 |
|
|
63 |
| 2015 |
|
798 |
|
|
373 |
|
|
86 |
|
|
66 |
| 2016 |
|
811 |
|
|
391 |
|
|
83 |
|
|
71 |
| 2017 |
|
825 |
|
|
408 |
|
|
81 |
|
|
75 |
| 2018–2022 |
|
4,370 |
|
|
2,399 |
|
|
370 |
|
|
483 |
|
|
Postemployment Plans
|
|
| Defined Benefit Plan Disclosure |
|
| Retirement benefits, components of net (benefit) expense |
|
Net Expense |
| In millions of dollars |
2012 |
|
2011 |
|
2010 |
| Service related expense |
|
|
|
|
|
|
|
|
| Service cost |
$ |
22 |
|
$ |
16 |
|
$ |
13 |
| Interest cost |
|
13 |
|
|
12 |
|
|
10 |
| Prior service cost |
|
7 |
|
|
7 |
|
|
7 |
| Net actuarial loss |
|
13 |
|
|
9 |
|
|
6 |
| Total service related expense |
$ |
55 |
|
$ |
44 |
|
$ |
36 |
| Non-service related expense |
$ |
24 |
|
$ |
23 |
|
$ |
33 |
| Total net expense |
$ |
79 |
|
$ |
67 |
|
$ |
69 |
|
| Assumptions used in determining pension and postretirement benefit obligations and net benefit expense |
|
2012 |
|
|
2011 |
|
| Discount rate |
3.10 |
% |
|
3.95 |
% |
| Health-care cost increase rate |
|
|
|
|
|
| Following year |
8.50 |
% |
|
9.00 |
% |
| Ultimate rate to which cost increase is assumed to decline |
5.00 |
|
|
5.00 |
|
| Year in which the ultimate rate is reached |
2020 |
|
|
2020 |
|
|
| Estimated Future Benefit Payments |
|
Expected U.S. |
|
postretirement benefit payments |
|
Before Medicare |
|
Medicare |
|
After Medicare |
| In millions of dollars |
Part D subsidy |
|
Part D subsidy |
|
Part D subsidy |
| 2013 |
$ |
98 |
|
$ |
10 |
|
$ |
88 |
| 2014 |
|
96 |
|
|
10 |
|
|
86 |
| 2015 |
|
94 |
|
|
8 |
|
|
86 |
| 2016 |
|
91 |
|
|
8 |
|
|
83 |
| 2017 |
|
89 |
|
|
8 |
|
|
81 |
| 2018–2022 |
|
399 |
|
|
29 |
|
|
370 |
|
|
U.S. Pension Plans
|
|
| Defined Benefit Plan Disclosure |
|
| Asset allocations for the current reporting period and target allocations for next year by asset category based on asset fair values |
|
Target asset |
|
U.S. pension assets |
|
U.S. postretirement assets |
|
|
allocation |
|
at December 31, |
|
at December 31, |
|
| Asset category (1) |
2013 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
| Equity securities (2) |
0 - 30 |
% |
17 |
% |
16 |
% |
17 |
% |
16 |
% |
| Debt securities |
25 - 73 |
|
45 |
|
44 |
|
45 |
|
44 |
|
| Real estate |
0 - 7 |
|
5 |
|
5 |
|
5 |
|
5 |
|
| Private equity |
0 - 15 |
|
11 |
|
13 |
|
11 |
|
13 |
|
| Other investments |
12 - 29 |
|
22 |
|
22 |
|
22 |
|
22 |
|
| Total |
|
|
100 |
% |
100 |
% |
100 |
% |
100 |
% |
| (1) |
|
Asset allocations for the U.S. plans are set by investment strategy, not by investment product. For example, private equities with an underlying investment in real estate are classified in the real estate asset category, not private equity. |
| (2) |
|
Equity securities in the U.S. pension plans include no Citigroup common stock at the end of 2012 and 2011. |
|
| Plan assets by detailed asset categories and the fair value hierarchy |
| In millions of dollars |
|
U.S. pension and postretirement benefit plans |
(1) |
|
|
Fair value measurement at December 31, 2012 |
|
| Asset categories |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. equity |
|
$ |
677 |
|
$ |
— |
|
$ |
— |
|
$ |
677 |
|
| Non-U.S. equity |
|
|
412 |
|
|
5 |
|
|
— |
|
|
417 |
|
| Mutual funds |
|
|
177 |
|
|
— |
|
|
— |
|
|
177 |
|
| Commingled funds |
|
|
— |
|
|
1,132 |
|
|
— |
|
|
1,132 |
|
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Treasuries |
|
|
1,431 |
|
|
— |
|
|
— |
|
|
1,431 |
|
| U.S. agency |
|
|
— |
|
|
112 |
|
|
— |
|
|
112 |
|
| U.S. corporate bonds |
|
|
1 |
|
|
1,396 |
|
|
— |
|
|
1,397 |
|
| Non-U.S. government debt |
|
|
— |
|
|
387 |
|
|
— |
|
|
387 |
|
| Non-U.S. corporate bonds |
|
|
4 |
|
|
346 |
|
|
— |
|
|
350 |
|
| State and municipal debt |
|
|
— |
|
|
142 |
|
|
— |
|
|
142 |
|
| Hedge funds |
|
|
— |
|
|
1,132 |
|
|
1,524 |
|
|
2,656 |
|
| Asset-backed securities |
|
|
— |
|
|
55 |
|
|
— |
|
|
55 |
|
| Mortgage-backed securities |
|
|
— |
|
|
52 |
|
|
— |
|
|
52 |
|
| Annuity contracts |
|
|
— |
|
|
— |
|
|
130 |
|
|
130 |
|
| Private equity |
|
|
— |
|
|
— |
|
|
2,419 |
|
|
2,419 |
|
| Derivatives |
|
|
593 |
|
|
37 |
|
|
— |
|
|
630 |
|
| Other investments |
|
|
— |
|
|
— |
|
|
142 |
|
|
142 |
|
| Total investments at fair value |
|
$ |
3,295 |
|
$ |
4,796 |
|
$ |
4,215 |
|
$ |
12,306 |
|
| Cash and short-term investments |
|
$ |
130 |
|
$ |
906 |
|
$ |
— |
|
$ |
1,036 |
|
| Other investment receivables |
|
|
— |
|
|
6 |
|
|
24 |
|
|
30 |
|
| Total assets |
|
$ |
3,425 |
|
$ |
5,708 |
|
$ |
4,239 |
|
$ |
13,372 |
|
| Other investment liabilities |
|
$ |
(607 |
) |
$ |
(60 |
) |
$ |
— |
|
$ |
(667 |
) |
| Total net assets |
|
$ |
2,818 |
|
$ |
5,648 |
|
$ |
4,239 |
|
$ |
12,705 |
|
| (1) |
|
The investments of the U.S. pension and postretirement benefit plans are commingled in one trust. At December 31, 2012, the allocable interests of the U.S. pension and postretirement benefit plans were 99.6% and 0.4%, respectively. |
| In millions of dollars |
|
U.S. pension and postretirement benefit plans |
(1) |
|
|
Fair value measurement at December 31, 2011 |
|
| Asset categories |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. equity |
|
$ |
572 |
|
$ |
5 |
|
$ |
51 |
|
$ |
628 |
|
| Non-U.S. equity |
|
|
229 |
|
|
— |
|
|
19 |
|
|
248 |
|
| Mutual funds |
|
|
137 |
|
|
— |
|
|
— |
|
|
137 |
|
| Commingled funds |
|
|
440 |
|
|
594 |
|
|
— |
|
|
1,034 |
|
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Treasuries |
|
|
1,760 |
|
|
— |
|
|
— |
|
|
1,760 |
|
| U.S. agency |
|
|
— |
|
|
120 |
|
|
— |
|
|
120 |
|
| U.S. corporate bonds |
|
|
2 |
|
|
1,073 |
|
|
5 |
|
|
1,080 |
|
| Non-U.S. government debt |
|
|
— |
|
|
352 |
|
|
— |
|
|
352 |
|
| Non-U.S. corporate bonds |
|
|
4 |
|
|
271 |
|
|
— |
|
|
275 |
|
| State and municipal debt |
|
|
— |
|
|
122 |
|
|
— |
|
|
122 |
|
| Hedge funds |
|
|
— |
|
|
1,087 |
|
|
870 |
|
|
1,957 |
|
| Asset-backed securities |
|
|
— |
|
|
19 |
|
|
— |
|
|
19 |
|
| Mortgage-backed securities |
|
|
— |
|
|
32 |
|
|
— |
|
|
32 |
|
| Annuity contracts |
|
|
— |
|
|
— |
|
|
155 |
|
|
155 |
|
| Private equity |
|
|
— |
|
|
— |
|
|
2,474 |
|
|
2,474 |
|
| Derivatives |
|
|
691 |
|
|
36 |
|
|
— |
|
|
727 |
|
| Other investments |
|
|
92 |
|
|
20 |
|
|
121 |
|
|
233 |
|
| Total investments at fair value |
|
$ |
3,927 |
|
$ |
3,731 |
|
$ |
3,695 |
|
$ |
11,353 |
|
| Cash and short-term investments |
|
$ |
412 |
|
$ |
402 |
|
$ |
— |
|
$ |
814 |
|
| Other investment receivables |
|
|
— |
|
|
393 |
|
|
221 |
|
|
614 |
|
| Total assets |
|
$ |
4,339 |
|
$ |
4,526 |
|
$ |
3,916 |
|
$ |
12,781 |
|
| Other investment liabilities |
|
$ |
(683 |
) |
$ |
(33 |
) |
$ |
— |
|
$ |
(716 |
) |
| Total net assets |
|
$ |
3,656 |
|
$ |
4,493 |
|
$ |
3,916 |
|
$ |
12,065 |
|
| (1) |
|
The investments of the U.S. pension and postretirement benefit plans are commingled in one trust. At December 31, 2011, the allocable interests of the U.S. pension and postretirement benefit plans were 99.2% and 0.8%, respectively. |
|
| Reconciliations of the beginning and ending balances during the period for Level 3 assets |
| In millions of dollars |
U.S. pension and postretirement benefit plans |
|
Beginning Level 3 |
|
Realized |
|
Unrealized |
|
Purchases, |
|
Transfers in |
|
Ending Level 3 |
|
fair value at |
|
gains |
|
gains |
|
sales, and |
|
and/or out of |
|
fair value at |
| Asset categories |
Dec. 31, 2011 |
|
(losses) |
|
(losses) |
|
issuances |
|
Level 3 |
|
Dec. 31, 2012 |
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. equity |
$ |
51 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(51 |
) |
$ |
— |
| Non-U.S. equity |
|
19 |
|
|
— |
|
|
8 |
|
|
— |
|
|
(27 |
) |
|
— |
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. corporate bonds |
|
5 |
|
|
— |
|
|
1 |
|
|
— |
|
|
(6 |
) |
|
— |
| Non-U.S. government debt |
|
— |
|
|
(1 |
) |
|
— |
|
|
1 |
|
|
— |
|
|
— |
| Non-U.S. corporate bonds |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| Hedge funds |
|
870 |
|
|
(28 |
) |
|
149 |
|
|
199 |
|
|
334 |
|
|
1,524 |
| Annuity contracts |
|
155 |
|
|
— |
|
|
6 |
|
|
(31 |
) |
|
— |
|
|
130 |
| Private equity |
|
2,474 |
|
|
267 |
|
|
98 |
|
|
(484 |
) |
|
64 |
|
|
2,419 |
| Other investments |
|
121 |
|
|
— |
|
|
14 |
|
|
12 |
|
|
(5 |
) |
|
142 |
| Total investments |
$ |
3,695 |
|
$ |
238 |
|
$ |
276 |
|
$ |
(303 |
) |
$ |
309 |
|
$ |
4,215 |
| Other investment receivables |
|
221 |
|
|
— |
|
|
— |
|
|
— |
|
|
(197 |
) |
|
24 |
| Total assets |
$ |
3,916 |
|
$ |
238 |
|
$ |
276 |
|
$ |
(303 |
) |
$ |
112 |
|
$ |
4,239 |
|
|
| In millions of dollars |
U.S. pension and postretirement benefit plans |
|
Beginning Level 3 |
|
Realized |
|
Unrealized |
|
Purchases, |
|
Transfers in |
|
Ending Level 3 |
|
fair value at |
|
gains |
|
gains |
|
sales, and |
|
and/or out of |
|
fair value at |
| Asset categories |
Dec. 31, 2010 |
|
(losses) |
|
(losses) |
|
issuances |
|
Level 3 |
|
Dec. 31, 2011 |
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. equity |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
51 |
|
$ |
51 |
| Non-U.S. equity |
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
20 |
|
|
19 |
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. corporate bonds |
|
5 |
|
|
(2 |
) |
|
(1 |
) |
|
(1 |
) |
|
4 |
|
|
5 |
| Non-U.S. corporate bonds |
|
1 |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
— |
| Hedge funds |
|
1,014 |
|
|
42 |
|
|
(45 |
) |
|
(131 |
) |
|
(10 |
) |
|
870 |
| Annuity contracts |
|
187 |
|
|
— |
|
|
3 |
|
|
(35 |
) |
|
— |
|
|
155 |
| Private equity |
|
2,920 |
|
|
89 |
|
|
94 |
|
|
(497 |
) |
|
(132 |
) |
|
2,474 |
| Other investments |
|
4 |
|
|
— |
|
|
(6 |
) |
|
— |
|
|
123 |
|
|
121 |
| Total investments |
$ |
4,131 |
|
$ |
129 |
|
$ |
44 |
|
$ |
(665 |
) |
$ |
56 |
|
$ |
3,695 |
| Other investment receivables |
|
— |
|
|
— |
|
|
— |
|
|
221 |
|
|
— |
|
|
221 |
| Total assets |
$ |
4,131 |
|
$ |
129 |
|
$ |
44 |
|
$ |
(444 |
) |
$ |
56 |
|
$ |
3,916 |
|
|
Non - U.S. Pension Plans
|
|
| Defined Benefit Plan Disclosure |
|
| Plan assets by detailed asset categories and the fair value hierarchy |
| In millions of dollars |
Non-U.S. pension and postretirement benefit plans |
|
|
Fair value measurement at December 31, 2012 |
| Asset categories |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. equity |
|
$ |
12 |
|
$ |
12 |
|
$ |
— |
|
$ |
24 |
| Non-U.S. equity |
|
|
88 |
|
|
77 |
|
|
48 |
|
|
213 |
| Mutual funds |
|
|
31 |
|
|
4,583 |
|
|
— |
|
|
4,614 |
| Commingled funds |
|
|
26 |
|
|
— |
|
|
— |
|
|
26 |
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Treasuries |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
| U.S. corporate bonds |
|
|
10 |
|
|
478 |
|
|
— |
|
|
488 |
| Non-U.S. government debt |
|
|
1,806 |
|
|
144 |
|
|
4 |
|
|
1,954 |
| Non-U.S. corporate bonds |
|
|
162 |
|
|
804 |
|
|
4 |
|
|
970 |
| State and municipal debt |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| Hedge funds |
|
|
— |
|
|
— |
|
|
16 |
|
|
16 |
| Mortgage-backed securities |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
| Annuity contracts |
|
|
— |
|
|
5 |
|
|
6 |
|
|
11 |
| Derivatives |
|
|
— |
|
|
40 |
|
|
— |
|
|
40 |
| Other investments |
|
|
3 |
|
|
9 |
|
|
219 |
|
|
231 |
| Total investments at fair value |
|
$ |
2,138 |
|
$ |
6,154 |
|
$ |
297 |
|
$ |
8,589 |
| Cash and short-term investments |
|
$ |
56 |
|
$ |
4 |
|
$ |
3 |
|
$ |
63 |
| Total assets |
|
$ |
2,194 |
|
$ |
6,158 |
|
$ |
300 |
|
$ |
8,652 |
| |
| In millions of dollars |
Non-U.S. pension and postretirement benefit plans |
|
|
Fair value measurement at December 31, 2011 |
| Asset categories |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. equity |
|
$ |
12 |
|
$ |
— |
|
$ |
— |
|
$ |
12 |
| Non-U.S. equity |
|
|
48 |
|
|
180 |
|
|
5 |
|
|
233 |
| Mutual funds |
|
|
11 |
|
|
4,439 |
|
|
32 |
|
|
4,482 |
| Commingled funds |
|
|
26 |
|
|
— |
|
|
— |
|
|
26 |
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Treasuries |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
| U.S. corporate bonds |
|
|
1 |
|
|
379 |
|
|
— |
|
|
380 |
| Non-U.S. government debt |
|
|
1,484 |
|
|
129 |
|
|
5 |
|
|
1,618 |
| Non-U.S. corporate bonds |
|
|
5 |
|
|
318 |
|
|
3 |
|
|
326 |
| State and municipal debt |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| Hedge funds |
|
|
— |
|
|
3 |
|
|
12 |
|
|
15 |
| Mortgage-backed securities |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
| Annuity contracts |
|
|
— |
|
|
3 |
|
|
— |
|
|
3 |
| Derivatives |
|
|
— |
|
|
3 |
|
|
— |
|
|
3 |
| Other investments |
|
|
3 |
|
|
6 |
|
|
240 |
|
|
249 |
| Total investments at fair value |
|
$ |
1,592 |
|
$ |
5,460 |
|
$ |
297 |
|
$ |
7,349 |
| Cash and short-term investments |
|
$ |
168 |
|
$ |
— |
|
$ |
— |
|
$ |
168 |
| Total assets |
|
$ |
1,760 |
|
$ |
5,460 |
|
$ |
297 |
|
$ |
7,517 |
|
| Reconciliations of the beginning and ending balances during the period for Level 3 assets |
|
|
| In millions of dollars |
Non-U.S. pension and postretirement benefit plans |
|
Beginning Level 3 |
|
Realized |
|
Unrealized |
|
Purchases, |
|
Transfers in |
|
Ending Level 3 |
|
fair value at |
|
gains |
|
gains |
|
sales, and |
|
and/or out of |
|
fair value at |
| Asset categories |
Dec. 31, 2011 |
|
(losses) |
|
(losses) |
|
issuances |
|
Level 3 |
|
Dec. 31, 2012 |
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-U.S. equity |
$ |
5 |
|
$ |
— |
|
$ |
— |
|
$ |
43 |
|
$ |
— |
|
$ |
48 |
| Mutual funds |
|
32 |
|
|
— |
|
|
— |
|
|
(10 |
) |
|
(22 |
) |
|
— |
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-U.S. government bonds |
|
5 |
|
|
— |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
4 |
| Non-U.S. corporate bonds |
|
3 |
|
|
(3 |
) |
|
— |
|
|
2 |
|
|
2 |
|
|
4 |
| Hedge funds |
|
12 |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
16 |
| Annuity contracts |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
5 |
|
|
6 |
| Other investments |
|
240 |
|
|
7 |
|
|
14 |
|
|
(23 |
) |
|
(19 |
) |
|
219 |
| Total investments |
$ |
297 |
|
$ |
4 |
|
$ |
14 |
|
$ |
13 |
|
$ |
(31 |
) |
$ |
297 |
| Cash and short-term investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
3 |
| Total assets |
$ |
297 |
|
$ |
4 |
|
$ |
14 |
|
$ |
13 |
|
$ |
(28 |
) |
$ |
300 |
| In millions of dollars |
Non-U.S. pension and postretirement benefit plans |
|
Beginning Level 3 |
|
Realized |
|
Unrealized |
|
Purchases, |
|
Transfers in |
|
Ending Level 3 |
|
fair value at |
|
gains |
|
gains |
|
sales, and |
|
and/or out of |
|
fair value at |
| Asset categories |
Dec. 31, 2010 |
|
(losses) |
|
(losses) |
|
issuances |
|
Level 3 |
|
Dec. 31, 2011 |
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-U.S. equity |
|
$ |
3 |
|
$ |
— |
|
$ |
2 |
|
$ |
— |
|
$ |
— |
|
$ |
5 |
| Mutual funds |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
32 |
|
|
32 |
| Debt securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-U.S. government bonds |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
|
5 |
| Non-U.S. corporate bonds |
|
|
107 |
|
|
— |
|
|
— |
|
|
2 |
|
|
(105 |
) |
|
4 |
| Hedge funds |
|
|
14 |
|
|
(2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
12 |
| Other investments |
|
|
189 |
|
|
4 |
|
|
— |
|
|
(10 |
) |
|
56 |
|
|
239 |
| Total assets |
|
$ |
313 |
|
$ |
2 |
|
$ |
2 |
|
$ |
(8 |
) |
$ |
(12 |
) |
$ |
297 |
|
|
Non-U.S. pension and postretirement benefit plans
|
|
| Defined Benefit Plan Disclosure |
|
| Asset allocations for the current reporting period and target allocations for next year by asset category based on asset fair values |
|
Non-U.S. pension plans |
|
|
Weighted-average |
|
Actual range |
|
Weighted-average |
|
|
target asset allocation |
|
at December 31, |
|
at December 31, |
|
| Asset category |
2013 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
| Equity securities |
16 |
% |
0 to 63 |
% |
0 to 65 |
% |
16 |
% |
19 |
% |
| Debt securities |
75 |
|
0 to 100 |
|
0 to 99 |
|
72 |
|
71 |
|
| Real estate |
1 |
|
0 to 41 |
|
0 to 42 |
|
1 |
|
1 |
|
| Other investments |
8 |
|
0 to 100 |
|
0 to 100 |
|
11 |
|
9 |
|
| Total |
100 |
% |
|
|
|
|
100 |
% |
100 |
% |
|
Non-U.S. postretirement plans |
|
|
Weighted-average |
|
Actual range |
|
Weighted-average |
|
|
target asset allocation |
|
at December 31, |
|
at December 31, |
|
| Asset category |
2013 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
| Equity securities |
27 |
% |
0 to 28 |
% |
0 to 44 |
% |
28 |
% |
44 |
% |
| Debt securities |
55 |
|
46 to 100 |
|
45 to 100 |
|
46 |
|
45 |
|
| Other investments |
18 |
|
0 to 26 |
|
0 to 11 |
|
26 |
|
11 |
|
| Total |
100 |
% |
|
|
|
|
100 |
% |
100 |
% |
|