Annual report pursuant to Section 13 and 15(d)

PENSION AND OTHER POSTRETIREMENT BENEFITS

v2.4.0.6
PENSION AND OTHER POSTRETIREMENT BENEFITS
12 Months Ended
Dec. 31, 2011
PENSION AND OTHER POSTRETIREMENT BENEFITS  
PENSION AND OTHER POSTRETIREMENT BENEFITS

NOTE 12. PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION PLANS

        We sponsor several contributory and noncontributory pension plans covering substantially all employees. Generally, hourly employee pension benefits are earned based on years of service and compensation during active employment while future benefits for salaried employees are determined using a cash balance formula. However, the level of benefits and terms of vesting may vary among plans. Pension plan assets are administered by trustees and are principally invested in equity securities and fixed income securities. It is our policy to make contributions to our various qualified plans in accordance with statutory and contractual funding requirements and any additional contributions we determine are appropriate.

Obligations, Assets and Funded Status

        The following tables present the changes in the benefit obligations and the various plan assets, the funded status of the plans, and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans. Non-U.S. plans represent plans sponsored in the U.K. Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for our pension plans.

 
  Qualified and Non-Qualified
Pension Plans
 
 
  U.S. Plans   Non-U.S. Plans  
In millions
  2011   2010   2011   2010  

Change in benefit obligation

                         

Benefit obligation at beginning of year

  $ 2,110   $ 2,053   $ 1,013   $ 1,075  

Service cost

    51     45     20     19  

Interest cost

    109     111     58     58  

Plan participants' contributions

            1     1  

Actuarial losses (gains)

    126     53     82     (57 )

Benefits paid from fund

    (146 )   (144 )   (39 )   (37 )

Benefits paid directly by employer

    (8 )   (9 )        

Exchange rate changes

            (7 )   (46 )

Other

    1     1          
                   

Benefit obligation at end of year

  $ 2,243   $ 2,110   $ 1,128   $ 1,013  
                   

Change in plan assets

                         

Fair value of plan assets at beginning of year

  $ 1,906   $ 1,677   $ 1,088   $ 929  

Actual return on plan assets

    231     273     65     121  

Employer contributions

    100     100     91     112  

Plan participants' contributions

            1     1  

Benefits paid

    (146 )   (144 )   (39 )   (37 )

Exchange rate changes

            (6 )   (39 )

Other

                1  
                   

Fair value of plan assets at end of year

  $ 2,091   $ 1,906   $ 1,200   $ 1,088  
                   

Funded status (including underfunded and nonfunded plans) at end of year

  $ (152 ) $ (204 ) $ 72   $ 75  
                   

Amounts recognized in consolidated balance sheets

                         

Other assets—long term assets

  $ 63   $   $ 72   $ 75  

Accrued compensation, benefits and retirement costs-current liabilities

    (10 )   (9 )        

Pensions-long-term liabilities

    (205 )   (195 )        
                   

Net amount recognized

  $ (152 ) $ (204 ) $ 72   $ 75  
                   

Amounts recognized in accumulated other comprehensive loss consist of:

                         

Net actuarial loss

  $ 700   $ 692   $ 305   $ 227  

Prior service (credit) cost

    (3 )   (5 )   1     4  
                   

Net amount recognized

  $ 697   $ 687   $ 306   $ 231  
                   

        In addition to the pension plans in the above table, we also maintain less significant defined benefit pension plans in 13 other countries outside the U.S. and the U.K. that comprise less than two percent and four percent of our pension plan assets and obligations, respectively. These plans are reflected in "Other liabilities and deferred revenue" on our Consolidated Balance Sheets.

        The following table presents information regarding total accumulated benefit obligation and underfunded pension plans that are included in the preceding table:

 
  Qualified and Non-Qualified
Pension Plans
 
 
  U.S. Plans   Non-U.S. Plans  
In millions
  2011   2010   2011   2010  

Total accumulated benefit obligation

  $ 2,211   $ 2,087   $ 1,027   $ 937  

Plans with accumulated benefit obligation in excess of plan assets:

                         

Accumulated benefit obligation

    185     2,087          

Fair value of plan assets

        1,906          

Plans with projected benefit obligation in excess of plan assets:

                         

Projected benefit obligation

    215     2,110          

Fair value of plan assets

    185     1,906          

Components of Net Periodic Pension Cost

        The following table presents the net periodic pension cost under our plans:

 
  Qualified and Non-Qualified Pension Plans  
 
  U.S. Plans   Non-U.S. Plans  
In millions
  2011   2010   2009   2011   2010   2009  

Service cost

  $ 51   $ 45   $ 47   $ 20   $ 19   $ 18  

Interest cost

    109     111     115     58     58     57  

Expected return on plan assets

    (151 )   (147 )   (142 )   (74 )   (71 )   (60 )

Amortization of prior service (credit) cost

    (1 )   (1 )   (1 )   3     3     3  

Recognized net actuarial loss

    39     36     29     14     17     21  
                           

Net periodic pension cost before curtailments

  $ 47   $ 44   $ 48   $ 21   $ 26   $ 39  

Curtailment loss

            5             1  
                           

Net periodic pension cost

  $ 47   $ 44   $ 53   $ 21   $ 26   $ 40  
                           

        Other changes in benefit obligations and plan assets recognized in other comprehensive income in 2011, 2010 and 2009 are as follows:

In millions
  2011   2010   2009  

Amortization of prior service cost

  $ (2 ) $ (2 ) $ (2 )

Curtailments

            (1 )

Recognized actuarial loss

    (53 )   (53 )   (50 )

Incurred prior service cost

    1     1      

Incurred actuarial (gain) loss

    138     (181 )   17  

Foreign exchange translation adjustments

        (12 )   42  
               

Total recognized in other comprehensive income

  $ 84   $ (247 ) $ 6  
               

Total recognized in net periodic pension cost and other comprehensive income

  $ 152   $ (177 ) $ 99  
               

        The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic pension cost during the next fiscal year are as follows:

In millions
  2012  

Prior service cost

  $ 1  

Net actuarial loss

    64  

        As disclosed in Note 22, "RESTRUCTURING AND OTHER CHARGES," we executed restructuring actions in 2009. As a result, our pension benefit plans were remeasured and we recognized curtailment losses, as prescribed under GAAP pension standards, due to the significant reduction in the expected aggregate years of future service of the employees affected by the actions. In 2009, we recorded net curtailment losses of $5 million and $1 million for U.S. and non-U.S. plans, respectively, and $2 million for our less significant plans in other countries outside the U.S. and the U.K. The curtailment losses include recognition of the change in the PBO and a portion of the previously unrecognized prior service cost reflecting the reduction in expected future service.

Assumptions

        The table below presents various assumptions used in determining the pension benefit obligation for each year and reflects weighted-average percentages for the various plans (Non-U.S. is the U.K.):

 
  Qualified and Non-Qualified
Pension Plans
 
 
  U.S. Plans   Non-U.S.
Plans
 
 
  2011   2010   2011   2010  

Discount rate

    4.82 %   5.42 %   5.20 %   5.80 %

Compensation increase rate

    4.00 %   4.00 %   4.25 %   4.50 %

        The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans (Non-U.S. is the U.K.):

 
  Qualified and Non-Qualified Pension Plans  
 
  U.S. Plans   Non-U.S. Plans  
 
  2011   2010   2009   2011   2010   2009  

Discount rate

    5.42 %   5.60 %   6.20 %   5.80 %   5.80 %   6.20 %

Expected return on plan assets

    8.00 %   8.00 %   8.25 %   7.00 %   7.25 %   7.25 %

Compensation increase rate

    4.00 %   4.00 %   4.00 %   4.50 %   4.50 %   4.25 %

Plan Assets

        Our investment policies in the U.S. and U.K. provide for the rebalancing of assets to maintain our long-term strategic asset allocation. We are committed to its long-term strategy and do not attempt to time the market given empirical evidence that asset allocation is more critical than individual asset or investment manager selection. Rebalancing of the assets has and continues to occur. The rebalancing is critical to having the proper weighting of assets to achieve the expected total portfolio returns. We believe that our portfolio is highly diversified and does not have any significant exposure to concentration risk. The plan assets for our defined benefit pension plans do not include any of our common stock.

U.S. Plan Assets

        For the U.S. qualified pension plans, our assumption for the expected return on assets was 8.0 percent in 2011. Projected returns are based primarily on broad, publicly traded equity and fixed income indices and forward-looking estimates of active portfolio and investment management. We expect additional positive returns from this active investment management. Based on the historical returns and forward-looking return expectations, we have elected to use an assumption of 8.0 percent per year beginning in 2012.

        The primary investment objective is to exceed, on a net-of-fee basis, the rate of return of a policy portfolio comprised of the following:

Asset Class
  Target   Range  

U.S. equities

    21.0 %   +/-5.0 %

Non-U.S. equities

    8.0 %   +/-4.0 %

Global equities

    16.0 %   +/-4.0 %
             

Total equities

    45.0 %      

Real estate

    7.5 %   +2.5/-7.5 %

Private equity

    7.5 %   +2.5/-7.5 %

Fixed-income

    40.0 %   +/-5.0 %
             

Total

    100.0 %      
             

        The fixed income component is structured to represent a custom bond benchmark constructed to closely represent the monthly change in the value of our liabilities. This component is structured in such a way that its benchmark covers approximately 70 percent of the plan's exposure to changes in its discount rate (AA corporate bond yields). In order to achieve a hedge on more than the targeted 40 percent of plan assets invested in fixed income securities, the Benefits Policy Committee may permit the fixed income managers, other managers or the custodian/trustee to utilize derivative securities, as part of a liability driven investment strategy to further reduce the plan's risk of declining interest rates. However, all managers hired to manage assets for the trust are prohibited from using leverage unless specifically discussed with the committee and allowed for in their guidelines.

U.K. Plan Assets

        For the U.K. qualified pension plans, our assumption for the expected return on assets was 7.0 percent in 2011. The methodology used to determine the rate of return on pension plan assets in the U.K. was based on establishing an equity-risk premium over current long-term bond yields adjusted based on target asset allocations. Our strategy with respect to our investments in these assets is to be invested in a suitable mixture of return-seeking assets (equities and real estate) and liability matching assets (bonds) with a long-term outlook. Therefore, the risk and return balance of our U.K. asset portfolio should reflect a long-term horizon. To achieve these objectives we have established the following targets:

Asset Class
  Target   Range  

Global equities

    40.0 %   +7.5/- 5.0 %

Real estate

    5.0 %   +7.5/- 5.0 %

Re-insurance

    5.0 %   +7.5/- 5.0 %

Private equity

    5.0 %   +7.5/- 5.0 %

Fixed-income

    45.0 %   +5.5/- 2.0 %
             

Total

    100.0 %      
             

        As part of our strategy in the U.K. we have not prohibited the use of any financial instrument, including derivatives. Based on the above discussion, we have elected to use our assumption of 6.5 percent per year beginning in 2012.

Fair Value of U.S. Plan Assets

        The fair values of U.S. pension plan assets at December 31, 2011, by asset category are as follows:

 
  Fair Value Measurements as of December 31, 2011  
In millions
  Quoted prices in
active markets
for identical
assets (Level 1)
  Significant other
observable
inputs
(Level 2)
  Significant
unobservable
inputs
(Level 3)
  Total  

Equities

                         

U.S. 

  $ 95   $ 511   $   $ 606  

Non-U.S. 

    149     168         317  

Fixed Income

                         

Government debt

    336     101         437  

Corporate debt

                         

U.S. 

    245     115         360  

Non-U.S. 

    54             54  

Asset/mortgaged backed securities

    11             11  

Net cash equivalents(1)

    59             59  

Derivative instruments(2)

        4         4  

Private equity and real estate(3)

            266     266  
                   

Total

  $ 949   $ 899   $ 266   $ 2,114  
                   

Pending trade/purchases/sales

                      (30 )

Accruals(4)

                      7  
                         

Total

                    $ 2,091  
                         

(1)
Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.

(2)
Derivative instruments include interest rate swaps, foreign currency forward contracts and credit default swaps.

(3)
The investments in private equity and real estate funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds.

(4)
Interest or dividends that had not settled as of December 31, 2011.

        The fair values of U.S. pension plan assets at December 31, 2010, by asset category are as follows:

 
  Fair Value Measurements as of December 31, 2010  
In millions
  Quoted prices in
active markets
for identical
assets (Level 1)
  Significant other
observable
inputs
(Level 2)
  Significant
unobservable
inputs
(Level 3)
  Total  

Equities

                         

U.S. 

  $ 71   $ 458   $   $ 529  

Non-U.S. 

    133     239         372  

Fixed Income

                         

Government debt

    345     73         418  

Corporate debt

                         

U.S. 

    192     101         293  

Non-U.S. 

    43             43  

Asset/mortgaged backed securities

    13             13  

Net cash equivalents(1)

    25             25  

Derivative instruments(2)

        1         1  

Private equity and real estate(3)

            208     208  
                   

Total

  $ 822   $ 872   $ 208   $ 1,902  
                   

Pending trade/purchases/sales

                      (2 )

Accruals(4)

                      6  
                         

Total

                    $ 1,906  
                         

(1)
Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.

(2)
Derivative instruments include interest rate swaps, foreign currency forward contracts and credit default swaps.

(3)
The investments in private equity and real estate funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds.

(4)
Interest or dividends that had not settled as of December 31, 2010.

        The reconciliation of Level 3 assets is as follows:

 
  Fair Value Measurements as of
December 31, Using Significant
Unobservable Inputs (Level 3)
 
In millions
  Private Equity   Real Estate   Total  

Ending balance at December 31, 2009

  $ 104   $ 35   $ 139  

Actual return on plan assets:

                   

Unrealized (losses) gains on assets still held at the reporting date

    14     3     17  

Purchases, sales and settlements

    8     44     52  
               

Ending balance at December 31, 2010

  $ 126   $ 82   $ 208  

Actual return on plan assets:

                   

Unrealized (losses) gains on assets still held at the reporting date

    18     6     24  

Purchases, sales and settlements

    3     31     34  
               

Ending balance at December 31, 2011

  $ 147   $ 119   $ 266  
               

Fair Value of U.K. Plan Assets

        The fair values of U.K. pension plan assets at December 31, 2011, by asset category are as follows:

 
  Fair Value Measurements as of December 31, 2011  
In millions
  Quoted prices in
active markets
for identical
assets (Level 1)
  Significant other
observable
inputs
(Level 2)
  Significant
unobservable
inputs
(Level 3)
  Total  

Equities

                         

U.S. 

  $   $ 239   $   $ 239  

Non-U.S. 

        253         253  

Fixed Income

                         

Government debt

    162     311         473  

Corporate debt

                         

U.S. 

    17     9         26  

Non-U.S. 

    90     45         135  

Asset/mortgaged backed securities

    21             21  

Net cash equivalents(1)

    10             10  

Derivatives instruments(4)

        (5 )       (5 )

Re-insurance

        56         56  

Private equity and real estate(2)

            47     47  
                   

Total

  $ 300   $ 908   $ 47   $ 1,255  
                   

Pending trade/purchases/sales

                      (58 )

Accruals(3)

                      3  
                         

Total

                    $ 1,200  
                         

(1)
Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.

(2)
The investments in private equity and real estate funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds.

(3)
Interest or dividends that had not settled as of December 31, 2011.

(4)
Derivative instruments include interest rate swaps, foreign currency forward contracts and credit default swaps.

        The fair values of U.K. pension plan assets at December 31, 2010, by asset category are as follows:

 
  Fair Value Measurements as of December 31, 2010  
In millions
  Quoted prices in
active markets
for identical
assets (Level 1)
  Significant other
observable inputs
(Level 2)
  Significant
unobservable inputs
(Level 3)
  Total  

Equities

                         

U.S. 

  $   $ 139   $   $ 139  

Non-U.S. 

        464         464  

Fixed Income

                         

Government debt

    100             100  

Corporate debt

                         

U.S. 

    19             19  

Non-U.S. 

    81     212         293  

Asset/mortgaged backed securities

    16             16  

Net cash equivalents(1)

    40             40  

Private equity and real estate(2)

            40     40  
                   

Total

  $ 256   $ 815   $ 40   $ 1,111  
                   

Pending trade/purchases/sales

                      (26 )

Accruals(3)

                      3  
                         

Total

                    $ 1,088  
                         

(1)
Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.

(2)
The investments in private equity and real estate funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statement of the funds.

(3)
Interest or dividends that had not settled as of December 31, 2010.

        The reconciliation of Level 3 assets is as follows:

 
  Fair Value Measurements
as of December 31,
Using Significant Unobservable
Inputs (Level 3)
 
In millions
  Private Equity   Real Estate   Total  

Ending balance at December 31, 2009

  $ 4   $ 31   $ 35  

Actual return on plan assets:

                   

Unrealized (losses) gains on assets still held at the reporting date

    1     (2 )   (1 )

Purchases, sales and settlements

    5     1     6  
               

Ending balance at December 31, 2010

  $ 10   $ 30   $ 40  

Actual return on plan assets:

                   

Unrealized (losses) gains on assets still held at the reporting date

    2         2  

Purchases, sales and settlements

    2     3     5  
               

Ending balance at December 31, 2011

  $ 14   $ 33   $ 47  
               

        The investments in private equity and real estate funds, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by quarterly financial statements of the funds. These financial statements are audited at least annually. The fair value of all real estate properties, held in the partnerships, are valued at least once per year by an independent professional real estate valuation firm. Fair value generally represents the fund's proportionate share of the net assets of the investment partnerships as reported by the general partners of the underlying partnerships. Some securities with no readily available market are initially valued at cost, utilizing independent professional valuation firms as well as market comparisons with subsequent adjustments to values which reflect either the basis of meaningful third-party transactions in the private market or the fair value deemed appropriate by the general partners of the underlying investment partnerships. In such instances, consideration is also given to the financial condition and operating results of the issuer, the amount that the investment partnerships can reasonably expect to realize upon the sale of the securities and any other factors deemed relevant. The estimated fair values are subject to uncertainty and therefore may differ from the values that would have been used had a ready market for such investments existed and such differences could be material.

Estimated Future Contributions and Benefit Payments

        We plan to contribute approximately $130 million to our defined benefit pension plans in 2012. The table below presents expected future benefit payments under our pension plans:

 
  Qualified and Non-Qualified Pension Plans  
In millions
  2012   2013   2014   2015   2016   2017 - 2021  

Expected benefit payments

  $ 218   $ 211   $ 216   $ 219   $ 223   $ 1,157  

Other Pension Plans

        We also sponsor defined contribution plans for certain hourly and salaried employees. Our contributions to these plans were $72 million, $44 million and $42 million for the years ended December 31, 2011, 2010 and 2009.

OTHER POSTRETIREMENT BENEFITS

        Our other postretirement benefit plans provide various health care and life insurance benefits to eligible employees, who retire and satisfy certain age and service requirements, and their dependents. The plans are contributory and contain cost-sharing features such as caps, deductibles, coinsurance and spousal contributions. Employer contributions are limited by formulas in each plan. Retiree contributions for health care benefits are adjusted annually and we reserve the right to change benefits covered under these plans. There were no plan assets for the postretirement benefit plans as our policy is to fund benefits and expenses for these plans as claims and premiums are incurred.

Obligations and Funded Status

        The following tables present the changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant other postretirement benefit plans. Benefit obligation balances presented below reflect the accumulated postretirement benefit obligations (APBO) for our other postretirement benefit plans.

In millions
  2011   2010  

Change in benefit obligation

             

Benefit obligation at beginning of year

  $ 490   $ 504  

Interest cost

    24     27  

Plan participants' contributions

    10     10  

Amendments

        (1 )

Actuarial losses (gains)

    18     14  

Benefits paid directly by employer

    (59 )   (64 )
           

Benefit obligation at end of year

  $ 483   $ 490  
           

Funded status at end of year

  $ (483 ) $ (490 )
           

Amounts recognized in consolidated balance sheets

             

Accrued compensation, benefits and retirement costs—current liabilities

  $ (51 ) $ (51 )

Postretirement benefits other than pensions—long-term liabilities

    (432 )   (439 )
           

Net amount recognized

  $ (483 ) $ (490 )
           

Amounts recognized in accumulated other comprehensive loss consist of:

             

Net actuarial loss

  $ 66   $ 50  

Prior service credit

    (6 )   (14 )
           

Net amount recognized

  $ 60   $ 36  
           

Components of Net Periodic Other Postretirement Benefits Cost

        The following table presents the net periodic other postretirement benefits cost under our plans:

In millions
  2011   2010   2009  

Service cost

  $   $   $ 1  

Interest cost

    24     27     29  

Amortization of prior service credit

    (8 )   (8 )   (9 )

Other

    1         (1 )
               

Net periodic other postretirement benefit cost before curtailments

    17     19     20  

Curtailment loss

            6  
               

Net periodic other postretirement benefit cost

  $ 17   $ 19   $ 26  
               

        Other changes in benefit obligations recognized in other comprehensive income in 2011, 2010 and 2009 are as follows:

In millions
  2011   2010   2009  

Amortization of prior service credit

  $ 8   $ 8   $ 9  

Incurred actuarial loss (gain)

    16     14     17  

Incurred prior service credit

        (2 )    

Other

        1     (1 )
               

Total recognized in other comprehensive income

    24     21     25  
               

Total recognized in net periodic other postretirement benefit cost and other comprehensive income

  $ 41   $ 40   $ 51  
               

        The amounts in accumulated other comprehensive loss that are expected to be recognized as a component of net periodic other postretirement benefit cost during the next fiscal year is a prior service credit of $5 million and an actuarial loss of $3 million.

        As disclosed in Note 22, "RESTUCTURING AND OTHER CHARGES," we executed restructuring actions in 2009. As a result, our U.S. postretirement benefit plans were remeasured and we recognized curtailment losses, as prescribed under GAAP other postretirement benefit standards, due to the significant reduction in the expected aggregate years of future service of the employees affected by the actions. In 2009, we recorded net curtailment losses of $6 million. The curtailment losses include recognition of the change in the APBO and a portion of the previously unrecognized prior service cost reflecting the reduction in expected future service.

Assumptions

        The table below presents assumptions used in determining the other postretirement benefit obligation for each year and reflects weighted-average percentages for our other postretirement plans:

 
  2011   2010  

Discount rate

    4.70 %   5.20 %

        The table below presents assumptions used in determining the net periodic other postretirement benefits cost and reflects weighted-average percentages for the various plans:

 
  2011   2010   2009  

Discount rate

    5.20 %   5.60 %   6.20 %

        Our consolidated other postretirement benefit obligation is determined by application of the terms of health care and life insurance plans, together with relevant actuarial assumptions and health care cost trend rates. For measurement purposes, an 8.00 percent annual rate of increase in the per capita cost of covered health care benefits was assumed in 2011. The rate was assumed to remain at 8.00 percent for two years and then decrease on a linear basis to 5.00 percent through 2019 and remain at that level thereafter. An increase in the health care cost trends of one percent would increase our APBO by $23 million as of December 31, 2011 and the net periodic other postretirement benefit expense for 2012 by $1 million. A decrease in the health care cost trends of one percent would decrease our APBO by $19 million as of December 31, 2011 and the net periodic other postretirement benefit expense for 2012 by $1 million.

        The Medicare Prescription Drug Improvement and Modernization Act of 2003 was reflected in the APBO beginning December 31, 2004, assuming we will continue to provide a prescription drug benefit to retirees that is at least actuarially equivalent to Medicare Part D and we will receive the federal subsidy. We received a subsidy of approximately $2 million in 2011 and $4 million in 2010.

Estimated Benefit Payments

        The table below presents expected benefit payments under our other postretirement benefit plans and also provides the Medicare subsidy receipts expected to be received:

In millions
  2012   2013   2014   2015   2016   2017 - 2021  

Expected benefit payments, net of Medicare Part D subsidy—postretirement

  $ 51   $ 47   $ 46   $ 44   $ 42   $ 171  

Medicare Part D subsidy

    3