PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

v3.3.1.900

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	12 Months Ended
	Dec. 31, 2015
Pension Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans were as follows:     Qualified and Non-Qualified Pension Plans     U.S. Plans   U.K. Plans In millions   2015   2014   2015   2014 Change in benefit obligation                 Benefit obligation at the beginning of the year   $ 2,579   $ 2,261   $ 1,522   $ 1,429 Service cost   80   66   27   24 Interest cost   102   105   56   63 Actuarial loss (gain)   (76 )   301   (88 )   139 Benefits paid from fund   (139 )   (143 )   (53 )   (48 ) Benefits paid directly by employer   (13 )   (11 )   —   — Exchange rate changes   —   —   (74 )   (85 ) Benefit obligation at end of year   $ 2,533   $ 2,579   $ 1,390   $ 1,522 Change in plan assets                 Fair value of plan assets at beginning of year   $ 2,713   $ 2,445   $ 1,724   $ 1,516 Actual return on plan assets   (8 )   311   20   254 Employer contributions   70   100   107   94 Benefits paid   (139 )   (143 )   (53 )   (48 ) Exchange rate changes   —   —   (86 )   (92 ) Fair value of plan assets at end of year   $ 2,636   $ 2,713   $ 1,712   $ 1,724 Funded status (including underfunded and nonfunded plans) at end of year   $ 103   $ 134   $ 322   $ 202 Amounts recognized in consolidated balance sheets                 Pension assets - long term   $ 413   $ 435   $ 322   $ 202 Accrued compensation, benefits and retirement costs - current liabilities   (12 )   (12 )   —   — Pensions - long-term liabilities   (298 )   (289 )   —   — Net amount recognized   $ 103   $ 134   $ 322   $ 202 Amounts recognized in accumulated other comprehensive loss consist of:                 Net actuarial loss   $ 689   $ 611   $ 228   $ 286 Prior service credit   (1 )   (1 )   —   — Net amount recognized   $ 688   $ 610   $ 228   $ 286
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets	The following table presents information regarding total accumulated benefit obligation, PBO's and underfunded pension plans that are included in the preceding table:     Qualified and Non-Qualified Pension Plans     U.S. Plans   U.K. Plans In millions   2015   2014   2015   2014 Total accumulated benefit obligation   $ 2,499   $ 2,539   $ 1,311   $ 1,402 Plans with accumulated benefit obligation in excess of plan assets                 Accumulated benefit obligation   276   261   —   — Plans with projected benefit obligation in excess of plan assets                 Projected benefit obligation   311   301   —   —
Schedule of Net Benefit Costs	The following table presents the net periodic pension cost under our plans:     Qualified and Non-Qualified Pension Plans     U.S. Plans   U.K. Plans In millions   2015   2014   2013   2015   2014   2013 Service cost   $ 80   $ 66   $ 70   $ 27   $ 24   $ 21 Interest cost   102   105   93   56   63   57 Expected return on plan assets   (189 )   (173 )   (167 )   (91 )   (84 )   (72 ) Amortization of prior service credit   (1 )   (1 )   (1 )   —   —   — Recognized net actuarial loss   45   31   62   34   26   24 Net periodic pension cost   $ 37   $ 28   $ 57   $ 26   $ 29   $ 30
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations and plan assets recognized in other comprehensive income in 2015, 2014 and 2013 were as follows: In millions   2015   2014   2013 Amortization of prior service credit   $ 1   $ 1   $ 1 Recognized actuarial loss   (79 )   (57 )   (86 ) Incurred actuarial (gain) loss   105   133   (168 ) Foreign exchange translation adjustments   (7 )   (18 )   10 Total recognized in other comprehensive income   $ 20   $ 59   $ (243 )               Total recognized in net periodic pension cost and other comprehensive income   $ 83   $ 116   $ (156 )
Schedule of Assumptions Used	The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows:     Qualified and Non-Qualified Pension Plans     U.S. Plans   U.K. Plans     2015   2014   2015   2014 Discount rate   4.47 %   4.07 %   3.95 %   3.80 % Compensation increase rate   4.88 %   4.88 %   3.75 %   4.25 % The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows:     Qualified and Non-Qualified Pension Plans     U.S. Plans   U.K. Plans     2015   2014   2013   2015   2014   2013 Discount rate   4.07 %   4.83 %   3.97 %   3.80 %   4.60 %   4.70 % Expected return on plan assets   7.50 %   7.50 %   8.00 %   5.80 %   5.80 %   5.80 % Compensation increase rate   4.88 %   4.91 %   4.91 %   4.25 %   4.50 %   4.00 %
Schedule of Expected Benefit Payments	The table below presents expected future benefit payments under our pension plans:     Qualified and Non-Qualified Pension Plans In millions   2016   2017   2018   2019   2020   2021 - 2025 Expected benefit payments   $ 281   $ 232   $ 238   $ 244   $ 248   $ 1,296
U.S. Plans
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	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   9.0 %   +/-5.0% Non-U.S. equities   3.0 %   +/-3.0% Global equities   6.0 %   +/-3.0% Total equities   18.0 %     Real estate   7.0 %   +3.0/-7.0% Private equity   7.0 %   +3.0/-7.0% Opportunistic   4.0 %   +6.0/-4.0% Fixed income   64.0 %   +/-5.0% Total   100.0 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.S. pension plan assets by asset category were as follows:     Fair Value Measurements at December 31, 2015 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.   $ 96   $ —   $ —   $ 96 Non-U.S.   130   —   —   130 Fixed Income               Government debt   —   533   —   533 Corporate debt               U.S.   —   406   —   406 Non-U.S.   —   80   —   80 Asset/mortgaged backed securities   —   56   —   56 Net cash equivalents(1)   42   10   —   52 Derivative instruments(2)   —   3   —   3 Private equity and real estate(3)   —   —   203   203 Net plan assets subject to leveling   $ 268   $ 1,088   $ 203   $ 1,559 Pending trade/purchases/sales               (27 ) Accruals(4)               10 Investments measured at net asset value               1,094 Net plan assets               $ 2,636     Fair Value Measurements at December 31, 2014 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.   $ 103   $ —   $ —   $ 103 Non-U.S.   137   —   —   137 Fixed Income               Government debt   —   579   —   579 Corporate debt               U.S.   —   346   —   346 Non-U.S.   —   71   —   71 Asset/mortgaged backed securities   —   43   —   43 Net cash equivalents(1)   28   2   —   30 Derivative instruments (2)   —   2   —   2 Private equity and real estate (3)   —   —   202   202 Net plan assets subject to leveling   $ 268   $ 1,043   $ 202   $ 1,513 Pending trade/purchases/sales               5 Accruals(4)               9 Investments measured at net asset value               1,186 Net plan assets               $ 2,713 ____________________________________________________ (1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2) Derivative instruments include interest rate swaps and credit default swaps. (3) The instruments 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) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows:     Fair Value Measurements Using Significant Unobservable Inputs (Level 3) In millions   Private Equity   Real Estate   Total Balance at December 31, 2013   $ 153   $ 50   $ 203 Actual return on plan assets             Unrealized gains on assets still held at the reporting date   22   4   26 Purchases, sales and settlements, net   (27 )   —   (27 ) Balance at December 31, 2014   148   54   202 Actual return on plan assets             Unrealized gains on assets still held at the reporting date   17   8   25 Purchases, sales and settlements, net   (22 )   (2 )   (24 ) Balance at December 31, 2015   $ 143   $ 60   $ 203
Non-U.S. Plans
Pension and other postretirement benefits
Schedule of Allocation of Plan Assets	To achieve these objectives we have established the following targets: Asset Class   Target Global equities   23.0 % Real estate   5.0 % Re-insurance   8.0 % Corporate credit instruments   7.5 % Fixed income   56.5 % Total   100.0 %
Fair Value, Assets Measured on Recurring Basis	The fair values of U.K. pension plan assets by asset category were as follows:     Fair Value Measurements at December 31, 2015 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.   $ —   $ 250   $ —   $ 250 Non-U.S.   —   269   —   269 Fixed Income                 Corporate debt                 Non-U.S.   —   45   —   45 Net cash equivalents(1)   33   —   —   33 Private equity, real estate & insurance(2)   —   —   601   601 Net plan assets subject to leveling   $ 33   $ 564   $ 601   $ 1,198 Investments measured at net asset value               514 Net plan assets               $ 1,712     Fair Value Measurements at December 31, 2014 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.   $ —   $ 153   $ —   $ 153 Non-U.S.   —   399   —   399 Fixed Income               Corporate debt non-U.S.   —   47   —   47 Net cash equivalents(1)   24   —   —   24 Private equity, real estate & insurance(2)   —   —   604   604 Net plan assets subject to leveling   $ 24   $ 599   $ 604   $ 1,227 Investments measured at net asset value               497 Net plan assets               $ 1,724 _____________________________________________________ (1)  Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments. (2)  The instruments 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.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets	The reconciliation of Level 3 assets was as follows:     Fair Value Measurements Using Significant Unobservable Inputs (Level 3) In millions   Insurance   Real Estate   Private Equity   Total Balance at December 31, 2013   $ 440   $ 69   $ 48   $ 557 Actual return on plan assets                 Unrealized (losses) gains on assets still held at the reporting date   42   (3 )   11   50 Purchases, sales and settlements, net   (20 )   (5 )   22   (3 ) Balance at December 31, 2014   462   61   81   604 Actual return on plan assets                 Unrealized gains on assets still held at the reporting date   6   7   10   23 Purchases, sales and settlements, net   (23 )   (11 )   8   (26 ) Balance at December 31, 2015   $ 445   $ 57   $ 99   $ 601
Other Postretirement Benefit Plan
Pension and other postretirement benefits
Schedule of Net Funded Status	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 were as follows:     Years ended December 31, In millions   2015   2014 Change in benefit obligation         Benefit obligation at the beginning of the year   $ 408   $ 398 Interest cost   15   17 Plan participants' contributions   10   10 Actuarial loss   5   38 Benefits paid directly by employer   (53 )   (55 ) Benefit obligation at end of year   $ 385   $ 408           Funded status at end of year   $ (385 )   $ (408 )           Amounts recognized in consolidated balance sheets         Accrued compensation, benefits and retirement costs - current liabilities   $ (36 )   $ (39 ) Postretirement benefits other than pensions-long-term liabilities   (349 )   (369 ) Net amount recognized   $ (385 )   $ (408 )           Amounts recognized in accumulated other comprehensive loss consist of:         Net actuarial loss   $ 66   $ 65 Prior service credit   (5 )   (5 ) Net amount recognized   $ 61   $ 60
Schedule of Net Benefit Costs	The following table presents the net periodic other postretirement benefits cost under our plans:     Years ended December 31, In millions   2015   2014   2013 Interest cost   $ 15   $ 17   $ 17 Recognized net actuarial loss   5   —   6 Net periodic other postretirement benefit cost   $ 20   $ 17   $ 23
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Other changes in benefit obligations recognized in other comprehensive income in 2015, 2014 and 2013 were as follows:     Years ended December 31, In millions   2015   2014   2013 Recognized actuarial loss   $ (5 )   $ —   $ (6 ) Incurred actuarial (gain) loss   6   38   (49 ) Total recognized in other comprehensive income   $ 1   $ 38   $ (55 )               Total recognized in net periodic other postretirement benefit cost and other comprehensive income   $ 21   $ 55   $ (32 )
Schedule of Assumptions Used	The table below presents assumptions used in determining the net periodic other postretirement benefits cost and reflects weighted-average percentages for the various plans as follows:     2015   2014   2013 Discount rate   3.90 %   4.55 %   3.70 % 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 as follows:     2015   2014 Discount rate   4.35 %   3.90 %
Schedule of Expected Benefit Payments	The table below presents expected benefit payments under our other postretirement benefit plans: In millions   2016   2017   2018   2019   2020   2021 - 2025 Expected benefit payments   $ 37   $ 36   $ 34   $ 32   $ 31   $ 135