Registration of securities issued in business combination transactions

EMPLOYEE BENEFIT PLANS (Tables)

v2.4.0.8
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2013
EMPLOYEE BENEFIT PLANS  
Schedule of funded status of the plans and the amounts recognized in the consolidated balance sheets

The following table sets forth the funded status of the plans for us and the amounts recognized in our consolidated balance sheets at December 31, 2013 and 2012 (dollars in millions):

 
   Defined Benefit Plans   Other Postretirement Benefit Plans  
 
   2013   2012   2013   2012  
 
   U.S.
Plans		   Non-U.S.
Plans		   U.S.
Plans		   Non-U.S.
Plans		   U.S.
Plans		   Non-U.S.
Plans		   U.S.
Plans		   Non-U.S.
Plans		  

Change in benefit obligation

                                                  

Benefit obligation at beginning of year

   $ 958   $ 2,755   $ 834   $ 2,331   $ 136   $ 7   $ 128   $ 7  

Service cost

     31     38     26     32     4     —     4     —  

Interest cost

     40     90     42     102     5     —     7     1  

Participant contributions

     —     9     —     9     5     —     5     —  

Plan amendments

     —     1     (26 )   —     (22 )   —     —     (1 )

Foreign currency exchange rate changes

     —     92     —     80     —     (1 )   —     —  

Settlements/transfers

     —     —     —     (2 )   —     —     —     —  

Curtailments

     —     (5 )   —     —     —     —     —     —  

Special termination benefits

     —     9     —     —     —     —     —     —  

Actuarial (gain) loss

     (100 )   39     127     360     (9 )   —     8     —  

Benefits paid

     (52 )   (169 )   (45 )   (157 )   (14 )   (1 )   (16 )   —  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Benefit obligation at end of year

   $ 877   $ 2,859   $ 958   $ 2,755   $ 105   $ 5   $ 136   $ 7  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Change in plan assets

                                                  

Fair value of plan assets at beginning of year

   $ 636   $ 2,237   $ 538   $ 2,026   $ —   $ —   $ —   $ —  

Actual return on plan assets

     99     198     71     221     —     —     —     —  

Foreign currency exchange rate changes

     —     79     —     65     —     —     —     —  

Participant contributions

     —     9     —     9     5     —     5     —  

Company contributions

     72     89     72     75     9     1     11     —  

Settlements/transfers

     —     —     —     (2 )   —     —     —     —  

Benefits paid

     (52 )   (169 )   (45 )   (157 )   (14 )   (1 )   (16 )   —  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Fair value of plan assets at end of year

   $ 755   $ 2,443   $ 636   $ 2,237   $ —   $ —   $ —   $ —  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Funded status

                                                  

Fair value of plan assets

   $ 755   $ 2,443   $ 636   $ 2,237   $ —   $ —   $ —   $ —  

Benefit obligation

     877     2,859     958     2,755     105     5     136     7  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued benefit cost

   $ (122 ) $ (416 ) $ (322 ) $ (518 ) $ (105 ) $ (5 ) $ (136 ) $ (7 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Amounts recognized in balance sheet:

                                                  

Noncurrent asset

   $ —   $ 20   $ —   $ 1   $ —   $ —   $ —   $ —  

Current liability

     (6 )   (6 )   (6 )   (5 )   (9 )   —     (11 )   (1 )

Noncurrent liability

     (116 )   (430 )   (316 )   (514 )   (96 )   (5 )   (125 )   (6 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ (122 ) $ (416 ) $ (322 ) $ (518 ) $ (105 ) $ (5 ) $ (136 ) $ (7 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   
Schedule of amounts recognized in accumulated other comprehensive loss (income)

 

 
   Defined Benefit Plans   Other Postretirement Benefit
Plans		  
 
   2013   2012   2013   2012  
 
   U.S.
Plans		   Non-U.S.
Plans		   U.S.
Plans		   Non-U.S.
Plans		   U.S.
Plans		   Non-U.S.
Plans		   U.S.
Plans		   Non-U.S.
Plans		  

Amounts recognized in accumulated other comprehensive loss:

                                                  

Net actuarial loss

   $ 266   $ 765   $ 449   $ 867   $ 21   $ —   $ 32   $ 1  

Prior service cost

     (35 )   5     (42 )   4     (27 )   —     (8 )   —  

Transition obligation

     —     —     1     —     —     —     —     —  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 231   $ 770   $ 408   $ 871   $ (6 ) $ —   $ 24   $ 1  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   
Schedule of amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year

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

 
   Defined Benefit
Plans		   Other
Postretirement
Benefit Plans		  
 
   U.S.
Plans		   Non-U.S.
Plans		   U.S.
Plans		   Non-U.S.
Plans		  

Actuarial loss

   $ 19   $ 41   $ 2   $ —  

Prior service cost

     (6 )   —     (4 )   —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 13   $ 41   $ (2 ) $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
Components of the net periodic benefit costs

Components of net periodic benefit costs for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in millions):

 
   Defined Benefit Plans  
 
   U.S. plans   Non-U.S. plans  
 
   2013   2012   2011   2013   2012   2011  

Service cost

   $ 31   $ 26   $ 23   $ 38   $ 32   $ 44  

Interest cost

     40     42     44     90     102     110  

Expected return on plan assets

     (50 )   (48 )   (47 )   (124 )   (133 )   (140 )

Amortization of prior service cost

     (7 )   (6 )   (4 )   1     (1 )   (2 )

Amortization of actuarial loss

     35     21     16     49     28     21  

Settlement loss

     —     —     —     12     13     —  

Special termination benefits

     —     —     —     9     —     8  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net periodic benefit cost

   $ 49   $ 35   $ 32   $ 75   $ 41   $ 41  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

 
   Other Postretirement Benefit Plans  
 
   U.S. plans   Non-U.S. plans  
 
   2013   2012   2011   2013   2012   2011  

Service cost

   $ 4   $ 4   $ 3   $ —   $ —   $ —  

Interest cost

     5     7     7     —     1     1  

Amortization of prior service cost

     (2 )   (3 )   (3 )   —     —     —  

Amortization of actuarial loss

     2     2     2     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net periodic benefit cost

   $ 9   $ 10   $ 9   $ —   $ 1   $ 1  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           
Schedule of amounts recognized in net periodic benefit cost and other comprehensive loss (income)

 The amounts recognized in net periodic benefit cost and other comprehensive income (loss) as of December 31, 2013, 2012 and 2011 were as follows (dollars in millions):

 
   Defined Benefit Plans  
 
   U.S. plans   Non-U.S. plans  
 
   2013   2012   2011   2013   2012   2011  

Current year actuarial (gain) loss

   $ (149 ) $ 103   $ 101   $ (39 ) $ 272   $ 182  

Amortization of actuarial loss

     (35 )   (21 )   (16 )   (49 )   (28 )   (21 )

Current year prior service (credits) cost

     —     (26 )   —     1     —     (2 )

Amortization of prior service cost (credits)

     7     6     4     (1 )   1     2  

Curtailment effects

     —     —     —     —     —     (38 )

Settlements

     —     —     —     (12 )   (13 )   —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total recognized in other comprehensive (income) loss

     (177 )   62     89     (100 )   232     123  

Net periodic benefit cost

     49     35     32     75     41     41  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total recognized in net periodic benefit cost and other comprehensive income (loss)

   $ (128 ) $ 97   $ 121   $ (25 ) $ 273   $ 164  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

 

 
   Other Postretirement Benefit Plans  
 
   U.S. plans   Non-U.S. plans  
 
   2013   2012   2011   2013   2012   2011  

Current year actuarial (gain) loss

   $ (8 ) $ 9   $ 1   $ (1 ) $ —   $ —  

Amortization of actuarial loss

     (2 )   (2 )   (2 )   —     —     —  

Current year prior service credit

     (22 )   —     —     —     —     —  

Amortization of prior service cost

     2     3     3     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total recognized in other comprehensive (income) loss

     (30 )   10     2     (1 )   —     —  

Net periodic benefit cost

     9     10     9     —     1     1  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total recognized in net periodic benefit cost and other comprehensive income (loss)

   $ (21 ) $ 20   $ 11   $ (1 ) $ 1   $ 1  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           
Schedule of weighted-average assumptions used to determine the projected benefit obligation and the net periodic pension cost

The following weighted-average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic pension cost for the year:

 
   Defined Benefit Plans  
 
   U.S. plans   Non U.S. plans  
 
   2013   2012   2011   2013   2012   2011  

Projected benefit obligation

                                      

Discount rate

     5.13 %   4.18 %   5.30 %   3.62 %   3.38 %   4.39 %

Rate of compensation increase

     4.17 %   4.19 %   3.88 %   3.37 %   3.34 %   3.44 %

Net periodic pension cost

                                      

Discount rate

     4.18 %   5.30 %   5.70 %   3.38 %   4.39 %   4.69 %

Rate of compensation increase

     4.19 %   3.88 %   3.88 %   3.34 %   3.44 %   3.38 %

Expected return on plan assets

     7.75 %   8.00 %   8.19 %   5.75 %   6.52 %   6.62 %

 

 
   Other Postretirement Benefit Plans  
 
   U.S. plans   Non U.S. plans  
 
   2013   2012   2011   2013   2012   2011  

Projected benefit obligation

                                      

Discount rate

     4.79 %   3.89 %   5.09 %   6.49 %   5.79 %   6.09 %

Net periodic pension cost

                                      

Discount rate

     3.89 %   5.09 %   5.46 %   5.79 %   6.09 %   6.69 %
Schedule of effect on one-percent-point change in assumed health care cost trend rates

A one-percent point change in assumed health care cost trend rates would have the following effects (dollars in millions):

 
   Increase   Decrease  

Asset category

              

Effect on total of service and interest cost

   $ 1   $ (1 )

Effect on postretirement benefit obligation

     —     —  
Schedule of projected benefit obligation and fair value of plan assets for the defined benefit plans with projected benefit obligations in excess of fair value of plan assets

The projected benefit obligation and fair value of plan assets for the defined benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2013 and 2012 were as follows (dollars in millions):

 
   U.S. plans   Non-U.S. plans  
 
   2013   2012   2013   2012  

Projected benefit obligation in excess of plan assets

                          

Projected benefit obligation

   $ 871   $ 958   $ 2,234   $ 2,742  

Fair value of plan assets

     749     636     1,797     2,223  
Schedule of defined benefit plans with an accumulated benefit obligation in excess of fair value of plan assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the defined benefit plans with an accumulated benefit obligation in excess of plan assets as of December 31, 2013 and 2012 were as follows (dollars in millions):

 
   U.S. plans   Non-U.S. plans  
 
   2013   2012   2013   2012  

Accumulated benefit obligation in excess of plan assets

                          

Projected benefit obligation

   $ 871   $ 958   $ 1,868   $ 1,751  

Accumulated benefit obligation

     853     925     1,732     1,603  

Fair value of plan assets

     749     636     1,451     1,266  
Schedule of expected future contributions and benefit payments

 Expected future contributions and benefit payments are as follows (dollars in millions):

 
   U.S. Plans   Non-U.S. Plans  
 
   Defined
Benefit
Plans		   Other
Postretirement
Benefit
Plans		   Defined
Benefit
Plans		   Other
Postretirement
Benefit
Plans		  

2014 expected employer contributions

                          

To plan trusts

   $ 46   $ 9   $ 79   $ 1  

Expected benefit payments

                          

2014

     63     10     149     1  

2015

     63     9     83     1  

2016

     56     9     81     1  

2017

     59     9     83     1  

2018

     61     9     86     1  

2019 - 2023

     340     41     456     2  
Schedule of plan assets measured at fair value on a recurring basis

The fair value of plan assets for the pension plans was $3.2 billion and $2.9 billion at December 31, 2013 and 2012, respectively. The following plan assets are measured at fair value on a recurring basis (dollars in millions):

 
    
   Fair Value Amounts Using  
Asset category
  December 31,
2013		   Quoted prices in
active markets
for identical
assets (Level 1)		   Significant other
observable
inputs
(Level 2)		   Significant
unobservable
inputs
(Level 3)		  

U.S. pension plans:

                          

Equities

   $ 428   $ 245   $ 183   $ —  

Fixed income

     208     88     120     —  

Real estate/other

     92     45     —     47  

Cash

     27     27     —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total U.S. pension plan assets

   $ 755   $ 405   $ 303   $ 47  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Non-U.S. pension plans:

                          

Equities

   $ 1,053   $ 580   $ 473   $ —  

Fixed income

     908     668     240     —  

Real estate/other

     400     30     341     29  

Cash

     82     80     2     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Non-U.S. pension plan assets

   $ 2,443   $ 1,358   $ 1,056   $ 29  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

 

 
    
   Fair Value Amounts Using  
Asset category
  December 31,
2012		   Quoted prices in
active markets
for identical
assets (Level 1)		   Significant other
observable
inputs
(Level 2)		   Significant
unobservable
inputs
(Level 3)		  

U.S. pension plans:

                          

Equities

   $ 340   $ 195   $ 145   $ —  

Fixed income

     196     116     80     —  

Real estate/other

     89     48     —     41  

Cash

     11     11     —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total U.S. pension plan assets

   $ 636   $ 370   $ 225   $ 41  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Non-U.S. pension plans:

                          

Equities

   $ 862   $ 649   $ 213   $ —  

Fixed income

     905     632     273     —  

Real estate/other

     357     27     303     27  

Cash

     113     112     1     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Non-U.S. pension plan assets

   $ 2,237   $ 1,420   $ 790   $ 27  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
Reconciliation of the beginning and ending balances of plan assets measured at fair value using unobservable inputs (level 3)

The following table reconciles the beginning and ending balances of plan assets measured at fair value using unobservable inputs (Level 3) (dollars in millions):

 
   Real Estate/Other  
Fair Value Measurements of Plan Assets Using Significant Unobservable
Inputs (Level 3)
  Year ended
December 31,
2013		   Year ended
December 31,
2012		  

Balance at beginning of period

   $ 68   $ 61  

Return on pension plan assets

     6     4  

Purchases, sales and settlements

     2     10  

Transfers (out of) into Level 3

     —     (7 )
           
​ ​ ​ ​ ​ ​ ​ ​

Balance at end of period

   $ 76   $ 68  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Schedule of asset allocation for pension plans and the target allocation, by asset category

 

 

Asset category
  Target
Allocation
2014		   Allocation at
December 31,
2013		   Allocation at
December 31,
2012		  

U.S. pension plans:

                    

Equities

     54 %   57 %   53 %

Fixed income

     33 %   27 %   31 %

Real estate/other

     13 %   12 %   14 %

Cash

     —     4 %   2 %
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total U.S. pension plans

     100 %   100 %   100 %
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Non-U.S. pension plans:

                    

Equities

     38 %   38 %   38 %

Fixed income

     40 %   40 %   41 %

Real estate/other

     11 %   11 %   20 %

Cash

     11 %   11 %   1 %
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total non-U.S. pension plans

     100 %   100 %   100 %
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​