v2.4.0.8
Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2013
Change In Benefit Obligations, Change In Plan Assets, Funded Status, Amounts Recognized on Balance Sheet, and Amounts Recognized In Accumulated Other Comprehensive Income (Pretax)

The following tables summarize benefit costs, as well as the benefit obligations, plan assets, funded status and rate assumptions associated with pension and postretirement health care and life insurance benefit plans.

 

Obligations and Funded Status

 

           (dollars in millions)  
     Pension     Health Care and Life  
At December 31,    2013     2012     2013     2012  

Change in Benefit Obligations

         

Beginning of year

    $   26,773     $   30,582     $ 26,844     $ 27,369  

Service cost

      395       358       318       359  

Interest cost

      1,002       1,449       1,095       1,284  

Plan amendments

      (149 )      183       (119 )      (1,826 ) 

Actuarial (gain) loss, net

      (2,327 )      6,074       (3,576 )      1,402  

Benefits paid

      (1,777 )      (2,735 )      (1,520 )      (1,744 ) 

Curtailment and termination benefits

      4       –       –       –  

Annuity purchase

      –       (8,352 )      –       –  

Settlements paid

      (889 )      (786 )      –       –  
  

 

 

  

End of year

    $ 23,032     $ 26,773     $ 23,042     $ 26,844  
  

 

 

  

Change in Plan Assets

         

Beginning of year

    $ 18,282     $ 24,110     $ 2,657     $ 2,628  

Actual return on plan assets

      1,388       2,326       556       312  

Company contributions

      107       3,719       1,360       1,461  

Benefits paid

      (1,777 )      (2,735 )      (1,520 )      (1,744 ) 

Settlements paid

      (889 )      (786 )      –       –  

Annuity purchase

      –       (8,352 )      –       –  
  

 

 

  

End of year

    $ 17,111     $ 18,282     $ 3,053     $ 2,657  
  

 

 

  

Funded Status

         
  

 

 

  

End of year

    $ (5,921 )    $ (8,491 )    $ (19,989 )    $ (24,187 ) 
  

 

 

  

 

           (dollars in millions)  
     Pension     Health Care and Life  
At December 31,    2013     2012     2013     2012  

Amounts recognized on the balance sheet

         

Noncurrent assets

    $ 339     $ 236     $ –     $ –  

Current liabilities

      (137 )      (129 )      (710 )      (766 ) 

Noncurrent liabilities

      (6,123 )      (8,598 )      (19,279 )      (23,421 ) 
  

 

 

  

Total

    $   (5,921 )    $   (8,491 )    $ (19,989 )    $ (24,187 ) 
  

 

 

  

Amounts recognized in Accumulated Other
Comprehensive Income (Pre-tax)

         

Prior Service Benefit (Cost)

    $ 25     $ 181     $ (2,120 )    $ (2,247 ) 
  

 

 

  

Total

    $ 25     $ 181     $ (2,120 )    $ (2,247 ) 
  

 

 

  
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets

Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:

 

     (dollars in millions)  
At December 31,    2013      2012  

Projected benefit obligation

    $ 22,610      $ 26,351  

Accumulated benefit obligation

      22,492        26,081  

Fair value of plan assets

      16,350        17,623  
Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance

The following table summarizes the benefit (income) cost related to our pension and postretirement health care and life insurance plans:

 

           (dollars in millions)  
     Pension     Health Care and Life  
Years Ended December 31,    2013     2012     2011     2013     2012     2011  

Service cost

    $ 395     $ 358     $ 307     $ 318     $ 359     $ 299  

Amortization of prior service cost (credit)

      6       (1 )      72       (247 )      (89 )      (57 ) 
  

 

 

  

Subtotal

      401       357       379       71       270       242  

Expected return on plan assets

      (1,245 )      (1,795 )      (1,976 )      (143 )      (171 )      (163 ) 

Interest cost

      1,002       1,449       1,590       1,095       1,284       1,421  
  

 

 

  

Subtotal

      158       11       (7 )      1,023       1,383       1,500  

Remeasurement (gain) loss, net

      (2,470 )      5,542       4,146       (3,989 )      1,262       1,787  
  

 

 

  

Net periodic benefit (income) cost

      (2,312 )      5,553       4,139       (2,966 )      2,645       3,287  

Curtailment and termination benefits

                  4       –       –                   –                 –                 –  
  

 

 

  

Total

    $ (2,308 )    $ 5,553     $ 4,139     $ (2,966 )    $ 2,645     $ 3,287  
  

 

 

  
Other Pretax Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss

Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive (income) loss are as follows:

 

            (dollars in millions)  
     Pension      Health Care and Life  
At December 31,    2013     2012      2013     2012  

Prior service cost

    $ (149 )    $ 183      $ (119 )    $ (1,826 ) 

Reversal of amortization items

                                            

Prior service cost

      (6 )      1        247       89  
  

 

 

  

Total recognized in other comprehensive (income) loss (pre-tax)

    $ (155 )    $ 184      $ 128     $ (1,737)   
  

 

 

  
Weighted Average Assumptions Used in Determining Benefit Obligations and Net Periodic Cost

The weighted-average assumptions used in determining benefit obligations follow:

 

     Pension     Health Care and Life  
At December 31,    2013     2012     2013     2012  

Discount Rate

      5.00 %      4.20 %      5.00 %      4.20 % 

Rate of compensation increases

      3.00       3.00       N/A        N/A   

 

The weighted-average assumptions used in determining net periodic cost follow:

 

     Pension     Health Care and Life  
At December 31,    2013     2012     2011     2013     2012     2011  

Discount Rate

      4.20 %      5.00 %      5.75 %      4.20 %      5.00 %      5.75 % 

Expected return on plan assets

      7.50       7.50       8.00       5.60       7.00       6.00  

Rate of compensation increases

      3.00       3.00       3.00       N/A        N/A        N/A   
Health Care Cost Trend Rates

The assumed health care cost trend rates follow:

 

     Health Care and Life  
At December 31,    2013     2012     2011  

Healthcare cost trend rate assumed for next year

      6.50 %      7.00 %      7.50 % 

Rate to which cost trend rate gradually declines

      4.75       5.00       5.00  

Year the rate reaches the level it is assumed to remain thereafter

      2020       2016       2016  
Effects of One Percentage Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in the assumed health care cost trend rate would have the following effects:

 

     (dollars in millions)  
One-Percentage Point    Increase      Decrease  

Effect on 2013 service and interest cost

    $ 184       $ (150 ) 

Effect on postretirement benefit obligation as of December 31, 2013

      2,539        (2,086 ) 
Reconciliation of Beginning and Ending Balance of Pension Plan Assets Measured at Fair Value

The following is a reconciliation of the beginning and ending balance of pension plan assets that are measured at fair value using significant unobservable inputs:

 

           (dollars in millions)  
      Corporate
Bonds		     Real
Estate		     Private
Equity		     Hedge
Funds		     Total  

Balance at January 1, 2012

    $ 189     $ 2,158     $ 6,055     $ 662     $ 9,064  

Actual gain on plan assets

      12       84       146       43       285  

Purchases and sales

      (14 )      (224 )      (1,162 )      (147 )      (1,547 ) 

Transfers in

      9       –       –       –       9  
  

 

 

  

Balance at December 31, 2012

    $ 196     $ 2,018     $ 5,039     $ 558     $ 7,811  

Actual gain on plan assets

      12       81       674       84       851  

Purchases and sales

      (13 )      (315 )      (1,732 )      (124 )      (2,184 ) 

Transfers in (out)

      (33 )      –       (39 )      678       606  
  

 

 

  

Balance at December 31, 2013

    $ 162     $   1,784     $ 3,942     $ 1,196     $ 7,084  
  

 

 

  
Expected Benefit Payments to Retirees

The benefit payments to retirees are expected to be paid as follows:

 

     (dollars in millions)  
Year    Pension Benefits      Health Care and Life  

2014

    $ 2,980      $ 1,582  

2015

      2,280        1,574  

2016

      1,742        1,538  

2017

      1,666        1,506  

2018

      1,377        1,474  

2019-2023

      6,712        6,846  
Schedule of Recorded Severance Liability

The following table provides an analysis of our actuarially determined severance liability recorded in accordance with the accounting standard regarding employers’ accounting for postemployment benefits:

 

                         (dollars in millions)  
Year    Beginning of Year      Charged to
Expense		      Payments     Other     End of Year  

2011

    $ 1,569      $ 32      $ (474 )    $ (14 )    $ 1,113  

2012

      1,113        396        (531 )      32       1,010  

2013

      1,010        134        (381 )      (6 )      757  
Pension
  
Fair Values for Plans by Asset Category

The fair values for the pension plans by asset category at December 31, 2013 are as follows:

 

            (dollars in millions)  
Asset Category    Total      Level 1      Level 2      Level 3  

Cash and cash equivalents

    $ 968      $ 881      $ 87      $ –  

Equity securities

      4,200        3,300        900        –  

Fixed income securities

            

U.S. Treasuries and agencies

      1,097        691        406        –  

Corporate bonds

      2,953        212        2,579        162  

International bonds

      364        51        313        –  

Other

      3        –        3        –  

Real estate

      1,784        –        –        1,784  

Other

            

Private equity

      3,942        –        –        3,942  

Hedge funds

      1,800        –        604        1,196  
  

 

 

  

Total

    $   17,111      $ 5,135      $ 4,892      $ 7,084  
  

 

 

  

The fair values for the pension plans by asset category at December 31, 2012 are as follows:

 

            (dollars in millions)  
Asset Category    Total      Level 1      Level 2      Level 3  

Cash and cash equivalents

    $ 1,618      $ 1,586      $ 32      $ –  

Equity securities

      2,944        2,469        475        –  

Fixed income securities

            

U.S. Treasuries and agencies

      1,589        1,125        464        –  

Corporate bonds

      2,456        35        2,225        196  

International bonds

      601        140        461        –  

Other

      210        –        210        –  

Real estate

      2,018        –        –        2,018  

Other

            

Private equity

      5,039        –        –        5,039  

Hedge funds

      1,807        –        1,249        558  
  

 

 

  

Total

    $   18,282      $ 5,355      $ 5,116      $ 7,811  
  

 

 

  
Postretirement Benefit Plans
  
Fair Values for Plans by Asset Category

Health Care and Life Plans

The fair values for the other postretirement benefit plans by asset category at December 31, 2013 are as follows:

 

            (dollars in millions)  
Asset Category    Total      Level 1      Level 2      Level 3  

Cash and cash equivalents

    $ 237      $ 12      $ 225      $ –  

Equity securities

      2,178        1,324        854        –  

Fixed income securities

            

U.S. Treasuries and agencies

      121        94        27        –  

Corporate bonds

      252        45        207        –  

International bonds

      104        18        86        –  

Other

      161        40        121        –  
  

 

 

  

Total

    $   3,053      $ 1,533      $ 1,520      $         –  
  

 

 

  

The fair values for the other postretirement benefit plans by asset category at December 31, 2012 are as follows:

 

            (dollars in millions)  
Asset Category    Total      Level 1      Level 2      Level 3  

Cash and cash equivalents

    $ 291      $ 13      $ 278      $ –  

Equity securities

      1,753        1,004        749        –  

Fixed income securities

            

U.S. Treasuries and agencies

      118        80        38        –  

Corporate bonds

      192        11        181        –  

International bonds

      189        72        117        –  

Other

      114        –        114        –  
  

 

 

  

Total

    $   2,657      $ 1,180      $ 1,477      $         –