|
Employee Benefits (Tables)
|
12 Months Ended |
|
Dec. 31, 2014
|
| 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, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
Change in Benefit
Obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
year
|
|
$ |
23,032 |
|
|
$ |
26,773 |
|
|
$ |
23,042 |
|
|
$ |
26,844 |
|
|
Service cost
|
|
|
327 |
|
|
|
395 |
|
|
|
258 |
|
|
|
318 |
|
|
Interest cost
|
|
|
1,035 |
|
|
|
1,002 |
|
|
|
1,107 |
|
|
|
1,095 |
|
|
Plan amendments
|
|
|
(89 |
) |
|
|
(149 |
) |
|
|
(412 |
) |
|
|
(119 |
) |
|
Actuarial (gain) loss,
net
|
|
|
2,977 |
|
|
|
(2,327 |
) |
|
|
4,645 |
|
|
|
(3,576 |
) |
|
Benefits paid
|
|
|
(1,566 |
) |
|
|
(1,777 |
) |
|
|
(1,543 |
) |
|
|
(1,520 |
) |
|
Curtailment and termination
benefits
|
|
|
11 |
|
|
|
4 |
|
|
|
– |
|
|
|
– |
|
|
Settlements paid
|
|
|
(407 |
) |
|
|
(889 |
) |
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
End of year
|
|
$ |
25,320 |
|
|
$ |
23,032 |
|
|
$ |
27,097 |
|
|
$ |
23,042 |
|
|
|
|
|
|
|
|
|
|
|
|
Change in Plan
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of
year
|
|
$ |
17,111 |
|
|
$ |
18,282 |
|
|
$ |
3,053 |
|
|
$ |
2,657 |
|
|
Actual return on plan
assets
|
|
|
1,778 |
|
|
|
1,388 |
|
|
|
193 |
|
|
|
556 |
|
|
Company
contributions
|
|
|
1,632 |
|
|
|
107 |
|
|
|
732 |
|
|
|
1,360 |
|
|
Benefits paid
|
|
|
(1,566 |
) |
|
|
(1,777 |
) |
|
|
(1,543 |
) |
|
|
(1,520 |
) |
|
Settlements paid
|
|
|
(407 |
) |
|
|
(889 |
) |
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
End of year
|
|
$ |
18,548 |
|
|
$ |
17,111 |
|
|
$ |
2,435 |
|
|
$ |
3,053 |
|
|
|
|
|
|
|
|
|
|
|
|
Funded
Status
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of year
|
|
$ |
(6,772 |
) |
|
$ |
(5,921 |
) |
|
$ |
(24,662 |
) |
|
$ |
(19,989 |
) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
(dollars in
millions) |
|
| |
|
Pension |
|
|
Health Care and
Life |
|
|
At
December 31, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
Amounts recognized on
the balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
assets
|
|
$ |
337 |
|
|
$ |
339 |
|
|
$ |
– |
|
|
$ |
– |
|
|
Current
liabilities
|
|
|
(122 |
) |
|
|
(137 |
) |
|
|
(528 |
) |
|
|
(710 |
) |
|
Noncurrent
liabilities
|
|
|
(6,987 |
) |
|
|
(6,123 |
) |
|
|
(24,134 |
) |
|
|
(19,279 |
) |
|
|
|
|
|
|
Total
|
|
$ |
(6,772 |
) |
|
$ |
(5,921 |
) |
|
$ |
(24,662 |
) |
|
$ |
(19,989 |
) |
|
|
|
|
|
|
Amounts recognized in
Accumulated Other
Comprehensive Income (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Service Benefit
(Cost)
|
|
$ |
(56 |
) |
|
$ |
25 |
|
|
$ |
(2,280 |
) |
|
$ |
(2,120 |
) |
|
|
|
|
|
|
Total
|
|
$ |
(56 |
) |
|
$ |
25 |
|
|
$ |
(2,280 |
) |
|
$ |
(2,120 |
) |
|
|
|
|
|
|
| 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, |
|
2014 |
|
|
2013 |
|
|
Projected benefit
obligation
|
|
$ |
24,919 |
|
|
$ |
22,610 |
|
|
Accumulated benefit
obligation
|
|
|
24,851 |
|
|
|
22,492 |
|
|
Fair value of plan
assets
|
|
|
17,810 |
|
|
|
16,350 |
|
|
| 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, |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Service cost
|
|
$ |
327 |
|
|
$ |
395 |
|
|
$ |
358 |
|
|
$ |
258 |
|
|
$ |
318 |
|
|
$ |
359 |
|
|
Amortization of prior
service cost (credit)
|
|
|
(8 |
) |
|
|
6 |
|
|
|
(1 |
) |
|
|
(253 |
) |
|
|
(247) |
|
|
|
(89 |
) |
|
Expected return on plan
assets
|
|
|
(1,181 |
) |
|
|
(1,245 |
) |
|
|
(1,795 |
) |
|
|
(161 |
) |
|
|
(143) |
|
|
|
(171 |
) |
|
Interest cost
|
|
|
1,035 |
|
|
|
1,002 |
|
|
|
1,449 |
|
|
|
1,107 |
|
|
|
1,095 |
|
|
|
1,284 |
|
|
Remeasurement (gain)
loss, net
|
|
|
2,380 |
|
|
|
(2,470 |
) |
|
|
5,542 |
|
|
|
4,615 |
|
|
|
(3,989) |
|
|
|
1,262 |
|
|
|
|
|
|
|
Net periodic benefit
(income) cost
|
|
|
2,553 |
|
|
|
(2,312 |
) |
|
|
5,553 |
|
|
|
5,566 |
|
|
|
(2,966) |
|
|
|
2,645 |
|
|
Curtailment and
termination benefits
|
|
|
11 |
|
|
|
4 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
Total
|
|
$ |
2,564 |
|
|
$ |
(2,308 |
) |
|
$ |
5,553 |
|
|
$ |
5,566 |
|
|
$ |
(2,966) |
|
|
$ |
2,645 |
|
|
|
|
|
|
|
| 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, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
Prior service
cost
|
|
$ |
(89 |
) |
|
$ |
(149 |
) |
|
$ |
(413 |
) |
|
$ |
(119 |
) |
|
Reversal of amortization
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior service
cost
|
|
|
8 |
|
|
|
(6 |
) |
|
|
253 |
|
|
|
247 |
|
|
|
|
|
|
|
Total recognized in
other comprehensive (income) loss (pre-tax)
|
|
$ |
(81 |
) |
|
$ |
(155 |
) |
|
$ |
(160 |
) |
|
$ |
128 |
|
|
|
|
|
|
|
| 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, |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
Discount Rate
|
|
|
4.20 |
% |
|
|
5.00 |
% |
|
|
4.20 |
% |
|
|
5.00 |
% |
|
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, |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Discount Rate
|
|
|
5.00 |
% |
|
|
4.20 |
% |
|
|
5.00 |
% |
|
|
5.00 |
% |
|
|
4.20 |
% |
|
|
5.00 |
% |
|
Expected return on plan
assets
|
|
|
7.25 |
|
|
|
7.50 |
|
|
|
7.50 |
|
|
|
5.50 |
|
|
|
5.60 |
|
|
|
7.00 |
|
|
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, |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
Healthcare cost trend rate
assumed for next year
|
|
|
6.50 |
% |
|
|
6.50 |
% |
|
|
7.00 |
% |
|
Rate to which cost trend
rate gradually declines
|
|
|
4.75 |
|
|
|
4.75 |
|
|
|
5.00 |
|
|
Year the rate reaches the
level it is assumed to remain thereafter
|
|
|
2022 |
|
|
|
2020 |
|
|
|
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 2014 service and
interest cost
|
|
$ |
193 |
|
|
$ |
(155 |
) |
|
Effect on postretirement
benefit obligation as of December 31, 2014
|
|
|
3,760 |
|
|
|
(3,023 |
) |
|
| 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 |
|
|
2015
|
|
$ |
2,855 |
|
|
$ |
1,481 |
|
|
2016
|
|
|
2,024 |
|
|
|
1,456 |
|
|
2017
|
|
|
1,937 |
|
|
|
1,452 |
|
|
2018
|
|
|
1,427 |
|
|
|
1,436 |
|
|
2019
|
|
|
1,396 |
|
|
|
1,398 |
|
|
2020-2024
|
|
|
6,890 |
|
|
|
6,996 |
|
|
| 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 |
|
|
2012
|
|
$ |
1,113 |
|
|
$ |
396 |
|
|
$ |
(531 |
) |
|
$ |
32 |
|
|
$ |
1,010 |
|
|
2013
|
|
|
1,010 |
|
|
|
134 |
|
|
|
(381 |
) |
|
|
(6 |
) |
|
|
757 |
|
|
2014
|
|
|
757 |
|
|
|
531 |
|
|
|
(406 |
) |
|
|
(7 |
) |
|
|
875 |
|
|
| Pension |
|
| Fair Values for Plans by Asset Category |
The fair values for the
pension plans by asset category at December 31, 2014 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
(dollars in millions) |
|
|
Asset
Category |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Cash and cash
equivalents
|
|
$ |
1,983 |
|
|
$ |
1,814 |
|
|
$ |
169 |
|
|
$ |
– |
|
|
Equity
securities
|
|
|
4,339 |
|
|
|
2,952 |
|
|
|
1,277 |
|
|
|
110 |
|
|
Fixed income
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasuries and
agencies
|
|
|
1,257 |
|
|
|
830 |
|
|
|
427 |
|
|
|
– |
|
|
Corporate
bonds
|
|
|
2,882 |
|
|
|
264 |
|
|
|
2,506 |
|
|
|
112 |
|
|
International
bonds
|
|
|
582 |
|
|
|
39 |
|
|
|
524 |
|
|
|
19 |
|
|
Other
|
|
|
3 |
|
|
|
– |
|
|
|
3 |
|
|
|
– |
|
|
Real estate
|
|
|
1,792 |
|
|
|
– |
|
|
|
– |
|
|
|
1,792 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity
|
|
|
3,748 |
|
|
|
– |
|
|
|
204 |
|
|
|
3,544 |
|
|
Hedge funds
|
|
|
1,962 |
|
|
|
– |
|
|
|
1,164 |
|
|
|
798 |
|
|
|
|
|
|
|
Total
|
|
$ |
18,548 |
|
|
$ |
5,899 |
|
|
$ |
6,274 |
|
|
$ |
6,375 |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
| Reconciliation of Beginning and Ending Balance of 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) |
|
|
|
|
Equity
Securities
|
|
|
Corporate
Bonds
|
|
|
International
Bonds
|
|
|
Real
Estate
|
|
|
Private
Equity
|
|
|
Hedge
Funds
|
|
|
Total |
|
|
Balance at January 1,
2013
|
|
$ |
– |
|
|
$ |
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 |
|
|
Actual gain (loss) on
plan assets
|
|
|
(1 |
) |
|
|
5 |
|
|
|
– |
|
|
|
42 |
|
|
|
73 |
|
|
|
33 |
|
|
|
152 |
|
|
Purchases and
sales
|
|
|
106 |
|
|
|
(50 |
) |
|
|
8 |
|
|
|
(34 |
) |
|
|
(471 |
) |
|
|
144 |
|
|
|
(297 |
) |
|
Transfers in
(out)
|
|
|
5 |
|
|
|
(5 |
) |
|
|
11 |
|
|
|
– |
|
|
|
– |
|
|
|
(575 |
) |
|
|
(564 |
) |
|
|
|
|
|
|
Balance at
December 31, 2014
|
|
$ |
110 |
|
|
$ |
112 |
|
|
$ |
19 |
|
|
$ |
1,792 |
|
|
$ |
3,544 |
|
|
$ |
798 |
|
|
$ |
6,375 |
|
|
|
|
|
|
|
| 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, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
(dollars in millions) |
|
|
Asset
Category |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Cash and cash
equivalents
|
|
$ |
208 |
|
|
$ |
6 |
|
|
$ |
202 |
|
|
$ |
– |
|
|
Equity
securities
|
|
|
1,434 |
|
|
|
1,172 |
|
|
|
262 |
|
|
|
– |
|
|
Fixed income
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasuries and
agencies
|
|
|
105 |
|
|
|
98 |
|
|
|
7 |
|
|
|
– |
|
|
Corporate bonds
|
|
|
461 |
|
|
|
119 |
|
|
|
296 |
|
|
|
46 |
|
|
International
bonds
|
|
|
111 |
|
|
|
14 |
|
|
|
97 |
|
|
|
– |
|
|
Other
|
|
|
116 |
|
|
|
– |
|
|
|
116 |
|
|
|
– |
|
|
|
|
|
|
|
Total
|
|
$ |
2,435 |
|
|
$ |
1,409 |
|
|
$ |
980 |
|
|
$ |
46 |
|
|
|
|
|
|
|
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 |
|
|
$ |
– |
|
|
|
|
|
|
|
| Reconciliation of Beginning and Ending Balance of Plan Assets Measured at Fair Value |
The following
is a reconciliation of the beginning and ending balance of the
other postretirement benefit plans assets that are measured at fair
value using significant unobservable inputs:
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
Bonds
|
|
|
Total |
|
|
Balance at
December 31, 2013
|
|
$ |
– |
|
|
$ |
– |
|
|
Actual gain on plan
assets
|
|
|
1 |
|
|
|
1 |
|
|
Purchases and
sales
|
|
|
45 |
|
|
|
45 |
|
|
|
|
|
|
|
Balance at
December 31, 2014
|
|
$ |
46 |
|
|
$ |
46 |
|
|
|
|
|
|
|