|
Defined Benefit Plans |
Medical and Dental Plans |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(in millions) |
2013 | 2012 | 2013 | 2012 | |||||||||
Projected benefit obligations, January 1 |
$ | 11,322 | $ | 9,212 | $ | 1,889 | $ | 1,657 | |||||
Service cost — benefits earned during the year |
303 | 389 | 43 | 61 | |||||||||
Interest cost on projected benefit obligations |
276 | 460 | 59 | 81 | |||||||||
(Gains) losses, primarily changes in discount rates, plan design changes, law changes and differences between actual and estimated health care costs |
(650 | ) | 1,461 | (156 | ) | 148 | |||||||
Benefits paid |
(185 | ) | (308 | ) | (60 | ) | (63 | ) | |||||
Separation of AbbVie Inc. |
(4,654 | ) | — | (450 | ) | — | |||||||
Other, including foreign currency translation |
20 | 108 | (28 | ) | 5 | ||||||||
| | | | | | | | | | | | | |
Projected benefit obligations, December 31 |
$ | 6,432 | $ | 11,322 | $ | 1,297 | $ | 1,889 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Plan assets at fair value, January 1 |
$ | 7,949 | $ | 6,961 | $ | 417 | $ | 389 | |||||
Actual return on plans' assets |
727 | 878 | 61 | 48 | |||||||||
Company contributions |
724 | 379 | 40 | 40 | |||||||||
Benefits paid |
(185 | ) | (302 | ) | (56 | ) | (60 | ) | |||||
Separation of AbbVie Inc. |
(3,107 | ) | — | — | — | ||||||||
Other, primarily foreign currency translation |
15 | 33 | — | — | |||||||||
| | | | | | | | | | | | | |
Plan assets at fair value, December 31 |
$ | 6,123 | $ | 7,949 | $ | 462 | $ | 417 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Projected benefit obligations greater than plan assets, December 31 |
$ | (309 | ) | $ | (3,373 | ) | $ | (835 | ) | $ | (1,472 | ) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Long-term assets |
$ | 685 | $ | 69 | $ | — | $ | — | |||||
Short-term liabilities |
(11 | ) | (43 | ) | — | — | |||||||
Long-term liabilities |
(983 | ) | (3,399 | ) | (835 | ) | (1,472 | ) | |||||
| | | | | | | | | | | | | |
Net liability |
$ | (309 | ) | $ | (3,373 | ) | $ | (835 | ) | $ | (1,472 | ) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Amounts Recognized in Accumulated Other Comprehensive Income (loss): |
|||||||||||||
Actuarial losses, net |
$ | 1,791 | $ | 4,923 | $ | 334 | $ | 701 | |||||
Prior service cost (credits) |
20 | 61 | (252 | ) | (322 | ) | |||||||
| | | | | | | | | | | | | |
Total |
$ | 1,811 | $ | 4,984 | $ | 82 | $ | 379 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
(in millions) |
2013 | 2012 | |||||
---|---|---|---|---|---|---|---|
Accumulated benefit obligation |
$ | 408 | $ | 8,100 | |||
Projected benefit obligation |
505 | 9,619 | |||||
Fair value of plan assets |
— | 6,243 |
|
|
Basis of Fair Value Measurement | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Outstanding Balances |
Quoted Prices in Active Markets |
Significant Other Observable Inputs |
Significant Unobservable Inputs |
|||||||||
|
(in millions) |
||||||||||||
December 31, 2013: |
|||||||||||||
Equities: |
|||||||||||||
U.S. large cap (a) |
$ | 1,618 | $ | 741 | $ | 877 | $ | — | |||||
U.S. mid cap (b) |
409 | 134 | 275 | — | |||||||||
International (c) |
1,319 | 608 | 711 | — | |||||||||
Fixed income securities: |
|||||||||||||
U.S. government securities (d) |
453 | 61 | 392 | — | |||||||||
Corporate debt instruments (e) |
378 | 108 | 270 | — | |||||||||
Non-U.S. government securities (f) |
536 | 305 | 231 | — | |||||||||
Other (g) |
77 | 69 | 8 | — | |||||||||
Absolute return funds (h) |
1,474 | 197 | 791 | 486 | |||||||||
Commodities (i) |
170 | 6 | 97 | 67 | |||||||||
Other (j) |
151 | 149 | — | 2 | |||||||||
| | | | | | | | | | | | | |
|
$ | 6,585 | $ | 2,378 | $ | 3,652 | $ | 555 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
December 31, 2012: |
|||||||||||||
Equities: |
|||||||||||||
U.S. large cap (a) |
$ | 1,831 | $ | 1,058 | $ | 773 | $ | — | |||||
U.S. mid cap (b) |
491 | 133 | 358 | — | |||||||||
International (c) |
1,607 | 657 | 950 | — | |||||||||
Fixed income securities: |
|||||||||||||
U.S. government securities (d) |
899 | 172 | 727 | — | |||||||||
Corporate debt instruments (e) |
736 | 355 | 381 | — | |||||||||
Non-U.S. government securities (f) |
374 | 83 | 291 | — | |||||||||
Other (g) |
24 | — | 24 | — | |||||||||
Absolute return funds (h) |
2,070 | 85 | 1,246 | 739 | |||||||||
Commodities (i) |
222 | 9 | 172 | 41 | |||||||||
Other (j) |
112 | 109 | — | 3 | |||||||||
| | | | | | | | | | | | | |
|
$ | 8,366 | $ | 2,661 | $ | 4,922 | $ | 783 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Prior year amounts have been revised to conform with the current year's asset classifications.
The weighted average assumptions used to determine benefit obligations for defined benefit plans and medical and dental plans are as follows:
|
2013 | 2012 | 2011 | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Discount rate |
4.9 | % | 4.3 | % | 5.0 | % | ||||
Expected aggregate average long-term change in compensation |
5.0 | % | 5.3 | % | 5.3 | % |
The weighted average assumptions used to determine the net cost for defined benefit plans and medical and dental plans are as follows:
|
2013 | 2012 | 2011 | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Discount rate |
4.2 | % | 5.0 | % | 5.4 | % | ||||
Expected return on plan assets |
7.8 | % | 8.0 | % | 7.8 | % | ||||
Expected aggregate average long-term change in compensation |
5.0 | % | 5.3 | % | 5.1 | % |
|
2013 | 2012 | |||||
---|---|---|---|---|---|---|---|
|
(in millions) |
||||||
January 1 |
$ | 783 | $ | 682 | |||
Transfers in (out of) from other categories |
6 | 6 | |||||
Separation of AbbVie, Inc. |
(165 | ) | — | ||||
Actual return on plan assets: |
|||||||
Assets on hand at year end |
29 | 59 | |||||
Assets sold during the year |
51 | (4 | ) | ||||
Purchases, sales and settlements, net |
(149 | ) | 40 | ||||
| | | | | | | |
December 31 |
$ | 555 | $ | 783 | |||
| | | | | | | |
| | | | | | | |
(in millions) |
Defined Benefit Plans |
Medical and Dental Plans |
|||||
---|---|---|---|---|---|---|---|
2014 |
$ | 186 | $ | 71 | |||
2015 |
198 | 73 | |||||
2016 |
213 | 74 | |||||
2017 |
229 | 76 | |||||
2018 |
249 | 77 | |||||
2019 to 2023 |
1,578 | 417 |
|
2013 | 2012 | 2011 | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Health care cost trend rate assumed for the next year |
7 | % | 7 | % | 7 | % | ||||
Rate that the cost trend rate gradually declines to |
5 | % | 5 | % | 5 | % | ||||
Year that rate reaches the assumed ultimate rate |
2019 | 2019 | 2019 |
|
Defined Benefit Plans | Medical and Dental Plans |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
|
(in millions) |
||||||||||||||||||
Service cost — benefits earned during the year |
$ | 303 | $ | 389 | $ | 332 | $ | 43 | $ | 61 | $ | 55 | |||||||
Interest cost on projected benefit obligations |
276 | 460 | 446 | 59 | 81 | 88 | |||||||||||||
Expected return on plans' assets |
(396 | ) | (611 | ) | (608 | ) | (36 | ) | (33 | ) | (34 | ) | |||||||
Settlement |
— | — | 40 | — | — | — | |||||||||||||
Amortization of actuarial losses |
169 | 244 | 163 | 34 | 34 | 38 | |||||||||||||
Amortization of prior service cost (credits) |
3 | 2 | 4 | (35 | ) | (42 | ) | (42 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | |
Total cost |
355 | 484 | 377 | 65 | 101 | 105 | |||||||||||||
Less: Discontinued operations |
— | (206 | ) | (176 | ) | — | (48 | ) | (49 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | |
Net cost — continuing operations |
$ | 355 | $ | 278 | $ | 201 | $ | 65 | $ | 53 | $ | 56 | |||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |