RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of Change in Benefit Obligation and Plan Assets, Funded Status and Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income (Loss)

Below is a summary balance sheet of the change in plan assets during 2015 and 2014, the funded status of the plans, amounts recognized in the Consolidated Statements of Financial Position, and a summary of amounts recognized in accumulated other comprehensive income.

Summary of Changes



	Pension Plans												Postretirement Benefit Plans
	2015						2014						2015			2014
(Dollars in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	2,356		$	867		$	2,236		$	736		$	1,014		$	962
Service cost	39			15			40			14			8			8
Interest cost	87			26			100			31			39			45
Actuarial (gain) loss	(31		)	(50		)	174			149			(13		)	49
Curtailment gain	—			(4		)	—			—			(2		)	—
Settlement	—			—			—			(18		)	—			—
Acquisitions	—			(10		)	—			48			—			4
Plan amendments and other	—			—			—			—			(140		)	1
Plan participants' contributions	—			2			—			2			15			18
Effect of currency exchange	—			(61		)	—			(73		)	(2		)	—
Federal subsidy on benefits paid	—			—			—			—			1			1
Benefits paid	(189		)	(22		)	(194		)	(22		)	(67		)	(74		)
Benefit obligation, end of year	$	2,262		$	763		$	2,356		$	867		$	853		$	1,014
Change in plan assets:
Fair value of plan assets, beginning of year	$	1,968		$	699		$	1,887		$	658		$	176		$	179
Actual return on plan assets	(23		)	7			151			92			(1		)	16
Effect of currency exchange	—			(48		)	—			(60		)	—			—
Company contributions	131			21			124			22			34			38
Reserve for third party contributions	—			—			—			—			(1		)	(3		)
Plan participants' contributions	—			2			—			2			15			18
Benefits paid	(189		)	(22		)	(194		)	(22		)	(67		)	(74		)
Federal subsidy on benefits paid	—			—			—			—			1			1
Settlements	—			—			—			(18		)	—			—
Other	—			—			—			—			—			1
Acquisitions	—			(9		)	—			25			—			—
Fair value of plan assets, end of year	$	1,887		$	650		$	1,968		$	699		$	157		$	176
Funded status at end of year	$	(375	)	$	(113	)	$	(388	)	$	(168	)	$	(696	)	$	(838	)
Amounts recognized in the Consolidated Statements of Financial Position consist of:
Other noncurrent assets	$	—		$	7		$	4		$	4		$	19		$	13
Current liabilities	(3		)	—			(2		)	(1		)	(43		)	(41		)
Post-employment obligations	(372		)	(120		)	(390		)	(171		)	(672		)	(810		)
Net amount recognized, end of year	$	(375	)	$	(113	)	$	(388	)	$	(168	)	$	(696	)	$	(838	)
Accumulated benefit obligation	$	2,146		$	721		$	2,254		$	781
Amounts recognized in accumulated other comprehensive income consist of:
Prior service (credit) cost	$	(10	)	$	2		$	(14	)	$	(1	)	$	(200	)	$	(84	)

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

Information for pension plans with projected benefit obligations in excess of plan assets:



(Dollars in millions)	2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	2,262	$	622	$	1,973	$	745
Fair value of plan assets	1,887		501		1,581		573

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

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



(Dollars in millions)	2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	2,262	$	622	$	1,973	$	711
Accumulated benefit obligation	2,146		584		1,870		640
Fair value of plan assets	1,887		501		1,581		541

Schedule of Benefit Cost and Amounts Recognized in Other Comprehensive Income

Components of net periodic benefit (credit) cost were as follows:

Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income



	Pension Plans																		Postretirement Benefit Plans
	2015						2014						2013						2015			2014			2013
(Dollars in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Components of net periodic benefit (credit) cost:
Service cost	$	39		$	15		$	40		$	14		$	43		$	14		$	8		$	8		$	11
Interest cost	87			26			100			31			89			27			39			45			44
Expected return on assets	(148		)	(37		)	(143		)	(38		)	(129		)	(35		)	(6		)	(7		)	(7		)
Curtailment gain ⁽¹⁾	—			(7		)	—			—			—			(1		)	(2		)	—			—
Amortization of:
Prior service cost (credit)	(4		)	1			(4		)	—			(4		)	—			(24		)	(24		)	(22		)
Mark-to-market pension and other postretirement benefits (gain) loss	140			(20		)	166			95			(294		)	18			(5		)	43			(107		)
Net periodic benefit (credit) cost	$	114		$	(22	)	$	159		$	102		$	(295	)	$	23		$	10		$	65		$	(81	)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Curtailment gain	$	—		$	(3	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Current year prior service credit	—			—			—			—			—			—			140			—			47
Amortization of:
Prior service cost (credit)	(4		)	1			(4		)	—			(4		)	—			(24		)	(24		)	(22		)
Total	$	(4	)	$	(2	)	$	(4	)	$	—		$	(4	)	$	—		$	116		$	(24	)	$	25

Schedule of Assumptions Used to Develop the Projected Benefit Obligation

The assumptions used to develop the projected benefit obligation for the Company's significant U.S. and non-U.S. defined benefit pension plans and U.S. postretirement benefit plans are provided in the following tables.



	Pension Plans												Postretirement Benefit Plans
Weighted-average assumptions used to determine benefit obligations for years ended December 31:	2015				2014				2013				2015		2014		2013
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	4.13	%	3.26	%	3.80	%	3.10	%	4.59	%	4.18	%	4.17	%	3.91	%	4.75	%
Rate of compensation increase	3.50	%	3.00	%	3.50	%	3.24	%	3.50	%	3.49	%	3.50	%	3.50	%	3.50	%
Health care cost trend
Initial													7.50	%	7.50	%	8.00	%
Decreasing to ultimate trend of													5.00	%	5.00	%	5.00	%
in year													2021		2020		2020
Weighted-average assumptions used to determine net periodic cost for years ended December 31:	2015				2014				2013				2015		2014		2013
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.80	%	3.10	%	4.59	%	4.18	%	3.72	%	4.16	%	3.91	%	4.75	%	3.91	%
Expected return on assets	7.78	%	5.50	%	7.83	%	5.78	%	7.98	%	5.90	%	3.75	%	3.75	%	3.75	%
Rate of compensation increase	3.50	%	3.24	%	3.50	%	3.49	%	3.50	%	3.49	%	3.50	%	3.50	%	3.50	%
Health care cost trend
Initial													7.50	%	8.00	%	8.00	%
Decreasing to ultimate trend of													5.00	%	5.00	%	5.00	%
in year													2020		2020		2019

Schedule of Fair Value Measurements of Pension Plan Assets on a Recurring Basis

ctively.

The following charts reflect the fair value of the defined benefit pension plans assets as of December 31, 2015 and 2014.



(Dollars in millions)					Fair Value Measurements at December 31, 2015
Description	December 31, 2015				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Pension Assets:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Cash & Cash Equivalents ⁽¹⁾	$	66	$	9	$	66	$	9	$	—	$	—	$	—	$	—
Debt ⁽²⁾:
Fixed Income (U.S.)	665		14		—		—		665		14		—		—
Fixed Income (Non-U.S.)	—		250		—		—		—		250		—		—
Fixed Income (Global)	—		26		—		—		—		26		—		—
U.S. Treasury Securities	36		—		—		—		36		—		—		—
Public Equity Funds ⁽³⁾:
United States	476		36		—		—		476		36		—		—
Non-U.S.	358		49		—		—		358		49		—		—
Global	—		147		—		—		—		147		—		—
Other ⁽⁴⁾:
Private Equity, Real Estate Funds, and Other Alternative Investments	286		72		—		—		—		30		286		42
Multi-Asset Common Collective Trusts	—		47		—		—		—		47		—		—
Total	$	1,887	$	650	$	66	$	9	$	1,535	$	599	$	286	$	42


⁽¹⁾	Cash & Cash Equivalents: The carrying amounts of cash and cash equivalents are valued at $1 per unit, which approximates fair value. Amounts are generally invested in actively managed common trust funds or interest bearing accounts.


⁽²⁾	Debt: The underlying fixed income investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date.


⁽³⁾	Public Equity Funds: The underlying equity investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date.


⁽⁴⁾	Other: The underlying investments in this category are held in private investment funds. These investments are valued based on the net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date.



(Dollars in millions)					Fair Value Measurements at December 31, 2014
Description	December 31, 2014				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Pension Assets:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Cash & Cash Equivalents ⁽¹⁾	$	77	$	19	$	77	$	19	$	—	$	—	$	—	$	—
Debt ⁽²⁾:
Fixed Income (U.S.)	662		11		—		—		662		11		—		—
Fixed Income (Non-U.S.)	—		278		—		—		—		278		—		—
Fixed Income (Global)	—		28		—		—		—		28		—		—
U.S. Treasury Securities	37		—		—		—		37		—		—		—
Public Equity Funds ⁽³⁾:
United States	509		31		—		—		509		31		—		—
Non-U.S.	348		48		—		—		348		48		—		—
Global	—		154		—		—		—		154		—		—
Other ⁽⁴⁾:
Private Equity, Real Estate Funds, and Other Alternative Investments	335		82		—		—		—		27		335		55
Multi-Asset Common Collective Trusts	—		48		—		—		—		48		—		—
Total	$	1,968	$	699	$	77	$	19	$	1,556	$	625	$	335	$	55


⁽¹⁾	Cash & Cash Equivalents: The carrying amounts of cash and cash equivalents are valued at $1 per unit, which approximates fair value. Amounts are generally invested in actively managed common trust funds or interest bearing accounts.


⁽²⁾	Debt: The underlying fixed income investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date.


⁽³⁾	Public Equity Funds: The underlying equity investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date.


⁽⁴⁾	Other: The underlying investments in this category are held in private investment funds. These investments are valued based on the net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date.

The following charts reflect the fair value of the postretirement benefit plan assets as of December 31, 2015 and 2014. The postretirement benefit plan is for the voluntary employees' beneficiary association ("VEBA") trust the Company assumed as part of the Solutia acquisition.



(Dollars in millions)			Fair Value Measurements at December 31, 2015
Description	December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Postretirement Benefit Plan Assets:
Cash & Cash Equivalents ⁽¹⁾	$	—	$	—	$	—	$	—
Debt ⁽²⁾:
Fixed Income (U.S.)	86		—		86		—
Fixed Income (Non-U.S.)	34		—		34		—
U.S. Treasury Securities	—		—		—		—
Total	$	120	$	—	$	120	$	—



(Dollars in millions)			Fair Value Measurements at December 31, 2014
Description	December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Postretirement Benefit Plan Assets:
Cash & Cash Equivalents ⁽¹⁾	$	6	$	6	$	—	$	—
Debt ⁽²⁾:
Fixed Income (U.S.)	124		—		124		—
Fixed Income (Non-U.S.)	2		—		2		—
U.S. Treasury Securities	1		—		1		—
Total	$	133	$	6	$	127	$	—


⁽¹⁾	Cash & Cash Equivalents: The carrying amounts of cash and cash equivalents are valued at $1 per unit, which approximates fair value. Amounts are generally invested in actively managed common trust funds or interest bearing accounts.


⁽²⁾	Debt: The underlying fixed income investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date.

Schedule of Pension Plan Assets Classified within Level 3 of the Fair Value Hierarchy

as of the measurement date.

The Company valued assets with unobservable inputs (Level 3), specifically its alternative investments, investments in private equity and investments in real estate and other funds under the practical expedient method. The practical expedient method allows reporting entities to use the most recently reported net asset value ("NAV") of qualifying investment companies provided it is not probable that the investment will be sold by the reporting entity at an amount different from the most recently reported NAV.



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	U.S. Pension Plans												Non-U.S. Pension Plans
(Dollars in millions)	Private Equity			Real Estate			Other Alternative Investments⁽¹⁾			Total			Real Estate				Other Alternative Investments⁽¹⁾			Total
Balance at December 31, 2013	$	177		$	101		$	84		$	362		$	2			$	25		$	27
Distributions	(40		)	(29		)	(17		)	(86		)	—				—			—
Unrealized gains	18			9			4			31			—			—	4			4
Purchases, contributions, and other	21			2			5			28			(2		)		26			24
Balance at December 31, 2014	176			83			76			335			—				55			55
Distributions	(56		)	(28		)	(15		)	(99		)	—				—			—
Unrealized gains	23			10			(16		)	17			—			—	(5		)	(5		)
Purchases, contributions, and other	24			1			8			33			—				(8		)	(8		)
Balance at December 31, 2015	$	167		$	66		$	53		$	286		$	—			$	42		$	42


⁽¹⁾	U.S. primarily consists of natural resource and energy related limited partnership investments. Non-U.S. primarily consists of annuity contracts.

Schedule of US and Non-US Pension Plans Asset Target Allocation by Category

The following chart reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2015 and the asset allocation at December 31, 2015 and 2014, by asset category. The postretirement benefit plan is for the VEBA trust the Company assumed as part of the Solutia acquisition.



	U.S. Pension Plans			Non-U.S. Pension Plans			Postretirement Benefit Plan
	Target Allocation	Plan Assets at December 31, 2015	Plan Assets at December 31, 2014	Target Allocation	Plan Assets at December 31, 2015	Plan Assets at December 31, 2014	Target Allocation	Plan Assets at December 31, 2015	Plan Assets at December 31, 2014
Asset category
Equity securities	48%	44%	44%	31%	36%	34%	—%	—%	—%
Debt securities	33%	41%	39%	50%	46%	48%	100%	100%	100%
Real estate	5%	4%	4%	2%	2%	2%	—%	—%	—%
Other investments ⁽¹⁾	14%	11%	13%	17%	16%	16%	—%	—%	—%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%


⁽¹⁾	U.S. primarily consists of private equity and natural resource and energy related limited partnership investments. Non-U.S. primarily consists of annuity contract

Schedule Benefits Expected to be Paid from Pension Plans and Benefits

enefit payments, reflecting expected future service, as appropriate, are as follows:



	Pension Plans				Postretirement Benefit Plans
(Dollars in millions)	U.S.		Non-U.S.
2016	$	227	$	22	$	60
2017	200		22		60
2018	199		23		59
2019	197		25		60
2020	195		26		60
2021-2025	879		147		296