Pension and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Obligations and Funded Status at End of Year



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2013			2012			2013			2012			2013			2012
Funded status
Fair value of plan assets	$	2,835		$	2,790		$	206		$	197		$	—		$	—
Benefit obligations	3,546			4,196			439			448			509			477
Funded status	$	(711	)	$	(1,406	)	$	(233	)	$	(251	)	$	(509	)	$	(477	)
Amounts recognized in the consolidated balance sheet
Noncurrent asset	$	—		$	—		$	7		$	5		$	—		$	—
Current liability	(7		)	(7		)	(14		)	(19		)	(51		)	(55		)
Noncurrent liability	(704		)	(1,399		)	(226		)	(237		)	(458		)	(422		)
Amount recognized	$	(711	)	$	(1,406	)	$	(233	)	$	(251	)	$	(509	)	$	(477	)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
Net actuarial loss (gain)	$	1,215		$	1,761		$	98		$	119		$	42		$	27
Prior service (credit) cost	(17		)	(20		)	3			4			(169		)	(210		)
Transition (asset) obligation	—			—			—			(1		)	—			—
Amount recognized	$	1,198		$	1,741		$	101		$	122		$	(127	)	$	(183	)

Change in Benefit Obligation



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2013			2012			2013			2012			2013			2012
Benefit obligation, beginning of year	$	4,196		$	3,872		$	448		$	373		$	477		$	488
Service cost	2			2			6			6			4			5
Interest cost	162			178			17			20			18			21
Plan participants’ contributions	—			—			1			1			8			9
Actuarial loss (gain)	(420		)	425			(7		)	65			(31		)	25
Benefits paid, net of federal subsidy	(281		)	(270		)	(23		)	(21		)	(68		)	(64		)
Plan amendments	—			—			—			—			2			(2		)
Acquisitions / divestitures	—			—			—			(2		)	—			—
New plans	—			—			—			14			—			—
Transfer of benefits	(105		)	—			—			—			105			—
Settlements / curtailment (gain)	(8		)	(11		)	(6		)	(17		)	—			(2		)
Foreign currency exchange rates	—			—			3			9			(6		)	(3		)
Benefit obligation, end of year	$	3,546		$	4,196		$	439		$	448		$	509		$	477
Accumulated benefit obligation, end of year	$	3,536		$	4,181		$	424		$	428		$	—		$	—

Change in Plan Assets



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2013			2012			2013			2012			2013			2012
Fair value of plan assets, beginning of year	$	2,790		$	2,573		$	197		$	170		$	—		$	—
Actual return on plan assets	207			317			13			19			—			—
Employer contribution	127			181			24			27			60			55
Plan participants’ contributions	—			—			1			1			8			9
Gross benefits paid	(281		)	(270		)	(23		)	(21		)	(68		)	(64		)
New plans	—			—			2			14			—			—
Settlements	(8		)	(11		)	(6		)	(17		)	—			—
Foreign currency exchange rates	—			—			(2		)	4			—			—
Fair value of plan assets, end of year	$	2,835		$	2,790		$	206		$	197		$	—		$	—

Components of Net Periodic Benefit Cost



	United States Pension Benefits									Foreign Pension Benefits									Other Postretirement Benefits
Millions of dollars	2013			2012			2011			2013			2012			2011			2013			2012			2011
Service cost	$	2		$	2		$	2		$	6		$	6		$	7		$	4		$	5		$	8
Interest cost	162			178			192			17			20			20			18			21			31
Expected return on plan assets	(191		)	(194		)	(194		)	(10		)	(11		)	(10		)	—			—			—
Amortization:
Actuarial loss	62			46			31			6			4			4			1			1			1
Prior service cost (credit)	(3		)	(3		)	(3		)	1			1			1			(39		)	(42		)	(43		)
Curtailment gain	—			—			—			—			—			—			—			(52		)	(35		)
Settlement loss	3			5			—			1			3			2			—			—			—
Net periodic benefit cost	$	35		$	34		$	28		$	21		$	23		$	24		$	(16	)	$	(67	)	$	(38	)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2012

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2013



Millions of dollars	United States Pension Benefits			Foreign Pension Benefits			Other Postretirement Benefits
Current year actuarial (gain) loss	$	(481	)	$	(10	)	$	16
Actuarial (loss) gain recognized during the year	(65		)	(10		)	(1		)
Current year prior service cost (credit)	—			—			2
Prior service credit (cost) recognized during the year	3			(1		)	39
Total recognized in other comprehensive loss (pre-tax)	$	(543	)	$	(21	)	$	56
Total recognized in net periodic benefit costs and other comprehensive loss (pre-tax)	$	(508	)	$	—		$	40

Estimated Pre-Tax

Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2013

Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2014



Millions of dollars	United States Pension Benefits			Foreign Pension Benefits		Other Postretirement Benefits
Actuarial loss	$	43		$	6	$	—
Prior service (credit) cost	(3		)	1		(39		)
Total	$	40		$	7	$	(39	)

Weighted-average assumptions used to determine benefit obligation at the end of the year and net periodic cost

Weighted-average assumptions used to determine benefit obligation at end of year



	United States Pension Benefits				Foreign Pension Benefits				Other Postretirement Benefits
	2013		2012		2013		2012		2013		2012
Discount rate	4.95	%	4.05	%	4.16	%	3.93	%	4.95	%	4.03	%
Rate of compensation increase	4.50	%	4.50	%	3.40	%	3.51	%	—		—

Weighted-average assumptions used to determine net periodic cost



	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2013		2012		2011		2013		2012		2011		2013		2012		2011
Discount rate	4.05	%	4.80	%	5.60	%	3.93	%	5.04	%	5.20	%	4.03	%	5.03	%	5.60	%
Expected long-term rate of return on plan assets	7.50	%	7.50	%	7.75	%	5.40	%	5.44	%	5.40	%	—		—		—
Rate of compensation increase	4.50	%	4.50	%	4.50	%	3.51	%	3.48	%	3.50	%	—		—		—
Health care cost trend rate
Initial rate	—		—		—		—		—		—		7.00	%	8.00	%	8.00	%
Ultimate rate	—		—		—		—		—		—		5.00	%	5.00	%	5.00	%
Year that ultimate rate will be reached	—		—		—		—		—		—		2017		2015		2015

Estimated impact of one percentage-point change in assumed health care cost trend rate

A one percentage point change in assumed health care cost trend rates would have the following effects on our health care plan:



Millions of dollars	One Percentage Point Increase		One Percentage Point Decrease
Effect on total of service and interest cost	$	1	$	(1	)
Effect on postretirement benefit obligations	5		(5		)

Expected Employer Contributions to Funded Plans



Millions of dollars	United States Pension Benefits⁽¹⁾		Foreign Pension Benefits
2014	$	160	$	11



¹	Contributions include $160 million of minimum contributions required by law.

Expected Benefit Payments



Millions of dollars	United States Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
2014	$	274	$	28	$	51
2015	245		32		52
2016	248		22		51
2017	246		26		49
2018	247		25		44
2019-2023	1,230		131		187

Schedule of Allocation of Plan Assets

The fair values of our pension plan assets at December 31, 2013 and 2012, by asset category were as follows:



	December 31,
Millions of dollars	Quoted prices (Level 1)				Other significant observable inputs (Level 2)				Significant unobservable inputs (Level 3)				Total
	2013		2012		2013		2012		2013		2012		2013		2012
Cash and equivalents	$	23	$	15	$	—	$	—	$	—	$	—	$	23	$	15
Government and government agency securities^(a)
U.S. securities	—		—		432		433		—		—		432		433
International securities	—		—		131		104		—		—		131		104
Corporate bonds and notes ^(a)
U.S. companies	—		—		850		751		—		—		850		751
International companies	—		—		193		176		—		—		193		176
Equity securities ^(b)
U.S. companies	12		217		—		—		—		—		12		217
International companies	223		233		—		—		—		—		223		233
Mutual funds ^(c)	77		100		—		—		—		—		77		100
Common and collective funds ^(d)
U.S. equity securities	—		—		718		589		—		—		718		589
International equity securities	—		—		79		106		—		—		79		106
Short-term investment fund	—		—		87		49		—		—		87		49
Limited partnerships ^(e)
U.S. private equity investments	—		—		—		—		145		143		145		143
Diversified fund of funds	—		—		—		—		35		38		35		38
Emerging growth	—		—		—		—		18		15		18		15
Real estate ^(f)	—		—		11		10		—		—		11		10
All other investments	—		—		7		8		—		—		7		8
	$	335	$	565	$	2,508	$	2,226	$	198	$	196	$	3,041	$	2,987


(a)	Valued using pricing vendors who use proprietary models to estimate the price a dealer would pay to buy a security using significant observable inputs, such as interest rates, yield curves, and credit risk.


(b)	Valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year.


(c)	Valued using the net asset value (NAV) of the fund, which is based on the fair value of underlying securities. The fund primarily invests in a diversified portfolio of equity securities issued by non-U.S. companies.


(d)	Valued using the NAV of the fund, which is based on the fair value of underlying securities.


(e)	Valued at estimated fair value based on the proportionate share of the limited partnerships fair value, as determined by the general partner.


(f)	Valued using the NAV of the fund, which is based on the fair value of underlying assets.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)



Millions of dollars	Limited Partnerships
Balance, December 31, 2012	$	196
Realized gains (net)	16
Unrealized gains (net)	10
Purchases	14
Settlements	(38		)
Balance, December 31, 2013	$	198

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2013 and 2012 were as follows:



	United States Pension Benefits				Foreign Pension Benefits
Millions of dollars	2013		2012		2013		2012
Projected benefit obligation	$	3,546	$	4,196	$	397	$	374
Fair value of plan assets	2,835		2,790		157		117

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2013 and 2012 were as follows:



	United States Pension Benefits				Foreign Pension Benefits
Millions of dollars	2013		2012		2013		2012
Projected benefit obligation	$	3,546	$	4,196	$	347	$	359
Accumulated benefit obligation	3,536		4,181		340		346
Fair value of plan assets	2,835		2,790		110		105