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RETIREMENT BENEFITS (Tables)
 3 Months Ended
Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Components of net (benefit) expense
The following table summarizes the components of net expense recognized in the Consolidated Statement of Income for the Company’s U.S. postemployment plans.
 
Three Months Ended March 31,
In millions of dollars
2016
 
2015
Service-related expense
 

 
 

Interest cost on benefit obligation
1

 
1

Amortization of unrecognized
 
 
 
    Prior service benefit
(8
)
 
(7
)
    Net actuarial loss
1

 
3

Total service-related benefit
$
(6
)
 
$
(3
)
Non-service-related expense
$
8

 
$
9

Total net expense
$
2

 
$
6

The following table summarizes the components of net (benefit) expense recognized in the Consolidated Statement of Income for the Company’s pension and postretirement plans, for Significant Plans and All Other Plans, for the periods indicated.

 
Three Months Ended March 31,
 
Pension plans
 
Postretirement benefit plans
 
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
In millions of dollars
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
Qualified plans
 

 

 
 

 

 
 

 

 
 

 

Benefits earned during the period
$
1

$
2

 
$
38

$
44

 
$
—

$
—

 
$
3

$
4

Interest cost on benefit obligation
141

137

 
73

80

 
8

8

 
24

27

Expected return on plan assets
(218
)
(222
)
 
(72
)
(84
)
 
(2
)
—

 
(21
)
(29
)
Amortization of unrecognized
 

 

 
 

 

 
 

 

 
 

 

Prior service benefit
—

(1
)
 
—

—

 
—

—

 
(3
)
(3
)
Net actuarial loss
36

37

 
19

21

 
—

—

 
8

11

Curtailment gain(1)
—

—

 
(3
)
—

 
—

—

 
—

—

Settlement loss(1)
—

—

 
1

—

 
—

—

 
—

—

Net qualified plans (benefit) expense
$
(40
)
$
(47
)

$
56

$
61

 
$
6

$
8

 
$
11

$
10

Nonqualified plans expense
10

12

 
—

—

 
—

—

 
—

—

Total net (benefit) expense
$
(30
)
$
(35
)
 
$
56

$
61

 
$
6

$
8

 
$
11

$
10


(1)
(Gains)/losses due to curtailment and settlement relate to repositioning and divestiture activities.
Summary of the funded status and amounts recognized in the Consolidated Balance Sheet for the Company's U.S. qualified, non-qualified plans and plans outside the U.S.
The following tables summarize the funded status and amounts recognized in the Consolidated Balance Sheet for the Company’s Significant Plans.

Net Amount Recognized
 
Three Months Ended March 31,
 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
 
2016
 
2016
 
2016
 
2016
Change in projected benefit obligation (PBO)
 

 
 

 
 

 
 

Projected benefit obligation at beginning of period
$
13,943

 
$
6,534

 
$
817

 
$
1,291

Plans measured annually
—

 
(1,819
)
 
—

 
(282
)
Projected benefit obligation at beginning of period—Significant Plans
$
13,943

 
$
4,715

 
$
817

 
$
1,009

Benefits earned during the period
2

 
22

 
—

 
2

Interest cost on benefit obligation
148

 
60

 
8

 
20

Plan amendments
—

 
(30
)
 
—

 
—

Actuarial loss
632

 
196

 
30

 
17

Benefits paid, net of participants’ contributions
(208
)
 
(55
)
 
(16
)
 
(11
)
Foreign exchange impact and other
—

 
6

 
—

 
2

Projected benefit obligation at period end—Significant Plans
$
14,517

 
$
4,914


$
839

 
$
1,039

 
Three Months Ended March 31,
 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
 
2016
 
2016
 
2016
 
2016
Change in plan assets
 

 
 

 
 

 
 

Plan assets at fair value at beginning of period
$
12,137

 
$
6,104

 
$
166

 
$
1,133

Plans measured annually
—

 
(1,175
)
 
—

 
(8
)
Plan assets at fair value at beginning of period—Significant Plans
$
12,137

 
$
4,929

 
$
166

 
$
1,125

Actual return on plan assets
120

 
294

 
2

 
48

Company contributions
15

 
12

 
14

 
—

Plan participants’ contributions
—

 
1

 
—

 
—

Benefits paid, net of government subsidy
(207
)
 
(55
)
 
(16
)
 
(11
)
Foreign exchange impact and other
—

 
(19
)
 
—

 
2

Plan assets at fair value at period end—Significant Plans
$
12,065

 
$
5,162

 
$
166

 
$
1,164

 
 
 
 
 
 
 
 
Funded status of the plans at period end—Significant Plans(1)(2)
$
(2,452
)
 
$
248

 
$
(673
)
 
$
125

 
 
 
 
 
 
 
 
Net amount recognized
 

 
 

 
 

 
 

Benefit asset
$
—

 
$
758

 
$
—

 
$
125

Benefit liability
(2,452
)
 
(510
)
 
(673
)
 
—

Net amount recognized on the balance sheet—Significant Plans
$
(2,452
)
 
$
248

 
$
(673
)
 
$
125

 
 
 
 
 
 
 
 
Amounts recognized in Accumulated other comprehensive income (loss)
 
 

 
 

 
 

Prior service benefit
—

 
43

 
—

 
109

Net actuarial loss
(7,065
)
 
(1,089
)
 
(27
)
 
(478
)
Net amount recognized in equity (pretax)—Significant Plans
$
(7,065
)
 
$
(1,046
)
 
$
(27
)
 
$
(369
)
 
 
 
 
 
 
 
 
Accumulated benefit obligation at period end—Significant Plans
$
14,506

 
$
4,618

 
$
839

 
$
1,039


(1)
The U.S. pension plans include $733 million relating to the U.S. nonqualified plans of the Company that are not funded.
(2)
The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act of 1974, as amended (ERISA), funding rules as of January 1, 2016 and no minimum required funding is expected for 2016.
Change in accumulated other comprehensive income (loss)
The following table shows the change in AOCI related to Company’s benefit plans (Significant Plans and All Other Plans) for the periods indicated.
In millions of dollars
Three Months Ended
March 31, 2016
 
Year Ended December 31, 2015
 
 
 
 
Beginning of period balance, net of tax(1)(2)
$
(5,116
)
 
$
(5,159
)
Actuarial assumptions changes and plan experience
(875
)
 
898

Net asset gain (loss) due to difference between actual and expected returns
163

 
(1,457
)
Net amortizations
56

 
236

Prior service (cost) credit
30

 
(6
)
Curtailment/settlement gain(3)
1

 
57

Foreign exchange impact and other
(102
)
 
291

Change in deferred taxes, net
262

 
24

Change, net of tax
$
(465
)
 
$
43

End of period balance, net of tax(1)(2)
$
(5,581
)
 
$
(5,116
)
(1)
See Note 18 to the Consolidated Financial Statements for further discussion of net AOCI balance.
(2)
Includes net-of-tax amounts for certain profit sharing plans outside the U.S.
(3)
Gains due to curtailment and settlement relate to repositioning and divestiture activities.
Assumptions used in determining benefit obligations and net benefit expense
The discount rates utilized during the period in determining the pension and postretirement net (benefit) expense for the Significant Plans are as follows:

Net benefit (expense) assumed discount rates during the period
Three months ended
Mar. 31, 2016
Dec. 31, 2015
U.S. plans
 
 
Qualified pension
4.40%
4.35%
Nonqualified pension
4.35
4.25
Postretirement
4.20
4.10
Non-U.S. plans
 
 
Pension
0.75 to 13.20
0.75 to 13.30
Weighted average
5.37
5.30
Postretirement
8.60
8.55


The discount rates utilized at period-end in determining the pension and postretirement benefit obligations for the Significant Plans are as follows:
Plan obligations assumed discount rates at period ended
Mar. 31, 2016
Dec. 31, 2015
U.S. plans
 
 
Qualified pension
3.95%
4.40%
Nonqualified pension
3.90
4.35
Postretirement
3.75
4.20
Non-U.S. plans
 
 
Pension
0.35 - 12.30
0.75 to 13.20
Weighted average
5.14
5.37
Postretirement
8.45
8.60
Effect of one-percentage-point change in the discount rates on pension expense
The following table summarizes the estimated effect on the Company’s Significant Plans quarterly expense of a
one-percentage-point change in the discount rate:
 
Three Months Ended March 31, 2016
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$5
$(10)
   Non-U.S. plans
(5)
8
 
 
 
Postretirement
 
 
   U.S. plans
$1
$(1)
   Non-U.S. plans
(2)
3
Schedule of company contributions
 
Pension plans 
 
Postretirement plans 
 
U.S. plans (1)
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
In millions of dollars
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
Company contributions(2) for the three months ended March 31
$
15

$
11

 
$
32

$
26

 
$
14

$
20

 
$
2

$
7

Company contributions made or expected to be made expected during the remainder of the year
$
40

$
41

 
$
103

$
108

 
$
—

$
215

 
$
7

$
2


(1)
The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plans.
(2)
Company contributions are composed of cash contributions made to the plans and benefits paid directly to participants by the Company.
Defined contribution plans
The following table summarizes the actual Company contributions for the three months ended March 31, 2016 and 2015, respectively.
 
Three Months Ended March 31,
In millions of dollars
2016
2015
   U.S. plans
$96
$101
   Non-U.S. plans
68
74