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RETIREMENT BENEFITS (Tables)
 9 Months Ended
Sep. 30, 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 
 September 30,
Nine Months Ended 
 September 30,
In millions of dollars
2016
2015
2016
2015
Service related expense

 
 
 
 
Interest cost on benefit obligation

$
—

$
1

$
2

$
3

Amortization of unrecognized
 
 
 
 
     Prior service benefit
(7
)
(8
)
(23
)
(23
)
     Net actuarial loss
1

3

3

9

Total service-related benefit
$
(6
)
$
(4
)
$
(18
)
$
(11
)
Non-service-related expense
$
10

$
9

$
23

$
15

Total net expense
$
4

$
5

$
5

$
4

The following tables summarize 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:
 
Three Months Ended September 30,
 
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

$
1

 
$
39

$
42

 
$
—

$
—

 
$
1

$
3

Interest cost on benefit obligation
126

143

 
70

77

 
6

8

 
24

25

Expected return on plan assets
(224
)
(223
)
 
(71
)
(81
)
 
(2
)
—

 
(22
)
(25
)
Amortization of unrecognized
 

 

 
 

 

 
 

 

 
 

 

Prior service benefit
—

—

 
—

—

 
—

—

 
(1
)
(3
)
Net actuarial loss
43

31

 
19

17

 
—

—

 
8

10

Curtailment loss(1)
10

2

 
—

—

 
—

—

 
—

—

Settlement (gain)(1)
—

—

 
(2
)
—

 
—

—

 
—

—

Net qualified plans (benefit) expense
$
(44
)
$
(46
)

$
55

$
55

 
$
4

$
8

 
$
10

$
10

Nonqualified plans expense
12

11

 
—

—

 
—

—

 
—

—

Total net (benefit) expense
$
(32
)
$
(35
)
 
$
55

$
55

 
$
4

$
8

 
$
10

$
10


 
Nine Months Ended September 30,
 
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
$
2

$
3

 
$
116

$
129

 
$
—

$
—

 
$
7

$
10

Interest cost on benefit obligation
399

411

 
216

237

 
19

24

 
72

82

Expected return on plan assets
(660
)
(668
)
 
(217
)
(248
)
 
(7
)
—

 
(65
)
(81
)
Amortization of unrecognized




 
 

 

 
 
 

 
 

 

Prior service benefit
—

(2
)
 
(1
)
—

 
—

—

 
(7
)
(9
)
Net actuarial loss (gain)
118

106

 
58

56

 
(1
)
—

 
24

33

Curtailment loss (gain) (1)
10

12

 
(3
)
—

 
—

—

 
—

—

Settlement loss(1)
—

—

 
2

—

 
—

—

 
—

—

Net qualified plans (benefit) expense
$
(131
)
$
(138
)
 
$
171

$
174

 
$
11

$
24

 
$
31

$
35

Nonqualified plans expense
31

33

 
—

—

 
—

—

 
—

—

Total net (benefit) expense
$
(100
)
$
(105
)
 
$
171

$
174

 
$
11

$
24

 
$
31

$
35


(1) Losses and gains 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:
 
Nine months ended September 30, 2016
 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
Change in projected benefit obligation (PBO)
 

 
 

 
 

 
 

Projected benefit obligation at beginning of year
$
13,943

 
$
6,534

 
$
817

 
$
1,291

Plans measured annually
—

 
(1,819
)
 
—

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

 
$
4,715

 
$
817

 
$
1,009

First quarter activity
574

 
199

 
22

 
30

Second quarter activity
395

 
94

 
(106
)
 
(32
)
Projected benefit obligation at June 30, 2016—Significant Plans
$
14,912

 
$
5,008

 
$
733

 
$
1,007

Benefits earned during the period
1

 
25

 
—

 
2

Interest cost on benefit obligation
132

 
57

 
6

 
20

Actuarial loss (gain)
76

 
354

 
(2
)
 
(6
)
Benefits paid, net of participants’ contributions
(191
)
 
(76
)
 
(8
)
 
(12
)
Curtailment loss(1)
10

 
—

 
—

 
—

Foreign exchange impact and other
(123
)
 
(104
)
 
—

 
(47
)
Projected benefit obligation at period end—Significant Plans
$
14,817

 
$
5,264


$
729

 
$
964


(1) Losses due to curtailment relate to repositioning activities.
 
Nine months ended September 30, 2016
 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
Change in plan assets
 

 
 

 
 

 
 

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

 
$
6,104

 
$
166

 
$
1,133

Plans measured annually
—

 
(1,175
)
 
—

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

 
$
4,929

 
$
166

 
$
1,125

First quarter activity
(72
)
 
233

 
$
—

 
39

Second quarter activity
190

 
101

 
$
(21
)
 
(56
)
Plan assets at fair value at June 30, 2016—Significant Plans
$
12,255

 
$
5,263

 
$
145

 
$
1,108

Actual return on plan assets
235

 
370

 
8

 
61

Company contributions, net of reimbursements
513

 
12

 
(7
)
 
—

Plan participants’ contributions
—

 
1

 
—

 
—

Benefits paid, net of government subsidy
(191
)
 
(76
)
 
(8
)
 
(12
)
Foreign exchange impact and other
(125
)
 
(157
)
 
—

 
(53
)
Plan assets at fair value at period end—Significant Plans
$
12,687

 
$
5,413

 
$
138

 
$
1,104

 
 
 
 
 
 
 
 
Funded status of the Significant plans
 
 
 
 
 
 
 
Qualified plans(1)
$
(1,387
)
 
$
150

 
$
(591
)
 
$
140

Nonqualified plans
(743
)
 
—

 
—

 
—

Funded status of the plans at period end—Significant Plans
$
(2,130
)
 
$
150

 
$
(591
)
 
$
140

 
 
 
 
 
 
 
 
Net amount recognized
 

 
 

 
 

 
 

Benefit asset
$
—

 
$
728

 
$
—

 
$
140

Benefit liability
(2,130
)
 
(578
)
 
(591
)
 
—

Net amount recognized on the balance sheet—Significant Plans
$
(2,130
)
 
$
150

 
$
(591
)
 
$
140

 
 
 
 
 
 
 
 
Amounts recognized in AOCI
 
 

 
 

 
 

Prior service benefit
—

 
38

 
—

 
93

Net actuarial gain (loss)
(7,341
)
 
(991
)
 
70

 
(383
)
Net amount recognized in equity (pretax)—Significant Plans
$
(7,341
)
 
$
(953
)
 
$
70

 
$
(290
)
 
 
 
 
 
 
 
 
Accumulated benefit obligation at period end—Significant Plans
$
14,810

 
$
4,935

 
$
729

 
$
964


(1)
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 the Company’s Significant Plans and All Other Plans:
In millions of dollars
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
Beginning of period balance, net of tax(1)(2)
$
(5,608
)
 
$
(5,116
)
Actuarial assumptions changes and plan experience
(415
)
 
(1,962
)
Net asset gain due to difference between actual and expected returns
367

 
1,038

Net amortization
64

 
179

Prior service cost
—

 
33

Curtailment/settlement gain(3)
(2
)
 
(2
)
Foreign exchange impact and other
(3
)
 
(33
)
Change in deferred taxes, net
1

 
267

Change, net of tax
$
12

 
$
(480
)
End of period balance, net of tax(1)(2)
$
(5,596
)
 
$
(5,596
)
(1)
See Note 17 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
Sept. 30, 2016
Jun. 30, 2016
U.S. plans
 
 
Qualified pension
3.65%
3.95%
Nonqualified pension
3.55
3.90
Postretirement
3.40
3.75
Non-U.S. plans
 
 
Pension
0.20 - 11.85
0.35 to 12.30
Weighted average
4.80
5.14
Postretirement
8.20
8.45


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
Sept. 30, 2016
Jun. 30, 2016
Mar. 31,
2016
U.S. plans
 
 
Qualified pension
3.55%
3.65%
3.95%
Nonqualified pension
3.45
3.55
3.90
Postretirement
3.30
3.40
3.75
Non-U.S. plans
 
 
 
Pension
0.20-11.55
0.20-11.85
0.35 to 12.30
Weighted average
4.42
4.80
5.14
Postretirement
8.25
8.20
8.45
    
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 September 30, 2016
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
9

$
(13
)
   Non-U.S. plans
(6
)
6

Postretirement
 
 
   U.S. plans
$
—

$
(1
)
   Non-U.S. plans
(2
)
2
Schedule of company contributions
The following table summarizes the Company’s actual contributions for the nine months ended September 30, 2016 and 2015, as well as estimated expected Company contributions for the remainder of 2016 and the actual contributions made in the fourth quarter of 2015:


 
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 nine months ended September 30
$
541

$
33

 
$
48

$
85

 
$
4

$
217

 
$
4

$
7

Company contributions made or expected to be made during the remainder of the year
12

19

 
29

49

 
—

18

 
3

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 by the Company.
Defined contribution plans
The following table summarizes the Company’s contributions for the defined contribution plans:
.
 
Three Months Ended 
 September 30,
Nine Months Ended 
 September 30,
In millions of dollars
2016
2015
2016
2015
   U.S. plans
$
88

$
94

$
281

$
295

   Non-U.S. plans
67

67

207

212