XML 86 R46.htm IDEA: XBRL DOCUMENT v3.6.0.2
RETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 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. post employment plans.
 
Net expense
In millions of dollars
2016
 
2015
 
2014
Service related expense
 

 
 

 
 

Interest cost on benefit obligation
$
3

 
$
4

 
$
5

Amortization of unrecognized
 
 
 
 
 
   Prior service (benefit) cost
(31
)
 
(31
)
 
(31
)
   Net actuarial loss
5

 
12

 
14

Total service related benefit
$
(23
)
 
$
(15
)
 
$
(12
)
Non-service related expense
$
21

 
$
3

 
$
37

Total net (benefit) expense
$
(2
)
 
$
(12
)
 
$
25

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:

 
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
2014
 
2016
2015
2014
 
2016
2015
2014
 
2016
2015
2014
Qualified plans
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

Benefits earned during the year
$
3

$
4

$
6

 
$
154

$
168

$
178

 
$
—

$
—

$
—

 
$
10

$
12

$
15

Interest cost on benefit obligation
520

553

541

 
282

317

376

 
25

33

33

 
94

108

120

Expected return on plan assets
(886
)
(893
)
(878
)
 
(287
)
(323
)
(384
)
 
(9
)
(3
)
(1
)
 
(86
)
(105
)
(121
)
Amortization of unrecognized
 

 

 

 
 

 

 

 
 

 

 

 
 

 

 

Prior service (benefit) cost
—

(3
)
(3
)
 
(1
)
2

1

 
—

—

—

 
(10
)
(11
)
(12
)
Net actuarial loss
160

139

105

 
69

73

77

 
(1
)
—

—

 
30

43

39

Curtailment loss (gain)(1)
13

14

—

 
(2
)
—

14

 
—

—

—

 
—

(1
)
—

Settlement loss (gain)(1)
—

—

—

 
6

44

53

 
—

—

—

 
—

—

—

Special termination benefits(1)
—

—

—

 
—

—

9

 
—

—

—

 
—

—

—

Net qualified plans (benefit) expense
$
(190
)
$
(186
)
$
(229
)

$
221

$
281

$
324

 
$
15

$
30

$
32

 
$
38

$
46

$
41

Nonqualified plans expense
$
40

$
43

$
45

 
$
—

$
—

$
—

 
$
—

$
—

$
—

 
$
—

$
—

$
—

Total net (benefit) expense
$
(150
)
$
(143
)
$
(184
)
 
$
221

$
281

$
324

 
$
15

$
30

$
32

 
$
38

$
46

$
41


(1)
Losses and gains due to curtailment, settlement and special termination benefits relate to repositioning and divestiture actions.
Summary of entity's contributions
The following table summarizes the actual Company contributions for the years ended December 31, 2016 and 2015, as well as estimated expected Company contributions for 2017. Expected contributions are subject to change, since contribution decisions are affected by various factors, such as market performance, tax considerations, and regulatory requirements.



 
Pension plans(1)
 
Postretirement benefit plans(1)
 
U.S. plans(2)
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
In millions of dollars
2017
2016
2015
 
2017
2016
2015
 
2017
2016
2015
 
2017
2016
2015
Contributions made by the Company
$
—

$
500

$
—

 
$
90

$
82

$
92

 
$
—

$
—

$
174

 
$
4

$
4

$
4

Benefits paid directly by the Company
71

56

52

 
44

44

42

 
—

6

61

 
5

5

5


(1)
Amounts reported for 2017 are expected amounts.     
(2)
The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plans.

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 pension and postretirement plans:


 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
 
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
Change in projected benefit obligation
 

 

 
 

 

 
 

 

 
 

 

Qualified plans
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$
13,231

$
14,060

 
$
6,534

$
7,252

 
$
817

$
917

 
$
1,291

$
1,527

Benefits earned during the year
3

4

 
154

168

 
—

—

 
10

12

Interest cost on benefit obligation
520

553

 
282

317

 
25

33

 
94

108

Plan amendments
—

—

 
(28
)
6

 
—

—

 
—

—

Actuarial loss (gain)
351

(649
)
 
589

(28
)
 
(105
)
(55
)
 
3

(88
)
Benefits paid, net of participants’ contributions
(722
)
(751
)
 
(323
)
(294
)
 
(64
)
(90
)
 
(59
)
(57
)
Expected government subsidy
—

—

 
—

—

 
13

12

 
—

—

Divestitures
—

—

 
(22
)
(147
)
 
—

—

 
—

—

Settlement (gain) loss(1)
—

—

 
(38
)
(61
)
 
—

—

 
—

—

Curtailment (gain) loss(1)
13

14

 
(15
)
(8
)
 
—

—

 
(4
)
—

Foreign exchange impact and other
(125
)
—

 
(611
)
(671
)
 
—

—

 
(194
)
(211
)
Qualified plans
$
13,271

$
13,231

 
$
6,522

$
6,534

 
$
686

$
817

 
$
1,141

$
1,291

Nonqualified plans
729

712

 
—

—

 
—

—

 
—

—

Projected benefit obligation at year end
$
14,000

$
13,943

 
$
6,522

$
6,534


$
686

$
817

 
$
1,141

$
1,291


(1)
Curtailment and settlement (gains) losses relate to repositioning and divestiture activities.
 
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
Change in plan assets
 

 

 
 

 

 
 

 

 
 

 

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

$
13,071

 
$
6,104

$
7,057

 
$
166

$
10

 
$
1,133

$
1,384

Actual return on plan assets
572

(183
)
 
967

56

 
8

(1
)
 
122

(5
)
Company contributions
500

—

 
126

134

 
6

235

 
9

9

Plan participants’ contributions
—

—

 
5

5

 
49

49

 
—

—

Divestitures
—

—

 
(5
)
(131
)
 
—

—

 
—

—

Settlements
—

—

 
(38
)
(61
)
 
—

—

 
—

—

Benefits paid, net of government subsidy
(722
)
(751
)
 
(329
)
(299
)
 
(100
)
(127
)
 
(59
)
(57
)
Foreign exchange impact and other
(124
)
—

 
(681
)
(657
)
 
—

—

 
(190
)
(198
)
Qualified plans
$
12,363

$
12,137

 
$
6,149

$
6,104

 
$
129

$
166

 
$
1,015

$
1,133

Nonqualified plans
—

—

 
—

—

 
—

—

 
—

—

Plan assets at fair value at year end
$
12,363

$
12,137


$
6,149

$
6,104

 
$
129

$
166

 
$
1,015

$
1,133

 
 
 
 
 
 
 
 
 
 
 
 
Funded status of the plans
 
 
 
 
 
 
 
 
 
 
 
Qualified plans(1)
$
(908
)
$
(1,094
)
 
$
(373
)
$
(430
)
 
$
(557
)
$
(651
)
 
$
(126
)
$
(158
)
Nonqualified plans(2)
(729
)
(712
)
 
—

—

 
—

—

 
—

—

Funded status of the plans at year end
$
(1,637
)
$
(1,806
)
 
$
(373
)
$
(430
)
 
$
(557
)
$
(651
)
 
$
(126
)
$
(158
)
 
 
 
 
 
 
 
 
 
 
 
 
Net amount recognized
 

 

 
 

 

 
 

 

 
 

 

Qualified plans
 
 
 
 
 
 
 
 
 
 
 
Benefit asset
$
—

$
—

 
$
711

$
726

 
$
—

$
—

 
$
166

$
115

Benefit liability
(908
)
(1,094
)
 
(1,084
)
(1,156
)
 
(557
)
(651
)
 
(292
)
(273
)
Qualified plans
$
(908
)
$
(1,094
)
 
$
(373
)
$
(430
)
 
$
(557
)
$
(651
)
 
$
(126
)
$
(158
)
Nonqualified plans
(729
)
(712
)
 
—

—

 
—

—

 
—

—

Net amount recognized on the balance sheet
$
(1,637
)
$
(1,806
)
 
$
(373
)
$
(430
)
 
$
(557
)
$
(651
)
 
$
(126
)
$
(158
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in Accumulated other comprehensive income (loss)
 
 

 
 

 

 
 

 

 
 

 

Qualified plans
 
 
 
 
 
 
 
 
 
 
 
Net transition obligation
$
—

$
—

 
$
(1
)
$
(1
)
 
$
—

$
—

 
$
—

$
—

Prior service benefit
—

—

 
29

5

 
—

—

 
98

125

Net actuarial gain (loss)
(6,612
)
(6,107
)
 
(1,302
)
(1,613
)
 
106

3

 
(399
)
(547
)
Qualified plans
$
(6,612
)
$
(6,107
)
 
$
(1,274
)
$
(1,609
)
 
$
106

$
3

 
$
(301
)
$
(422
)
Nonqualified plans
(296
)
(266
)
 
—

—

 
—

—

 
—

—

Net amount recognized in equity (pretax)
$
(6,908
)
$
(6,373
)
 
$
(1,274
)
$
(1,609
)
 
$
106

$
3

 
$
(301
)
$
(422
)
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Qualified plans
$
13,268

$
13,226

 
$
6,090

$
6,049

 
$
686

$
817

 
$
1,141

$
1,291

Nonqualified plans
726

706

 
—

—

 
—

—

 
—

—

Accumulated benefit obligation at year end
$
13,994

$
13,932

 
$
6,090

$
6,049

 
$
686

$
817

 
$
1,141

$
1,291


(1)
The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act (ERISA) funding rules as of January 1, 2017 and no minimum required funding is expected for 2017.
(2)
The nonqualified plans of the Company are unfunded.
Change in accumulated other comprehensive income (loss)
The following table shows the change in Accumulated other comprehensive income (loss) related to the Company’s pension, postretirement and post employment plans:
In millions of dollars
2016
 
2015
 
2014
 
 
 
 
 
 
Beginning of year balance, net of tax(1)(2)
$
(5,116
)
 
$
(5,159
)
 
$
(3,989
)
Actuarial assumptions changes and plan experience
(854
)
 
898

 
(3,404
)
Net asset gain (loss) due to difference between actual and expected returns
400

 
(1,457
)
 
833

Net amortizations
232

 
236

 
202

Prior service (cost) credit
28

 
(6
)
 
13

Curtailment/settlement gain(3)
17

 
57

 
67

Foreign exchange impact and other
99

 
291

 
459

Change in deferred taxes, net
30

 
24

 
660

Change, net of tax
$
(48
)
 
$
43

 
$
(1,170
)
End of year balance, net of tax(1)(2)
$
(5,164
)
 
$
(5,116
)
 
$
(5,159
)
(1)
See Note 19 to the Consolidated Financial Statements for further discussion of net Accumulated other comprehensive income (loss) balance.
(2)
Includes net-of-tax amounts for certain profit sharing plans outside the U.S.
(3)
Curtailment and settlement gains relate to repositioning and divestiture activities.
Aggregate projected benefit obligation (PBO), accumulated benefit obligation (ABO), and fair value of plan assets for pension plans with a PBO or ABO that exceeds the fair value of plan assets
At December 31, 2016 and 2015, the aggregate projected benefit obligation (PBO), the aggregate accumulated benefit obligation (ABO), and the aggregate fair value of plan assets are presented for all defined benefit pension plans with a PBO in excess of plan assets and for all defined benefit pension plans with an ABO in excess of plan assets as follows:





 
PBO exceeds fair value of plan assets
 
ABO exceeds fair value of plan assets
 
U.S. plans(1)
 
Non-U.S. plans
 
U.S. plans(1)
 
Non-U.S. plans
In millions of dollars
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
Projected benefit obligation
$
14,000

$
13,943

 
$
2,484

$
3,918

 
$
14,000

$
13,943

 
$
2,282

$
2,369

Accumulated benefit obligation
13,994

13,932

 
2,168

3,488

 
13,994

13,932

 
2,012

2,047

Fair value of plan assets
12,363

12,137

 
1,399

2,762

 
12,363

12,137

 
1,224

1,243

(1)
At December 31, 2016 and 2015, for both the U.S. qualified plan and nonqualified plans, the aggregate PBO and the aggregate ABO exceeded plan assets.
Schedule of expected long term rates of return on assets
The following table shows the expected rates of return used in determining the Company’s pension expense compared to the actual rate of return on plan assets during 2016, 2015 and 2014 for the U.S. pension and postretirement plans:
 
2016
2015
2014
Expected rate of return
7.00
%
7.00
 %
7.00
%
Actual rate of return(1)
4.90

(1.70
)
7.80

(1)
Actual rates of return are presented net of fees.
Retirement plan and mortality projections
At December 31, 2016, the Company maintained the Retirement Plan 2014 (RP-2014) mortality table and adopted the Mortality Projection 2016 (MP-2016) projection table for the U.S. plans.
 U.S. plans
2016(2)
2015(3)
Mortality(1)
 
 
Pension
RP-2014/MP-2016
RP-2014/MP-2015
Postretirement
RP-2014/MP-2016
RP-2014/MP-2015

(1)
The RP-2014 table is the white-collar RP-2014 table, with a 4% increase in rates to reflect the lower life expectancy of Citi plan participants.
(2)
The MP-2016 projection scale is projected from 2011, with convergence to 0.75% ultimate rate of annual improvement by 2032.
(3)
The MP-2015 projection scale is projected from 2011, with convergence to 0.5% ultimate rate of annual improvement by 2029.
Effect of one-percentage-point change in the discount rates on pension expense
The following tables summarize the effect on pension expense of a one-percentage-point change in the discount rate:
 
 
One-percentage-point increase
In millions of dollars
 
2016
 
2015
 
2014
U.S. plans
 
$
31

 
$
26

 
$
28

Non-U.S. plans
 
(33
)
 
(32
)
 
(39
)
 
 
 
 
 
 
 
 
 
One-percentage-point decrease
In millions of dollars
 
2016
 
2015
 
2014
U.S. plans
 
$
(47
)
 
$
(44
)
 
$
(45
)
Non-U.S. plans
 
37

 
44

 
56
Schedule of effect of one percentage point change in expected rates of return
The following tables summarize the effect on pension expense of a one-percentage-point change in the expected rates of return:
 
 
One-percentage-point increase
In millions of dollars
 
2016
 
2015
 
2014
U.S. plans
 
$
(127
)
 
$
(128
)
 
$
(129
)
Non-U.S. plans
 
(61
)
 
(63
)
 
(67
)
 
 
 
One-percentage-point decrease
In millions of dollars
 
2016
 
2015
 
2014
U.S. plans
 
$
127

 
$
128

 
$
129

Non-U.S. plans
 
61

 
63

 
67
Schedule of health care cost trend rates
Assumed health care cost trend rates were as follows:
 
2016
2015
Health care cost increase rate for 
U.S. plans
 
 
Following year
6.50%
7.00%
Ultimate rate to which cost increase is assumed to decline
5.00
5.00
Year in which the ultimate rate is reached(1)
2023
2020

(1) Weighted average for plans with different following year and ultimate rates.

 
2016
2015
Health care cost increase rate for 
Non-U.S. plans (weighted average)
 
 
Following year
6.86%
6.87%
Ultimate rate to which cost increase is assumed to decline
6.85
6.36
Range of years in which the ultimate rate is reached
2017–2029
2016–2029
Schedule of effect of one percentage point change in assumed health care cost trend rates
 A one-percentage-point change in assumed health care cost trend rates would have the following effects:
 
One-percentage-
point increase
 
One-
percentage-
point decrease
In millions of dollars
2016
2015
 
2016
2015
U.S. plans
 
 
 
 
 
Effect on benefits earned and interest cost for postretirement plans
$
1

$
2

 
$
(1
)
$
(2
)
Effect on accumulated postretirement benefit obligation for postretirement plans
30

45

 
(26
)
(38
)
 
 
 
 
 
 
 
One-percentage-
point increase
 
One-
percentage-
point decrease
In millions of dollars
2016
2015
 
2016
2015
Non-U.S. plans

 
 
 
 
 
Effect on benefits earned and interest cost for postretirement plans
$
12

$
15

 
$
(10
)
$
(12
)
Effect on accumulated postretirement benefit obligation for postretirement plans
144

156

 
(118
)
(128
)
Assumptions used in determining benefit obligations and net benefit expense
Other significant assumptions for the awards are as follows:
Valuation Assumptions
2016
2015
2014
Expected volatility
24.37
%
27.13
%
39.12
%
Expected dividend yield
0.40
%
0.08
%
0.08
%
Certain assumptions used in determining pension and postretirement benefit obligations and net benefit expense for the Company’s plans are shown in the following table:
At year end
2016
2015
Discount rate
 
 
U.S. plans
 
 
Qualified pension
4.10%
4.40%
Nonqualified pension
4.00
4.35
Postretirement
3.90
4.20
Non-U.S. pension plans
 
 
Range
0.25 to 72.50
0.25 to 42.00
Weighted average
4.40
4.76
Non-U.S. postretirement plans
 
 
 
Range
1.75 to 11.05
2.00 to 13.20
Weighted average
8.27
7.90
Future compensation increase rate(1)
 
 
Non-U.S. pension plans
 
 
Range
1.25 to 70.00
1.00 to 40.00
Weighted average
3.21
3.24
Expected return on assets
 
 
U.S. plans
6.80
7.00
Non-U.S. pension plans
 
 
Range
1.00 to 11.50
1.60 to 11.50
Weighted average
4.55
4.95
Non-U.S. postretirement plans
 
 
Range
8.00 to 10.30
8.00 to 10.70
Weighted average
8.02
8.01

(1)
Not material for U.S. plans    

During the year
2016
2015
2014
Discount rate
 
 
 
U.S. plans
 
 
 
Qualified pension
4.40%/3.95%/ 3.65%/3.55%
4.00%/3.85%/ 4.45%/4.35%
4.75%/4.55%/ 4.25%/4.25%
Nonqualified pension
4.35/3.90/ 3.55/3.45
3.90/3.70/ 4.30/4.25
4.75
Postretirement
4.20/3.75/ 3.40/3.30
3.80/3.65/ 4.20/4.10
4.35/4.15/ 3.95/4.00
Non-U.S. pension plans(1)
 
 
 
Range
0.25 to 42.00
1.00 to 32.50
1.60 to 29.25
Weighted average
4.76
4.74
5.60
Non-U.S. postretirement plans(1)
 
 
 
Range
2.00 to 13.20
2.25 to 12.00
3.50 to 11.90
Weighted average
7.90
7.50
8.65
Future compensation increase rate (2)
 
 
 
Non-U.S. pension plans(1)
 
 
 
Range
1.00 to 40.00
0.75 to 30.00
1.00 to 26.00
Weighted average
3.24
3.27
3.40
Expected return on assets
 
 
 
U.S. plans
7.00
7.00
7.00
Non-U.S. pension plans(1)
 
 
 
Range
1.60 to 11.50
1.30 to 11.50
1.20 to 11.50
Weighted average
4.95
5.08
5.68
Non-U.S. postretirement plans(1)
 
 
 
Range
8.00 to 10.70
8.50 to 10.40
8.50 to 8.90
Weighted average
8.01
8.51
8.50


(1) Reflects rates utilized to determine the first quarter expense for Significant non-U.S. pension and postretirement plans.
(2)
Not material for U.S. plans
The following table summarizes certain assumptions used in determining the post employment benefit obligations and net benefit expense for the Company’s U.S. post employment plans. 
 
2016
2015
Discount rate
3.40%
3.70%
Health care cost increase rate
 
 
Following year
6.50%
7.00%
Ultimate rate to which cost increase is assumed to decline
5.00
5.00
Year in which the ultimate rate is reached
2023
2020
Citigroup’s pension and postretirement plans’ asset allocations for the U.S. plans and the target allocations by asset category based on asset fair values, are as follows:
 
Target asset
allocation
 
U.S. pension assets
at December 31,
 
U.S. postretirement assets
at December 31,
Asset category(1)
2017
 
2016
2015
 
2016
2015
Equity securities(2)
0–30%
 
18
%
19
%
 
18
%
19
%
Debt securities
20–72
 
47

46

 
47

46

Real estate
0–10
 
5

4

 
5

4

Private equity
0–12
 
4

6

 
4

6

Other investments
12–29
 
26

25

 
26

25

Total
 
 
100
%
100
%
 
100
%
100
%
(1)
Asset allocations for the U.S. plans are set by investment strategy, not by investment product. For example, private equities with an underlying investment in real estate are classified in the real estate asset category, not private equity.
(2)
Equity securities in the U.S. pension and postretirement plans do not include any Citigroup common stock at the end of 2016 and 2015.
Citigroup’s pension and postretirement plans’ weighted-average asset allocations for the non-U.S. plans and the actual ranges, and the weighted-average target allocations by asset category based on asset fair values, are as follows:
 
Non-U.S. pension plans
 
Target asset
allocation
 
Actual range
at December 31,
 
Weighted-average
at December 31,
Asset category(1)
2017
 
2016
2015
 
2016
2015
Equity securities
0–63%
 
0–69%
0–68%
 
14
%
16
%
Debt securities
0–100
 
0–100
0–100
 
79

77

Real estate
0–18
 
0–18
0–18
 
1

1

Other investments
0–100
 
0–100
0–100
 
6

6

Total

 


 
100
%
100
%
 
(1)
Similar to the U.S. plans, asset allocations for certain non-U.S. plans are set by investment strategy, not by investment product.
 
Non-U.S. postretirement plans
 
Target asset
allocation
 
Actual range
at December 31,
 
Weighted-average
at December 31,
Asset category(1)
2017
 
2016
2015
 
2016
2015
Equity securities
0–39%
 
0–38%
0–41%
 
38
%
41
%
Debt securities
57–100
 
57–100
56–100
 
58

56

Other investments
0–3
 
0–4
0–3
 
4

3

Total

 


 
100
%
100
%
(1)
Similar to the U.S. plans, asset allocations for certain non-U.S. plans are set by investment strategy, not by investment product.

Schedule of fair value of plan assets by measurement levels
Plan assets by detailed asset categories and the fair value hierarchy are as follows:
 
U.S. pension and postretirement benefit plans(1)
In millions of dollars
Fair value measurement at December 31, 2016
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities

$
639

$
—

$
—

$
639

Non-U.S. equities

773

—

—

773

Mutual funds

216

—

—

216

Commingled funds

—

866

—

866

Debt securities

1,297

2,845

—

4,142

Annuity contracts
—

—

3

3

Derivatives
8

543

—

551

Other investments
—

—

2

2

Total investments
$
2,933

$
4,254

$
5

$
7,192

Cash and short-term investments
$
19

$
1,239

$
—

$
1,258

Other investment liabilities
(9
)
(553
)
—

(562
)
Net investments at fair value
$
2,943

$
4,940

$
5

$
7,888

Other investment receivables redeemed at NAV
 
 
 
$
100

Securities valued at NAV
 
 
 
4,504

Total net assets
 
 
 
$
12,492

(1)
The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2016, the allocable interests of the U.S. pension and postretirement plans were 99.0% and 1.0%, respectively.
 
U.S. pension and postretirement benefit plans(1)
In millions of dollars
Fair value measurement at December 31, 2015
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities

$
694

$
—

$
—

$
694

Non-U.S. equities

816

—

—

816

Mutual funds

223

—

—

223

Commingled funds
—

915

—

915

Debt securities
1,172

2,761

—

3,933

Annuity contracts
—

—

27

27

Derivatives
6

521

—

527

Other investments
—

—

147

147

Total investments
$
2,911

$
4,197

$
174

$
7,282

Cash and short-term investments
$
138

$
1,064

$
—

$
1,202

Other investment liabilities
(10
)
(515
)
—

(525
)
Net investments at fair value
$
3,039

$
4,746

$
174

$
7,959

Other investment receivables redeemed at NAV
 
 
 
$
18

Securities valued at NAV 
 
 
 
4,326

Total net assets
 
 
 
$
12,303

(1)
The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2015, the allocable interests of the U.S. pension and postretirement plans were 98.6% and 1.4%, respectively.


 
Non-U.S. pension and postretirement benefit plans
In millions of dollars
Fair value measurement at December 31, 2016
Asset categories
Level 1
 
Level 2
 
Level 3
 
Total
U.S. equities
$
4

 
$
11

 
$
—

 
$
15

Non-U.S. equities
87

 
174

 
1

 
262

Mutual funds
2,345

 
406

 
—

 
2,751

Commingled funds
22

 
—

 
—

 
22

Debt securities
3,406

 
1,206

 
7

 
4,619

Real estate
—

 
3

 
1

 
4

Annuity contracts
—

 
1

 
36

 
37

Derivatives
—

 
43

 
—

 
43

Other investments
1

 
—

 
159

 
160

Total investments
$
5,865

 
$
1,844


$
204

 
$
7,913

Cash and short-term investments
$
116

 
$
2

 
$
—

 
$
118

Other investment liabilities
(1
)
 
(960
)
 
—

 
(961
)
Net investments at fair value
$
5,980

 
$
886

 
$
204

 
$
7,070

Securities valued at NAV 
 
 
 
 
 
 
$
92

Total net assets
 
 
 
 
 
 
$
7,162

 


 
Non-U.S. pension and postretirement benefit plans
In millions of dollars
Fair value measurement at December 31, 2015
Asset categories
Level 1
 
Level 2
 
Level 3
 
Total
U.S. equities
$
5

 
$
11

 
$
—

 
$
16

Non-U.S. equities
74

 
222

 
47

 
343

Mutual funds
2,935

 
—

 
—

 
2,935

Commingled funds
26

 
—

 
—

 
26

Debt securities
2,995

 
1,215

 
5

 
4,215

Real estate
—

 
3

 
1

 
4

Annuity contracts
—

 
1

 
41

 
42

Other investments
1

 
—

 
163

 
164

Total investments
$
6,036

 
$
1,452

 
$
257

 
$
7,745

Cash and short-term investments
$
73

 
$
2

 
$
—

 
$
75

Other investment liabilities
—

 
(690
)
 
—

 
(690
)
Net investments at fair value
$
6,109

 
$
764

 
$
257

 
$
7,130

Securities valued at NAV 
 
 
 
 
 
 
$
107

Total net assets
 
 
 
 
 
 
$
7,237
Schedule of effect of significant unobservable inputs, changes in plan assets
The reconciliations of the beginning and ending balances during the year for Level 3 assets are as follows:
In millions of dollars
U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3 fair value at
Dec. 31, 2015
 
Realized gains (losses)
 
Unrealized gains (losses)
 
Purchases, sales, and issuances
 
Transfers in and/or out of Level 3
 
Ending Level 3 fair value at Dec. 31, 2016
Annuity contracts
$
27

 
$
—

 
$
(3
)
 
$
(21
)
 
$
—

 
$
3

Other investments
147

 
8

 
(10
)
 
(143
)
 
—

 
2

U.S. equities
—

 
(2
)
 
2

 
—

 
—

 
—

Total investments
$
174

 
$
6

 
$
(11
)
 
$
(164
)
 
$
—

 
$
5

 

In millions of dollars
U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3 fair value at
Dec. 31, 2014(1)
 
Realized gains (losses)
 
Unrealized gains (losses)
 
Purchases, sales, and issuances
 
Transfers in and/or out of Level 3
 
Ending Level 3 fair value at Dec. 31, 2015
Annuity contracts
$
59

 
$
—

 
$
(4
)
 
$
(28
)
 
$
—

 
$
27

Other investments
161

 
(1
)
 
(9
)
 
(4
)
 
—

 
147

Total investments
$
220

 
$
(1
)
 
$
(13
)
 
$
(32
)
 
$
—

 
$
174


 (1)
Beginning balance was adjusted to exclude $2,496 million of investments valued at NAV.


 In millions of dollars
Non-U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3 fair value at Dec. 31, 2015
 
Unrealized gains (losses)
 
Purchases, sales, and issuances
 
Transfers in and/or out of Level 3
 
Ending Level 3 fair value at Dec. 31, 2016
Non-U.S. equities
$
47

 
$
(3
)
 
$
(2
)
 
$
(41
)
 
$
1

Debt securities
5

 
—

 
2

 
—

 
7

Real estate
1

 
—

 
—

 
—

 
1

Annuity contracts
41

 
(4
)
 
(1
)
 
—

 
36

Other investments
163

 
4

 
(8
)
 
—

 
159

Total investments
$
257

 
$
(3
)
 
$
(9
)
 
$
(41
)
 
$
204



 In millions of dollars
Non-U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3 fair value at
Dec. 31, 2014(1)
 
Unrealized gains (losses)
 
Purchases, sales, and issuances
 
Transfers in and/or out of Level 3
 
Ending Level 3 fair value at Dec. 31, 2015
Non-U.S. equities
$
48

 
$
(1
)
 
$
—

 
$
—

 
$
47

Debt securities
6

 
(1
)
 
—

 
—

 
5

Real estate
—

 
—

 
—

 
1

 
1

Annuity contracts
32

 
2

 
4

 
3

 
41

Other investments
165

 
(2
)
 
2

 
(2
)
 
163

Total investments
$
251

 
$
(2
)
 
$
6

 
$
2

 
$
257


(1)
Beginning balance was adjusted to exclude $5 million of investments valued at NAV.
Schedule of expected benefit payments
The Company expects to pay the following estimated benefit payments in future years:
 
Pension plans
 
Postretirement benefit plans
In millions of dollars
U.S. plans
 
Non-U.S. plans
 
U.S. plans
 
Non-U.S. plans
2017
$
893

 
$
357

 
$
62

 
$
57

2018
798

 
337

 
60

 
61

2019
810

 
359

 
58

 
66

2020
838

 
388

 
56

 
71

2021
857

 
404

 
55

 
76

2022–2026
4,455

 
2,352

 
247

 
475

The following table shows the estimated future benefit payments from the Medicare Part D subsidy of the U.S. postretirement plan.
In millions of dollars
Expected U.S.
postretirement benefit payments
 
Before Medicare Part D subsidy

Medicare Part D subsidy

After Medicare Part D subsidy

2017
$
62

$
—

$
62

2018
60

—

60

2019
58

—

58

2020
56

—

56

2021
55

—

55

2022–2026
248

1

247
Defined contribution plans
The following table summarizes the Company contributions for the defined contribution plans:

 
U.S. plans
In millions of dollars
2016
2015
2014
Company contributions
$
371

$
380

$
383

 
 
 
 
 
Non U.S. plans
In millions of dollars
2016
2015
2014
Company contributions
$
268

$
282

$
302