XML 47 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
RETIREMENT BENEFITS
 6 Months Ended
Jun. 30, 2017
Retirement Benefits [Abstract]  
RETIREMENT BENEFITS
RETIREMENT BENEFITS
For additional information on Citi’s retirement benefits, see Note 8 to the Consolidated Financial Statements in Citi’s 2016 Annual Report on Form 10-K.

Net (Benefit) Expense
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:
 
Three Months Ended June 30,
 
Pension plans
Postretirement benefit plans
 
U.S. plans
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2017
2016
2017
2016
2017
2016
2017
2016
Qualified plans
 

 

 

 

 

 

 

 

Benefits earned during the period
$
—

$
—

$
38

$
39

$
—

$
—

$
2

$
3

Interest cost on benefit obligation
128

132

74

73

8

5

25

24

Expected return on plan assets
(217
)
(218
)
(76
)
(74
)
(2
)
(3
)
(22
)
(22
)
Amortization of unrecognized
 

 
 

 

 

 

 

 

Prior service benefit
—

—

(1
)
(1
)
—

—

(3
)
(3
)
Net actuarial loss (gain)
38

39

15

20

1

(1
)
9

8

Curtailment loss (1)
3

—

—

—

—

—

—

—

Settlement loss(1)
—

—

4

3

—

—

—

—

Net qualified plans (benefit) expense
$
(48
)
$
(47
)
$
54

$
60

$
7

$
1

$
11

$
10

Nonqualified plans expense
$
11

$
9

$
—

$
—

$
—

$
—

$
—

$
—

Total net (benefit) expense
$
(37
)
$
(38
)
$
54

$
60

$
7

$
1

$
11

$
10


(1)
Losses due to curtailment and settlement relate to repositioning and divestiture activities.
 
Six Months Ended June 30,
 
Pension plans
Postretirement benefit plans
 
U.S. plans
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2017
2016
2017
2016
2017
2016
2017
2016
Qualified plans
 

 

 

 

 

 

 

 

Benefits earned during the period
$
1

$
1

$
74

$
77

$
—

$
—

$
4

$
6

Interest cost on benefit obligation
260

273

145

146

14

13

49

48

Expected return on plan assets
(433
)
(436
)
(146
)
(146
)
(3
)
(5
)
(43
)
(43
)
Amortization of unrecognized




 

 

 
 

 

 

Prior service benefit
—

—

(2
)
(1
)
—

—

(5
)
(6
)
Net actuarial loss (gain)
79

75

31

39

—

(1
)
17

16

Curtailment loss (gain) (1)
3

—

—

(3
)
—

—

—

—

Settlement loss(1)
—

—

4

4

—

—

—

—

Net qualified plans (benefit) expense
$
(90
)
$
(87
)
$
106

$
116

$
11

$
7

$
22

$
21

Nonqualified plans expense
$
21

$
19

$
—

$
—

$
—

$
—

$
—

$
—

Total net (benefit) expense
$
(69
)
$
(68
)
$
106

$
116

$
11

$
7

$
22

$
21


(1)
(Gains) losses due to curtailment and settlement relate to repositioning and divestiture activities.
Funded Status and Accumulated Other Comprehensive Income (AOCI)
The following tables summarize the funded status and amounts recognized in the Consolidated Balance Sheet for the Company’s
Significant Plans.
 
Six Months Ended June 30, 2017
 
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
 

 

 

 

Projected benefit obligation at beginning of year
$
14,000

$
6,522

$
686

$
1,141

Plans measured annually
(28
)
(1,784
)
—

(303
)
Projected benefit obligation at beginning of year—Significant Plans
$
13,972

$
4,738

$
686

$
838

First quarter activity
25

802

(7
)
134

Projected benefit obligation at March 31, 2017—Significant Plans
$
13,997

$
5,540

$
679

$
972

Benefits earned during the period
—

22

—

2

Interest cost on benefit obligation
135

62

7

22

Actuarial gain (loss)
214

(58
)
71

22

Benefits paid, net of participants’ contributions
(191
)
(79
)
(15
)
(14
)
Curtailment loss(1)
3

—

—

—

Foreign exchange impact and other
—

62

—

40

Projected benefit obligation at June 30, 2017—Significant Plans
$
14,158

$
5,549

$
742

$
1,044


(1)
Loss due to curtailment relates to repositioning activities.

 
Six Months Ended June 30, 2017
 
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
$
12,363

$
6,149

$
129

$
1,015

Plans measured annually
—

(1,167
)
—

(11
)
Plan assets at fair value at beginning of year—Significant Plans
$
12,363

$
4,982

$
129

$
1,004

First quarter activity
159

903

$
—

124

Plan assets at fair value at March 31, 2017—Significant Plans
$
12,522

$
5,885

$
129

$
1,128

Actual return on plan assets
364

(45
)
4

23

Company contributions, net of reimbursements
13

13

8

—

Plan participants’ contributions
—

1

—

—

Benefits paid, net of government subsidy
(191
)
(80
)
(15
)
(14
)
Foreign exchange impact and other
—

72

—

46

Plan assets at fair value at June 30, 2017—Significant Plans
$
12,708

$
5,846

$
126

$
1,183

Funded status of the Significant Plans
 
 
 
 
Qualified plans(1)
$
(720
)
$
297

$
(616
)
$
139

Nonqualified plans
(730
)
—

—

—

Funded status of the plans at June 30, 2017—Significant Plans
$
(1,450
)
$
297

$
(616
)
$
139

Net amount recognized
 

 

 

 

Benefit asset
$
—

$
758

$
—

$
139

Benefit liability
(1,450
)
(461
)
(616
)
—

Net amount recognized on the balance sheet—Significant Plans
$
(1,450
)
$
297

$
(616
)
$
139

Amounts recognized in AOCI
 

 

 

Prior service benefit
$
—

$
32

$
—

$
94

Net actuarial gain (loss)
(6,821
)
(984
)
39

(403
)
Net amount recognized in equity (pretax)—Significant Plans
$
(6,821
)
$
(952
)
$
39

$
(309
)
Accumulated benefit obligation at June 30, 2017—Significant Plans
$
14,151

$
5,280

$
742

$
1,044


(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, 2017 and no minimum required funding is expected for 2017.

The following table shows the change in AOCI related to the Company’s pension, postretirement and post employment plans:
In millions of dollars
Three Months Ended   June 30, 2017
Six Months Ended June 30, 2017
Beginning of period balance, net of tax(1)(2)
$
(5,176
)
$
(5,164
)
Actuarial assumptions changes and plan experience
(260
)
(508
)
Net asset gain due to difference between actual and expected returns
43

296

Net amortization
56

112

Prior service cost
—

(5
)
Curtailment/settlement gain(3)
7

7

Foreign exchange impact and other
(64
)
(122
)
Change in deferred taxes, net
83

73

Change, net of tax
$
(135
)
$
(147
)
End of period balance, net of tax(1)(2)
$
(5,311
)
$
(5,311
)
(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.

Plan Assumptions
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
Jun. 30, 2017
Mar. 31, 2017
U.S. plans
 
 
Qualified pension
4.05%
4.10%
Nonqualified pension
3.95
4.00
Postretirement
3.85
3.90
Non-U.S. plans
 
 
Pension
0.55-10.45

0.60-11.00
Weighted average
4.83
5.08
Postretirement
9.25
9.65


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
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
U.S. plans
 
 
 
Qualified pension
3.80%
4.05%
4.10%
Nonqualified pension
3.75
3.95
4.00
Postretirement
3.60
3.85
3.90
Non-U.S. plans
 
 
 
Pension
0.65-10.90
0.55-10.45
0.60-11.00
Weighted average
4.87
4.83
5.08
Postretirement
9.05
9.25
9.65
Sensitivities of Certain Key Assumptions
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 June 30, 2017
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
7

$
(10
)
   Non-U.S. plans
(4
)
7

Postretirement
 
 
   U.S. plans
—

(1
)
   Non-U.S. plans
(2
)
2






Contributions
For the U.S. pension plans, there were no required minimum cash contributions during the first six months of 2017.
The following table summarizes the Company’s actual contributions for the six months ended June 30, 2017 and 2016, as well as estimated expected Company contributions for the remainder of 2017 and the actual contributions made in the third and fourth quarters of 2016.
 
Pension plans 
Postretirement plans 
 
U.S. plans(1)
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2017
2016
2017
2016
2017
2016
2017
2016
Company contributions(2) for the six months ended June 30
$
26

$
28

$
70

$
58

$
19

$
6

$
4

$
3

Company contributions made or expected to be made during the remainder of the year
29

528

70

68

—

—

4

6


(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 June 30,
Six Months Ended   June 30,
In millions of dollars
2017
2016
2017
2016
   U.S. plans
$
100

$
97

$
198

$
193

   Non-U.S. plans
66

72

135

140















Post Employment Plans
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:
 
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
In millions of dollars
2017
2016
2017
2016
Service-related expense

$
—

$
—

$
—

$
—

Interest cost on benefit obligation
1

1

1

2

Amortization of unrecognized








     Prior service benefit
(7
)
(8
)
(15
)
(16
)
     Net actuarial loss
—

1

1

2

Total service-related benefit
$
(6
)
$
(6
)
$
(13
)
$
(12
)
Non-service-related expense
$
4

$
5

$
12

$
13

Total net (benefit) expense
$
(2
)
$
(1
)
$
(1
)
$
1