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RETIREMENT BENEFITS (Tables)
 9 Months Ended
Sep. 30, 2017
Retirement Benefits [Abstract]  
Components of 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 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
2017
2016
2017
2016
2017
2016
2017
2016
Qualified plans
 

 

 

 

 

 

 

 

Benefits earned during the period
$
—

$
1

$
38

$
39

$
—

$
—

$
3

$
1

Interest cost on benefit obligation
124

126

76

70

9

6

27

24

Expected return on plan assets
(217
)
(224
)
(77
)
(71
)
(2
)
(2
)
(24
)
(22
)
Amortization of unrecognized
 

 
 

 

 

 

 

 

Prior service benefit
—

—

(1
)
—

—

—

(2
)
(1
)
Net actuarial loss
43

43

15

19

—

—

8

8

Curtailment loss (1)
1

10

—

—

—

—

—

—

Settlement loss (gain) (1)
—

—

4

(2
)
—

—

—

—

Net qualified plans (benefit) expense
$
(49
)
$
(44
)
$
55

$
55

$
7

$
4

$
12

$
10

Nonqualified plans expense
$
10

$
12

$
—

$
—

$
—

$
—

$
—

$
—

Total net (benefit) expense
$
(39
)
$
(32
)
$
55

$
55

$
7

$
4

$
12

$
10


(1)
Losses (gains) due to curtailment and settlement relate to repositioning and divestiture activities.
 
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
2017
2016
2017
2016
2017
2016
2017
2016
Qualified plans
 

 

 

 

 

 

 

 

Benefits earned during the period
$
1

$
2

$
112

$
116

$
—

$
—

$
7

$
7

Interest cost on benefit obligation
384

399

221

216

20

19

76

72

Expected return on plan assets
(650
)
(660
)
(223
)
(217
)
(5
)
(7
)
(67
)
(65
)
Amortization of unrecognized




 

 

 
 

 

 

Prior service benefit
—

—

(3
)
(1
)
—

—

(7
)
(7
)
Net actuarial loss (gain)
122

118

46

58

—

(1
)
25

24

Curtailment loss (gain) (1)
4

10

—

(3
)
—

—

—

—

Settlement loss(1)
—

—

8

2

—

—

—

—

Net qualified plans (benefit) expense
$
(139
)
$
(131
)
$
161

$
171

$
15

$
11

$
34

$
31

Nonqualified plans expense
$
31

$
31

$
—

$
—

$
—

$
—

$
—

$
—

Total net (benefit) expense
$
(108
)
$
(100
)
$
161

$
171

$
15

$
11

$
34

$
31


(1)
Losses (gains) due to curtailment and settlement relate to repositioning and divestiture activities.
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 September 30,
Nine Months Ended 
 September 30,
In millions of dollars
2017
2016
2017
2016
Service-related expense

$
—

$
—

$
—

$
—

Interest cost on benefit obligation
—

—

1

2

Amortization of unrecognized








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

1

2

3

Total service-related benefit
$
(7
)
$
(6
)
$
(20
)
$
(18
)
Non-service-related expense
$
9

$
10

$
21

$
23

Total net expense
$
2

$
4

$
1

$
5
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, 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

Second quarter activity
161

9

63

72

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

$
5,549

$
742

$
1,044

Benefits earned during the period
1

22

—

2

Interest cost on benefit obligation
131

64

6

23

Actuarial loss
95

104

2

12

Benefits paid, net of participants’ contributions
(191
)
(108
)
(14
)
(15
)
Curtailment loss (gain)(1)
1

(2
)
—

—

Foreign exchange impact and other
(269
)
36

—

(6
)
Projected benefit obligation at September 30, 2017—Significant Plans
$
13,926

$
5,665

$
736

$
1,060


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

 
Nine Months Ended September 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

Second quarter activity
186

(39
)
$
(3
)
55

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

$
5,846

$
126

$
1,183

Actual return on plan assets
310

95

3

24

Company contributions, net of reimbursements
63

11

10

—

Plan participants’ contributions
—

1

—

—

Benefits paid, net of government subsidy
(191
)
(109
)
(14
)
(15
)
Foreign exchange impact and other
(269
)
45

—

(6
)
Plan assets at fair value at September 30, 2017—Significant Plans
$
12,621

$
5,889

$
125

$
1,186

Funded status of the Significant Plans
 
 
 
 
Qualified plans(1)
$
(575
)
$
224

$
(611
)
$
126

Nonqualified plans
(730
)
—

—

—

Funded status of the plans at September 30, 2017—Significant Plans
$
(1,305
)
$
224

$
(611
)
$
126

Net amount recognized
 

 

 

 

Benefit asset
$
—

$
683

$
—

$
126

Benefit liability
(1,305
)
(459
)
(611
)
—

Net amount recognized on the balance sheet—Significant Plans
$
(1,305
)
$
224

$
(611
)
$
126

Amounts recognized in AOCI
 

 

 

Prior service benefit
$
—

$
30

$
—

$
91

Net actuarial (loss) gain
(6,779
)
(1,051
)
39

(406
)
Net amount recognized in equity (pretax)—Significant Plans
$
(6,779
)
$
(1,021
)
$
39

$
(315
)
Accumulated benefit obligation
 
 
 
 
Qualified plans
$
13,193

$
5,047

$
736

$
1,060

Nonqualified plans
727

—

—

—

Accumulated benefit obligation at September 30, 2017—Significant Plans
$
13,920

$
5,047

$
736

$
1,060


(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.
Change in accumulated other comprehensive income (loss)
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 
 September 30, 2017
Nine Months Ended September 30, 2017
Beginning of period balance, net of tax(1)(2)
$
(5,311
)
$
(5,164
)
Actuarial assumptions changes and plan experience
(213
)
(721
)
Net asset gain due to difference between actual and expected returns
123

419

Net amortization
59

171

Prior service cost
—

(5
)
Curtailment/settlement gain(3)
5

12

Foreign exchange impact and other
(19
)
(141
)
Change in deferred taxes, net
16

89

Change, net of tax
$
(29
)
$
(176
)
End of period balance, net of tax(1)(2)
$
(5,340
)
$
(5,340
)
(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, 2017
Jun. 30, 2017
U.S. plans
 
 
Qualified pension
3.80%
4.05%
Nonqualified pension
3.75
3.95
Postretirement
3.60
3.85
Non-U.S. plans
 
 
Pension
0.65-10.90
0.55-10.45
Weighted average
4.87
4.83
Postretirement
9.05
9.25


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, 2017
June 30,
2017
Mar. 31, 2017
U.S. plans
 
 
 
Qualified pension
3.75%
3.80%
4.05%
Nonqualified pension
3.65
3.75
3.95
Postretirement
3.55
3.60
3.85
Non-U.S. plans
 
 
 
Pension
0.65-10.35
0.65-10.90
0.55-10.45
Weighted average
4.86
4.87
4.83
Postretirement
8.95
9.05
9.25
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, 2017
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
7

$
(10
)
   Non-U.S. plans
(5
)
7

Postretirement
 
 
   U.S. plans
1

(1
)
   Non-U.S. plans
(3
)
3
Schedule of company contributions
The following table summarizes the Company’s actual contributions for the nine months ended September 30, 2017 and 2016, as well as estimated expected Company contributions for the remainder of 2017 and the actual contributions made in the fourth quarter 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 nine months ended September 30
$
90

$
541

$
103

$
58

$
30

$
6

$
7

$
4

Company contributions made or expected to be made during the remainder of the year
16

15

35

68

—

—

2

5


(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
2017
2016
2017
2016
   U.S. plans
$
95

$
89

$
293

$
281

   Non-U.S. plans
68

67

203

207