INCENTIVE PLANS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of the status of unvested stock awards

A summary of the performance share unit activity for 2017 is presented below:



Performance Share Units	Units		Weighted- average grant date fair value per unit
Outstanding, beginning of period	1,844,560		$	38.22
Granted⁽¹⁾	500,609		59.22
Canceled	(277,546	)	48.34
Payments	(280,897	)	48.34
Outstanding, end of period	1,786,726		$	40.94

(1)The weighted-average grant date fair value per unit awarded in 2016 and 2015 was $27.03 and $44.07, respectively.

A summary of the status of unvested stock awards granted as discretionary annual incentive or sign-on and long-term retention awards is presented below:



Unvested stock awards	Shares		Weighted- average grant date fair value per share
Unvested at December 31, 2016	42,672,176		$	43.24
Granted⁽¹⁾	13,914,752		59.12
Canceled	(1,335,297	)	47.29
Vested⁽²⁾	(18,320,591	)	45.63
Unvested at December 31, 2017	36,931,040		$	47.89


(1)	The weighted-average fair value of the shares granted during 2016 and 2015 was $37.35 and $50.33, respectively.


(2)	The weighted-average fair value of the shares vesting during 2017 was approximately $57.45 per share.

Schedule of assumptions used

Other significant assumptions for the awards are as follows:



Valuation Assumptions	2017		2016		2015
Expected volatility	25.79	%	24.37	%	27.13	%
Expected dividend yield	1.30	%	0.40	%	0.08	%

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⁾	2018	2017	2016	2017		2016
Equity securities	0-63%	0-67%	0–69%	15	%	14	%
Debt securities	0-100	0-99	0–100	79		79
Real estate	0-18	0-18	0–18	1		1
Other investments	0-100	0-100	0–100	5		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⁾	2018	2017	2016	2017		2016
Equity securities	0-37%	0-38%	0–38%	38	%	38	%
Debt securities	58-100	58-100	57–100	58		58
Other investments	0-5	0-4	0–4	4		4
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.

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:



	2017	2016
Discount rate	3.20%	3.40%
Expected return on assets⁽¹⁾	3.00	N/A
Health care cost increase rate
Following year	6.50	6.50
Ultimate rate to which cost increase is assumed to decline	5.00	5.00
Year in which the ultimate rate is reached	2023	2023


1)	In 2017, the VEBA Trust was funded with an expected rate of return of assets of 3.00%.

N/A Not applicable

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	2017	2016
Discount rate
U.S. plans
Qualified pension	3.60%	4.10%
Nonqualified pension	3.60	4.00
Postretirement	3.50	3.90
Non-U.S. pension plans
Range	0.00 to 10.20	0.25 to 72.50
Weighted average	4.17	4.40
Non-U.S. postretirement plans
Range	1.75 to 10.10	1.75 to 11.05
Weighted average	8.10	8.27
Future compensation increase rate⁽¹⁾
Non-U.S. pension plans
Range	1.17 to 13.67	1.25 to 70.00
Weighted average	3.08	3.21
Expected return on assets
U.S. plans
Qualified pension	6.80	6.80
Postretirement⁽²⁾	6.80/3.00	6.80
Non-U.S. pension plans
Range	0.00 to 11.50	1.00 to 11.50
Weighted average	4.52	4.55
Non-U.S. postretirement plans
Range	8.00 to 9.80	8.00 to 10.30
Weighted average	8.01	8.02


(1)	Not material for U.S. plans.


(2)	In 2017, the VEBA Trust was funded with an expected rate of return of assets of 3.00%.



During the year	2017	2016	2015
Discount rate
U.S. plans
Qualified pension	4.10%/4.05%/ 3.80%/3.75%	4.40%/3.95%/ 3.65%/3.55%	4.00%/3.85%/ 4.45%/4.35%
Nonqualified pension	4.00/3.95/ 3.75/3.65	4.35/3.90/ 3.55/3.45	3.90/3.70/ 4.30/4.25
Postretirement	3.90/3.85/ 3.60/3.55	4.20/3.75/ 3.40/3.30	3.80/3.65/ 4.20/4.10
Non-U.S. pension plans⁽¹⁾
Range	0.25 to 72.50	0.25 to 42.00	1.00 to 32.50
Weighted average	4.40	4.76	4.74
Non-U.S. postretirement plans⁽¹⁾
Range	1.75 to 11.05	2.00 to 13.20	2.25 to 12.00
Weighted average	8.27	7.90	7.50
Future compensation increase rate ⁽²⁾
Non-U.S. pension plans⁽¹⁾
Range	1.25 to 70.00	1.00 to 40.00	0.75 to 30.00
Weighted average	3.21	3.24	3.27
Expected return on assets
U.S. plans
Qualified pension	6.80	7.00	7.00
Postretirement	6.80	7.00	7.00
Non-U.S. pension plans⁽¹⁾
Range	1.00 to 11.50	1.60 to 11.50	1.30 to 11.50
Weighted average	4.55	4.95	5.08
Non-U.S. postretirement plans⁽¹⁾
Range	8.00 to 10.30	8.00 to 10.70	8.50 to 10.40
Weighted average	8.02	8.01	8.51

(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.

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⁾	2018	2017		2016		2017		2016
Equity securities⁽²⁾	0-30%	20	%	18	%	20	%	18	%
Debt securities⁽³⁾	25-72	48		47		48		47
Real estate	0-10	5		5		5		5
Private equity	0-12	3		4		3		4
Other investments	0-37	24		26		24		26
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 2017 and 2016.


(3)	In December 2017, Citi contributed $140 million to the VEBA Trust for postretirement benefits, which amount was invested solely in debt securities which are not reflected in the table above.

Information with respect to stock option activity under stock option awards

Information with respect to stock option activity under Citigroup’s stock option programs is shown below:



	2017						2016						2015
	Options		Weighted- average exercise price		Intrinsic value per share		Options		Weighted- average exercise price		Intrinsic value per share		Options		Weighted- average exercise price		Intrinsic value per share
Outstanding, beginning of period	1,527,396		$	131.78	$	—	6,656,588		$	67.92	$	—	26,514,119		$	48.00	$	6.11
Canceled	—		—		—		(25,334	)	40.80		—		(7,901	)	40.80		—
Expired	—		—		—		(2,613,909	)	48.80		—		(1,646,581	)	40.85		—
Exercised	(388,583	)	43.35		15.67		(2,489,949	)	49.10		6.60		(18,203,048	)	41.39		13.03
Outstanding, end of period	1,138,813		$	161.96	$	—	1,527,396		$	131.78	$	—	6,656,588		$	67.92	$	—
Exercisable, end of period	1,138,813						1,527,396						6,656,588

Summary of information about stock options outstanding under stock option programs

The following table summarizes information about stock options outstanding under Citigroup’s stock option programs at December 31, 2017:



		Options outstanding			Options exercisable
Range of exercise prices	Number outstanding	Weighted-average contractual life remaining	Weighted-average exercise price		Number exercisable	Weighted-average exercise price
$39.00—$99.99	312,309	3.0 years	$	43.56	312,309	$	43.56
$100.00—$199.99	502,416	1.0 year	147.13		502,416	147.13
$200.00—$299.99	124,088	0.1 years	240.28		124,088	240.28
$300.00—$399.99	200,000	0.1 years	335.50		200,000	335.50
Total at December 31, 2017	1,138,813	1.3 years	$	161.96	1,138,813	$	161.96

Components of compensation expense relating to stock-basked compensation programs and deferred cash award programs

The following table shows components of compensation expense, relating to certain of the above incentive compensation programs:



In millions of dollars	2017		2016		2015
Charges for estimated awards to retirement-eligible employees	$	659	$	555	$	541
Amortization of deferred cash awards, deferred cash stock units and performance stock units	354		336		325
Immediately vested stock award expense⁽¹⁾	70		73		61
Amortization of restricted and deferred stock awards⁽²⁾	474		509		461
Other variable incentive compensation	694		710		773
Total	$	2,251	$	2,183	$	2,161


(1)	Represents expense for immediately vested stock awards that generally were stock payments in lieu of cash compensation. The expense is generally accrued as cash incentive compensation in the year prior to grant.


(2)	All periods include amortization expense for all unvested awards to non-retirement-eligible employees.

Schedule of unrecognized compensation cost and future estimated expense on awards in next fiscal year

Citi's expected future expenses, excluding the impact of forfeitures, cancelations, clawbacks and repositioning-related accelerations that have not yet occurred, are summarized in the table below:



In millions of dollars	2018		2019		2020		2021 and beyond⁽¹⁾		Total
Awards granted in 2017 and prior:
Deferred stock awards	$	276	$	146	$	67	$	11	$	500
Deferred cash awards	170		94		38		8		310
Future expense related to awards already granted	$	446	$	240	$	105	$	19	$	810
Future expense related to awards granted in 2018⁽²⁾	$	238	$	185	$	148	$	111	$	682
Total	$	684	$	425	$	253	$	130	$	1,492


(1)	Principally 2021.


(2)	Refers to awards granted on or about February 15, 2018, as part of Citi's discretionary annual incentive awards for services performed in 2017.