XML 86 R46.htm IDEA: XBRL DOCUMENT v3.8.0.1
RETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 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:

 
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
2015
2017
2016
2015
2017
2016
2015
2017
2016
2015
Benefits earned during the year
$
3

$
4

$
6

$
153

$
154

$
168

$
—

$
—

$
—

$
9

$
10

$
12

Interest cost on benefit obligation
533

548

581

295

282

317

26

25

33

101

94

108

Expected return on plan assets
(865
)
(886
)
(893
)
(299
)
(287
)
(323
)
(6
)
(9
)
(3
)
(89
)
(86
)
(105
)
Amortization of unrecognized
 

 

 

 

 

 

 

 

 

 

 

 

Prior service (benefit) cost
2

2

1

(3
)
(1
)
2

—

—

—

(10
)
(10
)
(11
)
Net actuarial loss
173

169

148

61

69

73

—

(1
)
—

35

30

43

Curtailment loss (gain)(1)
6

13

14

—

(2
)
—

—

—

—

—

—

(1
)
Settlement loss (1)
—

—

—

12

6

44

—

—

—

—

—

—

Total net (benefit) expense
$
(148
)
$
(150
)
$
(143
)
$
219

$
221

$
281

$
20

$
15

$
30

$
46

$
38

$
46


(1)
Losses and gains due to curtailment and settlement benefits relate to repositioning and divestiture actions.

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
2017
2016
2015
Service related expense
 

 

 

Interest cost on benefit obligation
$
2

$
3

$
4

Amortization of unrecognized
 
 
 
   Prior service (benefit) cost
(31
)
(31
)
(31
)
   Net actuarial loss
2

5

12

Total service related benefit
$
(27
)
$
(23
)
$
(15
)
Non-service related expense
$
30

$
21

$
3

Total net expense (benefit)
$
3

$
(2
)
$
(12
)
Summary of entity's contributions
The following table summarizes the actual Company contributions for the years ended December 31, 2017 and 2016, as well as estimated expected Company contributions for 2018. 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
2018
2017
2016
2018
2017
2016
2018
2017
2016
2018
2017
2016
Contributions made by the Company
$
—

$
50

$
500

$
79

$
90

$
82

$
—

$
140

$
—

$
4

$
4

$
4

Benefits paid directly by the Company
60

55

56

49

45

44

6

36

6

6

5

5


(1)
Amounts reported for 2018 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
 
2017
2016
2017
2016
2017
2016
2017
2016
Change in projected benefit obligation
 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year
$
14,000

$
13,943

$
6,522

$
6,534

$
686

$
817

$
1,141

$
1,291

Benefits earned during the year
3

4

153

154

—

—

9

10

Interest cost on benefit obligation
533

548

295

282

26

25

101

94

Plan amendments
—

—

4

(28
)
—

—

—

—

Actuarial loss (gain)
536

367

127

589

43

(105
)
19

3

Benefits paid, net of participants’ contributions and government subsidy
(769
)
(780
)
(278
)
(324
)
(56
)
(51
)
(64
)
(59
)
Divestitures
—

—

(29
)
(22
)
—

—

(4
)
—

Settlement gain(1)
—

—

(192
)
(38
)
—

—

—

—

Curtailment (gain) loss(1)
6

13

(3
)
(15
)
—

—

—

(4
)
Foreign exchange impact and other(2)
(269
)
(95
)
834

(610
)
—

—

59

(194
)
Projected benefit obligation at year end
$
14,040

$
14,000

$
7,433

$
6,522

$
699

$
686

$
1,261

$
1,141


(1)
Curtailment and settlement (gains) losses relate to repositioning and divestiture activities.
(2)
With respect to the U.S. Plan, de-risking activities during 2017 resulted in a reduction to plan obligations and assets.
 
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
Change in plan assets
 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year
$
12,363

$
12,137

$
6,149

$
6,104

$
129

$
166

$
1,015

$
1,133

Actual return on plan assets
1,295

572

462

967

13

8

113

122

Company contributions
105

556

135

126

176

6

9

9

Divestitures
—

—

(31
)
(5
)
—

—

—

—

Settlements
—

—

(192
)
(38
)
—

—

—

—

Benefits paid, net of participants’ contributions and government subsidy
(769
)
(779
)
(278
)
(324
)
(56
)
(51
)
(64
)
(59
)
Foreign exchange impact and other(1)
(269
)
(123
)
883

(681
)
—

—

46

(190
)
Plan assets at fair value at year end
$
12,725

$
12,363

$
7,128

$
6,149

$
262

$
129

$
1,119

$
1,015

 
 
 
 
 
 
 
 
 
Funded status of the plans
 
 
 
 
 
 
 
 
Qualified plans(2)
$
(565
)
$
(908
)
$
(305
)
$
(373
)
$
(437
)
$
(557
)
$
(142
)
$
(126
)
Nonqualified plans(3)
(750
)
(729
)
—

—

—

—

—

—

Funded status of the plans at year end
$
(1,315
)
$
(1,637
)
$
(305
)
$
(373
)
$
(437
)
$
(557
)
$
(142
)
$
(126
)
 
 
 
 
 
 
 
 
 
Net amount recognized
 

 

 

 

 

 

 

 

Qualified plans
 
 
 
 
 
 
 
 
Benefit asset
$
—

$
—

$
900

$
711

$
—

$
—

$
181

$
166

Benefit liability
(565
)
(908
)
(1,205
)
(1,084
)
(437
)
(557
)
(323
)
(292
)
Qualified plans
$
(565
)
$
(908
)
$
(305
)
$
(373
)
$
(437
)
$
(557
)
$
(142
)
$
(126
)
Nonqualified plans
(750
)
(729
)
—

—

—

—

—

—

Net amount recognized on the balance sheet
$
(1,315
)
$
(1,637
)
$
(305
)
$
(373
)
$
(437
)
$
(557
)
$
(142
)
$
(126
)
 
 
 
 
 
 
 
 
 
Amounts recognized in Accumulated other comprehensive income (loss)
 
 

 

 

 

 

 

 

Net transition obligation
$
—

$
—

$
(1
)
$
(1
)
$
—

$
—

$
—

$
—

Prior service benefit
(15
)
(17
)
22

29

—

—

92

98

Net actuarial gain (loss)
(6,823
)
(6,891
)
(1,318
)
(1,302
)
72

106

(382
)
(399
)
Net amount recognized in equity (pretax)
$
(6,838
)
$
(6,908
)
$
(1,297
)
$
(1,274
)
$
72

$
106

$
(290
)
$
(301
)
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation at year end

$
14,034

$
13,994

$
7,038

$
6,090

$
699

$
686

$
1,261

$
1,141


(1)
With respect to the U.S. Plan, de-risking activities during 2017 resulted in a reduction to plan obligations and assets.
(2)
The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act (ERISA) funding rules as of January 1, 2018 and no minimum required funding is expected for 2018.
(3)
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
2017
2016
2015
Beginning of year balance, net of tax(1)(2)
$
(5,164
)
$
(5,116
)
$
(5,159
)
Actuarial assumptions changes and plan experience
(760
)
(854
)
898

Net asset gain (loss) due to difference between actual and expected returns
625

400

(1,457
)
Net amortizations
229

232

236

Prior service (cost) credit
(4
)
28

(6
)
Curtailment/settlement gain(3)
17

17

57

Foreign exchange impact and other
(93
)
99

291

Impact of Tax Reform(4)
(1,020
)
—

—

Change in deferred taxes, net
(13
)
30

24

Change, net of tax
$
(1,019
)
$
(48
)
$
43

End of year balance, net of tax(1)(2)
$
(6,183
)
$
(5,164
)
$
(5,116
)
(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 broadly relate to repositioning and divestiture activities.
(4)
In the fourth quarter of 2017, Citi adopted ASU 2018-02, which transferred these amounts from AOCI to Retained earnings. See Note 1 to the Consolidated Financial Statements.
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, 2017 and 2016, 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
2017
2016
2017
2016
2017
2016
2017
2016
Projected benefit obligation
$
14,040

$
14,000

$
2,721

$
2,484

$
14,040

$
14,000

$
2,596

$
2,282

Accumulated benefit obligation
14,034

13,994

2,381

2,168

14,034

13,994

2,296

2,012

Fair value of plan assets
12,725

12,363

1,516

1,399

12,725

12,363

1,407

1,224

(1)
At December 31, 2017 and 2016, for both the U.S. qualified plan and nonqualified plans, the aggregate PBO and the aggregate ABO exceeded plan assets.
Assumptions used in determining benefit obligations and net benefit expense
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.
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 2017, 2016 and 2015 for the U.S. pension and postretirement plans:
 
2017
2016
2015
Expected rate of return(1)
6.80%/3.00%
7.00%
7.00%
Actual rate of return(2)
10.90
4.90
(1.70)
(1)
In 2017, the VEBA Trust was funded for postretirement benefits with an expected rate of return of assets of 3.00%.
(2)
Actual rates of return are presented net of fees.
Retirement plan and mortality projections
At December 31, 2017, the Company maintained the Retirement Plan 2014 (RP-2014) mortality table and adopted the Mortality Projection 2017 (MP-2017) projection table for the U.S. plans.
 U.S. plans
2017(1)
2016(2)
Mortality
 
 
Pension
RP-2014/MP-2017
RP-2014/MP-2016
Postretirement
RP-2014/MP-2017
RP-2014/MP-2016

(1)
The RP-2014 table is the white-collar RP-2014 table. The MP-2017 projection scale is projected from 2006, with convergence to .75% ultimate rate of annual improvement by 2033.
(2)
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. The MP-2016 projection scale is projected from 2011, with convergence to 0.75% ultimate rate of annual improvement by 2032.
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
2017
2016
2015
U.S. plans
$
29

$
31

$
26

Non-U.S. plans
(27
)
(33
)
(32
)
 
 
 
 
 
One-percentage-point decrease
In millions of dollars
2017
2016
2015
U.S. plans
$
(44
)
$
(47
)
$
(44
)
Non-U.S. plans
41

37

44
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
2017
2016
2015
U.S. plans
$
(127
)
$
(127
)
$
(128
)
Non-U.S. plans
(64
)
(61
)
(63
)
 
 
One-percentage-point decrease
In millions of dollars
2017
2016
2015
U.S. plans
$
127

$
127

$
128

Non-U.S. plans
64

61

63
Schedule of health care cost trend rates
Assumed health care cost trend rates were as follows:
 
2017
2016
Health care cost increase rate for 
U.S. plans
 
 
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(1)
2023
2023

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

 
2017
2016
Health care cost increase rate for 
Non-U.S. plans (weighted average)
 
 
Following year
6.87%
6.86%
Ultimate rate to which cost increase is assumed to decline
6.87
6.85
Range of years in which the ultimate rate is reached
2018–2019
2017–2029
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
2017
2016
2017
2016
U.S. plans
 
 
 
 
Effect on benefits earned and interest cost for postretirement plans
$
1

$
1

$
(1
)
$
(1
)
Effect on accumulated postretirement benefit obligation for postretirement plans
33

30

(29
)
(26
)
 
 
 
 
 
 
One-percentage-
point increase
One-
percentage-
point decrease
In millions of dollars
2017
2016
2017
2016
Non-U.S. plans

 
 
 
 
Effect on benefits earned and interest cost for postretirement plans
$
13

$
12

$
(10
)
$
(10
)
Effect on accumulated postretirement benefit obligation for postretirement plans
150

144

(125
)
(118
)
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, 2017
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities

$
726

$
—

$
—

$
726

Non-U.S. equities

926

—

—

926

Mutual funds

271

—

—

271

Commingled funds

—

1,184

—

1,184

Debt securities

1,381

3,080

—

4,461

Annuity contracts
—

—

1

1

Derivatives
11

323

—

334

Other investments
—

—

22

22

Total investments
$
3,315

$
4,587

$
23

$
7,925

Cash and short-term investments
$
257

$
1,004

$
—

$
1,261

Other investment liabilities
(60
)
(343
)
—

(403
)
Net investments at fair value
$
3,512

$
5,248

$
23

$
8,783

Other investment receivables redeemed at NAV
 
 
 
$
16

Securities valued at NAV
 
 
 
4,189

Total net assets
 
 
 
$
12,988

(1)
The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2017, the allocable interests of the U.S. pension and postretirement plans were 99.0% and 1.0%, respectively. In 2017, the VEBA Trust was funded for postretirement benefits.
 
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
—

—

1

1

Derivatives
8

543

—

551

Other investments
—

—

4

4

Total investments
$
2,933

$
4,254

$
5

$
7,192

Cash and short-term investments
$
116

$
1,239

$
—

$
1,355

Other investment liabilities
(106
)
(553
)
—

(659
)
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.
 
Non-U.S. pension and postretirement benefit plans
In millions of dollars
Fair value measurement at December 31, 2017
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities
$
4

$
12

$
—

$
16

Non-U.S. equities
103

122

1

226

Mutual funds
3,098

74

—

3,172

Commingled funds
24

—

—

24

Debt securities
3,999

1,555

7

5,561

Real estate
—

3

1

4

Annuity contracts
—

1

9

10

Derivatives
1

3,102

—

3,103

Other investments
1

—

214

215

Total investments
$
7,230

$
4,869

$
232

$
12,331

Cash and short-term investments
$
119

$
3

$
—

$
122

Other investment liabilities
(2
)
(4,220
)
—

(4,222
)
Net investments at fair value
$
7,347

$
652

$
232

$
8,231

Securities valued at NAV 
 
 
 
$
16

Total net assets
 
 
 
$
8,247

 
 
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

8

9

Derivatives
—

43

—

43

Other investments
1

—

187

188

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
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, 2016
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, 2017
Annuity contracts
$
1

$
—

$
—

$
—

$
—

$
1

Other investments
4





18

—

22

Total investments
$
5

$
—

$
—

$
18

$
—

$
23

 

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
$
25

$
—

$
(3
)
$
(21
)
$
—

$
1

Other investments
149

8

(10
)
(143
)
—

4

U.S. equities
—

(2
)
2

—

—

—

Total investments
$
174

$
6

$
(11
)
$
(164
)
$
—

$
5


 
 In millions of dollars
Non-U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3 fair value at Dec. 31, 2016
Unrealized gains (losses)
Purchases, sales and issuances
Transfers in and/or out of Level 3
Ending Level 3 fair value at Dec. 31, 2017
Non-U.S. equities
$
1

$
—

$
—

$
—

$
1

Debt securities
7

—

—

—

7

Real estate
1

—

—

—

1

Annuity contracts
8

1

—

—

9

Other investments
187

31

(4
)
—

214

Total investments
$
204

$
32

$
(4
)
$
—

$
232



 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
8

—

—

—

8

Other investments
196

—

(9
)
—

187

Total investments
$
257

$
(3
)
$
(9
)
$
(41
)
$
204
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
2018
$
787

$
432

$
61

$
65

2019
814

398

60

70

2020
846

425

59

75

2021
864

434

58

81

2022
876

457

56

87

2023–2027
4,480

2,532

248

532
Defined contribution plans
The following table summarizes the Company contributions for the defined contribution plans:

 
U.S. plans
In millions of dollars
2017
2016
2015
Company contributions
$
383

$
371

$
380

 
 
 
 
 
Non-U.S. plans
In millions of dollars
2017
2016
2015
Company contributions
$
270

$
268

$
282