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RETIREMENT BENEFITS (Tables)
 3 Months Ended
Mar. 31, 2018
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 March 31,
 
Pension plans
Postretirement benefit plans
 
U.S. plans
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2018
2017
2018
2017
2018
2017
2018
2017
Benefits earned during the period
$
1

$
1

$
38

$
36

$
—

$
—

$
2

$
2

Interest cost on benefit obligation
123

139

75

71

6

6

26

24

Expected return on plan assets
(213
)
(216
)
(78
)
(70
)
(3
)
(1
)
(23
)
(21
)
Amortization of unrecognized
 

 
 

 

 

 

 

 

Prior service benefit
—

—

(1
)
(1
)
—

—

(2
)
(2
)
Net actuarial loss (gain)
47

44

13

16

—

(1
)
7

8

Settlement loss(1)
—

—

4

—

—

—

—

—

Total net (benefit) expense
$
(42
)
$
(32
)
$
51

$
52

$
3

$
4

$
10

$
11




(1)
Losses due to 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 March 31,
In millions of dollars
2018
2017
Service-related expense

$
—

$
—

Interest cost on benefit obligation
—

—

Amortization of unrecognized




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

1

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

$
8

Total net (benefit) expense

$
(1
)
$
1
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.
 
Three Months Ended March 31, 2018
 
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
$
14,040

$
7,433

$
699

$
1,261

Plans measured annually
(28
)
(1,987
)
—

(334
)
Projected benefit obligation at beginning of year—Significant Plans
$
14,012

$
5,446

$
699

$
927

Benefits earned during the period
1

22

—

2

Interest cost on benefit obligation
123

63

6

23

Actuarial (gain) loss
(495
)
(6
)
(21
)
5

Benefits paid, net of participants’ contributions and government subsidy
(205
)
(68
)
(17
)
(12
)
Foreign exchange impact and other
—

140

—

71

Projected benefit obligation at period end—Significant Plans
$
13,436

$
5,597

$
667

$
1,016


 
Three Months Ended March 31, 2018
 
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
$
12,725

$
7,128

$
262

$
1,119

Plans measured annually
—

(1,305
)
—

(10
)
Plan assets at fair value at beginning of year—Significant Plans
$
12,725

$
5,823

$
262

$
1,109

Actual return on plan assets
(157
)
26

—

(14
)
Company contributions, net of reimbursements
13

11

(4
)
—

Benefits paid, net of participants’ contributions and government subsidy

(205
)
(68
)
(17
)
(12
)
Foreign exchange impact and other
—

146

—

84

Plan assets at fair value at period end—Significant Plans
$
12,376

$
5,938

$
241

$
1,167

Funded status of the Significant Plans
 
 
 
 
Qualified plans(1)
$
(365
)
$
341

$
(426
)
$
151

Nonqualified plans
(695
)
—

—

—

Funded status of the plans at period end—Significant Plans
$
(1,060
)
$
341

$
(426
)
$
151

Net amount recognized at period end
 

 

 

 

Benefit asset
$
—

$
829

$
—

$
151

Benefit liability
(1,060
)
(488
)
(426
)
—

Net amount recognized on the balance sheet—Significant Plans
$
(1,060
)
$
341

$
(426
)
$
151

Amounts recognized in AOCI at period end
 

 

 

Prior service benefit
$
—

$
27

$
—

$
86

Net actuarial (loss) gain
(6,644
)
(882
)
89

(364
)
Net amount recognized in equity (pretax)—Significant Plans
$
(6,644
)
$
(855
)
$
89

$
(278
)
 
 
 
 
 
Accumulated benefit obligation at period end—Significant Plans
$
13,430

$
5,329

$
667

$
1,016


(1)
The U.S. qualified pension plan is fully funded pursuant to the Employee Retirement Income Security Act of 1974, as amended (ERISA), funding rules as of January 1, 2018 and no minimum required funding is expected for 2018.
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 
 March 31, 2018
For Year Ended
December 31, 2017
Beginning of period balance, net of tax(1)(2)
$
(6,183
)
$
(5,164
)
Actuarial assumptions changes and plan experience
516

(760
)
Net asset (loss) gain due to difference between actual and expected returns
(451
)
625

Net amortization
58

229

Prior service cost
—

(4
)
Curtailment/settlement gain(3)
4

17

Foreign exchange impact and other
(36
)
(93
)
Impact of Tax Reform(4)
—

(1,020
)
Change in deferred taxes, net
(3
)
(13
)
Change, net of tax
$
88

$
(1,019
)
End of period balance, net of tax(1)(2)
$
(6,095
)
$
(6,183
)
(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.
(4)
In the fourth quarter of 2017, the Company adopted ASU 2018-02, which transferred these amounts from AOCI to Retained earnings. See Note 1 to the 2017 Consolidated Financial Statements.
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
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
U.S. plans
 
 
 
Qualified pension
3.60%
3.75%
4.10%
Nonqualified pension
3.60
3.65
4.00
Postretirement
3.50
3.55
3.90
Non-U.S. plans
 
 
 
Pension
0.6-10.20
0.65-10.35
0.60-11.00
Weighted average
4.75
4.86
5.08
Postretirement
9.55
8.95
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
Mar. 31, 2018
Dec. 31, 2017
U.S. plans
 
 
Qualified pension
3.95%
3.60%
Nonqualified pension
3.95
3.60
Postretirement
3.90
3.50
Non-U.S. plans
 
 
Pension
0.75 -9.90
0.6-10.20
Weighted average
4.88
4.75
Postretirement
9.50
9.55
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 March 31, 2018
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
8

$
(12
)
   Non-U.S. plans
(3
)
6

Postretirement
 
 
   U.S. plans
—

(1
)
   Non-U.S. plans
(2
)
3
Schedule of company contributions
The following table summarizes the Company’s actual contributions for the three months ended March 31, 2018 and 2017, as well as estimated expected Company contributions for the remainder of 2018 and the actual contributions made for the remainder of 2017.
 
Pension plans 
Postretirement plans 
 
U.S. plans(1)
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2018
2017
2018
2017
2018
2017
2018
2017
Company contributions(2) for the three months ended March 31
$
14

$
13

$
29

$
34

$
—

$
12

$
3

$
2

Company contributions made or expected to be made during the remainder of the year
45

92

99

101

—

164

8

7


(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 March 31,
In millions of dollars
2018
2017
   U.S. plans
$
104

$
98

   Non-U.S. plans
76

69