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RETIREMENT BENEFITS
 9 Months Ended
Sep. 30, 2018
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 2017 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 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
2018
2017
2018
2017
2018
2017
2018
2017
Benefits earned during the period
$
—

$
1

$
35

$
38

$
—

$
—

$
2

$
3

Interest cost on benefit obligation
132

131

73

76

6

9

26

27

Expected return on plan assets
(210
)
(217
)
(71
)
(77
)
(4
)
(2
)
(22
)
(24
)
Amortization of unrecognized:
 

 
 

 

 

 

 

 

Prior service benefit
—

—

(1
)
(1
)
—

—

(2
)
(2
)
Net actuarial loss
39

45

14

15

—

—

7

8

Curtailment loss(1)
—

1

—

—

—

—

—

—

Settlement loss(1)
—

—

—

4

—

—

—

—

Total net (benefit) expense
$
(39
)
$
(39
)
$
50

$
55

$
2

$
7

$
11

$
12


























(1)
Losses 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
2018
2017
2018
2017
2018
2017
2018
2017
Benefits earned during the period
$
1

$
2

$
111

$
112

$
—

$
—

$
7

$
7

Interest cost on benefit obligation
381

406

220

221

19

20

77

76

Expected return on plan assets
(634
)
(650
)
(221
)
(223
)
(10
)
(5
)
(67
)
(67
)
Amortization of unrecognized:
 
 
 

 

 
 

 

 

Prior service benefit
—

1

(3
)
(3
)
—

—

(7
)
(7
)
Net actuarial loss
128

129

41

46

—

—

22

25

Curtailment loss(1)
1

4

—

—

—

—

—

—

Settlement loss(1)
—

—

5

8

—

—

—

—

Total net (benefit) expense
$
(123
)
$
(108
)
$
153

$
161

$
9

$
15

$
32

$
34


(1)
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:
 
Nine Months Ended September 30, 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

First quarter activity
(576
)
151

(32
)
89

Second quarter activity
(595
)
(344
)
—

(65
)
Projected benefit obligation at June 30, 2018—Significant Plans
$
12,841

$
5,253

$
667

$
951

Benefits earned during the period
—

20

—

2

Interest cost on benefit obligation
132

60

6

23

Actuarial gain
(60
)
(59
)
—

(61
)
Benefits paid, net of participants’ contributions and government subsidy
(217
)
(68
)
(15
)
(14
)
Foreign exchange impact and other
—

48

—

48

Projected benefit obligation at period end—Significant Plans
$
12,696

$
5,254

$
658

$
949





 
Nine Months Ended September 30, 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

First quarter activity
(349
)
115

(21
)
58

Second quarter activity
(220
)
(328
)
(4
)
(78
)
Plan assets at fair value at June 30, 2018—Significant Plans
$
12,156

$
5,610

$
237

$
1,089

Actual return on plan assets
123

7

1

23

Company contributions, net of reimbursements
13

15

153

—

Benefits paid, net of participants’ contributions and government subsidy

(217
)
(68
)
(15
)
(14
)
Foreign exchange impact and other
—

40

—

56

Plan assets at fair value at period end—Significant Plans
$
12,075

$
5,604

$
376

$
1,154

Funded status of the Significant Plans
 
 
 
 
Qualified plans(1)
$
36

$
350

$
(282
)
$
205

Nonqualified plans
(657
)
—

—

—

Funded status of the plans at period end—Significant Plans
$
(621
)
$
350

$
(282
)
$
205

Net amount recognized at period end
 

 

 

 

Benefit asset
$
36

$
850

$
—

$
205

Benefit liability
(657
)
(500
)
(282
)
—

Net amount recognized on the balance sheet—Significant Plans
$
(621
)
$
350

$
(282
)
$
205

Amounts recognized in AOCI at period end
 

 

 

Prior service benefit
$
—

$
25

$
—

$
80

Net actuarial (loss) gain
(6,313
)
(807
)
77

(284
)
Net amount recognized in equity (pretax)—Significant Plans
$
(6,313
)
$
(782
)
$
77

$
(204
)
Accumulated benefit obligation at period end—Significant Plans
$
12,689

$
4,980

$
658

$
949


(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.


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, 2018
Nine Months Ended
September 30, 2018
Beginning of period balance, net of tax(1)(2)
$
(5,794
)
$
(6,183
)
Actuarial assumptions changes and plan experience
181

1,300

Net asset loss due to difference between actual and expected returns
(140
)
(919
)
Net amortization
49

161

Curtailment/settlement gain(3)
—

6

Foreign exchange impact and other
(35
)
1

Change in deferred taxes, net
(29
)
(134
)
Change, net of tax
$
26

$
415

End of period balance, net of tax(1)(2)
$
(5,768
)
$
(5,768
)

(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
Sept. 30, 2018
Jun. 30, 2018
U.S. plans
 
 
Qualified pension
4.25%
3.95%
Nonqualified pension
4.25
3.95
Postretirement
4.20
3.90
Non-U.S. plans
 
 
Pension
0.80-10.70
0.75-9.90
Weighted average
4.88
4.86
Postretirement
9.50
9.50


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, 2018
Jun. 30, 2018
Mar. 31, 2018
U.S. plans
 
 
 
Qualified pension
4.30%
4.25%
3.95%
Nonqualified pension
4.30
4.25
3.95
Postretirement
4.20
4.20
3.90
Non-U.S. plans
 
 
 
Pension
0.95-10.75
0.80-10.70
0.75-9.90
Weighted average
5.08
4.88
4.86
Postretirement
10.10
9.50
9.50
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 September 30, 2018
In millions of dollars
One-percentage-point increase
One-percentage-point decrease
Pension
 
 
   U.S. plans
$
5

$
(8
)
   Non-U.S. plans
(3
)
5

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 nine months of 2018.

The following table summarizes the Company’s actual contributions for the nine months ended September 30, 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 nine months ended September 30
$
42

$
90

$
143

$
109

$
159

$
30

$
7

$
7

Company contributions made during the remainder
 of the year

—

15

—

26

—

146

—

3

Company contributions expected to be made during
  the remainder of the year
15

—

33

—

2

—

2

—


(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
2018
2017
2018
2017
   U.S. plans
$
90

$
95

$
293

$
293

   Non-U.S. plans
68

68

216

203



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 September 30,
Nine Months Ended 
 September 30,
In millions of dollars
2018
2017
2018
2017
Interest cost on benefit obligation
$
—

$
—

$
1

$
1

Expected return on plan assets
—

—

(1
)
—

Amortization of unrecognized:








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

1

2

2

Total service-
  related benefit
$
(7
)
$
(7
)
$
(21
)
$
(20
)
Non-service-
  related expense
$
4

$
9

$
7

$
21

Total net
 (benefit) expense

$
(3
)
$
2

$
(14
)
$
1