INCENTIVE PLANS (Tables)

12 Months Ended

Dec. 31, 2018

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 2018 is presented below:



Performance share units	Units		Weighted- average grant date fair value per unit
Outstanding, beginning of period	1,786,726		$	40.94
Granted⁽¹⁾	495,099		83.24
Canceled	(25,160	)	44.07
Payments	(488,304	)	44.07
Outstanding, end of period	1,768,362		$	51.88


(1)	The weighted-average grant date fair value per unit awarded in 2017 and 2016 was $59.22 and $27.03, 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, 2017	36,931,040		$	47.89
Granted⁽¹⁾	12,896,599		73.87
Canceled	(1,315,456	)	54.50
Vested⁽²⁾	(16,783,587	)	49.54
Unvested at December 31, 2018	31,728,596		$	57.30


(1)	The weighted-average fair value of the shares granted during 2017 and 2016 was $59.12 and $37.35, respectively.


(2)	The weighted-average fair value of the shares vesting during 2018 was approximately $77.65 per share.

Schedule of assumptions used

Other significant assumptions for the awards are as follows:



Valuation assumptions	2018		2017		2016
Expected volatility	24.93	%	25.79	%	24.37	%
Expected dividend yield	1.75		1.30		0.40

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	2018	2017
Discount rate
U.S. plans
Qualified pension	4.25%	3.60%
Nonqualified pension	4.25	3.60
Postretirement	4.20	3.50
Non-U.S. pension plans
Range	0.25 to 12.00	0.00 to 10.20
Weighted average	4.47	4.17
Non-U.S. postretirement plans
Range	1.75 to 10.75	1.75 to 10.10
Weighted average	9.05	8.10
Future compensation increase rate⁽¹⁾
Non-U.S. pension plans
Range	1.30 to 13.67	1.17 to 13.67
Weighted average	3.16	3.08
Expected return on assets
U.S. plans
Qualified pension	6.70	6.80
Postretirement⁽²⁾	6.70/3.00	6.80/3.00
Non-U.S. pension plans
Range	1.00 to 11.50	0.00 to 11.50
Weighted average	4.30	4.52
Non-U.S. postretirement plans
Range	8.00 to 9.20	8.00 to 9.80
Weighted average	8.01	8.01


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


(2)	The expected rate of return for the VEBA Trust was 3.00%.



During the year	2018	2017	2016
Discount rate
U.S. plans
Qualified pension	3.60%/3.95%/ 4.25%/4.30%	4.10%/4.05%/ 3.80%/3.75%	4.40%/3.95%/ 3.65%/3.55%
Nonqualified pension	3.60/3.95/ 4.25/4.30	4.00/3.95/ 3.75/3.65	4.35/3.90/ 3.55/3.45
Postretirement	3.50/3.90/ 4.20/4.20	3.90/3.85/ 3.60/3.55	4.20/3.75/ 3.40/3.30
Non-U.S. pension plans⁽¹⁾
Range	0.00 to 10.75	0.25 to 72.50	0.25 to 42.00
Weighted average	4.17	4.40	4.76
Non-U.S. postretirement plans⁽¹⁾
Range	1.75 to 10.10	1.75 to 11.05	2.00 to 13.20
Weighted average	8.10	8.27	7.90
Future compensation increase rate⁽²⁾
Non-U.S. pension plans⁽¹⁾
Range	1.17 to 13.67	1.25 to 70.00	1.00 to 40.00
Weighted average	3.08	3.21	3.24
Expected return on assets
U.S. plans
Qualified pension⁽³⁾	6.80/6.70	6.80	7.00
Postretirement⁽³⁾⁽⁴⁾	6.80/6.70/3.00	6.80	7.00
Non-U.S. pension plans⁽¹⁾
Range	0.00 to 11.60	1.00 to 11.50	1.60 to 11.50
Weighted average	4.52	4.55	4.95
Non-U.S. postretirement plans⁽¹⁾
Range	8.00 to 9.80	8.00 to 10.30	8.00 to 10.70
Weighted average	8.01	8.02	8.01


(1)	Reflects rates utilized to determine the quarterly expense for Significant non-U.S. pension and postretirement plans.


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


(3)	The expected rate of return for the U.S. pension and postretirement plans was lowered from 6.80% to 6.70% effective in the second quarter of 2018 to reflect a change in target asset allocation.


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

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⁾	2019	2018	2017	2018		2017
Equity securities	0–63%	0–66%	0–67%	13	%	15	%
Debt securities	0–100	0–100	0–99	80		79
Real estate	0–15	0–12	0–18	1		1
Other investments	0–100	0–100	0–100	6		5
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⁾	2019	2018	2017	2018		2017
Equity securities	0–30%	0–35%	0–38%	35	%	38	%
Debt securities	64–100	62–100	58–100	62		58
Other investments	0–6	0–3	0–4	3		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.

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⁾	2019	2018		2017		2018		2017
Equity securities⁽²⁾	0–26%	15	%	20	%	15	%	20	%
Debt securities⁽³⁾	35–82	57		48		57		48
Real estate	0–7	5		5		5		5
Private equity	0–10	3		3		3		3
Other investments	0–30	20		24		20		24
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 2018 and 2017.


(3)	The VEBA Trust for postretirement benefits are primarily invested in debt securities which are not reflected in the table above.

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:



	2018	2017
Discount rate	3.95%	3.20%
Expected return on assets	3.00	3.00

Health care cost increase rate
Following year	7.00	6.50
Ultimate rate to which cost increase is assumed to decline	5.00	5.00
Year in which the ultimate rate is reached	2027	2023

Information with respect to stock option activity under stock option awards

The following table presents information with respect to stock option activity under Citigroup’s stock option programs:



	2018						2017						2016
	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	1,138,813		$	161.96	$	—	1,527,396		$	131.78	$	—	6,656,588		$	67.92	$	—
Canceled	—		—		—		—		—		—		(25,334	)	40.80		—
Expired	(376,588	)	283.63		—		—		—		—		(2,613,909	)	48.80		—
Exercised	—		—		—		(388,583	)	43.35		15.67		(2,489,949	)	49.10		6.60
Outstanding, end of period	762,225		$	101.84	$	—	1,138,813		$	161.96	$	—	1,527,396		$	131.78	$	—
Exercisable, end of period	762,225						1,138,813						1,527,396

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, 2018:



		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	2.1 years	$	43.56	312,309	$	43.56
$100.00–$199.99	449,916	0.0 years	142.30		449,916	142.30
Total at December 31, 2018	762,225	0.9 years	$	101.84	762,225	$	101.84

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 incentive compensation programs described above:



In millions of dollars	2018		2017		2016
Charges for estimated awards to retirement-eligible employees	$	669	$	659	$	555
Amortization of deferred cash awards, deferred cash stock units and performance stock units	202		354		336
Immediately vested stock award expense⁽¹⁾	75		70		73
Amortization of restricted and deferred stock awards⁽²⁾	435		474		509
Other variable incentive compensation	640		694		710
Total	$	2,021	$	2,251	$	2,183


(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.