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INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

The following tables present Citi’s investments by category:



In millions of dollars	December 31, 2018
Debt securities available-for-sale (AFS)	$	288,038
Debt securities held-to-maturity (HTM)⁽¹⁾	63,357
Marketable equity securities carried at fair value⁽²⁾	220
Non-marketable equity securities carried at fair value⁽²⁾	889
Non-marketable equity securities measured using the measurement alternative⁽³⁾	538
Non-marketable equity securities carried at cost⁽⁴⁾	5,565
Total investments	$	358,607



In millions of dollars	December 31, 2017
Securities available-for-sale (AFS)	$	290,914
Debt securities held-to-maturity (HTM)⁽¹⁾	53,320
Non-marketable equity securities carried at fair value⁽²⁾	1,206
Non-marketable equity securities carried at cost⁽⁴⁾	6,850
Total investments	$	352,290


(1)	Carried at adjusted amortized cost basis, net of any credit-related impairment.


(2)	Unrealized gains and losses are recognized in earnings.


(3)	Impairment losses and adjustments to the carrying value as a result of observable price changes are recognized in earnings.


(4)	Primarily consists of shares issued by the Federal Reserve Bank, Federal Home Loan Banks and certain exchanges of which Citigroup is a member.

Interest and dividends on investments

The following table presents interest and dividend income on investments:



In millions of dollars	2018		2017		2016
Taxable interest	$	8,704	$	7,538	$	6,858
Interest exempt from U.S. federal income tax	521		535		549
Dividend income	269		222		175
Total interest and dividend income	$	9,494	$	8,295	$	7,582

Realized gains and losses on investments

The following table presents realized gains and losses on the sale of investments, which excludes OTTI losses:



In millions of dollars	2018			2017			2016
Gross realized investment gains	$	682		$	1,039		$	1,460
Gross realized investment losses	(261		)	(261		)	(511		)
Net realized gains on sale of investments	$	421		$	778		$	949

Schedule of gain (loss) on HTM securities sold, securities reclassified to AFS and OTTI recorded on AFS securities reclassified

The following table presents, for the periods indicated, the carrying value of HTM debt securities sold and reclassified to AFS, as well as the related gain (loss) or the OTTI losses recorded on these securities:



In millions of dollars	2018		2017		2016
Carrying value of HTM debt securities sold	$	61	$	81	$	49
Net realized gain (loss) on sale of HTM debt securities	—		13		14
Carrying value of debt securities reclassified to AFS	8		74		150
OTTI losses on debt securities reclassified to AFS	—		—		(6		)

Amortized cost and fair value of AFS securities

The amortized cost and fair value of AFS securities were as follows:



	2018								2017
In millions of dollars	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Securities AFS
Mortgage-backed securities⁽¹⁾
U.S. government-sponsored agency guaranteed	$	43,504	$	241	$	725	$	43,020	$	42,116	$	125	$	500	$	41,741
Prime	—		—		—		—		11		6		—		17
Alt-A	1		—		—		1		26		90		—		116
Non-U.S. residential	1,310		4		2		1,312		2,744		13		6		2,751
Commercial	173		1		2		172		334		—		2		332
Total mortgage-backed securities	$	44,988	$	246	$	729	$	44,505	$	45,231	$	234	$	508	$	44,957
U.S. Treasury and federal agency securities
U.S. Treasury	$	109,376	$	33	$	1,339	$	108,070	$	108,344	$	77	$	971	$	107,450
Agency obligations	9,283		1		132		9,152		10,813		7		124		10,696
Total U.S. Treasury and federal agency securities	$	118,659	$	34	$	1,471	$	117,222	$	119,157	$	84	$	1,095	$	118,146
State and municipal⁽²⁾	$	9,372	$	96	$	262	$	9,206	$	8,870	$	140	$	245	$	8,765
Foreign government	100,872		415		596		100,691		100,615		508		590		100,533
Corporate	11,714		42		157		11,599		14,144		51		86		14,109
Asset-backed securities⁽¹⁾	845		2		4		843		3,906		14		2		3,918
Other debt securities	3,973		—		1		3,972		297		—		—		297
Total debt securities AFS	$	290,423	$	835	$	3,220	$	288,038	$	292,220	$	1,031	$	2,526	$	290,725
Marketable equity securities AFS⁽³⁾	$	—	$	—	$	—	$	—	$	186	$	4	$	1	$	189
Total securities AFS	$	290,423	$	835	$	3,220	$	288,038	$	292,406	$	1,035	$	2,527	$	290,914

(1)

The Company invests in mortgage- and asset-backed securities. These securitization entities are generally considered VIEs. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. For mortgage- and asset-backed securitizations in which the Company has other involvement, see Note 21 to the Consolidated Financial Statements.

(2)

In the second quarter of 2017, Citi early adopted ASU 2017-08, Receivable—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. Upon adoption, a cumulative effect adjustment was recorded to reduce Retained earnings, effective January 1, 2017, for the incremental amortization of purchase premiums and cumulative fair value hedge adjustments on callable state and municipal debt securities. See Note 1 to the Consolidated Financial Statements.


(3)	Citi adopted ASU 2016-01 and ASU 2018-03 as of January 1, 2018, resulting in a cumulative effect adjustment from AOCI to Retained earnings for net unrealized gains on marketable equity securities AFS. The AFS category was eliminated for equity securities effective January 1, 2018. See Note 1 to the Consolidated Financial Statements for additional details.

Amortized cost and fair value of AFS

The amortized cost and fair value of AFS securities were as follows:



	2018								2017
In millions of dollars	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Securities AFS
Mortgage-backed securities⁽¹⁾
U.S. government-sponsored agency guaranteed	$	43,504	$	241	$	725	$	43,020	$	42,116	$	125	$	500	$	41,741
Prime	—		—		—		—		11		6		—		17
Alt-A	1		—		—		1		26		90		—		116
Non-U.S. residential	1,310		4		2		1,312		2,744		13		6		2,751
Commercial	173		1		2		172		334		—		2		332
Total mortgage-backed securities	$	44,988	$	246	$	729	$	44,505	$	45,231	$	234	$	508	$	44,957
U.S. Treasury and federal agency securities
U.S. Treasury	$	109,376	$	33	$	1,339	$	108,070	$	108,344	$	77	$	971	$	107,450
Agency obligations	9,283		1		132		9,152		10,813		7		124		10,696
Total U.S. Treasury and federal agency securities	$	118,659	$	34	$	1,471	$	117,222	$	119,157	$	84	$	1,095	$	118,146
State and municipal⁽²⁾	$	9,372	$	96	$	262	$	9,206	$	8,870	$	140	$	245	$	8,765
Foreign government	100,872		415		596		100,691		100,615		508		590		100,533
Corporate	11,714		42		157		11,599		14,144		51		86		14,109
Asset-backed securities⁽¹⁾	845		2		4		843		3,906		14		2		3,918
Other debt securities	3,973		—		1		3,972		297		—		—		297
Total debt securities AFS	$	290,423	$	835	$	3,220	$	288,038	$	292,220	$	1,031	$	2,526	$	290,725
Marketable equity securities AFS⁽³⁾	$	—	$	—	$	—	$	—	$	186	$	4	$	1	$	189
Total securities AFS	$	290,423	$	835	$	3,220	$	288,038	$	292,406	$	1,035	$	2,527	$	290,914

(1)

(2)


(3)	Citi adopted ASU 2016-01 and ASU 2018-03 as of January 1, 2018, resulting in a cumulative effect adjustment from AOCI to Retained earnings for net unrealized gains on marketable equity securities AFS. The AFS category was eliminated for equity securities effective January 1, 2018. See Note 1 to the Consolidated Financial Statements for additional details.

Fair value of securities in unrealized loss position

The following table shows the fair value of AFS securities that have been in an unrealized loss position:



	Less than 12 months				12 months or longer				Total
In millions of dollars	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
December 31, 2018
Debt securities AFS⁽¹⁾
Mortgage-backed securities
U.S. government-sponsored agency guaranteed	$	4,022	$	286	$	13,143	$	439	$	17,165	$	725
Non-U.S. residential	284		2		2		—		286		2
Commercial	79		1		82		1		161		2
Total mortgage-backed securities	$	4,385	$	289	$	13,227	$	440	$	17,612	$	729
U.S. Treasury and federal agency securities
U.S. Treasury	$	8,389	$	42	$	77,883	$	1,297	$	86,272	$	1,339
Agency obligations	277		2		8,660		130		8,937		132
Total U.S. Treasury and federal agency securities	$	8,666	$	44	$	86,543	$	1,427	$	95,209	$	1,471
State and municipal	$	1,614	$	34	$	1,303	$	228	$	2,917	$	262
Foreign government	40,655		265		15,053		331		55,708		596
Corporate	4,547		115		2,077		42		6,624		157
Asset-backed securities	441		4		55		—		496		4
Other debt securities	1,790		1		—		—		1,790		1
Total debt securities AFS	$	62,098	$	752	$	118,258	$	2,468	$	180,356	$	3,220
December 31, 2017
Securities AFS
Mortgage-backed securities
U.S. government-sponsored agency guaranteed	$	30,994	$	438	$	2,206	$	62	$	33,200	$	500
Non-U.S. residential	753		6		—		—		753		6
Commercial	150		1		57		1		207		2
Total mortgage-backed securities	$	31,897	$	445	$	2,263	$	63	$	34,160	$	508
U.S. Treasury and federal agency securities
U.S. Treasury	$	79,050	$	856	$	7,404	$	115	$	86,454	$	971
Agency obligations	8,857		110		1,163		14		10,020		124
Total U.S. Treasury and federal agency securities	$	87,907	$	966	$	8,567	$	129	$	96,474	$	1,095
State and municipal	$	1,009	$	11	$	1,155	$	234	$	2,164	$	245
Foreign government	53,206		356		9,051		234		62,257		590
Corporate	6,737		74		859		12		7,596		86
Asset-backed securities	449		1		25		1		474		2
Other debt securities	—		—		—		—		—		—
Marketable equity securities AFS⁽¹⁾	11		1		—		—		11		1
Total securities AFS	$	181,216	$	1,854	$	21,920	$	673	$	203,136	$	2,527


(1)	Citi adopted ASU 2016-01 and ASU 2018-03 as of January 1, 2018, resulting in a cumulative effect adjustment from AOCI to Retained earnings for net unrealized gains on marketable equity securities AFS. The AFS category was eliminated for equity securities effective January 1, 2018. See Note 1 to the Consolidated Financial Statements for additional details.

The table below shows the fair value of debt securities HTM that have been in an unrecognized loss position:



	Less than 12 months				12 months or longer				Total
In millions of dollars	Fair value		Gross unrecognized losses		Fair value		Gross unrecognized losses		Fair value		Gross unrecognized losses
December 31, 2018
Debt securities HTM
Mortgage-backed securities	$	2,822	$	20	$	18,086	$	559	$	20,908	$	579
State and municipal	981		34		1,242		104		2,223		138
Foreign government	1,003		24		—		—		1,003		24
Asset-backed securities	13,008		112		—		—		13,008		112
Total debt securities HTM	$	17,814	$	190	$	19,328	$	663	$	37,142	$	853
December 31, 2017
Debt securities HTM
Mortgage-backed securities	$	8,569	$	50	$	6,353	$	107	$	14,922	$	157
State and municipal	353		5		835		68		1,188		73
Foreign government	723		18		—		—		723		18
Asset-backed securities	71		3		134		19		205		22
Total debt securities HTM	$	9,716	$	76	$	7,322	$	194	$	17,038	$	270

Note: Excluded from the gross unrecognized losses presented in the above table are $(653) million and $(117) million of net unrealized losses recorded in AOCI as of December 31, 2018 and 2017, respectively, primarily related to the difference between the amortized cost and carrying value of HTM debt securities that were reclassified from AFS. Substantially all of these net unrecognized losses relate to securities that have been in a loss position for 12 months or longer at December 31, 2018 and 2017.

Amortized cost and fair value of debt securities by contractual maturity dates

The following table presents the amortized cost and fair value of AFS debt securities by contractual maturity dates:



	December 31,
	2018				2017
In millions of dollars	Amortized cost		Fair value		Amortized cost		Fair value
Mortgage-backed securities⁽¹⁾
Due within 1 year	$	14	$	14	$	45	$	45
After 1 but within 5 years	662		661		1,306		1,304
After 5 but within 10 years	2,779		2,828		1,376		1,369
After 10 years⁽²⁾	41,533		41,002		42,504		42,239
Total	$	44,988	$	44,505	$	45,231	$	44,957
U.S. Treasury and federal agency securities
Due within 1 year	$	41,941	$	41,867	$	4,913	$	4,907
After 1 but within 5 years	76,139		74,800		111,236		110,238
After 5 but within 10 years	489		462		3,008		3,001
After 10 years⁽²⁾	90		93		—		—
Total	$	118,659	$	117,222	$	119,157	$	118,146
State and municipal
Due within 1 year	$	2,586	$	2,586	$	1,792	$	1,792
After 1 but within 5 years	1,676		1,675		2,579		2,576
After 5 but within 10 years	585		602		514		528
After 10 years⁽²⁾	4,525		4,343		3,985		3,869
Total	$	9,372	$	9,206	$	8,870	$	8,765
Foreign government
Due within 1 year	$	39,078	$	39,028	$	32,130	$	32,100
After 1 but within 5 years	50,125		49,962		53,034		53,165
After 5 but within 10 years	10,153		10,149		12,949		12,680
After 10 years⁽²⁾	1,516		1,552		2,502		2,588
Total	$	100,872	$	100,691	$	100,615	$	100,533
All other⁽³⁾
Due within 1 year	$	6,166	$	6,166	$	3,998	$	3,991
After 1 but within 5 years	8,459		8,416		9,047		9,027
After 5 but within 10 years	1,474		1,427		3,415		3,431
After 10 years⁽²⁾	433		405		1,887		1,875
Total	$	16,532	$	16,414	$	18,347	$	18,324
Total debt securities AFS	$	290,423	$	288,038	$	292,220	$	290,725


(1)	Includes mortgage-backed securities of U.S. government-sponsored agencies.


(2)	Investments with no stated maturities are included as contractual maturities of greater than 10 years. Actual maturities may differ due to call or prepayment rights.


(3)	Includes corporate, asset-backed and other debt securities.

The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates:



	December 31,
	2018				2017
In millions of dollars	Carrying value		Fair value		Carrying value		Fair value
Mortgage-backed securities
Due within 1 year	$	3	$	3	$	—	$	—
After 1 but within 5 years	539		540		720		720
After 5 but within 10 years	997		1,011		148		149
After 10 years⁽¹⁾	34,407		34,024		25,231		25,235
Total	$	35,946	$	35,578	$	26,099	$	26,104
State and municipal
Due within 1 year	$	37	$	37	$	407	$	425
After 1 but within 5 years	168		174		259		270
After 5 but within 10 years	540		544		512		524
After 10 years⁽¹⁾	6,883		6,902		7,719		7,983
Total	$	7,628	$	7,657	$	8,897	$	9,202
Foreign government
Due within 1 year	$	60	$	36	$	381	$	381
After 1 but within 5 years	967		967		359		341
After 5 but within 10 years	—		—		—		—
After 10 years⁽¹⁾	—		—		—		—
Total	$	1,027	$	1,003	$	740	$	722
All other⁽²⁾
Due within 1 year	$	—	$	—	$	—	$	—
After 1 but within 5 years	—		—		—		—
After 5 but within 10 years	2,535		2,539		1,669		1,680
After 10 years⁽¹⁾	16,221		16,113		15,915		16,044
Total	$	18,756	$	18,652	$	17,584	$	17,724
Total debt securities HTM	$	63,357	$	62,890	$	53,320	$	53,752


(1)	Investments with no stated maturities are included as contractual maturities of greater than 10 years. Actual maturities may differ due to call or prepayment rights.


(2)	Includes corporate and asset-backed securities.

Carrying value and fair value of debt securities HTM

The carrying value and fair value of debt securities HTM were as follows:



In millions of dollars	Carrying value		Gross unrealized gains		Gross unrealized losses		Fair value
December 31, 2018
Debt securities HTM
Mortgage-backed securities⁽¹⁾⁽²⁾
U.S. government agency guaranteed	$	34,239	$	199	$	578	$	33,860
Alt-A	—		—		—		—
Non-U.S. residential	1,339		12		1		1,350
Commercial	368		—		—		368
Total mortgage-backed securities	$	35,946	$	211	$	579	$	35,578
State and municipal	$	7,628	$	167	$	138	$	7,657
Foreign government	1,027		—		24		1,003
Asset-backed securities⁽¹⁾	18,756		8		112		18,652
Total debt securities HTM	$	63,357	$	386	$	853	$	62,890
December 31, 2017
Debt securities HTM
Mortgage-backed securities⁽¹⁾
U.S. government agency guaranteed	$	23,880	$	40	$	157	$	23,763
Alt-A	141		57		—		198
Non-U.S. residential	1,841		65		—		1,906
Commercial	237		—		—		237
Total mortgage-backed securities	$	26,099	$	162	$	157	$	26,104
State and municipal⁽³⁾	$	8,897	$	378	$	73	$	9,202
Foreign government	740		—		18		722
Asset-backed securities⁽¹⁾	17,584		162		22		17,724
Total debt securities HTM	$	53,320	$	702	$	270	$	53,752

(1)

(2)

In November 2018, Citibank transferred $10 billion of agency residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) from AFS classification to HTM classification in accordance with ASC 320. At the time of transfer, the securities were in an unrealized loss position of $598 million. This amount will remain in AOCI and be amortized over the remaining life of the securities.

(3)

In the second quarter of 2017, Citi early adopted ASU 2017-08. Upon adoption, a cumulative effect adjustment was recorded to reduce Retained earnings, effective January 1, 2017, for the incremental amortization of purchase premiums and cumulative fair value hedge adjustments that would have been recorded under the ASU on callable state and municipal debt securities. See Note 1 to the Consolidated Financial Statements.

Total other-than-temporary impairments recognized

The following tables present total OTTI recognized in earnings:



OTTI on Investments and Other Assets	Year ended December 31, 2018
In millions of dollars	AFS⁽¹⁾		HTM		Other assets		Total
Impairment losses related to debt securities that the Company does not intend to sell nor will likely be required to sell:
Total OTTI losses recognized during the period	$	—	$	—	$	—	$	—
Less: portion of impairment loss recognized in AOCI (before taxes)	—		—		—		—
Net impairment losses recognized in earnings for debt securities that the Company does not intend to sell nor will likely be required to sell	$	—	$	—	$	—	$	—
Impairment losses recognized in earnings for debt securities that the Company intends to sell, would be more-likely-than-not required to sell or will be subject to an issuer call deemed probable of exercise	125		—		—		125
Total OTTI losses recognized in earnings	$	125	$	—	$	—	$	125


(1)	For the year ended December 31, 2018, amounts represent AFS debt securities. Effective January 1, 2018, the AFS category was eliminated for equity securities. See Note 1 to the Consolidated Financial Statements for additional details.



OTTI on Investments and Other Assets	Year ended December 31, 2017
In millions of dollars	AFS⁽¹⁾		HTM		Other assets		Total
Impairment losses related to securities that the Company does not intend to sell nor will likely be required to sell:
Total OTTI losses recognized during the period	$	2	$	—	$	—	$	2
Less: portion of impairment loss recognized in AOCI (before taxes)	—		—		—		—
Net impairment losses recognized in earnings for securities that the Company does not intend to sell nor will likely be required to sell	$	2	$	—	$	—	$	2
Impairment losses recognized in earnings for securities that the Company intends to sell, would be more-likely-than-not required to sell or will be subject to an issuer call deemed probable of exercise	59		2		—		61
Total OTTI losses recognized in earnings	$	61	$	2	$	—	$	63


(1)	Includes OTTI on non-marketable equity securities.



OTTI on Investments and Other Assets	Year ended December 31, 2016
In millions of dollars	AFS⁽¹⁾⁽²⁾		HTM		Other assets⁽³⁾		Total
Impairment losses related to securities that the Company does not intend to sell nor will likely be required to sell:
Total OTTI losses recognized during the period	$	3	$	1	$	—	$	4
Less: portion of impairment loss recognized in AOCI (before taxes)	—		—		—		—
Net impairment losses recognized in earnings for securities that the Company does not intend to sell nor will likely be required to sell	$	3	$	1	$	—	$	4
Impairment losses recognized in earnings for securities that the Company intends to sell or more-likely-than-not will be required to sell before recovery	246		38		332		616
Total OTTI losses recognized in earnings	$	249	$	39	$	332	$	620


(1)	Includes OTTI on non-marketable equity securities.


(2)	Includes a $160 million impairment related to AFS securities affected by changes in the Venezuela exchange rate during 2016.


(3)	The impairment charge is related to the carrying value of an equity investment sold in 2016.

Cumulative other-than-temporary impairment credit losses recognized in earnings

The following are 12-month rollforwards of the credit-related impairments recognized in earnings for AFS and HTM debt securities held that the Company does not intend to sell nor likely will be required to sell:



	Cumulative OTTI credit losses recognized in earnings on debt securities still held
In millions of dollars	Dec. 31, 2017 balance		Credit impairments recognized in earnings on securities not previously impaired		Credit impairments recognized in earnings on securities that have been previously impaired		Reductions due to credit-impaired securities sold, transferred or matured⁽¹⁾			Dec. 31, 2018 balance
AFS debt securities
Mortgage-backed securities⁽²⁾	$	38	$	—	$	—	$	(37	)	$	1
State and municipal	4		—		—		(4		)	—
Foreign government securities	—		—		—		—			—
Corporate	4		—		—		—			4
All other debt securities	2		—		—		(2		)	—
Total OTTI credit losses recognized for AFS debt securities	$	48	$	—	$	—	$	(43	)	$	5
HTM debt securities
Mortgage-backed securities⁽³⁾	$	54	$	—	$	—	$	(54	)	$	—
State and municipal	3		—		—		(3		)	—
Total OTTI credit losses recognized for HTM debt securities	$	57	$	—	$	—	$	(57	)	$	—


(1)	Includes $18 million in cumulative OTTI reclassified from HTM to AFS due to the transfer of the related debt securities from HTM to AFS. Citi adopted ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, on January 1, 2018 and transferred approximately $4 billion of HTM debt securities into AFS classification as permitted as a one-time transfer under the standard.


(2)	Primarily consists of Prime securities.


(3)	Primarily consists of Alt-A securities.



	Cumulative OTTI credit losses recognized in earnings on debt securities still held
In millions of dollars	Dec. 31, 2016 balance		Credit impairments recognized in earnings on securities not previously impaired		Credit impairments recognized in earnings on securities that have been previously impaired		Reductions due to credit-impaired securities sold, transferred or matured⁽¹⁾			Dec. 31, 2017 balance
AFS debt securities
Mortgage-backed securities ⁽¹⁾⁽²⁾	$	—	$	—	$	—	$	38		$	38
State and municipal	4		—		—		—			4
Foreign government securities	—		—		—		—			—
Corporate	5		—		—		(1		)	4
All other debt securities	22		—		2		(22		)	2
Total OTTI credit losses recognized for AFS debt securities	$	31	$	—	$	2	$	15		$	48
HTM debt securities
Mortgage-backed securities^{(1) (3)}	$	101	$	—	$	—	$	(47	)	$	54
State and municipal	3		—		—		—			3
Total OTTI credit losses recognized for HTM debt securities	$	104	$	—	$	—	$	(47	)	$	57


(1)	Includes $38 million in cumulative OTTI reclassified from HTM to AFS due to the transfer of the related securities from HTM to AFS.


(2)	Primarily consists of Prime securities.


(3)	Primarily consists of Alt-A securities.

Carrying value of non-marketable equity securities measured using the measurement alternative

Below is the carrying value of non-marketable equity securities measured using the measurement alternative at December 31, 2018, and amounts recognized in earnings for the year ended December 31, 2018:



In millions of dollars	Year Ended December 31, 2018
Measurement alternative:
Balance as of December 31, 2018	$	538
Impairment losses⁽¹⁾	7
Downward changes for observable prices⁽¹⁾	18
Upward changes for observable prices⁽¹⁾	219


(1)	See Note 24 to the Consolidated Financial Statements for additional information on these nonrecurring fair value measurements.

Investments in alternative investment funds



	Fair value				Unfunded commitments				Redemption frequency (if currently eligible) monthly, quarterly, annually	Redemption notice period
In millions of dollars	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Hedge funds	$	—	$	1	$	—	$	—	Generally quarterly	10–95 days
Private equity funds⁽¹⁾	168		372		62		62		—	—
Real estate funds⁽²⁾	14		31		19		20		—	—
Mutual/collective investment funds	25		—		—		—
Total	$	207	$	404	$	81	$	82	—	—


(1)	Private equity funds include funds that invest in infrastructure, emerging markets and venture capital.


(2)	Includes several real estate funds that invest primarily in commercial real estate in the U.S., Europe and Asia.