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INCENTIVE PLANS (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Summary of the status of unvested stock awards

A summary of the performance share unit activity for 2019 is presented below:



Performance share units	Units		Weighted- average grant date fair value per unit
Outstanding, beginning of period	1,768,362		$	51.88
Granted⁽¹⁾	560,031		72.83
Canceled	(194,782	)	42.24
Payments	(641,611	)	27.03
Outstanding, end of period	1,492,000		$	71.69

(1)

The weighted-average grant date fair value per unit awarded in 2018 and 2017 was $83.24 and $59.22, 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, 2018	31,728,596		$	57.30
Granted⁽¹⁾	14,920,917		61.78
Canceled	(1,104,448	)	60.45
Vested⁽²⁾	(15,350,350	)	53.58
Unvested at December 31, 2019	30,194,715		$	61.30


(1)	The weighted-average fair value of the shares granted during 2018 and 2017 was $73.87 and $59.12, respectively.

(2)

The weighted-average fair value of the shares vesting during 2019 was approximately $63.38 per share.

Schedule of assumptions used

Other significant assumptions for the awards are as follows:



Valuation assumptions	2019		2018		2017
Expected volatility	25.33	%	24.93	%	25.79	%
Expected dividend yield	2.67		1.75		1.30

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⁾	2020	2019	2018	2019		2018
Equity securities	0–100%	0–100%	0–66%	13	%	13	%
Debt securities	0–100	0–100	0–100	80		80
Real estate	0–15	0–15	0–12	1		1
Other investments	0–100	0–100	0–100	6		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⁾	2020	2019	2018	2019		2018
Equity securities	0–38%	0–31%	0–35%	27	%	35	%
Debt securities	56–100	66–100	62–100	71		62
Other investments	0–6	0–3	0–3	2		3
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.

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	2019	2018
Discount rate
U.S. plans
Qualified pension	3.25%	4.25%
Nonqualified pension	3.25	4.25
Postretirement	3.15	4.20
Non-U.S. pension plans
Range⁽¹⁾	-0.10 to 11.30	0.25 to 12.00
Weighted average	3.65	4.47
Non-U.S. postretirement plans
Range	0.90 to 9.10	1.75 to 10.75
Weighted average	7.76	9.05
Future compensation increase rate⁽²⁾
Non-U.S. pension plans
Range	1.50 to 11.50	1.30 to 13.67
Weighted average	3.17	3.16
Expected return on assets
U.S. plans
Qualified pension	6.70	6.70
Postretirement⁽³⁾	6.70/3.00	6.70/3.00
Non-U.S. pension plans
Range	0.00 to 11.50	1.00 to 11.50
Weighted average	3.95	4.30
Non-U.S. postretirement plans
Range	6.20 to 8.00	8.00 to 9.20
Weighted average	7.99	8.01


(1)	Due to substantial downward movement in yields, there were negative discount rates for plans with relatively short duration in major markets, such as the Eurozone and Switzerland.


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


(3)	In 2019 and 2018, the expected rate of return for the VEBA Trust was 3.00%.



During the year	2019	2018	2017
Discount rate
U.S. plans
Qualified pension	4.25%/3.85%/ 3.45%/3.10%	3.60%/3.95%/ 4.25%/4.30%	4.10%/4.05%/ 3.80%/3.75%
Nonqualified pension	4.25/3.90/ 3.50/3.10	3.60/3.95/ 4.25/4.30	4.00/3.95/ 3.75/3.65
Postretirement	4.20/3.80/ 3.35/3.00	3.50/3.90/ 4.20/4.20	3.90/3.85/ 3.60/3.55
Non-U.S. pension plans⁽¹⁾
Range⁽²⁾	-0.05 to 12.00	0.00 to 10.75	0.25 to 72.50
Weighted average	4.47	4.17	4.40
Non-U.S. postretirement plans⁽¹⁾
Range	1.75 to 10.75	1.75 to 10.10	1.75 to 11.05
Weighted average	9.05	8.10	8.27
Future compensation increase rate⁽³⁾
Non-U.S. pension plans⁽¹⁾
Range	1.30 to 13.67	1.17 to 13.67	1.25 to 70.00
Weighted average	3.16	3.08	3.21
Expected return on assets
U.S. plans
Qualified pension⁽⁴⁾	6.70	6.80/6.70	6.80
Postretirement⁽⁴⁾⁽⁵⁾	6.70/3.00	6.80/6.70/3.00	6.80
Non-U.S. pension plans⁽¹⁾
Range	1.00 to 11.50	0.00 to 11.60	1.00 to 11.50
Weighted average	4.30	4.52	4.55
Non-U.S. postretirement plans⁽¹⁾
Range	8.00 to 9.20	8.00 to 9.80	8.00 to 10.30
Weighted average	8.01	8.01	8.02


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


(2)	Due to substantial downward movement in yields, there were negative discount rates for plans with relatively short duration in major markets, such as the Eurozone and Switzerland.


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


(4)	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.

(5)

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

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⁾	2020	2019		2018		2019		2018
Equity securities⁽²⁾	0–26%	17	%	15	%	17	%	15	%
Debt securities⁽³⁾	35–82	58		57		58		57
Real estate	0–7	4		5		4		5
Private equity	0–10	3		3		3		3
Other investments	0–30	18		20		18		20
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 2019 and 2018.

(3)

The VEBA Trust for postretirement benefits are primarily invested in cash equivalents and debt securities in 2019 and 2018, respectively, and 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:



	2019	2018
Discount rate	2.90%	3.95%
Expected return on assets	3.00	3.00
Health care cost increase rate
Following year	6.75	7.00
Ultimate rate to which cost increase is assumed to decline	5.00	5.00
Year in which the ultimate rate is reached	2027	2027

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:



	2019						2018						2017
	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	762,225		$	101.84	$	—	1,138,813		$	161.96	$	—	1,527,396		$	131.78	$	—
Canceled	(11,365	)	40.80		—		—		—		—		—		—		—
Expired	(449,916	)	142.30		—		(376,588	)	283.63		—		—		—		—
Exercised	(134,294	)	39.00		23.50		—		—		—		(388,583	)	43.35		15.67
Outstanding, end of period	166,650		$	47.42	$	32.47	762,225		$	101.84	$	—	1,138,813		$	161.96	$	—
Exercisable, end of period	166,650						762,225						1,138,813

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, 2019:



		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
$41.54–$60.00	166,650	1.4 years	$	47.42	166,650	$	47.42
Total at December 31, 2019	166,650	1.4 years	$	47.42	166,650	$	47.42

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	2019		2018		2017
Charges for estimated awards to retirement-eligible employees	$	683	$	669	$	659
Amortization of deferred cash awards, deferred cash stock units and performance stock units	355		202		354
Immediately vested stock award expense⁽¹⁾	82		75		70
Amortization of restricted and deferred stock awards⁽²⁾	404		435		474
Other variable incentive compensation	666		640		694
Total	$	2,190	$	2,021	$	2,251


(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.