RETIREMENT BENEFITS (Tables)

9 Months Ended

Sep. 30, 2021

The following tables summarize 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	2021		2020			2021		2020		2021		2020		2021		2020

Benefits earned during the period	$	—	$	—		$	36	$	38	$	—	$	—	$	2	$	2
Interest cost on benefit obligation	87		87			67		59		3		4		25		22
Expected return on assets	(173)		(205)			(65)		(62)		(3)		(4)		(22)		(18)
Amortization of unrecognized:
Prior service benefit	—		—			(1)		(1)		(3)		—		(2)		(3)
Net actuarial loss	57		62			16		17		—		—		4		5

Settlement loss (gain)(1)	—		—			1		(6)		—		—		—		—




Total net (benefit) expense	$	(29)	$	(56)		$	54	$	45	$	(3)	$	—	$	7	$	8

(1) Losses (gains) due to 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	2021		2020			2021		2020		2021		2020		2021		2020

Benefits earned during the period	$	—	$	—		$	113	$	109	$	—	$	—	$	6	$	6
Interest cost on benefit obligation	264		294			199		184		9		14		74		68
Expected return on assets	(529)		(619)			(189)		(183)		(10)		(13)		(65)		(56)
Amortization of unrecognized:
Prior service cost (benefit)	1		1			(4)		(4)		(7)		—		(7)		(7)
Net actuarial loss (gain)	173		171			48		51		(1)		—		12		15

Settlement loss (gain)(1)	—		—			5		(3)		—		—		—		—




Total net (benefit) expense	$	(91)	$	(153)		$	172	$	154	$	(9)	$	1	$	20	$	26

(1) Losses (gains) due to settlement relate to repositioning and divestiture activities.

The following table summarizes the 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	2021		2020		2021		2020
Service-related expense
Interest cost on benefit obligation	$	—	$	1	$	—	$	1

Amortization of unrecognized:

Net actuarial loss	1		—		2		1

Total service-related expense	$	1	$	1	$	2	$	2
Non-service-related expense	$	3	$	4	$	7	$	12
Total net expense	$	4	$	5	$	9	$	14

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 table summarizes the funded status and amounts recognized on the Consolidated Balance Sheet for the Company’s

Significant Plans:



	Nine Months Ended September 30, 2021
	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	$	13,815	$	8,629	$	559	$	1,390
Plans measured annually	(25)		(2,248)		—		(277)
Projected benefit obligation at beginning of year—Significant Plans	$	13,790	$	6,381	$	559	$	1,113
First quarter activity	(983)		(572)		(37)		(146)
Second quarter activity	265		138		(6)		53

Projected benefit obligation at June 30, 2021—Significant Plans	$	13,072	$	5,947	$	516	$	1,020

Benefits earned during the period	—		20		—		1
Interest cost on benefit obligation	87		58		3		23
Actuarial gain	(63)		(65)		(4)		(29)
Benefits paid, net of participants’ contributions and government subsidy	(249)		(87)		(12)		(15)


Settlement gain(1)	—		(8)		—		—
Curtailment gain(1)	—		(14)		—		—

Foreign exchange impact and other	—		(147)		—		(32)


Projected benefit obligation at period end—Significant Plans	$	12,847	$	5,704	$	503	$	968
Change in plan assets

Plan assets at fair value at beginning of year	$	13,309	$	7,831	$	331	$	1,146
Plans measured annually	—		(1,500)		—		(8)
Plan assets at fair value at beginning of year—Significant Plans	$	13,309	$	6,331	$	331	$	1,138
First quarter activity	(435)		(404)		(8)		(44)
Second quarter activity	320		213		5		35
Plan assets at fair value at June 30, 2021—Significant Plans	$	13,194	$	6,140	$	328	$	1,129

Actual return on plan assets	86		32		1		18
Company contributions, net of reimbursements	13		16		10		—

Benefits paid, net of participants’ contributions and government subsidy	(249)		(87)		(12)		(15)

Settlements gain(1)	—		(8)		—		—

Foreign exchange impact and other	—		(130)		—		(36)


Plan assets at fair value at period end—Significant Plans	$	13,044	$	5,963	$	327	$	1,096

Qualified plans(2)	$	865	$	259	$	(176)	$	128
Nonqualified plans(3)	(668)		—		—		—
Funded status of the plans at period end—Significant Plans	$	197	$	259	$	(176)	$	128
Net amount recognized at period end
Benefit asset	$	865	$	808	$	—	$	128
Benefit liability	(668)		(549)		(176)		—
Net amount recognized on the balance sheet—Significant Plans	$	197	$	259	$	(176)	$	128
Amounts recognized in AOCI at period end

Prior service benefit	$	—	$	(1)	$	94	$	51
Net actuarial (loss) gain	(6,580)		(884)		86		(207)
Net amount recognized in equity (pretax)—Significant Plans	$	(6,580)	$	(885)	$	180	$	(156)
Accumulated benefit obligation at period end—Significant Plans	$	12,845	$	5,425	$	503	$	968

(1)Gains due to settlement and curtailment relate to repositioning and divestiture activities.

(2)The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act of 1974, as amended (ERISA), funding rules as of January 1, 2021 and no minimum required funding is expected for 2021.

(3)The nonqualified plans of the Company are unfunded.

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 September 30, 2021		Nine Months Ended September 30, 2021

Beginning of period balance, net of tax(1)(2)	$	(6,063)	$	(6,864)


Actuarial assumptions changes and plan experience	175		1,125
Net asset loss due to difference between actual and expected returns	(116)		(325)
Net amortization	69		216

Curtailment/settlement gain (loss)(3)	1		(3)
Foreign exchange impact and other	46		153
Change in deferred taxes, net	(40)		(230)
Change, net of tax	$	135	$	936
End of period balance, net of tax(1)(2)	$	(5,928)	$	(5,928)

(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)Curtailment and settlement relate to repositioning and divestiture activities.

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
	Sept. 30, 2021		Sept. 30, 2020
U.S. plans
Qualified pension	2.75	%	2.60	%
Nonqualified pension	2.70		2.55
Postretirement	2.60		2.45
Non-U.S. plans
Pension	0.25–9.25		0.20–8.40
Weighted average	4.23		3.68
Postretirement	9.50		8.80

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, 2021		Jun. 30, 2021		Mar. 31, 2021
U.S. plans
Qualified pension	2.80	%	2.75	%	3.10	%
Nonqualified pension	2.75		2.70		3.00
Postretirement	2.65		2.60		2.85
Non-U.S. plans
Pension	0.30–9.55		0.25–9.25		0.25–9.30
Weighted average	4.37		4.23		4.26
Postretirement	9.80		9.50		9.70

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 September 30, 2021
In millions of dollars	One-percentage-point increase		One-percentage-point decrease
Pension
U.S. plans	$	9	$	(12)
Non-U.S. plans	1		3
Postretirement
U.S. plans	—		(1)
Non-U.S. plans	(2)		2

Schedule of company contributions

The following table summarizes the Company’s actual contributions for the nine months ended September 30, 2021 and 2020, as well as expected Company contributions for the remainder of 2021 and the actual contributions made in 2020:


	Pension plans						Postretirement plans
	U.S. plans(1)				Non-U.S. plans				U.S. plans				Non-U.S. plans
In millions of dollars	2021		2020		2021		2020		2021		2020		2021		2020
Company contributions(2) for the nine months ended September 30	$	41	$	42	$	116	$	111	$	19	$	—	$	6	$	6
Company contributions (reimbursements) made during the remainder of the year	—		14		—		47		—		(15)		—		3
Company contributions expected to be made during the remainder of the year	16		—		36		—		2		—		2		—

(1)The U.S. 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	2021		2020		2021		2020
U.S. plans	$	113	$	101	$	324	$	304
Non-U.S. plans	87		73		270		223