EMPLOYEE BENEFITS (Tables)
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12 Months Ended |
Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] |
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Schedule of funded status of the plans reconciled to the amount reported in the balance sheets |
As of or for the Years Ended | | Pension | | Postretirement | December 31, | | U.S. Plans* | | Non-U.S. Plans* | | U.S. Plans | | Non-U.S. Plans | (in millions) | | 2017 | | 2016 | | | 2017 | | 2016 | | 2017 | | 2016 | | | 2017 | | 2016 | Change in projected benefit obligation: | | | | | | | | | | | | | | | | | | | Benefit obligation, beginning of year | $ | 4,948 | $ | 5,324 | | $ | 1,246 | $ | 1,146 | $ | 196 | $ | 208 | | $ | 80 | $ | 75 | Service cost | | 11 | | 19 | | | 29 | | 31 | | 2 | | 2 | | | 3 | | 3 | Interest cost | | 166 | | 181 | | | 16 | | 21 | | 6 | | 7 | | | 3 | | 3 | Actuarial (gain) loss | | 372 | | 118 | | | (29) | | 98 | | - | | (2) | | | (2) | | - | Benefits paid: | | | | | | | | | | | | | | | | | | | AIG assets | | (19) | | (24) | | | (10) | | (12) | | (13) | | (14) | | | (1) | | (1) | Plan assets | | (161) | | (332) | | | (26) | | (35) | | - | | - | | | - | | - | Plan amendment | | - | | - | | | - | | 1 | | - | | - | | | (6) | | - | Curtailments | | - | | - | | | (7) | | (2) | | - | | (1) | | | - | | - | Settlements | | (226) | | (338) | | | (12) | | (16) | | - | | - | | | - | | - | Foreign exchange effect | | - | | - | | | 37 | | 19 | | - | | - | | | 1 | | - | Other | | - | | - | | | (42) | | (5) | | (1) | | (4) | | | (15) | | - | Projected benefit obligation, end of year | $ | 5,091 | $ | 4,948 | | $ | 1,202 | $ | 1,246 | $ | 190 | $ | 196 | | $ | 63 | $ | 80 | Change in plan assets: | | | | | | | | | | | | | | | | | | | Fair value of plan assets, beginning | | | | | | | | | | | | | | | | | | | of year | $ | 3,843 | $ | 4,359 | | $ | 803 | $ | 773 | $ | - | $ | - | | $ | - | $ | - | Actual return on plan assets, net of expenses | | 584 | | 154 | | | 67 | | 19 | | - | | - | | | - | | - | AIG contributions | | 329 | | 24 | | | 60 | | 71 | | 13 | | 14 | | | 1 | | 1 | Benefits paid: | | | | | | | | | | | | | | | | | | | AIG assets | | (19) | | (24) | | | (10) | | (12) | | (13) | | (14) | | | (1) | | (1) | Plan assets | | (161) | | (332) | | | (26) | | (35) | | - | | - | | | - | | - | Settlements | | (226) | | (338) | | | (12) | | (16) | | - | | - | | | - | | - | Foreign exchange effect | | - | | - | | | 19 | | 6 | | - | | - | | | - | | - | Dispositions | | - | | - | | | - | | (4) | | - | | - | | | - | | - | Other | | - | | - | | | (26) | | 1 | | - | | - | | | - | | - | Fair value of plan assets, end of year | $ | 4,350 | $ | 3,843 | | $ | 875 | $ | 803 | $ | - | $ | - | | $ | - | $ | - | Funded status, end of year | $ | (741) | $ | (1,105) | | $ | (327) | $ | (443) | $ | (190) | $ | (196) | | $ | (63) | $ | (80) | Amounts recognized in the balance | | | | | | | | | | | | | | | | | | | sheet: | | | | | | | | | | | | | | | | | | | Assets | $ | - | $ | - | | $ | 68 | $ | 53 | $ | - | $ | - | | $ | - | $ | - | Liabilities | | (741) | | (1,105) | | | (395) | | (496) | | (190) | | (196) | | | (63) | | (80) | Total amounts recognized | $ | (741) | $ | (1,105) | | $ | (327) | $ | (443) | $ | (190) | $ | (196) | | $ | (63) | $ | (80) | Pre-tax amounts recognized in Accumulated | | | | | | | | | | | | | | | | | | | other comprehensive income: | | | | | | | | | | | | | | | | | | | Net gain (loss) | $ | (1,373) | $ | (1,405) | | $ | (170) | $ | (251) | $ | 17 | $ | 17 | | $ | (11) | $ | (15) | Prior service (cost) credit | | - | | - | | | (22) | | (28) | | 1 | | 2 | | | 5 | | - | Total amounts recognized | $ | (1,373) | $ | (1,405) | | $ | (192) | $ | (279) | $ | 18 | $ | 19 | | $ | (6) | $ | (15) |
* Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $272 million and $278 million for the U.S. at December 31, 2017 and 2016, respectively, and $211 million and $199 million for the non-U.S at December 31, 2017 and 2016, respectively.
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Schedule of accumulated benefit obligations |
At December 31, | | | | | (in millions) | | 2017 | | 2016 | U.S. pension benefit plans | $ | 5,091 | $ | 4,948 | Non-U.S. pension benefit plans | $ | 1,188 | $ | 1,215 |
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Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets |
At December 31, | PBO Exceeds Fair Value of Plan Assets | ABO Exceeds Fair Value of Plan Assets | | | U.S. Plans | | Non-U.S. Plans | | U.S. Plans | | Non-U.S. Plans | (in millions) | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | Projected benefit obligation | $ | 5,091 | $ | 4,948 | $ | 1,054 | $ | 1,121 | $ | 5,091 | $ | 4,948 | $ | 991 | $ | 1,029 | Accumulated benefit obligation | | 5,091 | | 4,948 | | 979 | | 1,016 | | 5,091 | | 4,948 | | 979 | | 1,009 | Fair value of plan assets | | 4,350 | | 3,843 | | 596 | | 545 | | 4,350 | | 3,843 | | 596 | | 536 |
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Schedule of components of net periodic benefit cost |
Years Ended December 31, | Pension | | Postretirement | | U.S. Plans | | Non-U.S. Plans | | U.S. Plans | | Non-U.S. Plans | (in millions) | | 2017 | | 2016 | | 2015 | | | 2017 | | 2016 | | 2015 | | | 2017 | | 2016 | | 2015 | | | 2017 | | 2016 | | 2015 | Components of net periodic benefit | | | | | | | | | | | | | | | | | | | | | | | | | | | | cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service cost* | $ | 11 | $ | 19 | $ | 192 | | $ | 29 | $ | 31 | $ | 43 | | $ | 2 | $ | 2 | $ | 5 | | $ | 3 | $ | 3 | $ | 3 | Interest cost | | 166 | | 181 | | 220 | | | 16 | | 21 | | 25 | | | 6 | | 7 | | 8 | | | 3 | | 3 | | 3 | Expected return on assets | | (266) | | (292) | | (295) | | | (24) | | (26) | | (25) | | | - | | - | | - | | | - | | - | | - | Amortization of prior service credit | | - | | - | | (22) | | | - | | - | | (2) | | | (1) | | (12) | | (11) | | | (1) | | - | | (1) | Amortization of net (gain) loss | | 26 | | 25 | | 92 | | | 12 | | 7 | | 9 | | | (1) | | (1) | | - | | | 1 | | 1 | | - | Net periodic benefit cost (credit) | | (63) | | (67) | | 187 | | | 33 | | 33 | | 50 | | | 6 | | (4) | | 2 | | | 6 | | 7 | | 5 | Curtailment gain | | - | | - | | (179) | | | (6) | | (6) | | (1) | | | - | | (1) | | - | | | (2) | | - | | - | Settlement loss | | 60 | | 149 | | - | | | 1 | | 2 | | 1 | | | - | | - | | - | | | - | | - | | - | Net benefit cost (credit) | $ | (3) | $ | 82 | $ | 8 | | $ | 28 | $ | 29 | $ | 50 | | $ | 6 | $ | (5) | $ | 2 | | $ | 4 | $ | 7 | $ | 5 | Total recognized in Accumulated other | | | | | | | | | | | | | | | | | | | | | | | | | | | | comprehensive income (loss) | $ | 32 | $ | (82) | $ | 143 | | $ | 87 | $ | (101) | $ | 38 | | $ | (2) | $ | (7) | $ | 12 | | $ | 9 | $ | 1 | $ | (9) | Total recognized in net periodic benefit | | | | | | | | | | | | | | | | | | | | | | | | | | | | cost and other comprehensive | | | | | | | | | | | | | | | | | | | | | | | | | | | | income (loss) | $ | 35 | $ | (164) | $ | 135 | | $ | 59 | $ | (130) | $ | (12) | | $ | (8) | $ | (2) | $ | 10 | | $ | 5 | $ | (6) | $ | (14) |
* Reflects administrative fees for the U.S. pension plans.
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Schedule of weighted average assumptions used to determine the benefit obligations |
| Pension | | Postretirement | | | U.S. Plans | | | Non-U.S. Plans(a) | | U.S. Plans | | Non-U.S. Plans(a) | | December 31, 2017 | | | | | | | | | | | | | | Discount rate | 3.61 | % | | | | 1.60 | % | 3.53 | % | | | 3.59 | % | Rate of compensation increase | N/A | | (b) | | | 2.27 | % | N/A | | | | 3.00 | % | December 31, 2016 | | | | | | | | | | | | | | Discount rate | 4.14 | % | | | | 1.50 | % | 4.02 | % | | | 3.95 | % | Rate of compensation increase | N/A | | (b) | | | 2.50 | % | N/A | | | | 3.38 | % |
(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. (b) Compensation increases are no longer applicable due to the plan freeze that became effective January 1, 2016.
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Schedule of assumed health care cost trend rates |
At December 31, | 2017 | 2016 | Following year: | | | Medical (before age 65) | 6.12% | 6.31% | Medical (age 65 and older) | 5.00% | 5.00% | Ultimate rate to which cost increase is assumed to decline | 4.50% | 4.50% | Year in which the ultimate trend rate is reached: | | | Medical (before age 65) | 2038 | 2038 | Medical (age 65 and older) | 2038 | 2038 |
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Schedule of A one percent point change in the assumed healthcare cost trend rate |
| One Percent | | One Percent | At December 31, | Increase | | Decrease | (in millions) | | 2017 | | 2016 | | | 2017 | | 2016 | U.S. plans | $ | 4 | $ | 4 | | $ | (4) | $ | (3) | Non-U.S. plans | $ | 14 | $ | 19 | | $ | (10) | $ | (14) |
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Schedule of weighted average assumptions used to determine the net periodic benefit costs |
| Pension | | | Postretirement | | | U.S. Plans | | Non-U.S. Plans* | | | U.S. Plans | | Non-U.S. Plans* | | For the Year Ended December 31, 2017 | | | | | | | | | | | | | | Discount rate | 4.15 | % | | | 1.50 | % | | 4.01 | % | | | 3.95 | % | Rate of compensation increase | N/A | | | | 2.50 | % | | N/A | | | | 3.38 | % | Expected return on assets | 7.00 | % | | | 2.92 | % | | N/A | | | | N/A | | For the Year Ended December 31, 2016 | | | | | | | | | | | | | | Discount rate | 4.33 | % | | | 2.17 | % | | 4.21 | % | | | 4.09 | % | Rate of compensation increase | N/A | | | | 2.64 | % | | N/A | | | | 3.43 | % | Expected return on assets | 7.00 | % | | | 3.28 | % | | N/A | | | | N/A | | For the Year Ended December 31, 2015 | | | | | | | | | | | | | | Discount rate | 3.94 | % | | | 2.33 | % | | 3.77 | % | | | 4.04 | % | Rate of compensation increase | 3.40 | % | | | 2.89 | % | | N/A | | | | 3.29 | % | Expected return on assets | 7.25 | % | | | 3.33 | % | | N/A | | | | N/A | |
* The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits.
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Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls |
| U.S. Plans | Non-U.S. Plans | | (in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | | At December 31, 2017 | | | | | | | | | | | | | | | | | | Assets: | | | | | | | | | | | | | | | | | | Cash and cash equivalents | $ | 397 | $ | - | $ | - | $ | 397 | $ | 51 | $ | - | $ | - | $ | 51 | | Equity securities: | | | | | | | | | | | | | | | | | | U.S.(a) | | 1,300 | | - | | - | | 1,300 | | - | | - | | - | | - | | International(b) | | 265 | | - | | - | | 265 | | 362 | | 64 | | - | | 426 | | Fixed maturity securities: | | | | | | | | | | | | | | | | | | U.S. investment grade(c) | | - | | 1,006 | | 12 | | 1,018 | | - | | - | | - | | - | | International investment grade(c) | | - | | 204 | | - | | 204 | | - | | 97 | | - | | 97 | | U.S. and international high yield(d) | | - | | 212 | | - | | 212 | | - | | 171 | | - | | 171 | | Mortgage and other asset-backed | | | | | | | | | | | | | | | | | | securities(e) | | - | | 142 | | - | | 142 | | - | | - | | - | | - | | Other fixed maturity securities | | - | | - | | - | | - | | - | | 16 | | - | | 16 | | Other investment types(g): | | | | | | | | | | | | | | | | | | Direct private equity(f) | | - | | - | | 15 | | 15 | | - | | - | | - | | - | | Insurance contracts | | - | | 20 | | - | | 20 | | - | | - | | 113 | | 113 | | Total | $ | 1,962 | $ | 1,584 | $ | 27 | $ | 3,573 | $ | 413 | $ | 348 | $ | 113 | $ | 874 | | At December 31, 2016 | | | | | | | | | | | | | | | | | | Assets: | | | | | | | | | | | | | | | | | | Cash and cash equivalents | $ | 228 | $ | - | $ | - | $ | 228 | $ | 50 | $ | - | $ | - | $ | 50 | | Equity securities: | | | | | | | | | | | | | | | | | | U.S.(a) | | 838 | | 1 | | - | | 839 | | - | | - | | - | | - | | International(b) | | 377 | | - | | - | | 377 | | 298 | | 58 | | - | | 356 | | Fixed maturity securities: | | | | | | | | | | | | | | | | | | U.S. investment grade(c) | | - | | 1,174 | | 2 | | 1,176 | | - | | - | | - | | - | | International investment grade(c) | | - | | - | | - | | - | | - | | 90 | | - | | 90 | | U.S. and international high yield(d) | | - | | 218 | | - | | 218 | | - | | 186 | | - | | 186 | | Mortgage and other asset-backed | | | | | | | | | | | | | | | | | | securities(e) | | - | | - | | - | | - | | - | | - | | - | | - | | Other fixed maturity securities | | - | | - | | - | | - | | - | | 13 | | - | | 13 | | Other investment types(g): | | | | | | | | | | | | | | | | | | Direct private equity(f) | | - | | - | | 24 | | 24 | | - | | - | | - | | - | | Insurance contracts | | - | | 21 | | - | | 21 | | - | | - | | 108 | | 108 | | Total | $ | 1,443 | $ | 1,414 | $ | 26 | $ | 2,883 | $ | 348 | $ | 347 | $ | 108 | $ | 803 | |
(a) Includes passive and active U.S. Large Cap and Small Cap strategies, as well as mutual funds, and exchange traded funds. (b) Includes investments in companies in emerging and developed markets. (c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade. (e) Comprised primarily of investments in U.S. asset backed securities and collateralized loan obligations. (f) Comprised of private capital financing including private debt and private equity securities. (g) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $777 million and $960 million at December 31, 2017 and 2016, respectively.
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Schedule of changes in Level 3 plan assets measured at fair value |
| | | | | | | | | | | | | | | | | | | | Changes in | | | | | Net | | | | | | | | | | | | | | | | Unrealized Gains | | | Balance | | Realized and | | | | | | | | | | | | | | Balance | | (Losses) on | At December 31, 2017 | | Beginning | | Unrealized | | | | | | | | | | Transfers | | Transfers | | at End | | Instruments Held | (in millions) | | of year | | Gains (Losses) | | Purchases | | Sales | | Issuances | | Settlements | | In | | Out | | of year | | at End of year | U.S. Plan Assets: | | | | | | | | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | | | | | | | | U.S. investment grade | $ | 2 | $ | - | $ | 17 | $ | (7) | $ | - | $ | - | $ | - | $ | - | $ | 12 | $ | 2 | Direct private equity | | 24 | | (3) | | 1 | | (7) | | - | | - | | - | | - | | 15 | | (1) | Total | $ | 26 | $ | (3) | $ | 18 | $ | (14) | $ | - | $ | - | $ | - | $ | - | $ | 27 | $ | 1 | Non-U.S. Plan Assets: | | | | | | | | | | | | | | | | | | | | | Other fixed maturity securities | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | Insurance contracts | | 108 | | 4 | | 1 | | - | | - | | - | | - | | - | | 113 | | - | Total | $ | 108 | $ | 4 | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 113 | $ | - |
| | | | | | | | | | | | | | | | | | | | Changes in | | | | | Net | | | | | | | | | | | | | | | | Unrealized Gains | | | Balance | | Realized and | | | | | | | | | | | | | | Balance | | (Losses) on | At December 31, 2016 | | Beginning | | Unrealized | | | | | | | | | | Transfers | | Transfers | | at End | | Instruments Held | (in millions) | | of year | | Gains (Losses) | | Purchases | | Sales | | Issuances | | Settlements | | In | | Out | | of year | | at End of year | U.S. Plan Assets: | | | | | | | | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | | | | | | | | U.S. investment grade | $ | 9 | $ | 1 | $ | 2 | $ | (10) | $ | - | $ | - | $ | - | $ | - | $ | 2 | $ | - | Direct private equity | | 28 | | (4) | | 4 | | (4) | | - | | - | | - | | - | | 24 | | (4) | Total | $ | 37 | $ | (3) | $ | 6 | $ | (14) | $ | - | $ | - | $ | - | $ | - | $ | 26 | $ | (4) | Non-U.S. Plan Assets: | | | | | | | | | | | | | | | | | | | | | Other fixed maturity securities | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | Insurance contracts | | 95 | | 12 | | 1 | | - | | - | | - | | 2 | | (2) | | 108 | | - | Total | $ | 95 | $ | 12 | $ | 1 | $ | - | $ | - | $ | - | $ | 2 | $ | (2) | $ | 108 | $ | - |
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Schedule of expected future benefit payments, net of participants' contributions |
| | Pension | | Postretirement | | | U.S. | | Non-U.S. | | | U.S. | | Non-U.S. | (in millions) | | Plans | | Plans | | | Plans | | Plans | 2018 | $ | 291 | $ | 36 | | $ | 13 | $ | 1 | 2019 | | 287 | | 40 | | | 13 | | 1 | 2020 | | 297 | | 42 | | | 13 | | 1 | 2021 | | 294 | | 43 | | | 13 | | 2 | 2022 | | 291 | | 41 | | | 13 | | 2 | 2023-2027 | | 1,407 | | 235 | | | 60 | | 11 |
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U.S. Plans |
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Defined Benefit Plan Disclosure [Line Items] |
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Schedule of asset allocation percentage by major asset class and target allocation |
| Target | | Actual | | Actual | | At December 31, | 2018 | | 2017 | | 2016 | | Asset class: | | | | | | | Equity securities | 46 | % | 45 | % | 43 | % | Fixed maturity securities | 44 | % | 36 | % | 36 | % | Other investments | 10 | % | 19 | % | 21 | % | Total | 100 | % | 100 | % | 100 | % |
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Non U.S. Plans |
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Defined Benefit Plan Disclosure [Line Items] |
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Schedule of asset allocation percentage by major asset class and target allocation |
| Target | | Actual | | Actual | | At December 31, | 2018 | | 2017 | | 2016 | | Asset class: | | | | | | | Equity securities | 30 | % | 49 | % | 44 | % | Fixed maturity securities | 52 | % | 32 | % | 36 | % | Other investments | 17 | % | 13 | % | 14 | % | Cash and cash equivalents | 1 | % | 6 | % | 6 | % | Total | 100 | % | 100 | % | 100 | % |
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