RETIREMENT BENEFITS (Tables)

3 Months Ended

Mar. 31, 2021

The following table summarizes 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 March 31,
	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	$	—	$	—		$	39	$	37	$	—	$	—	$	2	$	2
Interest cost on benefit obligation	82		106			62		64		3		5		25		24
Expected return on assets	(182)		(208)			(61)		(65)		(4)		(5)		(22)		(20)
Amortization of unrecognized:
Prior service cost (benefit)	1		1			(1)		(1)		(2)		—		(2)		(2)
Net actuarial loss	62		56			18		17		—		—		5		5






Total net (benefit) expense	$	(37)	$	(45)		$	57	$	52	$	(3)	$	—	$	8	$	9

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 March 31,
In millions of dollars	2021		2020








Non-service-related expense	$	5	$	5
Total net expense	$	5	$	5

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:



	Three Months Ended March 31, 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





Benefits earned during the period	—		23		—		1
Interest cost on benefit obligation	$	82	$	52	3		22
Actuarial gain(1)	(849)		(428)		(31)		(123)
Benefits paid, net of participants’ contributions and government subsidy	$	(216)	$	(84)	(9)		(18)





Foreign exchange impact and other	—		(135)		—		(28)


Projected benefit obligation at period end—Significant Plans	$	12,807	$	5,809	$	522	$	967
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




Actual return on plan assets	(232)		(230)		(4)		4
Company contributions, net of reimbursements	13		18		5		—

Benefits paid, net of participants’ contributions and government subsidy	(216)		(84)		(9)		(18)



Foreign exchange impact and other	—		(108)		—		(30)


Plan assets at fair value at period end—Significant Plans	$	12,874	$	5,927	$	323	$	1,094
Funded status of the Significant Plans
Qualified plans(2)	$	730	$	118	$	(199)	$	127
Nonqualified plans(3)	(663)		—		—		—
Funded status of the plans at period end—Significant Plans	$	67	$	118	$	(199)	$	127
Net amount recognized at period end
Benefit asset	$	730	$	705	$	—	$	127
Benefit liability	(663)		(587)		(199)		—
Net amount recognized on the balance sheet—Significant Plans	$	67	$	118	$	(199)	$	127
Amounts recognized in AOCI at period end

Prior service benefit	$	—	$	1	$	99	$	55
Net actuarial (loss) gain	(6,627)		(1,043)		78		(221)
Net amount recognized in equity (pretax)—Significant Plans	$	(6,627)	$	(1,042)	$	177	$	(166)
Accumulated benefit obligation at period end—Significant Plans	$	12,804	$	5,211	$	522	$	967

(1)During 2021, the actuarial gain is primarily due to the increase in global discount rates.

(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 March 31, 2021		For Year Ended December 31, 2020

Beginning of period balance, net of tax(1)(2)	$	(6,864)	$	(6,809)


Actuarial assumptions changes and plan experience	1,430		(1,464)
Net asset (loss) gain due to difference between actual and expected returns	(718)		1,076
Net amortization	81		318
Prior service credit	—		108
Curtailment/settlement loss(3)	—		(8)
Foreign exchange impact and other	114		(108)
Change in deferred taxes, net	(193)		23
Change, net of tax	$	714	$	(55)
End of period balance, net of tax(1)(2)	$	(6,150)	$	(6,864)

(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
	Mar. 31, 2021		Dec. 31, 2020
U.S. plans
Qualified pension	2.45	%	2.55	%
Nonqualified pension	2.35		2.50
Postretirement	2.20		2.35
Non-U.S. plans
Pension	0.05-8.15		0.05-8.55
Weighted average	3.60		3.74
Postretirement	8.55		9.00

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	Mar. 31, 2021		Dec. 31, 2020		Mar. 31, 2020
U.S. plans
Qualified pension	3.10	%	2.45	%	3.20	%
Nonqualified pension	3.00		2.35		3.25
Postretirement	2.85		2.20		3.20
Non-U.S. plans
Pension	0.25-9.30		0.05-8.15		0.45-9.45
Weighted average	3.59		3.60		4.38
Postretirement	9.70		8.55		9.75

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 March 31, 2021
In millions of dollars	One-percentage-point increase		One-percentage-point decrease
Pension
U.S. plans	$	9	$	(15)
Non-U.S. plans	—		5
Postretirement
U.S. plans	—		(1)
Non-U.S. plans	(3)		3

Schedule of company contributions

The following table summarizes the Company’s actual contributions for the three months ended March 31, 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 three months ended March 31	$	14	$	14	$	37	$	37	$	5	$	—	$	2	$	2
Company contributions (reimbursements) made during the remainder of the year	—		42		—		121		—		(15)		—		7
Company contributions expected to be made during the remainder of the year	43		—		114		—		5		—		6		—

(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 March 31,
In millions of dollars	2021		2020
U.S. plans	$	105	$	101
Non-U.S. plans	92		76