RETIREMENT BENEFITS (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Retirement Benefits [Abstract] |
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Components of net (benefit) expense |
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. Benefits earned during the year are reported in Compensation and benefits expenses and all other components of the net annual benefit cost are reported in Other operating expenses in the Consolidated Statement of Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pension plans | Postretirement benefit plans | | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans | In millions of dollars | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | | | | | | | | | | | | | | Service cost | $ | — | | $ | — | | $ | — | | $ | 116 | | $ | 149 | | $ | 147 | | $ | — | | $ | — | | $ | — | | $ | 2 | | $ | 6 | | $ | 7 | | Interest cost on benefit obligation | 442 | | 351 | | 378 | | 329 | | 268 | | 246 | | 16 | | 13 | | 17 | | 90 | | 96 | | 93 | | Expected return on assets | (612) | | (683) | | (824) | | (263) | | (253) | | (245) | | (11) | | (13) | | (17) | | (69) | | (84) | | (77) | | Amortization of unrecognized: | | | | | | | | | | | | | Prior service cost (benefit) | 2 | | 2 | | 2 | | (7) | | (6) | | 5 | | (9) | | (9) | | (2) | | (8) | | (9) | | (9) | | Net actuarial loss (gain) | 162 | | 228 | | 233 | | 58 | | 62 | | 70 | | (9) | | (3) | | — | | 6 | | 13 | | 20 | | Curtailment loss (gain)(1) | — | | — | | — | | (22) | | 1 | | (8) | | — | | — | | — | | — | | — | | — | | Settlement loss (gain)(1) | — | | — | | — | | (15) | | 10 | | (1) | | — | | — | | — | | — | | — | | — | | | | | | | | | | | | | | | Total net (benefit) expense | $ | (6) | | $ | (102) | | $ | (211) | | $ | 196 | | $ | 231 | | $ | 214 | | $ | (13) | | $ | (12) | | $ | (2) | | $ | 21 | | $ | 22 | | $ | 34 | |
(1)Curtailment and settlement relate to divestiture activities. Total net expense for non-U.S. plans includes a $36 million net benefit related to the wind-down of Citi’s consumer banking business in Korea. The following table summarizes the net expense recognized in the Consolidated Statement of Income for the Company’s U.S. post employment plans:
| | | | | | | | | | | | In millions of dollars | 2022 | 2021 | 2020 | Net expense | $ | 11 | | $ | 10 | | $ | 9 | |
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Summary of entity's contributions |
The following table summarizes the Company’s actual contributions for the years ended December 31, 2022 and 2021, as well as expected Company contributions for 2023. Expected contributions are subject to change, since contribution decisions are affected by various factors, such as market performance, tax considerations and regulatory requirements. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pension plans(1) | Postretirement benefit plans(1) | | U.S. plans(2) | Non-U.S. plans | U.S. plans | Non-U.S. plans | In millions of dollars | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | Contributions made by the Company | $ | — | | $ | — | | $ | — | | $ | 71 | | $ | 158 | | $ | 104 | | $ | — | | $ | — | | $ | — | | $ | 4 | | $ | 4 | | $ | 3 | | Benefits paid directly by (reimbursements to) the Company(3) | 57 | | 55 | | 56 | | 39 | | 336 | | 51 | | 5 | | 14 | | 22 | | 5 | | 5 | | 5 | |
(1) Amounts reported for 2023 are expected amounts. (2) The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plans. (3) 2022 benefit payments have increased due to the wind-down of Citi’s consumer banking business in Korea. See Note 2 for additional information.
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Summary of the funded status and amounts recognized in the Consolidated Balance Sheet for the Company's U.S. qualified, non-qualified plans, plans outside the U.S. and postemployment plans |
The following table summarizes the funded status and amounts recognized on the Consolidated Balance Sheet for the Company’s pension and postretirement plans:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pension plans | Postretirement benefit plans | | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans | In millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | Change in benefit obligation | | | | | | | | | | | | | | | | | | Benefit obligation at beginning of year | $ | 12,766 | | $ | 13,815 | | $ | 8,001 | | $ | 8,629 | | $ | 501 | | $ | 559 | | $ | 1,169 | | $ | 1,390 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service cost | — | | — | | 116 | | 149 | | — | | — | | 2 | | 6 | | Interest cost on benefit obligation | 442 | | 351 | | 329 | | 268 | | 16 | | 13 | | 90 | | 96 | | Plan amendments | — | | — | | — | | 6 | | — | | — | | — | | — | | Actuarial (gain)(2) | (2,522) | | (447) | | (1,168) | | (344) | | (95) | | (28) | | (100) | | (110) | | Benefits paid, net of participants’ contributions | (945) | | (953) | | (397) | | (345) | | (47) | | (43) | | (72) | | (78) | | | | | | | | | | | Divestitures | — | | — | | (22) | | — | | — | | — | | — | | — | | Settlement(4) | — | | — | | (364) | | (124) | | — | | — | | — | | — | | Curtailment(4) | — | | — | | (35) | | (30) | | — | | — | | — | | — | | | | | | | | | | | Foreign exchange impact and other | — | | — | | (85) | | (208) | | — | | — | | (76) | | (135) | | | | | | | | | | | | | | | | | | | | Benefit obligation at year end | $ | 9,741 | | $ | 12,766 | | $ | 6,375 | | $ | 8,001 | | $ | 375 | | $ | 501 | | $ | 1,013 | | $ | 1,169 | | Change in plan assets | | | | | | | | | | | | | | | | | | Plan assets at fair value at beginning of year | $ | 12,977 | | $ | 13,309 | | $ | 7,614 | | $ | 7,831 | | $ | 319 | | $ | 331 | | $ | 1,043 | | $ | 1,146 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Actual return on assets(2) | (1,942) | | 565 | | (1,212) | | 217 | | (33) | | 9 | | (75) | | 97 | | Company contributions, net of reimbursements | 55 | | 56 | | 495 | | 155 | | 14 | | 22 | | 9 | | 8 | | | | | | | | | | | Benefits paid, net of participants’ contributions | (945) | | (953) | | (397) | | (345) | | (47) | | (43) | | (72) | | (78) | | Divestitures | — | | — | | (11) | | — | | — | | — | | — | | — | | Settlement(4) | — | | — | | (364) | | (124) | | — | | — | | — | | — | | Foreign exchange impact and other | — | | — | | (39) | | (120) | | — | | — | | (50) | | (130) | | Plan assets at fair value at year end | $ | 10,145 | | $ | 12,977 | | $ | 6,086 | | $ | 7,614 | | $ | 253 | | $ | 319 | | $ | 855 | | $ | 1,043 | | | | | | | | | | | Funded status of the plans | | | | | | | | | Qualified plans(5) | $ | 949 | | $ | 894 | | $ | (289) | | $ | (387) | | $ | (122) | | $ | (182) | | $ | (158) | | $ | (126) | | Nonqualified plans(3) | (545) | | (683) | | — | | — | | — | | — | | — | | — | | Funded status of the plans at year end | $ | 404 | | $ | 211 | | $ | (289) | | $ | (387) | | $ | (122) | | $ | (182) | | $ | (158) | | $ | (126) | | | | | | | | | | | Net amount recognized at year end | | | | | | | | | Qualified plans | | | | | | | | | Benefit asset | $ | 949 | | $ | 894 | | $ | 799 | | $ | 963 | | $ | — | | $ | — | | $ | 28 | | $ | 165 | | Benefit liability | — | | — | | (1,088) | | (1,350) | | (122) | | (182) | | (186) | | (291) | | Qualified plans | $ | 949 | | $ | 894 | | $ | (289) | | $ | (387) | | $ | (122) | | $ | (182) | | $ | (158) | | $ | (126) | | Nonqualified plans | (545) | | (683) | | — | | — | | — | | — | | — | | — | | Net amount recognized on the balance sheet | $ | 404 | | $ | 211 | | $ | (289) | | $ | (387) | | $ | (122) | | $ | (182) | | $ | (158) | | $ | (126) | | | | | | | | | | | Amounts recognized in AOCI at year end(1) | | | | | | | | | | | | | | | | | | Net transition obligation | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Prior service (cost) benefit | (6) | | (8) | | 7 | | 5 | | 82 | | 92 | | 36 | | 47 | | Net actuarial (loss) gain | (6,445) | | (6,575) | | (1,671) | | (1,400) | | 120 | | 77 | | (206) | | (182) | | | | | | | | | | | | | | | | | | | | Net amount recognized in equity (pretax) | $ | (6,451) | | $ | (6,583) | | $ | (1,664) | | $ | (1,395) | | $ | 202 | | $ | 169 | | $ | (170) | | $ | (135) | | Accumulated benefit obligation at year end | $ | 9,740 | | $ | 12,765 | | $ | 6,051 | | $ | 7,559 | | $ | 375 | | $ | 501 | | $ | 1,013 | | $ | 1,169 | | | | | | | | | | | | | | | | | | | |
(1)The framework for the Company’s pension oversight process includes monitoring of potential settlement charges for all plans. Settlement accounting is triggered when either the sum of all settlements (including lump sum payments) for the year is greater than service plus interest costs or if more than 10% of the plan’s projected benefit obligation will be settled. Because some of Citi’s Significant Plans are frozen and have no material service cost, settlement accounting may apply in the future. (2)Actuarial gain was primarily due to the increase in global discount rates partially offset by lower than expected asset returns. (3)The nonqualified plans of the Company are unfunded. (4)Curtailment and settlement relate to divestiture activities. (5)The U.S. qualified plan was fully funded as of January 1, 2022 and no minimum funding was required for 2022. The plan is also expected to be fully funded as of January 1, 2023 with no expected minimum funding requirement for 2023. The following table summarizes the funded status and amounts recognized on the Company’s Consolidated Balance Sheet:
| | | | | | | | | In millions of dollars | 2022 | 2021 | Funded status of the plan at year end | $ | (48) | | $ | (41) | | Net amount recognized in AOCI (pretax) | $ | (16) | | $ | (15) | |
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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 | 2022 | 2021 | 2020 | | | | | Beginning of year balance, net of tax(1)(2) | $ | (5,852) | | $ | (6,864) | | $ | (6,809) | | | | | | Actuarial assumptions changes and plan experience | 3,923 | | 963 | | (1,464) | | Net asset gain (loss) due to difference between actual and expected returns | (4,225) | | (148) | | 1,076 | | Net amortization | 198 | | 280 | | 318 | | Prior service credit (cost) | — | | (7) | | 108 | | Curtailment/settlement gain (loss)(3) | (37) | | 11 | | (8) | | Foreign exchange impact and other | 172 | | 153 | | (108) | | Change in deferred taxes, net | 66 | | (240) | | 23 | | Change, net of tax | $ | 97 | | $ | 1,012 | | $ | (55) | | End of year balance, net of tax(1)(2) | $ | (5,755) | | $ | (5,852) | | $ | (6,864) | |
(1)See Note 20 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 divestiture activities.
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Aggregate projected benefit obligation (PBO), accumulated benefit obligation (ABO), and fair value of plan assets for pension plans with a PBO or ABO that exceeds the fair value of plan assets |
At December 31, 2022 and 2021, the aggregate projected benefit obligation (PBO), the aggregate accumulated benefit obligation (ABO) and the aggregate fair value of plan assets are presented for all defined benefit pension plans with a PBO in excess of plan assets and for all defined benefit pension plans with an ABO in excess of plan assets as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | PBO exceeds fair value of plan assets | ABO exceeds fair value of plan assets | | U.S. plans(1) | Non-U.S. plans | U.S. plans(1) | Non-U.S. plans | In millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | Projected benefit obligation | $ | 545 | | $ | 683 | | $ | 3,463 | | $ | 3,966 | | $ | 545 | | $ | 683 | | $ | 3,315 | | $ | 3,809 | | Accumulated benefit obligation | 545 | | 683 | | 3,179 | | 3,574 | | 545 | | 682 | | 3,088 | | 3,477 | | Fair value of plan assets | — | | — | | 2,374 | | 2,616 | | — | | — | | 2,252 | | 2,486 | |
(1)As of December 31, 2022 and 2021, only the nonqualified plans’ PBO and ABO exceeded plan assets.
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Assumptions used in determining benefit obligations and net benefit expense |
Other significant assumptions for the awards are as follows: | | | | | | | | | | | | Valuation assumptions | 2022 | 2021 | 2020 | Expected volatility | 37.01 | % | 40.88 | % | 22.26 | % | Expected dividend yield | 2.96 | | 4.21 | | 2.82 | |
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 | 2022 | 2021 | Discount rate | | | U.S. plans | | | Qualified pension | 5.50% | 2.80% | Nonqualified pension | 5.55 | 2.80 | Postretirement | 5.60 | 2.75 | Non-U.S. pension plans | | | Range(1) | 1.75 to 25.20 | -0.10 to 11.95 | Weighted average | 6.66 | 3.96 | Non-U.S. postretirement plans | | | Range | 3.25 to 10.60 | 1.05 to 10.00 | Weighted average | 9.80 | 8.28 | Future compensation increase rate(2) | | Non-U.S. pension plans | | | Range | 1.30 to 23.11 | 1.30 to 11.25 | Weighted average | 3.76 | 3.10 | Expected return on assets | | | U.S. plans | | | Qualified pension | 5.70 | 5.00 | Postretirement(3) | 5.70/3.00 | 5.00/1.50 | Non-U.S. pension plans | | | Range | 1.00 to 11.50 | 0.00 to 11.50 | Weighted average | 6.05 | 3.69 | Non-U.S. postretirement plans | | | Range | 8.70 to 9.10 | 6.00 to 8.00 | Weighted average | 8.70 | 7.99 |
(1) In 2021, due to historically low global interest rates, there were negative discount rates for plans with relatively short duration in certain major markets, such as the Eurozone and Switzerland. (2) Not material for U.S. plans. (3) For the years ended 2022 and 2021, the expected return on assets for the VEBA Trust was 3.00% and 1.50%, respectively. | | | | | | | | | | | | During the year | 2022 | 2021 | 2020 | Discount rate | | | | U.S. plans | | | | Qualified pension | 2.80%/3.80%/ 4.80%/5.65% | 2.45%/3.10%/ 2.75%/2.80% | 3.25%/3.20%/ 2.60%/2.55% | Nonqualified pension | 2.80/3.85/ 4.80/5.60 | 2.35/3.00/ 2.70/2.75 | 3.25/3.25/ 2.55/2.50 | Postretirement | 2.75/3.85/ 4.75/5.65 | 2.20/2.85/ 2.60/2.65 | 3.15/3.20/ 2.45/2.35 | Non-U.S. pension plans(1) | | | Range(2) | -0.10 to 11.95 | -0.25 to 11.15 | -0.10 to 11.30 | Weighted average | 3.96 | 3.14 | 3.65 | Non-U.S. postretirement plans(1) | | | Range | 1.05 to 11.25 | 0.80 to 9.80 | 0.90 to 9.75 | Weighted average | 8.28 | 7.42 | 7.76 | Future compensation increase rate(3) | | Non-U.S. pension plans(1) | | | Range | 1.30 to 11.25 | 1.20 to 11.25 | 1.50 to 11.50 | Weighted average | 3.10 | 3.10 | 3.17 | Expected return on assets | | | U.S. plans | | | | Qualified pension(4) | 5.00 | 5.80/5.60/ 5.60/5.00 | 6.70 | Postretirement(4) | 5.00/1.50 | 5.80/5.60/ 5.00/1.50 | 6.70/3.00 | Non-U.S. pension plans(1) | | | Range | 0.00 to 11.50 | 0.00 to 11.50 | 0.00 to 11.50 | Weighted average | 3.69 | 3.39 | 3.95 | Non-U.S. postretirement plans(1) | | | Range | 6.00 to 8.00 | 5.95 to 8.00 | 6.20 to 8.00 | Weighted average | 7.99 | 7.99 | 7.99 |
(1) Reflects rates utilized to determine the quarterly expense for Significant non-U.S. pension and postretirement plans. (2) In 2021, due to historically low global interest rates, there were negative discount rates for plans with relatively short duration in certain major markets, such as the Eurozone and Switzerland. (3) Not material for U.S. plans. (4) The expected return on assets for the U.S. pension and postretirement plans was adjusted from 5.00% to 5.70% effective January 1, 2023 to reflect a significant change in economic market conditions. The expected return on assets for the U.S. pension and postretirement plans changed from 6.70% to 5.80% effective as of January 1, 2021, reduced to 5.60% effective April 1, 2021 and further reduced to 5.00% effective October 1, 2021.
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) | 2023 | 2022 | 2021 | 2022 | 2021 | Equity securities(2) | 0–22% | 7 | % | 7 | % | 7 | % | 7 | % | Debt securities(3) | 55–114 | 71 | | 72 | | 71 | | 72 | | Real estate | 0–4 | 3 | | 2 | | 3 | | 2 | | Private equity | 0–5 | 7 | | 6 | | 7 | | 6 | | Other investments | 0–23 | 12 | | 13 | | 12 | | 13 | | Total | | 100 | % | 100 | % | 100 | % | 100 | % |
(1)Target asset allocations are set by investment strategy, whereas pension and postretirement assets as of December 31, 2022 and 2021 are based on the underlying investment product. For example, the private equity investment strategy may include underlying investments in real estate within the target asset allocation; however, within pension and postretirement assets, the underlying investment in real estate is reflected in the real estate category and 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 2022 and 2021. (3)The VEBA Trust for postretirement benefits is primarily invested in cash equivalents and debt securities in 2022 and 2021 and is not reflected in the table above. 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) | 2023 | 2022 | 2021 | 2022 | 2021 | Equity securities | 0–100% | 0–63% | 0–100% | 19 | % | 16 | % | Debt securities | 0–100 | 0–100 | 0–100 | 73 | | 76 | | Real estate | 0–15 | 0–15 | 0–14 | 1 | | 1 | | Other investments | 0–100 | 0–100 | 0–100 | 7 | | 7 | | Total | | | | 100 | % | 100 | % |
| | | | | | | | | | | | | | | | | | | Non-U.S. postretirement plans | | Target asset allocation | Actual range at December 31, | Weighted-average at December 31, | Asset category(1) | 2023 | 2022 | 2021 | 2022 | 2021 | Equity securities | 0–46% | 0–48% | 0–42% | 47 | % | 41 | % | Debt securities | 50–100 | 45–100 | 53–100 | 49 | | 53 | | Other investments | 0–4 | 0–7 | 0–6 | 4 | | 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.
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Schedule of expected long term rates of return on assets |
The following table shows the expected return on assets used in determining the Company’s pension expense compared to the actual return on assets during 2022, 2021 and 2020 for the U.S. pension and postretirement plans:
| | | | | | | | | | | | U.S. plans (During the year) | 2022 | 2021 | 2020 | Expected return on assets | | | | U.S. pension and postretirement trust | 5.00% | 5.80%/5.60%/5.60%/5.00% | 6.70% | VEBA Trust(2) | 1.50 | 1.50 | 3.00 | Actual return on assets(1) | | | | U.S. pension and postretirement trust | (15.52) | 5.14 | 12.84 | VEBA Trust | 1.40 | 1.52 | 2.11 |
(1)Actual return on assets is presented net of fees. (2)The expected return on assets for the VEBA Trust was adjusted from 1.50% to 3.00% effective January 1, 2023 to reflect significant change in economic condition.
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Effect of one-percentage-point change in the discount rates on pension expense |
The following tables summarize the effect on pension expense:
| | | | | | | | | | | | | Discount rate | | One-percentage-point increase | In millions of dollars | 2022 | 2021 | 2020 | U.S. plans | $ | 27 | | $ | 35 | | $ | 34 | | Non-U.S. plans | (5) | | (4) | | (16) | | | One-percentage-point decrease | In millions of dollars | 2022 | 2021 | 2020 | U.S. plans | $ | (34) | | $ | (49) | | $ | (52) | | Non-U.S. plans | 15 | | 25 | | 25 | |
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Schedule of effect of one percentage point change in expected rates of return |
The following tables summarize the effect on pension expense:
| | | | | | | | | | | | | Expected return on assets | | One-percentage-point increase | In millions of dollars | 2022 | 2021 | 2020 | U.S. plans | $ | (123) | | $ | (124) | | $ | (123) | | Non-U.S. plans | (60) | | (70) | | (66) | | | One-percentage-point decrease | In millions of dollars | 2022 | 2021 | 2020 | U.S. plans | $ | 123 | | $ | 124 | | $ | 123 | | Non-U.S. plans | 60 | | 70 | | 66 | |
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Schedule of health care cost trend rates |
Assumed health care cost trend rates were as follows:
| | | | | | | | | | 2022 | 2021 | Health care cost increase rate for U.S. plans | | | Following year | 7.00% | 6.25% | Ultimate rate to which cost increase is assumed to decline | 5.00 | 5.00 | Year in which the ultimate rate is reached | 2031 | 2027 | Health care cost increase rate for non-U.S. plans (weighted average) | | | Following year | 7.05% | 6.92% | Ultimate rate to which cost increase is assumed to decline | 7.05 | 6.92 | Year in which the ultimate rate is reached | 2023 | 2022 |
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Schedule of interest crediting rate for cash balance and other plans |
The Company has cash balance plans and other plans with promised interest crediting rates. For these plans, the interest crediting rates are set in line with plan rules or country legislation and do not change with market conditions.
| | | | | | | | | | | | | Weighted average interest crediting rate | At year end | 2022 | 2021 | 2020 | U.S. plans | 4.50% | 1.80% | 1.45% | Non-U.S. plans | 1.73 | 1.61 | 1.60 |
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Schedule of fair value of plan assets by measurement levels |
Plan assets by detailed asset categories and the fair value hierarchy are as follows: | | | | | | | | | | | | | | | | U.S. pension and postretirement benefit plans(1) | In millions of dollars | Fair value measurement at December 31, 2022 | Asset categories | Level 1 | Level 2 | Level 3 | Total | U.S. equities | $ | 233 | | $ | — | | $ | — | | $ | 233 | | Non-U.S. equities | 346 | | — | | — | | 346 | | Mutual funds and other registered investment companies | 243 | | — | | — | | 243 | | Commingled funds | — | | 818 | | — | | 818 | | Debt securities | 929 | | 4,638 | | | 5,567 | | Annuity contracts | — | | — | | 3 | | 3 | | Derivatives | 2 | | 34 | | — | | 36 | | Other investments | — | | — | | 4 | | 4 | | Total investments | $ | 1,753 | | $ | 5,490 | | $ | 7 | | $ | 7,250 | | Cash and short-term investments | $ | 39 | | $ | 563 | | $ | — | | $ | 602 | | Other investment liabilities | (10) | | (45) | | — | | (55) | | Net investments at fair value | $ | 1,782 | | $ | 6,008 | | $ | 7 | | $ | 7,797 | | Other investment receivables redeemed at NAV | | | | $ | 21 | | Securities valued at NAV | | | | 2,580 | | Total net assets | | | | $ | 10,398 | |
(1)The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2022, the allocable interests of the U.S. pension and postretirement plans were 98.0% and 2.0%, respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the above table.
| | | | | | | | | | | | | | | | U.S. pension and postretirement benefit plans(1) | In millions of dollars | Fair value measurement at December 31, 2021 | Asset categories | Level 1 | Level 2 | Level 3 | Total | U.S. equities | $ | 358 | | $ | — | | $ | — | | $ | 358 | | Non-U.S. equities | 460 | | — | | — | | 460 | | Mutual funds and other registered investment companies | 297 | | — | | — | | 297 | | Commingled funds | — | | 1,143 | | — | | 1,143 | | Debt securities | 1,657 | | 5,770 | | — | | 7,427 | | Annuity contracts | — | | — | | 4 | | 4 | | Derivatives | 2 | | 17 | | — | | 19 | | Other investments | 13 | | — | | 25 | | 38 | | Total investments | $ | 2,787 | | $ | 6,930 | | $ | 29 | | $ | 9,746 | | Cash and short-term investments | $ | 25 | | $ | 627 | | $ | — | | $ | 652 | | Other investment liabilities | (7) | | (17) | | — | | (24) | | Net investments at fair value | $ | 2,805 | | $ | 7,540 | | $ | 29 | | $ | 10,374 | | Other investment liabilities redeemed at NAV | | | | $ | (29) | | Securities valued at NAV | | | | 2,951 | | Total net assets | | | | $ | 13,296 | |
(1)The investments of the U.S. pension and postretirement plans are commingled in one trust. At December 31, 2021, the allocable interests of the U.S. pension and postretirement plans were 98.0% and 2.0%, respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the above table. | | | | | | | | | | | | | | | | Non-U.S. pension and postretirement benefit plans | In millions of dollars | Fair value measurement at December 31, 2022 | Asset categories | Level 1 | Level 2 | Level 3 | Total | U.S. equities | $ | 121 | | $ | 10 | | $ | — | | $ | 131 | | Non-U.S. equities | 718 | | 19 | | — | | 737 | | Mutual funds and other registered investment companies | 2,416 | | 296 | | — | | 2,712 | | Commingled funds | 13 | | — | | — | | 13 | | Debt securities | 2,959 | | 980 | | — | | 3,939 | | Real estate | — | | 2 | | 2 | | 4 | | Annuity contracts | — | | — | | 2 | | 2 | | Derivatives | — | | 1,490 | | — | | 1,490 | | Other investments | — | | — | | 258 | | 258 | | Total investments | $ | 6,227 | | $ | 2,797 | | $ | 262 | | $ | 9,286 | | Cash and short-term investments | $ | 69 | | $ | 6 | | $ | — | | $ | 75 | | Other investment liabilities | — | | (2,436) | | — | | (2,436) | | Net investments at fair value | $ | 6,296 | | $ | 367 | | $ | 262 | | $ | 6,925 | | Securities valued at NAV | | | | $ | 16 | | Total net assets | | | | $ | 6,941 | |
| | | | | | | | | | | | | | | | Non-U.S. pension and postretirement benefit plans | In millions of dollars | Fair value measurement at December 31, 2021 | Asset categories | Level 1 | Level 2 | Level 3 | Total | U.S. equities | $ | 127 | | $ | 19 | | $ | — | | $ | 146 | | Non-U.S. equities | 713 | | 92 | | — | | 805 | | Mutual funds and other registered investment companies | 2,888 | | 66 | | — | | 2,954 | | Commingled funds | 21 | | — | | — | | 21 | | Debt securities | 4,263 | | 1,341 | | — | | 5,604 | | Real estate | — | | 3 | | 2 | | 5 | | Annuity contracts | — | | — | | 2 | | 2 | | Derivatives | — | | 239 | | — | | 239 | | Other investments | — | | — | | 318 | | 318 | | Total investments | $ | 8,012 | | $ | 1,760 | | $ | 322 | | $ | 10,094 | | Cash and short-term investments | $ | 117 | | $ | 5 | | $ | — | | $ | 122 | | Other investment liabilities | — | | (1,578) | | — | | (1,578) | | Net investments at fair value | $ | 8,129 | | $ | 187 | | $ | 322 | | $ | 8,638 | | Securities valued at NAV | | | | $ | 19 | | Total net assets | | | | $ | 8,657 | |
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Schedule of effect of significant unobservable inputs, changes in plan assets |
The reconciliations of the beginning and ending balances during the year for Level 3 assets are as follows:
| | | | | | | | | | | | | | | | | | | | | In millions of dollars | U.S. pension and postretirement benefit plans | | | | | | | | Asset categories | Beginning Level 3 fair value at Dec. 31, 2021 | Realized (losses) | Unrealized gains | Purchases, sales and issuances | Transfers in and/or out of Level 3 | Ending Level 3 fair value at Dec. 31, 2022 | | | | | | | | Annuity contracts | $ | 4 | | $ | — | | $ | — | | $ | (1) | | $ | — | | $ | 3 | | Other investments | 25 | | (3) | | 2 | | (20) | | — | | 4 | | | | | | | | | | | | | | | | Total investments | $ | 29 | | $ | (3) | | $ | 2 | | $ | (21) | | $ | — | | $ | 7 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | In millions of dollars | U.S. pension and postretirement benefit plans | | | | | | | | Asset categories | Beginning Level 3 fair value at Dec. 31, 2020 | Realized (losses) | Unrealized gains | Purchases, sales and issuances | Transfers in and/or out of Level 3 | Ending Level 3 fair value at Dec. 31, 2021 | | | | | | | | Annuity contracts | $ | 1 | | $ | — | | $ | — | | $ | 3 | | $ | — | | $ | 4 | | | | | | | | | Other investments | 57 | | (6) | | 2 | | (28) | | — | | 25 | | | | | | | | | Total investments | $ | 58 | | $ | (6) | | $ | 2 | | $ | (25) | | $ | — | | $ | 29 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | In millions of dollars | Non-U.S. pension and postretirement benefit plans | Asset categories | Beginning Level 3 fair value at Dec. 31, 2021 | | Unrealized gains | Purchases, sales and issuances | Transfers in and/or out of Level 3 | Ending Level 3 fair value at Dec. 31, 2022 | | | | | | | | | | | | | | | Real estate | $ | 2 | | | $ | — | | $ | — | | $ | — | | $ | 2 | | Annuity contracts | 2 | | | — | | — | | — | | 2 | | Other investments | 318 | | | — | | (60) | | — | | 258 | | Total investments | $ | 322 | | | $ | — | | $ | (60) | | $ | — | | $ | 262 | |
| | | | | | | | | | | | | | | | | | | In millions of dollars | Non-U.S. pension and postretirement benefit plans | Asset categories | Beginning Level 3 fair value at Dec. 31, 2020 | | Unrealized gains | Purchases, sales and issuances | Transfers in and/or out of Level 3 | Ending Level 3 fair value at Dec. 31, 2021 | | | | | | | | | | | | | | | Real estate | $ | 2 | | | $ | — | | $ | — | | $ | — | | $ | 2 | | Annuity contracts | 5 | | | — | | (3) | | — | | 2 | | Other investments | 312 | | | 4 | | 2 | | — | | 318 | | Total investments | $ | 319 | | | $ | 4 | | $ | (1) | | $ | — | | $ | 322 | |
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Schedule of expected benefit payments |
The Company expects to pay the following estimated benefit payments in future years:
| | | | | | | | | | | | | | | | Pension plans | Postretirement benefit plans | In millions of dollars | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans | 2023 | $ | 964 | | $ | 536 | | $ | 55 | | $ | 72 | | 2024 | 964 | | 518 | | 46 | | 76 | | 2025 | 969 | | 489 | | 43 | | 79 | | 2026 | 942 | | 499 | | 40 | | 83 | | 2027 | 921 | | 508 | | 38 | | 87 | | 2028–2032 | 4,038 | | 2,623 | | 150 | | 494 | |
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Defined contribution plans |
The following tables summarize the Company contributions for the defined contribution plans: | | | | | | | | | | | | | U.S. plans | In millions of dollars | 2022 | 2021 | 2020 | Company contributions | $ | 471 | | $ | 436 | | $ | 414 | | | Non-U.S. plans | In millions of dollars | 2022 | 2021 | 2020 | Company contributions | $ | 399 | | $ | 364 | | $ | 304 | |
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