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RETIREMENT BENEFITS (Tables)
12 Months Ended
Dec. 31, 2012
Defined Benefit Plan Disclosure  
Retirement benefits, components of net (benefit) expense

 

Pension plans Postretirement benefit plans
U.S. plans Non-U.S. plans U.S. plans Non-U.S. plans
In millions of dollars         2012         2011         2010         2012         2011         2010         2012         2011         2010         2012         2011         2010
Qualified Plans
Benefits earned during the year $ 12 $ 13 $ 14 $ 199 $ 203 $ 167 $ $ $ 1 $ 29 $ 28 $ 23
Interest cost on benefit obligation 565 612 644 367 382 342 44 53 59 116 118 105
Expected return on plan assets (897 ) (890 ) (874 ) (399 ) (422 ) (378 ) (4 ) (6 ) (8 ) (108 ) (117 ) (100 )
Amortization of unrecognized
       Net transition obligation (1 ) (1 )
       Prior service cost (benefit) (1 ) (1 ) (1 ) 4 4 4 (1 ) (3 ) (3 )
       Net actuarial loss 96 64 47 77 72 57 4 3 11 25 24 20
Curtailment (gain) loss 10 4 1
Settlement (gain) loss 35 10 7
Special termination benefits 1 27 5
Net qualified (benefit) expense $ (225 ) $ (202 ) $ (170 ) $ 294 $ 279 $ 204 $ 43 $ 47 $ 60 $ 62 $ 53 $ 48
Nonqualified plans expense $ 42 $ 42 $ 41 $ $ $ $ $ $ $ $ $
Total net (benefit) expense $ (183 ) $ (160 ) $ (129 ) $ 294 $ 279 $ 204 $ 43 $ 47 $ 60 $ 62 $ 53 $ 48
Schedule of actual and estimated expected Company contributions

 

Pension plans  (1) Postretirement plans  (1)
U.S. plans  (2) Non-U.S. plans U.S. plans Non-U.S. plans
In millions of dollars         2013         2012         2011         2013         2012         2011         2013         2012         2011         2013         2012         2011
Cash contributions paid by the Company $ $ $ $ 177 $ 270 $ 342 $ $ $ $ 82 $ 88 $ 70
Benefits paid directly by the Company 54 54 51 47 82 47 57 54 53 5 4 5
Total Company contributions $ 54 $ 54 $ 51 $ 224 $ 352 $ 389 $ 57 $ 54 $ 53 $ 87 $ 92 $ 75

(1)       Payments reported for 2013 are expected amounts.
(2)   The U.S. pension plans include benefits paid directly by the Company for the nonqualified pension plan.
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.

 

Pension plans Postretirement plans
U.S. plans  (1) Non-U.S. plans U.S. plans Non-U.S. plans
In millions of dollars         2012         2011         2012         2011         2012         2011         2012         2011
Change in projected benefit obligation
Projected benefit obligation at beginning of year $ 12,377 $ 11,730 $ 6,262 $ 6,189 $ 1,127 $ 1,179 $ 1,368 $ 1,395
Benefits earned during the year 12 13 199 203 29 28
Interest cost on benefit obligation 565 612 367 382 44 53 116 118
Plan amendments (13 ) 17 2
Actuarial (gain) loss 965 655 923 59 (24 ) (44 ) 457 29
Benefits paid, net of participating contributions (638 ) (633 ) (306 ) (282 ) (85 ) (79 ) (54 ) (54 )
Expected Medicare Part D subsidy 10 10
Settlements (254 ) (44 )
Curtailment (gain) loss (8 ) 3
Special/contractual termination benefits 1 27
Foreign exchange impact and other 198 (277 ) 8 86 (148 )
Projected benefit obligation at year end $ 13,268 $ 12,377 $ 7,399 $ 6,262 $ 1,072 $ 1,127 $ 2,002 $ 1,368
Change in plan assets
Plan assets at fair value at beginning of year $ 11,991 $ 11,561 $ 6,421 $ 6,145 $ 74 $ 95 $ 1,096 $ 1,176
Actual return on plan assets 1,303 1,063 786 526 7 5 277 40
Company contributions 352 389 54 53 92 75
Plan participants contributions 6 6 58 65
Settlements (254 ) (44 )
Benefits paid (638 ) (633 ) (312 ) (288 ) (143 ) (144 ) (54 ) (54 )
Foreign exchange impact and other 155 (313 ) 86 (141 )
Plan assets at fair value at year end $ 12,656 $ 11,991 $ 7,154 $ 6,421 $ 50 $ 74 $ 1,497 $ 1,096
Funded status of the plan at year end (2) $ (612 ) $ (386 ) $ (245 ) $ 159 $ (1,022 ) $ (1,053 ) $ (505 ) (272 )
Net amount recognized
Benefit asset $ $ $ 763 $ 874 $ $ $ $
Benefit liability (612 ) (386 ) (1,008 ) (715 ) (1,022 ) (1,053 ) (505 ) (272 )
Net amount recognized on the balance sheet $ (612 ) $ (386 ) $ (245 ) $ 159 $ (1,022 ) $ (1,053 ) $ (505 ) $ (272 )
Amounts recognized in Accumulated
       other comprehensive income (loss)
Net transition obligation $ $ $ (2 ) $ 1 $ $ $ (1 ) $ (1 )
Prior service cost (benefit) 13 1 (33 ) (23 ) 1 3 5 5
Net actuarial loss (4,904 ) (4,440 ) (1,936 ) (1,454 ) (123 ) (152 ) (802 ) (509 )
Net amount recognized in equity—pretax $ (4,891 ) $ (4,439 ) $ (1,971 ) $ (1,476 ) $ (122 ) $ (149 ) $ (798 ) (505 )
Accumulated benefit obligation at year end $ 13,246 $ 12,337 $ 6,369 $ 5,463 $ 1,072 $ 1,127 $ 2,002 $ 1,368

(1)       The U.S. plans exclude nonqualified pension plans, for which the aggregate projected benefit obligation was $769 million and $713 million and the aggregate accumulated benefit obligation was $738 million and $694 million at December 31, 2012 and 2011, respectively. These plans are unfunded. As such, the funded status of these plans is $(769) million and $(713) million at December 31, 2012 and 2011, respectively. Accumulated other comprehensive income (loss) reflects pretax charges of $298 million and $231 million at December 31, 2012 and 2011, respectively, that primarily relate to net actuarial loss.
(2)   The U.S. qualified pension plan is fully funded under specified ERISA funding rules as of January 1, 2013 and no minimum required funding is expected for 2012 or 2013.
Change in Accumulated other comprehensive income (loss)

 

In millions of dollars         2012         2011
Balance, January 1, net of tax (1) $ (4,282 ) $ (4,105 )
Actuarial assumptions changes and plan experience (2) (2,400 ) (820 )
Net asset gain due to actual returns
       exceeding expected returns 963 197
Net amortizations 214 183
Foreign exchange impact and other (155 ) 28
Change in deferred taxes, net 390 235
Change, net of tax $ (988 ) $ (177 )
Balance, December 31, net of tax (1) $ (5,270 ) $ (4,282 )

(1)       See Note 21 to the Consolidated Financial Statements for further discussion of net Accumulated other comprehensive income (loss) balance.
(2)   Includes $62 million and $70 million in net actuarial losses related to U.S. nonqualified pension plans for 2012 and 2011, respectively.
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

 

PBO exceeds fair value of plan assets ABO exceeds fair value plan assets
U.S. plans  (1) Non-U.S. plans U.S. plans  (1) Non-U.S. plans
In millions of dollars 2012 2011 2012 2011 2012 2011 2012 2011
Projected benefit obligation         $ 14,037         $ 13,089         $ 4,792         $ 2,386         $ 14,037         $ 13,089         $ 2,608         $ 1,970
Accumulated benefit obligation 13,984 13,031 3,876 1,992 13,984 13,031 2,263 1,691
Fair value of plan assets 12,656 11,991 3,784 1,671 12,656 11,991 1,677 1,139

(1)       In 2012, the PBO and ABO of the U.S. plans include $13,268 million and $13,246 million, respectively, relating to the qualified plan and $769 million and $738 million, respectively, relating to the nonqualified plans. In 2011, the PBO and ABO of the U.S. plans include $12,377 million and $12,337 million, respectively, relating to the qualified plan and $712 million and $694 million, respectively, relating to the nonqualified plans.
Assumptions used in determining pension and postretirement benefit obligations and net benefit expense

 

At year end         2012         2011
Discount rate
U.S. plans (1)
       Pension 3.90 % 4.70 %
       Postretirement 3.60 4.30
Non-U.S. pension plans
       Range 1.50 to 28.00 1.75 to 13.25
       Weighted average 5.24 5.94
Future compensation increase rate
U.S. plans (2) N/A N/A
Non-U.S. pension plans
       Range 1.20 to 26.00 1.60 to 13.30
       Weighted average 3.93 4.04
Expected return on assets
U.S. plans 7.00 7.50
Non-U.S. pension plans
       Range 0.90 to 11.50 1.00 to 12.50  
       Weighted average 5.76 6.25
 
During the year 2012 2011
Discount rate
U.S. plans (1)
       Pension 4.70 % 5.45 %
       Postretirement 4.30 5.10
Non-U.S. pension plans
       Range 1.75 to 13.25 1.75 to 14.00
       Weighted average 5.94 6.23
Future compensation increase rate
U.S. plans (2) N/A N/A
Non-U.S. pension plans
       Range 1.60 to 13.30 1.00 to 11.00
       Weighted average 4.04 4.66
Expected return on assets
U.S. plans 7.50 7.50
Non-U.S. pension plans
       Range 1.00 to 12.50 1.00 to 12.50
       Weighted average 6.25 6.89

(1)       Weighted-average rates for the U.S. plans equal the stated rates.
(2) Since the U.S. qualified pension plan was frozen, a compensation increase rate applies only to certain small groups of grandfathered employees accruing benefits under a final pay plan formula. Only the future compensation increases for these grandfathered employees will affect future pension expense and obligations. Compensation increase rates for these small groups of participants range from 3.00% to 4.00%.
Expected and actual rates of return on pension and postretirement plan assets

 

        2012         2011         2010
Expected rate of return (1) 7.50 % 7.50 % 7.75 %
Actual rate of return (2) 11.79 % 11.13 % 14.11 %

(1)      Effective December 31, 2012, the expected rate of return decreased from 7.50% to 7.00%.
(2) Actual rates of return are presented gross of fees.
Effect of one-percentage-point change in the discount rates on pension expense

 

One-percentage-point increase
In millions of dollars         2012         2011         2010
U.S. plans        $ 18        $ 19        $ 19
Non-U.S. plans (48 ) (57 ) (49 )
 
One-percentage-point decrease
In millions of dollars 2012 2011 2010
U.S. plans $ (36 ) $ (34 ) $ (34 )
Non-U.S. plans 64 70 56

Effect of one-percentage-point change in the expected rates of return on pension expense

 

One-percentage-point increase
In millions of dollars         2012         2011         2010
U.S. plans $ (120 ) $ (118 ) $ (119 )
Non-U.S. plans (64 ) (62 ) (54 )

One-percentage-point decrease
In millions of dollars         2012         2011         2010
U.S. plans $ 120 $ 118 $ 119
Non-U.S. plans 64 62 54

Assumed health-care cost-trend rates, U.S plans

 

2012         2011
Health-care cost increase rate for U.S. plans
Following year 8.50 % 9.00 %
Ultimate rate to which cost increase is assumed to decline 5.00 5.00
Year in which the ultimate rate is reached 2020 2020

Effect of one-percentage-point change in assumed health-care cost- trend rates

 

One-
One-percentage- percentage-
    point increase point decrease
In millions of dollars         2012         2011         2012         2011
Effect on benefits earned and
       interest cost for U.S. plans      $ 2      $ 2      $ (1 )      $ (2 )
Effect on accumulated
       postretirement benefit
       obligation for U.S. plans 44 43 (39 ) (38 )
Estimated Future Benefit Payments

 

Pension plans Postretirement benefit plans
In millions of dollars U.S. plans       Non-U.S. plans       U.S. plans       Non-U.S. plans
2013 $ 774                   $ 366               $ 88   $ 58
2014   796 356 86 63
2015 798 373 86 66
2016 811 391 83 71
2017 825 408 81 75
2018–2022 4,370 2,399 370 483
Postemployment Plans
 
Defined Benefit Plan Disclosure  
Retirement benefits, components of net (benefit) expense

 

Net Expense
In millions of dollars 2012       2011       2010
Service related expense    
Service cost $ 22 $ 16 $ 13
Interest cost 13 12 10
Prior service cost 7 7 7
Net actuarial loss 13 9 6
Total service related expense $ 55 $ 44 $ 36
Non-service related expense $ 24 $ 23 $ 33
Total net expense $ 79 $ 67 $ 69

Assumptions used in determining pension and postretirement benefit obligations and net benefit expense

 

2012       2011
Discount rate 3.10 % 3.95 %
Health-care cost increase rate
Following year 8.50 % 9.00 %
Ultimate rate to which cost increase is assumed to decline 5.00 5.00
Year in which the ultimate rate is reached 2020 2020
Estimated Future Benefit Payments

 

Expected U.S.
postretirement benefit payments
Before Medicare       Medicare       After Medicare
In millions of dollars Part D subsidy Part D subsidy   Part D subsidy
2013 $ 98   $ 10   $ 88
2014 96 10 86
2015 94 8 86
2016 91 8 83
2017 89 8 81
2018–2022 399 29 370
U.S. Pension Plans
 
Defined Benefit Plan Disclosure  
Asset allocations for the current reporting period and target allocations for next year by asset category based on asset fair values

 

Target asset U.S. pension assets U.S. postretirement assets
allocation         at December 31,         at December 31,
Asset category (1) 2013              2012         2011                        2012         2011
Equity securities (2) 0 - 30 % 17 % 16 % 17 % 16 %
Debt securities 25 - 73 45 44 45 44
Real estate 0 - 7 5 5 5 5
Private equity 0 - 15 11 13 11 13
Other investments 12 - 29 22 22 22 22
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 plans include no Citigroup common stock at the end of 2012 and 2011.
Plan assets by detailed asset categories and the fair value hierarchy

 

In millions of dollars U.S. pension and postretirement benefit plans  (1)
      Fair value measurement at December 31, 2012
Asset categories Level 1     Level 2     Level 3     Total
Equity securities          
       U.S. equity   $ 677   $   $ $ 677
       Non-U.S. equity   412 5 417
Mutual funds 177 177
Commingled funds   1,132 1,132
Debt securities
       U.S. Treasuries 1,431 1,431
       U.S. agency 112 112
       U.S. corporate bonds 1 1,396 1,397
       Non-U.S. government debt 387 387
       Non-U.S. corporate bonds 4 346 350
       State and municipal debt 142 142
Hedge funds 1,132 1,524 2,656
Asset-backed securities 55   55
Mortgage-backed securities 52 52
Annuity contracts 130 130
Private equity 2,419 2,419
Derivatives 593 37 630
Other investments 142 142
Total investments at fair value $ 3,295 $ 4,796 $ 4,215 $ 12,306
Cash and short-term investments $ 130 $ 906 $  — $ 1,036
Other investment receivables 6 24 30
Total assets $ 3,425 $ 5,708 $ 4,239 $ 13,372
Other investment liabilities $ (607 ) $ (60 ) $  — $ (667 )
Total net assets $ 2,818 $ 5,648 $ 4,239 $ 12,705

(1)       The investments of the U.S. pension and postretirement benefit plans are commingled in one trust. At December 31, 2012, the allocable interests of the U.S. pension and postretirement benefit plans were 99.6% and 0.4%, respectively.
In millions of dollars U.S. pension and postretirement benefit plans  (1)
Fair value measurement at December 31, 2011
Asset categories Level 1       Level 2       Level 3       Total
Equity securities                  
       U.S. equity     $ 572    $ 5    $ 51    $ 628
       Non-U.S. equity 229 19 248  
Mutual funds 137 137
Commingled funds 440 594 1,034
Debt securities
       U.S. Treasuries 1,760 1,760
       U.S. agency 120 120
       U.S. corporate bonds 2 1,073 5 1,080
       Non-U.S. government debt 352 352
       Non-U.S. corporate bonds 4 271 275
       State and municipal debt 122 122
Hedge funds 1,087 870 1,957
Asset-backed securities 19 19
Mortgage-backed securities 32 32
Annuity contracts 155 155
Private equity 2,474   2,474
Derivatives 691 36 727
Other investments 92 20 121 233
Total investments at fair value $ 3,927 $ 3,731 $ 3,695 $ 11,353
Cash and short-term investments $ 412 $ 402 $ $ 814
Other investment receivables         393     221 614
Total assets $ 4,339 $ 4,526 $ 3,916 $ 12,781
Other investment liabilities $ (683 ) $ (33 ) $  — $ (716 )
Total net assets $ 3,656 $ 4,493 $ 3,916 $ 12,065

(1)       The investments of the U.S. pension and postretirement benefit plans are commingled in one trust. At December 31, 2011, the allocable interests of the U.S. pension and postretirement benefit plans were 99.2% and 0.8%, respectively.
Reconciliations of the beginning and ending balances during the period for Level 3 assets

 

In millions of dollars U.S. pension and postretirement benefit plans
Beginning Level 3 Realized Unrealized Purchases, Transfers in Ending Level 3
fair value at gains gains sales, and and/or out of fair value at
Asset categories Dec. 31, 2011       (losses)        (losses)       issuances       Level 3       Dec. 31, 2012
Equity securities                        
       U.S. equity $ 51 $ $  — $ $ (51 ) $
       Non-U.S. equity 19 8 (27 )
Debt securities  
       U.S. corporate bonds 5 1 (6 )
       Non-U.S. government debt (1 ) 1
       Non-U.S. corporate bonds
Hedge funds 870 (28 ) 149 199 334 1,524
Annuity contracts 155 6 (31 ) 130
Private equity 2,474 267 98 (484 ) 64 2,419
Other investments 121 14 12 (5 ) 142
Total investments $ 3,695 $ 238 $ 276 $ (303 ) $ 309 $ 4,215
Other investment receivables 221 (197 ) 24
Total assets $ 3,916 $ 238 $ 276 $ (303 ) $ 112 $ 4,239
 
In millions of dollars U.S. pension and postretirement benefit plans
Beginning Level 3       Realized Unrealized Purchases, Transfers in Ending Level 3
fair value at gains       gains       sales, and       and/or out of       fair value at
Asset categories Dec. 31, 2010 (losses) (losses)   issuances Level 3 Dec. 31, 2011
Equity securities      
       U.S. equity                      $  —        $              $  —             $  —               $ 51                   $ 51
       Non-U.S. equity   (1 )   20 19
Debt securities  
       U.S. corporate bonds 5 (2 ) (1 ) (1 ) 4 5
       Non-U.S. corporate bonds 1 (1 )
Hedge funds 1,014 42 (45 ) (131 ) (10 ) 870
Annuity contracts 187 3 (35 ) 155
Private equity 2,920 89 94 (497 ) (132 ) 2,474
Other investments 4 (6 ) 123 121
Total investments $ 4,131 $ 129 $ 44 $ (665 ) $ 56 $ 3,695
Other investment receivables 221 221
Total assets $ 4,131 $ 129 $ 44 $ (444 ) $ 56 $ 3,916
Non - U.S. Pension Plans
 
Defined Benefit Plan Disclosure  
Plan assets by detailed asset categories and the fair value hierarchy
In millions of dollars Non-U.S. pension and postretirement benefit plans
  Fair value measurement at December 31, 2012
Asset categories   Level 1    Level 2    Level 3    Total
Equity securities                    
       U.S. equity $ 12   $ 12 $  — $ 24
       Non-U.S. equity 88 77 48 213
Mutual funds 31 4,583 4,614
Commingled funds 26 26
Debt securities
       U.S. Treasuries 1 1
       U.S. corporate bonds 10 478 488
       Non-U.S. government debt 1,806 144 4 1,954
       Non-U.S. corporate bonds 162 804 4 970
       State and municipal debt
Hedge funds 16 16
Mortgage-backed securities 1 1
Annuity contracts 5 6 11
Derivatives 40 40
Other investments 3 9 219 231
Total investments at fair value $ 2,138 $ 6,154 $ 297 $ 8,589
Cash and short-term investments $ 56 $ 4 $ 3 $ 63
Total assets $ 2,194 $ 6,158 $ 300 $ 8,652
 
In millions of dollars Non-U.S. pension and postretirement benefit plans
Fair value measurement at December 31, 2011
Asset categories Level 1 Level 2 Level 3 Total
Equity securities
       U.S. equity $ 12 $ $  — $ 12
       Non-U.S. equity 48 180 5 233
Mutual funds 11 4,439 32 4,482
Commingled funds 26 26
Debt securities
       U.S. Treasuries 1 1
       U.S. corporate bonds 1 379 380
       Non-U.S. government debt 1,484 129 5 1,618
       Non-U.S. corporate bonds 5 318 3 326
       State and municipal debt
Hedge funds 3 12 15
Mortgage-backed securities 1 1
Annuity contracts 3 3
Derivatives 3 3
Other investments 3 6 240 249
Total investments at fair value $ 1,592 $ 5,460 $ 297 $ 7,349
Cash and short-term investments $ 168 $  — $  — $ 168
Total assets $ 1,760 $ 5,460 $ 297 $ 7,517
Reconciliations of the beginning and ending balances during the period for Level 3 assets
 
In millions of dollars Non-U.S. pension and postretirement benefit plans
Beginning Level 3 Realized Unrealized Purchases, Transfers in Ending Level 3
fair value at gains gains sales, and and/or out of fair value at
Asset categories Dec. 31, 2011       (losses)       (losses)       issuances       Level 3       Dec. 31, 2012
Equity securities                    
       Non-U.S. equity $ 5 $ $              $ 43                $                   $ 48
Mutual funds 32 (10 )   (22 )
Debt securities
       Non-U.S. government bonds 5   (1 ) 4
       Non-U.S. corporate bonds 3 (3 ) 2 2 4
Hedge funds 12 4 16
Annuity contracts 1 5 6
Other investments 240 7 14 (23 ) (19 ) 219
Total investments $ 297 $ 4 $ 14 $ 13 $ (31 ) $ 297
Cash and short-term investments 3 3
Total assets $ 297 $ 4 $ 14 $ 13 $ (28 ) $ 300
In millions of dollars Non-U.S. pension and postretirement benefit plans
Beginning Level 3       Realized       Unrealized       Purchases,       Transfers in       Ending Level 3
fair value at gains gains sales, and and/or out of fair value at
Asset categories Dec. 31, 2010 (losses)   (losses) issuances Level 3 Dec. 31, 2011
Equity securities                
       Non-U.S. equity $ 3 $ $ 2 $   $  — $ 5
Mutual funds 32 32
Debt securities  
       Non-U.S. government bonds   5 5
       Non-U.S. corporate bonds 107 2 (105 ) 4
Hedge funds 14 (2 ) 12
Other investments 189 4 (10 ) 56 239
Total assets $ 313 $ 2 $ 2 $ (8 ) $ (12 ) $ 297
Non-U.S. pension and postretirement benefit plans
 
Defined Benefit Plan Disclosure  
Asset allocations for the current reporting period and target allocations for next year by asset category based on asset fair values

 

Non-U.S. pension plans
Weighted-average Actual range Weighted-average
target asset allocation at December 31, at December 31,
Asset category 2013         2012         2011                  2012         2011
Equity securities 16 % 0 to 63 % 0 to 65 % 16 % 19 %
Debt securities 75 0 to 100 0 to 99 72 71
Real estate 1 0 to 41 0 to 42 1 1
Other investments 8 0 to 100 0 to 100 11 9
Total 100 % 100 % 100 %

Non-U.S. postretirement plans
Weighted-average Actual range Weighted-average
target asset allocation at December 31, at December 31,
Asset category 2013         2012         2011                  2012         2011
Equity securities 27 % 0 to 28 % 0 to 44 % 28 % 44 %
Debt securities 55 46 to 100 45 to 100 46 45
Other investments 18 0 to 26 0 to 11 26 11
Total 100 % 100 % 100 %