Citigroup Inc.

The following table shows the change in Accumulated other comprehensiveincome (loss) for the year ended December 31, 2010:In millions of dollars 2010Balance, January 1, 2010, net of tax (1) $(3,461)Actuarial assumptions changes and plan experience (2) (1,257)Net asset gain due to actual returns exceeding expected returns 479Net amortizations 137Foreign exchange impact and other (437)Change in deferred taxes, net $ 434Change, net of tax $ (644)Balance, December 31, 2010, net of tax (1) $(4,105)At the end of 2010 and 2009, for both qualified and nonqualified plansand for both funded and unfunded plans, the aggregate projected benefitobligation (PBO), the aggregate accumulated benefit obligation (ABO), andthe aggregate fair value of plan assets for pension plans with a projectedbenefit obligation in excess of plan assets, and pension plans with anaccumulated benefit obligation in excess of plan assets, were as follows:(1) See Note 21 to the Consolidated Financial Statements for further discussion of net accumulated othercomprehensive income (loss) balance.(2) Includes $33 million in net actuarial losses related to U.S. nonqualified pension plans.PBO exceeds fair value of planassetsABO exceeds fair value of planassetsU.S. plans (1) Non-U.S. plans U.S. plans (1) Non-U.S. plansIn millions of dollars 2010 2009 2010 2009 2010 2009 2010 2009Projected benefit obligation $12,388 $11,815 $2,305 $1,662 $12,388 $11,815 $1,549 $1,288Accumulated benefit obligation 12,337 11,765 1,949 1,414 12,337 11,765 1,340 1,127Fair value of plan assets 11,561 9,934 1,732 1,169 11,561 9,934 1,046 842(1) In 2010, the PBO and ABO of the U.S. plans include $11,730 million and $11,689 million, respectively, relating to the qualified plan and $658 million and $648 million, respectively, relating to the nonqualified plans. In2009, the PBO and ABO of the U.S. plans include $11,178 million and $11,129 million, respectively, relating to the qualified plan and $637 million and $636 million, respectively, relating to the nonqualified plans.At December 31, 2010, combined accumulated benefit obligations forthe U.S. and non-U.S. pension plans, excluding U.S. nonqualified plans,exceeded plan assets by $0.4 billion. At December 31, 2009, combinedaccumulated benefit obligations for the U.S. and non-U.S. pension plans,excluding U.S. nonqualified plans, exceeded plan assets by $0.5 billion.Discount RateThe discount rates for the U.S. pension and postretirement plans were selectedby reference to a Citigroup-specific analysis using each plan’s specificcash flows and compared with high quality corporate bond indices forreasonableness. Citigroup’s policy is to round to the nearest five hundredthsof a percent. Accordingly, at December 31, 2010, the discount rate was setat 5.45% for the pension plans and at 5.10% for the postretirement welfareplans.At December 31, 2009, the discount rate was set at 5.90% for the pensionplans and 5.55% for the postretirement plans, referencing a Citigroup-specificcash flow analysis.The discount rates for the non-U.S. pension and postretirement plans areselected by reference to high quality corporate bond rates in countries thathave developed corporate bond markets. However, where developed corporatebond markets do not exist, the discount rates are selected by reference to localgovernment bond rates with a premium added to reflect the additional riskfor corporate bonds.The discount rate and future rate of compensation assumptions used indetermining pension and postretirement benefit obligations and net benefitexpense for the Company’s plans are shown in the following table:At year end 2010 2009Discount rateU.S. plans (1)Pension 5.45% 5.90%Postretirement 5.10 5.55Non-U.S. pension plansRange 1.75 to 14.00 2.00 to 13.25Weighted average 6.23 6.50Future compensation increase rateU.S. plans (2) 3.00 3.00Non-U.S. pension plansRange 1.0 to 11.0 1.0 to 12.0Weighted average 4.66 4.60During the year 2010 2009Discount rateU.S. plans (1)Pension 5.90% 6.10%Postretirement 5.55 6.00Non-U.S. pension plansRange 2.00 to 13.25 1.75 to 17.0Weighted average 6.50 6.60Future compensation increase rateU.S. plans (2) 3.00 3.00Non-U.S. pension plansRange 1.0 to 12.0 1.0 to 11.5Weighted average 4.60 4.50(1) Weighted-average rates for the U.S. plans equal the stated rates.(2) Effective January 1, 2008, the U.S. qualified pension plan was frozen except for certain grandfatheredemployees accruing benefits under a final pay plan formula. Only the future compensation increasesfor these grandfathered employees will affect future pension expense and obligations. Futurecompensation increase rates for small groups of employees were 4% or 6%.193