7.
INCENTIVE PLANS Discretionary Annual Incentive Awards Citigroup grants immediate cash bonus payments and various forms of immediate and deferred awards as part of its discretionary annual incentive award program involving a large segment of Citigroup’s employees worldwide.
Most of the shares of common stock issued by Citigroup as part of its equity compensation programs are to settle the vesting of the stock components of these awards.
Discretionary annual incentive awards are generally awarded in the first quarter of the year based on the previous year’s performance.
Awards valued at less than U. S.  $100,000 (or the local currency equivalent) are generally paid entirely in the form of an immediate cash bonus.
Pursuant to Citigroup policy and/or regulatory requirements, certain employees and officers are subject to mandatory deferrals of incentive pay and generally receive 25%– 60% of their awards in a combination of restricted or deferred stock, deferred cash stock units or deferred cash.
Discretionary annual incentive awards to many employees in the EU are subject to deferral requirements regardless of the total award value, with at least 50% of the immediate incentive delivered in the form of a stock payment award subject to a restriction on sale or transfer (generally, for 12 months).
Deferred annual incentive awards may be delivered in the form of one or more award types: a restricted or deferred stock award under Citi’s Capital Accumulation Program (CAP), or a deferred cash stock unit award and/or a deferred cash award under Citi’s Deferred Cash Award Plan.
The applicable mix of awards may vary based on the employee’s minimum deferral requirement and the country of employment.
Subject to certain exceptions (principally, for retirement-eligible employees), continuous employment within Citigroup is required to vest in CAP, deferred cash stock unit and deferred cash awards.
Post employment vesting by retirement-eligible employees and participants who meet other conditions is generally conditioned upon their refraining from competition with Citigroup during the remaining vesting period, unless the employment relationship has been terminated by Citigroup under certain conditions.
Generally, the deferred awards vest in equal annual installments over three- or four-year periods.
Vested CAP awards are delivered in shares of common stock.
Deferred cash awards are payable in cash and, except as prohibited by applicable regulatory guidance, earn a fixed notional rate of interest that is paid only if and when the underlying principal award amount vests.
Deferred cash stock unit awards are payable in cash at the vesting value of the underlying stock.
Generally, in the EU, vested CAP shares are subject to a restriction on sale or transfer after vesting, and vested deferred cash awards and deferred cash stock units are subject to hold back (generally, for 12 months in each case).
Unvested CAP, deferred cash stock units and deferred cash awards are subject to one or more clawback provisions that apply in certain circumstances, including gross misconduct.
CAP and deferred cash stock unit awards, made to certain employees, are subject to a formulaic performancebased vesting condition pursuant to which amounts otherwise scheduled to vest will be reduced based on the amount of any pretax loss in the participant’s business in the calendar year preceding the scheduled vesting date.
A minimum reduction of 20% applies for the first dollar of loss for CAP and deferred cash stock unit awards.
In addition, deferred cash awards are subject to a discretionary performance-based vesting condition under which an amount otherwise scheduled to vest may be reduced in the event of a “material adverse outcome” for which a participant has “significant responsibility.
” These awards are also subject to an additional clawback provision pursuant to which unvested awards may be canceled if the employee engaged in misconduct or exercised materially imprudent judgment, or failed to supervise or escalate the behavior of other employees who did.
Sign-on and Long-Term Retention Awards Stock awards and deferred cash awards may be made at various times during the year as sign-on awards to induce new hires to join Citi or to highpotential employees as long-term retention awards.
Vesting periods and other terms and conditions pertaining to these awards tend to vary by grant.
Generally, recipients must remain employed through the vesting dates to vest in the awards, except in cases of death, disability or involuntary termination other than for gross misconduct.
These awards do not usually provide for post employment vesting by retirement-eligible participants.
Outstanding (Unvested) Stock Awards A summary of the status of unvested stock awards granted as discretionary annual incentive or sign-on and long-term retention awards is presented below:
## Table 0 ##
(1) The weighted-average fair value of the shares granted during 2017 and 2016 was $59.12 and $37.35, respectively.
(2) The weighted-average fair value of the shares vesting during 2018 was approximately $77.65 per share.
Total unrecognized compensation cost related to unvested stock awards was $538 million at December 31, 2018.
The cost is expected to be recognized over a weighted-average period of 1.7 years.
19.
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) Changes in each component of Citigroup鈥檚 Accumulated other comprehensive income (loss) were as follows:
## Table 1 ##
(1)Changes in DVA are reflected as a component of AOCI, pursuant to the adoption of only the provisions of ASU 2016-01 relating to the presentation of DVA on fair value option liabilities.
See Note 1 to the Consolidated Financial Statements.
(2)Primarily driven by Citi鈥檚 pay fixed/receive floating interest rate swap programs that hedge the floating rates on liabilities.
(3)Primarily reflects adjustments based on the quarterly actuarial valuations of Citi鈥檚 significant pension and postretirement plans, annual actuarial valuations of all other plans and amortization of amounts previously recognized in Other comprehensive income.
(4)Primarily reflects the movements in (by order of impact) the Brazilian real, Indian rupee, Mexican peso, and Australian dollar against the U. S.  dollar and changes in related tax effects and hedges for the year ended Primarily reflects the movements in (by order of impact) the Brazilian real, Indian rupee, Mexican peso, and Australian dollar against the U. S.  dollar and changes in related tax effects and hedges for the year ended December聽31, 2018.
Primarily reflects the movements in (by order of impact) the Euro, Mexican peso, Polish zloty and Korean won against the U. S.  dollar and changes in related tax effects and hedges for the year ended December聽31, 2017.
Primarily reflects the movements in (by order of impact) the Mexican peso, Euro, British pound and Indian rupee against the U. S.  dollar and changes in related tax effects and hedges for the year ended December聽31, 2016.
(5)Beginning in the first quarter of 2018, changes in the excluded component of fair value hedges are reflected as a component of AOCI, pursuant to the early adoption of ASU No.2017-12, Targeted Improvements to Accounting for Hedging Activities.
See Note 1 of the Consolidated Financial Statements for further information regarding this change.
(6)In the second quarter of 2017, Citi early adopted ASU No.2017-08.
聽Upon adoption, a cumulative effect adjustment was recorded to reduce Retained earnings, effective January 1, 2017, for the incremental amortization of cumulative fair value hedge adjustments on callable state and municipal debt securities.
See Note 1 to the Consolidated Financial Statements.
(7)In the fourth quarter of 2017, Citi adopted ASU 2018-02, which transferred these amounts from AOCI to Retained earnings.
See Note 1 to the Consolidated Financial Statements.
(8)Citi adopted ASU 2016-01 and ASU 2018-03 on January 1, 2018.
Upon adoption, a cumulative effect adjustment was recorded from AOCI to Retained earnings for net unrealized gains on former AFS equity securities.
For additional information, see Note 1 to the Consolidated Financial Statements (9)Includes the impact of the release upon meeting the accounting trigger for substantial liquidation of Citi鈥檚 Japan Consumer Finance business during the fourth quarter of 2018.
See Note 1 to the Consolidated Financial Statements.
Cash Flow Hedges Citigroup hedges the variability of forecasted cash flows associated with floating-rate assets/liabilities and other forecasted transactions.
Variable cash flows from those liabilities are synthetically converted to fixed-rate cash flows by entering into receive-variable, pay-fixed interest rate swaps and receivevariable, pay-fixed forward-starting interest rate swaps.
Variable cash flows associated with certain assets are synthetically converted to fixed-rate cash flows by entering into receive-fixed, pay-variable interest rate swaps.
These cash flow hedging relationships use either regression analysis or dollar-offset ratio analysis to assess whether the hedging relationships are highly effective at inception and on an ongoing basis.
Prior to the adoption of ASU 2017-12, Citigroup designated the risk being hedged as the risk of overall variability in the hedged cash flows for certain items.
With the adoption of ASU 2017-12, Citigroup hedges the variability from changes in a contractually specified rate and recognizes the entire change in fair value of the cash flow hedging instruments in AOCI.
Prior to the adoption of ASU 2017-12, to the extent that these derivatives were not fully effective, changes in their fair values in excess of changes in the value of the hedged transactions were immediately included in Other revenue.
With the adoption of ASU 2017-12, such amounts are no longer required to be immediately recognized in income, but instead the full change in the value of the hedging instrument is required to be recognized in AOCI, and then recognized in earnings in the same period that the cash flows impact earnings.
The pretax change in AOCI from cash flow hedges is presented below:
## Table 2 ##
(1) After January 1, 2018, all amounts reclassified into earnings for interest rate contracts are included in Interest income/Interest expense (Net interest revenue).
For all other hedges, including interest rate hedges prior to January 1, 2018, the amounts reclassified to earnings are included primarily in Other revenue and Net interest revenue in the Consolidated Statement of Income.
For cash flow hedges, the changes in the fair value of the hedging derivative remain in AOCI on the Consolidated Balance Sheet and will be included in the earnings of future periods to offset the variability of the hedged cash flows when such cash flows affect earnings.
The net gain (loss) associated with cash flow hedges expected to be reclassified from AOCI within 12?months of December?31, 2018 is approximately $404 million.
The maximum length of time over which forecasted cash flows are hedged is 10 years.
The after-tax impact of cash flow hedges on AOCI is shown in Note?19 to the Consolidated Financial Statements.
The following tables present information about Citi’s guarantees:
## Table 3 ##
Maximum potential amount of future payments

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Unvested stock awards	Shares	Weighted-average grantdate fairvalue per share
Unvested at December 31, 2017	36,931,040	$47.89
Granted-1	12,896,599	73.87
Canceled	-1,315,456	54.50
Vested-2	-16,783,587	49.54
Unvested at December 31, 2018	31,728,596	$57.30

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In millions of dollars	Netunrealizedgains (losses)on investment securities	Debt valuation adjustment (DVA)(1)	Cash flow hedges-2	Benefit plans-3	Foreigncurrencytranslationadjustment (CTA), net of hedges(4)	Excluded component of fair value hedges-5	Accumulatedothercomprehensive income (loss)
Balance, December 31, 2015	$-907	$—	$-617	$-5,116	$-22,704	$—	$-29,344
Adjustment to opening balance, netof taxes-1	$—	$-15	$—	$—	$—	$—	$-15
Adjusted balance, beginning of period	$-907	$-15	$-617	$-5,116	$-22,704	$—	$-29,359
Other comprehensive income beforereclassifications	$531	$-335	$-88	$-208	$-2,802	$—	$-2,902
Increase (decrease) due to amountsreclassified from AOCI	-423	-2	145	160	—	—	-120
Change, net of taxes	$108	$-337	$57	$-48	$-2,802	$—	$-3,022
Balance, December 31, 2016	$-799	$-352	$-560	$-5,164	$-25,506	$—	$-32,381
Adjustment to opening balance, netof taxes-6	$504	$—	$—	$—	$—	$—	$504
Adjusted balance, beginning of period	$-295	$-352	$-560	$-5,164	$-25,506	$—	$-31,877
Impact of Tax Reform-7	-223	-139	-113	-1,020	-1,809	—	-3,304
Other comprehensive income before reclassifications	-186	-426	-111	-158	1,607	—	726
Increase (decrease) due to amounts reclassified from AOCI	-454	-4	86	159	—	—	-213
Change, net of taxes	$-863	$-569	$-138	$-1,019	$-202	$—	$-2,791
Balance at December 31, 2017	$-1,158	$-921	$-698	$-6,183	$-25,708	$—	$-34,668
Adjustment to opening balance, netof taxes-8	-3	—	—	—	—	—	-3
Adjusted balance, beginning of period	$-1,161	$-921	$-698	$-6,183	$-25,708	$—	$-34,671
Other comprehensive income beforereclassifications	-866	1,081	-135	-240	-2,607	-57	-2,824
Increase (decrease) due to amountsreclassified from AOCI(9)	-223	32	105	166	245	—	325
Change, net of taxes	$-1,089	$1,113	$-30	$-74	$-2,362	$-57	$-2,499
Balance at December 31, 2018	$-2,250	$192	$-728	$-6,257	$-28,070	$-57	$-37,170

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Year ended December 31,
In millions of dollars	2018	2017	2016
Amount of gain (loss) recognized in AOCI on derivative
Interest rate contracts-1	$-361	$-165	$-219
Foreign exchange contracts	5	-8	69
Total gain (loss) recognized in AOCI	$-356	$-173	$-150
Amount of gain (loss) reclassified from AOCI to earnings	Otherrevenue	Net interestrevenue	Otherrevenue	Otherrevenue
Interest rate contracts-1	$—	$-301	$-126	$-140
Foreign exchange contracts	-17	—	-10	-93
Total gain (loss) reclassified from AOCI into earnings	$-17	$-301	$-136	$-233

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Maximum potential amount of future payments
In billions of dollars at December 31, 2018, except carrying value in millions	Expire within1 year	Expire after1 year	Total amountoutstanding	Carrying value(in millions of dollars)
Financial standby letters of credit	$31.8	$65.3	$97.1	$131
Performance guarantees	7.7	4.2	11.9	29
Derivative instruments considered to be guarantees	23.5	87.4	110.9	567
Loans sold with recourse	—	1.2	1.2	9
Securities lending indemnifications-1	98.3	—	98.3	—
Credit card merchant processing-1(2)	95.0	—	95.0	—
Credit card arrangements with partners	0.3	0.8	1.1	162
Custody indemnifications and other	—	35.4	35.4	41
Total	$256.6	$194.3	$450.9	$939

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Question: Which year is Change, net of taxes the most?
Answer: 2017