v3.7.0.1
Employee Benefit Plans
3 Months Ended
Mar. 31, 2017
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Note 16—Employee Benefit Plans
Pension and Postretirement Plans
Millions of Dollars
Pension BenefitsOther Benefits
Three Months EndedMarch 31March 31
2017201620172016
U.S.Int’l.U.S.Int’l.
Components of Net Periodic Benefit Cost
Service cost$23192720-1
Interest cost3226403123
Expected return on plan assets(34)(39)(43)(41)--
Amortization of prior service cost (credit)1(1)1(1)(9)(9)
Recognized net actuarial loss (gain)1912197(1)-
Settlements60-82---
Net periodic benefit cost$1011712616(8)(5)

During the first three months of 2017, we contributed $19 million to our domestic benefit plans and $41 million to our international benefit plans. In 2017, we expect to contribute approximately $340 million to our domestic qualified and nonqualified pension and postretirement benefit plans and $120 million to our international qualified and nonqualified pension and postretirement benefit plans.

During the three-month period ended March 31, 2017, lump-sum benefit payments exceeded the sum of service and interest costs for the fiscal year for the U.S. qualified pension plan and certain U.S. nonqualified supplemental retirement plans. As a result, we recognized a proportionate share of prior actuarial losses from other comprehensive income as pension settlement expense of $60 million.

Severance Accrual

As a result of entering into a definitive agreement during the first quarter to sell our 50 percent nonoperated interest in the FCCL Partnership, as well as the majority of our western Canada gas assets, a reduction in our overall employee workforce is expected in 2017. Severance accruals of $39 million were recorded during the three-month period ended March 31, 2017. The following table summarizes our severance accrual activity for the three-month period ended March 31, 2017:

Millions of Dollars
Balance at December 31, 2016$80
Accruals39
Benefit payments(45)
Foreign currency translation adjustments(1)
Balance at March 31, 2017$73

Of the remaining balance at March 31, 2017, $48 million is classified as short-term.