v3.21.1
Employee Benefit Plans
 3 Months Ended
Mar. 31, 2021
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Note 14—Employee Benefit Plans
Pension and Postretirement Plans
The components of net periodic benefit cost of
 
all defined benefit plans for the first quarter
 
are presented in
the following table:
Millions of Dollars
 
Pension Benefits
Other Benefits
2021
2020
2021
2020
U.S.
Int’l.
U.S.
Int’l.
Components of Net Periodic Benefit Cost
Three Months Ended March 31
Service cost
$
21
15
21
14
-
1
Interest cost
13
20
17
22
1
2
Expected return on plan assets
(24)
(30)
(21)
(37)
-
-
Amortization of prior service credit
-
-
-
-
(9)
(8)
Recognized net actuarial loss
15
8
12
6
-
-
Settlements
2
-
1
(1)
-
-
Curtailments
12
-
-
-
-
-
Special termination benefits
9
-
-
-
-
-
Net periodic benefit cost
$
48
13
30
4
(8)
(5)
The components of net periodic benefit cost, other
 
than the service cost component, are included
 
in the “Other
expenses” line item on our consolidated income statement.
As part of our restructuring program, we concluded
 
that actions taken during the three-month
 
period ended
March 31, 2021, would result in a significant
 
reduction of future service of active employees
 
in the U.S.
qualified pension plan, a U.S. nonqualified
 
supplemental retirement plan and the U.S.
 
other postretirement
benefit plans.
 
As a result, we recognized an increase in the benefit
 
obligation as a curtailment loss of
$
12
 
million on the U.S. pension benefit plans during
 
the three-month period ended March 31, 2021.
 
In
conjunction with the recognition of curtailment
 
losses, the fair market values of pension plan assets
 
were
updated, and the pension benefit obligations
 
of the U.S. qualified pension, a U.S. nonqualified
 
supplemental
retirement plan and the U.S. other postretirement
 
benefit plans were remeasured.
 
At March 31, 2021, the net
pension liability decreased by $
76
 
million, primarily as a result of discount
 
rate increases for each plan offset
by lower than premised return on assets on the
 
U.S. qualified pension plan,
 
resulting in a corresponding
increase to other comprehensive income.
The relevant discount rates are summarized in
 
the following table:
March 31
December 31
Discount rate
2021
2020
U.S. qualified pension plan
%
3.00
2.40
U.S. nonqualified pension plan
2.40
1.85
U.S. postretirement benefit plans
2.80
2.20
Severance Accrual
 
The following table summarizes our severance accrual
 
activity for the three-month period ended March
 
31,
2021:
Millions of Dollars
Balance at December 31, 2020
$
24
Accruals
101
Benefit payments
(33)
Balance at March 31, 2021
$
92
Accruals in the first quarter of 2021 represent
 
severance costs associated with our restructuring
 
program.
 
Of
the total remaining balance at March 31, 2021,
 
$
77
 
million is classified as short-term.
 
See Note 3—
Acquisitions and Dispositions, for additional
 
information on the restructuring program.