v3.21.2
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2021
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Note 14—Employee Benefit Plans
Pension and Postretirement Plans
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 June 30
Service cost
$
18
16
21
13
1
-
Interest cost
15
20
17
20
1
1
Expected return on plan assets
(20)
(30)
(21)
(34)
-
-
Amortization of prior service credit
-
-
-
-
(10)
(8)
Recognized net actuarial loss
 
12
8
13
5
1
-
Settlements
42
-
-
-
-
-
Net periodic benefit cost
$
67
14
30
4
(7)
(7)
Six Months Ended June 30
Service cost
$
39
31
42
27
1
1
Interest cost
28
40
34
42
2
3
Expected return on plan assets
(44)
(60)
(42)
(71)
-
-
Amortization of prior service credit
-
-
-
-
(19)
(16)
Recognized net actuarial loss
27
16
25
11
1
-
Settlements
44
-
1
(1)
-
-
Curtailments
12
-
-
-
-
-
Special Termination Benefits
9
-
-
-
-
-
Net periodic benefit cost
$
115
27
60
8
(15)
(12)
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.
 
During the three-month period ended June 30,
 
2021, lump-sum benefit payments exceeded the sum
 
of
service and interest costs for the year for the
 
U.S. qualified pension plan and a U.S. non-qualified
 
supplemental
retirement plan.
 
As a result, we recognized a proportionate share
 
of prior actuarial losses from other
comprehensive income as pension settlement
 
expense of $
42
 
million.
 
In conjunction with the recognition of
pension settlement expense, the fair market
 
values of the pension plan assets were updated
 
and the pension
benefit
 
obligations of the U.S. qualified pension plan
 
and the U.S. non-qualified supplemental
 
retirement plan
were remeasured at June 30, 2021.
 
At the measurement date, the net pension liability
 
decreased by $
30
million, primarily a result of better actual return
 
on assets compared with the expected return,
 
partially offset
by a decrease in the discount rate, resulting
 
in a corresponding increase to other comprehensive
 
income.
 
As part of our restructuring program, we concluded
 
that actions taken during the first quarter
 
of 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 in the first quarter of 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:
June 30
March 31
December 31
Discount rate
2021
2021
2020
U.S. qualified pension plan
%
2.65
3.00
2.40
U.S. nonqualified pension plan
2.15
2.40
1.85
U.S. postretirement benefit plans
*
2.80
2.20
* Not remeasured at June 30, 2021.
During the first six months of 2021, we contributed
 
$
269
 
million to our domestic benefit plans and $
63
 
million
to our international benefit plans.
 
In 2021, we expect to contribute a total of approximately
 
$
365
 
million to
our domestic qualified and nonqualified pension
 
and postretirement benefit plans and $
97
 
million to our
international qualified and nonqualified pension
 
and postretirement benefit plans.
Severance Accrual
The following table summarizes our severance
 
accrual activity for the six-month period
 
ended June 30, 2021:
Millions of Dollars
Balance at December 31, 2020
$
24
Accruals
102
Benefit payments
(91)
Balance at June 30, 2021
$
35
Accruals include severance costs associated with
 
our restructuring program.
 
Of the remaining balance at June
30, 2021, $
20
 
million is classified as short-term.