v3.21.2
Employee Benefit Plans
 9 Months Ended
Sep. 30, 2021
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Note 15—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 September 30
Service cost
$
17
15
21
14
-
1
Interest cost
12
19
17
21
1
2
Expected return on plan assets
(22)
(30)
(21)
(37)
-
-
Amortization of prior service credit
-
-
-
(1)
(9)
(7)
Recognized net actuarial loss
 
9
8
12
5
-
1
Settlements
28
-
27
-
-
-
Net periodic benefit cost
$
44
12
56
2
(8)
(3)
Nine Months Ended September 30
Service cost
$
56
46
63
41
1
2
Interest cost
40
59
51
63
3
5
Expected return on plan assets
(66)
(90)
(63)
(108)
-
-
Amortization of prior service credit
-
-
-
(1)
(28)
(23)
Recognized net actuarial loss
36
24
37
16
1
1
Settlements
72
-
28
(1)
-
-
Curtailments
12
-
-
-
-
-
Special Termination
 
Benefits
9
-
-
-
-
-
Net periodic benefit cost
$
159
39
116
10
(23)
(15)
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.
We recognized a proportionate
 
share of prior actuarial losses from other comprehensive
 
income as pension
settlement expense of $
28
 
million and $
72
 
million during the three- and nine-month periods
 
ended September 30,
2021, respectively.
 
As part of our company-wide 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 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. nonqualified supplemental
 
retirement plan were remeasured
 
at September 30, 2021.
 
At the
measurement date, the net pension
 
liability decreased by $
106
 
million compared to December 31, 2020, primarily
a result of an increase in the discount rate,
 
resulting in a corresponding increase to
 
other comprehensive income.
The relevant assumptions are
 
summarized in the following table:
September 30
December 31
2021
2020
Expected return on plan assets
3.40
%
5.80
Relevant discount rates
U.S. qualified pension plan
2.80
%
2.40
U.S. nonqualified pension plan
2.30
1.85
During the first nine months of 2021, we contributed
 
$
409
 
million to our domestic benefit plans and $
104
 
million
to our international benefit plans.
 
In 2021, we expect to contribute a
 
total of approximately $
475
 
million to our
domestic qualified and nonqualified pension and postretirement
 
benefit plans and $
115
 
million to our
international qualified and nonqualified pension and
 
postretirement benefit plans.
Severance Accrual Activity
Millions of Dollars
Balance at December 31, 2020
$
24
Accruals
165
Benefit payments
(102)
Balance at September 30, 2021
$
87
Accruals include severance costs
 
associated with our company-wide restructuring
 
program.
 
Of the remaining
balance at September 30, 2021, $
51
 
million is classified as short-term.
for information relating to
 
our
Concho acquisition.