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Employee Benefit Plans | 9 Months Ended
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Sep. 30, 2018
Employee Benefit Plans [Abstract] |
Employee Benefit Plans |
Note 18—Employee Benefit Plans |  |  |  |  |  |  |  |  |  |  |  |
Pension and Postretirement Plans |  |  |  |  |  |  |  |  |  |  |  |
| Millions of Dollars
| Pension Benefits |  | Other Benefits
| 2018 |  | 2017 |  | 2018 |  | 2017
|  | U.S. |  | Int'l. |  | U.S. |  | Int'l. |  |  |  |
Components of Net Periodic Benefit Cost |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended September 30 |  |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 20 |  | 20 |  | 21 |  | 20 |  | - |  | -
Interest cost |  | 22 |  | 26 |  | 29 |  | 27 |  | 2 |  | 3
Expected return on plan assets |  | (22) |  | (38) |  | (32) |  | (41) |  | - |  | -
Amortization of prior service cost (credit) |  | - |  | (1) |  | 1 |  | (1) |  | (9) |  | (9)
Recognized net actuarial loss (gain) |  | 10 |  | 9 |  | 17 |  | 12 |  | - |  | (1)
Settlements |  | 14 |  | - |  | 21 |  | - |  | - |  | -
Curtailments |  | - |  | (1) |  | - |  | - |  | - |  | -
Net periodic benefit cost | $ | 44 |  | 15 |  | 57 |  | 17 |  | (7) |  | (7)
Nine Months Ended September 30 |  |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 63 |  | 63 |  | 67 |  | 59 |  | 1 |  | 1
Interest cost |  | 76 |  | 80 |  | 90 |  | 78 |  | 6 |  | 7
Expected return on plan assets |  | (91) |  | (118) |  | (97) |  | (119) |  | - |  | -
Amortization of prior service cost (credit) |  | - |  | (4) |  | 3 |  | (4) |  | (26) |  | (27)
Recognized net actuarial loss (gain) |  | 41 |  | 27 |  | 53 |  | 36 |  | (1) |  | (2)
Settlements |  | 161 |  | - |  | 118 |  | - |  | - |  | -
Curtailments |  | - |  | (1) |  | - |  | - |  | - |  | -
Net periodic benefit cost | $ | 250 |  | 47 |  | 234 |  | 50 |  | (20) |  | (21)
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 first nine months of 2018, we contributed $150 million to our domestic benefit plans and $130 million to our international benefit plans. In 2018, we expect to contribute approximately $160 million to our domestic qualified and nonqualified pension and postretirement bene fit plans and $160 million to our international qualified and nonqualified pension and postretirement benefit plans. In June 2018, we purchased a group annuity contract from Prudential and transferred approximately $700 million of future benefit obligations from the U.S. qualified pension plan to Prudential. The purchase of the group annuity contract was funded directly by plan assets of the U.S. qualified pension plan. We recognized a proportionate share of prior ac tuarial losses from other comprehensive income as pension settlement expense of $14 million and $161 million during the three- and nine-month periods ended September 30, 2018, respectively. In conjunction with the recognition of pension s ettlement expense, the fair market values of the U.S. qualified pension plan assets were updated, and the pension benefit obligation of the U.S. qualified pension plan was remeasured as of June 30, 2018. At the measurement date, the net pension liability increased by $42 million as a result of a loss on U.S. qualified pension plan assets, offset by a gain on the projected benefit obligation due primarily to an increase in the discount rate from 3.6 percent to 4.2 percent, resulting in a corresponding decrease to other comprehensive income. During the three-month period ended September 30, 2018, the fair market value of certain international pension plan assets was updated, and the pension benefit obligatio ns associated with these plans were remeasured. At the measurement.date, the net pension liability decreased by $157 million with a corresponding increase to other comprehensive income primarily as a result of an increase in discount r ate from 2.55 percent at December 31, 2017, to 2.95 percent at September 30, 2018. The reduction in net pension liability resulted in a balance of $146 million associated with an international qualified p lan being reclassified to the “Other assets” line on our consolidated balance sheet. Severance Accrual As a result of staff reductions occurring throughout the year, severance accruals of $35 million and $65 million wer e recorded during the three- and nine-month periods ended September 30, 2018, respectively. The following table summarizes our severance accrual activity for the nine-month period ended September 30, 2018:
|  | Millions of Dollars
Balance at December 31, 2017 | $ | 53
Accruals |  | 65
Benefit payments |  | (38)
Balance at September 30, 2018 | $ | 80
Of the remaining balance at September 30, 2018, $55 million is classified as short term.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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