XML 34 R21.htm IDEA: XBRL DOCUMENT v3.22.2.2
Employee Benefit Plans
9 Months Ended
Sep. 30, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans
Note 14—Employee Benefit Plans
Pension and Postretirement Plans
Millions of Dollars
Pension Benefits
Other Benefits
2022202120222021
U.S.
Int'l.
U.S.
Int'l.
Components of Net Periodic Benefit Cost
Three Months Ended September 30
Service cost
$13 13 17 15  — 
Interest cost
18 19 12 19 1 
Expected return on plan assets
(10)(31)(22)(30)
Amortization of prior service credit
 (1)— — (9)(9)
Recognized net actuarial loss
6 2  — 
Settlements
9  28 — 
Net periodic benefit cost
$36 2 44 12 (8)(8)
Nine Months Ended September 30
Service cost$45 39 56 46 1 
Interest cost
42 61 40 59 3 
Expected return on plan assets
(36)(99)(66)(90)
Amortization of prior service credit
 (1)— — (29)(28)
Recognized net actuarial loss
17 6 36 24  
Settlements
31  72 — 
Curtailments
  12 —  — 
Special Termination Benefits
  —  — 
Net periodic benefit cost$99 6 159 39 (25)(23)
The components of net periodic benefit cost, other than the service cost component, are included in the "Other expenses" line of our consolidated income statement.
During the first nine months of 2022, we contributed $68 million to our domestic benefit plans and $93 million to our international benefit plans. We expect our total contributions in 2022 to be approximately $95 million to our domestic qualified and nonqualified pension and postretirement benefit plans and $100 million to our international qualified and nonqualified pension and postretirement benefit plans.

We recognized a proportionate share of prior actuarial losses from other comprehensive income as pension settlement expense of $9 million and $31 million during the three- and nine-month periods ended September 30, 2022, respectively. 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, 2022. At the measurement date, the net pension liability increased by $23 million, primarily a result of lower than premised return on assets, partially offset by an increase in the discount rate, resulting in a corresponding decrease to other comprehensive income.

The relevant assumptions are summarized in the following table:


September 30
2022
December 31
2021
Expected return on plan assets (U.S. qualified pension plan)
5.30 %3.40 
Relevant discount rates
U.S. qualified pension plan
5.65 %2.85 
U.S. nonqualified pension plan
5.60 2.50