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RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended
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Dec. 31, 2018
Retirement Benefits [Abstract] |
Components of amounts recognized in the consolidated balance sheets | The following tables show the amounts recognized in the consolidated balance sheets of Occidental related to its pension and postretirement benefit plans:
(in millions) |  | Pension Benefits |  | Postretirement Benefits
As of December 31, |  | 2018 |  | 2017 |  | 2018 |  | 2017
Amounts recognized in the consolidated balance sheet: |  |  |  |  |  |  |  |
Other assets |  | $ | 60 |  |  | $ | 82 |  |  | $ | — |  |  | $ | — |
Accrued liabilities |  | (25 | ) |  | (5 | ) |  | (45 | ) |  | (59 | )
Deferred credits and other liabilities — pension and postretirement obligations |  | (46 | ) |  | (65 | ) |  | (763 | ) |  | (940 | )
|  | $ | (11 | ) |  | $ | 12 |  |  | $ | (808 | ) |  | $ | (999 | )
After-tax balances included in AOCI |
Accumulated other comprehensive loss included the following after-tax balances: |  |  |  |  |  |  |  |
Net loss |  | $ | 91 |  |  | $ | 59 |  |  | $ | 151 |  |  | $ | 192 |
Prior service cost |  | — |  |  | — |  |  | (72 | ) |  | 1 |
|  | $ | 91 |  |  | $ | 59 |  |  | $ | 79 |  |  | $ | 193 |
Funding status of Occidental's plans | The following tables show the funding status, obligations and plan asset fair values of Occidental related to its pension and postretirement benefit plans:
|  | Pension Benefits |  | Postretirement Benefits
For the years ended December 31, |  | 2018 |  | 2017 |  | 2018 |  | 2017
Changes in the benefit obligation: |  |  |  |  |  |  |  |
Benefit obligation — beginning of year |  | $ | 391 |  |  | $ | 399 |  |  | $ | 999 |  |  | $ | 950 |
Service cost — benefits earned during the period |  | 5 |  |  | 6 |  |  | 23 |  |  | 21 |
Interest cost on projected benefit obligation |  | 15 |  |  | 17 |  |  | 34 |  |  | 38 |
Actuarial (gain) loss |  | (19 | ) |  | 14 |  |  | (90 | ) |  | 61 |
Foreign currency exchange rate gain |  | (3 | ) |  | — |  |  | — |  |  | — |
Liability gain due to curtailment |  | — |  |  | (2 | ) |  | — |  |  | (9 | )
Special termination benefits |  | — |  |  | 1 |  |  | — |  |  | — |
Benefits paid |  | (40 | ) |  | (44 | ) |  | (57 | ) |  | (62 | )
Settlements |  | — |  |  | — |  |  | — |  |  | — |
Plan amendments |  | — |  |  | — |  |  | (101 | ) |  | — |
Benefit obligation — end of year |  | $ | 349 |  |  | $ | 391 |  |  | $ | 808 |  |  | $ | 999 |
Changes in plan assets: |  |  |  |  |  |  |  |
Fair value of plan assets — beginning of year |  | $ | 403 |  |  | $ | 386 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets |  | (33 | ) |  | 52 |  |  | — |  |  | — |
Foreign currency exchange rate loss |  | — |  |  | — |  |  | — |  |  | — |
Employer contributions |  | 8 |  |  | 9 |  |  | — |  |  | — |
Benefits paid |  | (40 | ) |  | (44 | ) |  | — |  |  | — |
Settlements |  | — |  |  | — |  |  | — |  |  | — |
Fair value of plan assets — end of year |  | $ | 338 |  |  | $ | 403 |  |  | $ | — |  |  | $ | — |
Funded/(Unfunded) status: |  | $ | (11 | ) |  | $ | 12 |  |  | $ | (808 | ) |  | $ | (999 | )
Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with an accumulated benefit obligation in excess of plan assets and plan assets in excess of the accumulated benefit obligation | The following table sets forth details of the obligations and assets of Occidental's defined benefit pension plans:
(in millions) |  | Accumulated Benefit Obligation in Excess of Plan Assets |  | Plan Assets in Excess of Accumulated Benefit Obligation
As of December 31, |  | 2018 |  | 2017 |  | 2018 |  | 2017
Projected Benefit Obligation |  | $ | 173 |  |  | $ | 161 |  |  | $ | 176 |  |  | $ | 230 |
Accumulated Benefit Obligation |  | $ | 169 |  |  | $ | 157 |  |  | $ | 176 |  |  | $ | 230 |
Fair Value of Plan Assets |  | $ | 98 |  |  | $ | 91 |  |  | $ | 240 |  |  | $ | 312 |
Components of the net periodic benefit costs | The following table sets forth the components of net periodic benefit costs:
|  | Pension Benefits |  | Postretirement Benefits
For the years ended December 31, (in millions) |  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
Net periodic benefit costs: |  |  |  |  |  |  |  |  |  |  |  |
Service cost — benefits earned during the period |  | $ | 5 |  |  | $ | 6 |  |  | $ | 7 |  |  | $ | 23 |  |  | $ | 21 |  |  | $ | 20 |
Interest cost on projected benefit obligation |  | 15 |  |  | 17 |  |  | 18 |  |  | 34 |  |  | 38 |  |  | 39 |
Expected return on plan assets |  | (25 | ) |  | (24 | ) |  | (24 | ) |  | — |  |  | — |  |  | — |
Recognized actuarial loss |  | 7 |  |  | 10 |  |  | 12 |  |  | 14 |  |  | 14 |  |  | 15 |
Other costs and adjustments |  | 1 |  |  | 3 |  |  | 4 |  |  | (2 | ) |  | 1 |  |  | — |
Net periodic benefit cost |  | $ | 3 |  |  | $ | 12 |  |  | $ | 17 |  |  | $ | 69 |  |  | $ | 74 |  |  | $ | 74 |
Weighted-average assumptions used to determine Occidental's benefit obligation and net periodic benefit cost for domestic plans | The following table sets forth the weighted-average assumptions used to determine Occidental's benefit obligation and net periodic benefit cost for domestic plans:
|  | Pension Benefits |  | Postretirement Benefits
For the years ended December 31, |  | 2018 |  | 2017 |  | 2018 |  | 2017
Benefit Obligation Assumptions: |  |  |  |  |  |  |  |
Discount rate |  | 4.09 | % |  | 3.45 | % |  | 4.29 | % |  | 3.61 | %
Net Periodic Benefit Cost Assumptions: |  |  |  |  |  |  |  |
Discount rate for January 1 - August 31 expense |  | 3.45 | % |  | 3.90 | % |  | 3.61 | % |  | 4.15 | %
Discount rate for September 1 - December 31 expense |  | 3.45 | % |  | 3.90 | % |  | 4.14 | % |  | 4.15 | %
Assumed long-term rate of return on assets |  | 6.50 | % |  | 6.50 | % |  | — |  |  | — |
Fair values of Occidental's pension plan assets by asset category | The fair values of Occidental’s pension plan assets by asset category are as follows:
(in millions) |  | Fair Value Measurements at December 31, 2018, Using
Description |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Asset Class: |  |  |  |  |  |  |  |
U.S. government securities |  | $ | 17 |  |  | $ | — |  |  | $ | — |  |  | $ | 17 |
Corporate bonds (a) |  | — |  |  | 66 |  |  | — |  |  | 66 |
Common/collective trusts (b) |  | — |  |  | 9 |  |  | — |  |  | 9 |
Mutual funds: |  |  |  |  |  |  |  |
Bond funds |  | 31 |  |  | — |  |  | — |  |  | 31 |
Blend funds |  | 48 |  |  | — |  |  | — |  |  | 48 |
Common and preferred stocks (c) |  | 141 |  |  | — |  |  | — |  |  | 141 |
Other |  | — |  |  | 31 |  |  | — |  |  | 31 |
Total pension plan assets (d) |  | $ | 237 |  |  | $ | 106 |  |  | $ | — |  |  | $ | 343 |
(in millions) |  | Fair Value Measurements at December 31, 2017, Using
Description |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Asset Class: |  |  |  |  |  |  |  |
U.S. government securities |  | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |
Corporate bonds (a) |  | — |  |  | 83 |  |  | — |  |  | 83 |
Common/collective trusts (b) |  | — |  |  | 20 |  |  | — |  |  | 20 |
Mutual funds: |  |  |  |  |  |  |  |
Bond funds |  | 19 |  |  | — |  |  | — |  |  | 19 |
Blend funds |  | 59 |  |  | — |  |  | — |  |  | 59 |
Common and preferred stocks (c) |  | 188 |  |  | — |  |  | — |  |  | 188 |
Other |  | — |  |  | 30 |  |  | — |  |  | 30 |
Total pension plan assets (d) |  | $ | 278 |  |  | $ | 133 |  |  | $ | — |  |  | $ | 411 |
(a) | This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries.
(b) | This category includes investment funds that primarily invest in U.S. and non-U.S. common stocks and fixed-income securities.
(c) | This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries.
(d) | Amounts exclude net payables of approximately $6 million and $8 million as of December 31, 2018 and 2017, respectively.
Estimated future benefit payments, which reflect expected future service, as appropriate | Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows:
For the years ended December 31, (in millions) |  | Pension Benefits |  | Postretirement Benefits
2019 |  | $ | 60 |  |  | $ | 46 |
2020 |  | $ | 27 |  |  | $ | 50 |
2021 |  | $ | 28 |  |  | $ | 50 |
2022 |  | $ | 27 |  |  | $ | 50 |
2023 |  | $ | 26 |  |  | $ | 50 |
2024 - 2028 |  | $ | 129 |  |  | $ | 249 |

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