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Pension and Other Postretirement Benefit Plans
 6 Months Ended
Jun. 30, 2020
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefit Plans PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
The following table summarizes the components of net periodic pension cost and the cost of other postretirement benefits for the periods presented:


Three Months Ended June 30,


United States
Pension Benefits

Foreign
Pension Benefits

Other Postretirement
Benefits
Millions of dollars

2020

2019

2020

2019

2020

2019
Service cost

$
—


$
—


$
1


$
2


$
1


$
1

Interest cost

24


31


5


6


3


4

Expected return on plan assets

(41
)

(45
)

(7
)

(8
)

—


—

Amortization:












Actuarial loss

16


12


3


2


—


—

Prior service credit

—


—


—


—


(2
)

(3
)
Settlement and curtailment (gain) loss

—


—


—


—


(4
)

—

Net periodic benefit cost (credit)

$
(1
)

$
(2
)

$
2


$
2


$
(2
)

$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
United States
Pension Benefits
 
Foreign
Pension Benefits
 
Other Postretirement
Benefits
Millions of dollars
 
2020

2019

2020

2019

2020

2019
Service cost
 
$
1

 
$
1

 
$
3

 
$
3

 
$
3

 
$
3

Interest cost
 
49

 
62

 
9

 
12

 
6

 
8

Expected return on plan assets
 
(82
)
 
(89
)
 
(15
)
 
(15
)
 
—

 
—

Amortization:
 
 
 
 
 
 
 
 
 
 
 
 
Actuarial loss
 
31

 
24

 
6

 
4

 
—

 
—

Prior service credit
 
—

 
(1
)
 
—

 
—

 
(4
)
 
(5
)
Settlement and curtailment (gain) loss
 
—

 
—

 
—

 
1

 
(4
)
 
(7
)
Net periodic benefit cost (credit)
 
$
(1
)
 
$
(3
)
 
$
3

 
$
5

 
$
1

 
$
(1
)

The following table summarizes the net periodic cost recognized in operating profit and interest and sundry (income) expense for the periods presented:
 
 
Three Months Ended June 30,
 
 
United States
Pension Benefits
 
Foreign
Pension Benefits
 
Other Postretirement
Benefits
Millions of dollars
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
Operating profit (loss)
 
$
—

 
$
—

 
$
1

 
$
2

 
$
1

 
$
1

Interest and sundry (income) expense
 
(1
)
 
(2
)
 
1

 
—

 
(3
)
 
1

Net periodic benefit cost
 
$
(1
)
 
$
(2
)
 
$
2

 
$
2

 
$
(2
)
 
$
2


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
United States
Pension Benefits
 
Foreign
Pension Benefits
 
Other Postretirement
Benefits
Millions of dollars
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
Operating profit (loss)
 
$
1

 
$
1

 
$
3

 
$
3

 
$
3

 
$
3

Interest and sundry (income) expense
 
(2
)
 
(4
)
 
—

 
2

 
(2
)
 
(4
)
Net periodic benefit cost
 
$
(1
)
 
$
(3
)
 
$
3

 
$
5

 
$
1

 
$
(1
)


401(k) Defined Contribution Plan

During March 2020, we announced that the company matching contributions for our 401(k) defined contribution plan, equal to up to 7% of participants' eligible compensation, covering substantially all U.S. employees will be contributed in company stock starting from May 2020.

Other Postretirement Benefit Plans
During the quarter, the Company announced changes to a postretirement medical benefit program for certain groups of active employees. These plan amendments are effective July 1, 2020 and reduce medical benefits for these pre-Medicare eligible and Medicare-eligible active employees who retire on or after July 1, 2020 and eliminate certain benefits effective January 1, 2024.
These plan amendments resulted in a reduction in the accumulated postretirement benefit obligation of approximately $45 million with a corresponding adjustment of $34 million in other comprehensive income, net of $11 million in deferred taxes as of June 2020. This amount is being amortized as a reduction of future net periodic cost over approximately 3.4 years, which represents the future remaining service period of eligible active employees.
For additional information, see Note 11 to the Consolidated Condensed Financial Statements.
Subsequently, on July 15, 2020, the Company announced additional changes to a postretirement medical benefit program for certain groups of retirees. These plan amendments are effective January 1, 2021 and reduce reimbursement amounts available under certain postretirement medical benefit programs and eliminate these benefits effective January 1, 2024 for these same retiree groups.
These additional plan amendments will result in a reduction in the accumulated postretirement benefit obligation of approximately $112 million with a corresponding adjustment of $84 million in other comprehensive income, net of $28 million in deferred taxes. This amount will be amortized as a reduction of future net periodic cost over approximately 3.4 years, which represents the future remaining service period of eligible active employees.