Pension and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2016

General Discussion of Pension and Other Postretirement 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 September 30,
	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2016			2015			2016			2015			2016			2015
Service cost	$	1		$	1		$	1		$	1		$	1		$	1
Interest cost	37			37			7			8			5			4
Expected return on plan assets	(47		)	(48		)	(7		)	(8		)	—			—
Amortization:
Actuarial loss	12			13			1			1			—			—
Prior service credit	—			—			—			—			(3		)	(5		)
Settlement and curtailment (gain) loss	—			—			1			1			—			(16		)
Net periodic benefit cost (credit)	$	3		$	3		$	3		$	3		$	3		$	(16	)

	Nine Months Ended September 30,
	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2016			2015			2016			2015			2016			2015
Service cost	$	2		$	2		$	4		$	4		$	5		$	2
Interest cost	111			112			21			23			13			14
Expected return on plan assets	(140		)	(143		)	(23		)	(25		)	—			—
Amortization:
Actuarial loss	35			40			3			4			—			—
Prior service credit	(2		)	(2		)	—			—			(11		)	(19		)
Settlement and curtailment (gain) loss	—			—			1			13			—			(63		)
Net periodic benefit cost (credit)	$	6		$	9		$	6		$	19		$	7		$	(66	)

During the first quarter of 2015, we recognized approximately $47 million from a curtailment gain due to the elimination of amounts credited to notional retiree health accounts for certain employees under age 50. The curtailment gain was recognized in our Consolidated Condensed Statement of Comprehensive Income with $43 million recorded in cost of products sold and the remaining balance in selling, general and administrative, with an offset to accumulated other comprehensive loss, net of tax.

During the third quarter of 2015, we recognized approximately $16 million from a curtailment gain due to the elimination of retiree medical eligibility for certain employees under age 50. The curtailment gain was recognized in our Consolidated Condensed Statement of Comprehensive Income with $15 million recorded in cost of products sold and the remaining balance in selling, general and administrative, with an offset to accumulated other comprehensive loss, net of tax.