Pension and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Defined Benefit Plan [Abstract]

Obligations and Funded Status at End of Year

Obligations and Funded Status at End of Year

	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2019			2018			2019			2018			2019			2018
Funded status
Fair value of plan assets	$	2,934		$	2,676		$	593		$	518		$	—		$	—
Benefit obligations	3,141			3,033			941			834			355			356
Funded status	$	(207	)	$	(357	)	$	(348	)	$	(316	)	$	(355	)	$	(356	)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	—		$	—		$	11		$	12		$	—		$	—
Current liability	(6		)	(38		)	(17		)	(10		)	(33		)	(38		)
Noncurrent liability	(201		)	(319		)	(342		)	(318		)	(322		)	(318		)
Amount recognized	$	(207	)	$	(357	)	$	(348	)	$	(316	)	$	(355	)	$	(356	)
Amounts recognized in accumulated other comprehensive loss (pre-tax)
Net actuarial loss	$	1,329		$	1,445		$	234		$	192		$	15		$	1
Prior service (credit) cost	1			(1		)	4			(2		)	(16		)	(16		)
Amount recognized	$	1,330		$	1,444		$	238		$	190		$	(1	)	$	(15	)

Change in Benefit Obligation

Change in Benefit Obligation

	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2019			2018			2019			2018			2019			2018
Benefit obligation, beginning of year	$	3,033		$	3,415		$	834		$	952		$	356		$	394
Service cost	2			2			6			5			6			7
Interest cost	123			118			23			23			16			15
Plan participants' contributions	—			—			1			1			—			—
Actuarial loss (gain)	279			(197		)	85			(33		)	14			(16		)
Benefits paid	(263		)	(305		)	(30		)	(31		)	(28		)	(36		)
Plan amendments	—			—			6			1			(15		)	4
Transfer of liabilities	—			—			(2		)	—			—			—
Other adjustments	—			—			11			—			7			—
Special termination benefit	—			—			—			(5		)	—			—
Settlements / curtailment (gain)	(33		)	—			(13		)	(22		)	—			—
Foreign currency exchange rates	—			—			20			(53		)	(1		)	(5		)
Reclassification of obligation to held for sale	—			—			—			(4		)	—			(7		)
Benefit obligation, end of year	$	3,141		$	3,033		$	941		$	834		$	355		$	356
Accumulated benefit obligation, end of year	$	3,128		$	3,022		$	902		$	804		N/A			N/A

Change in Plan Assets

Change in Plan Assets

	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
Millions of dollars	2019			2018			2019			2018			2019			2018
Fair value of plan assets, beginning of year	$	2,676		$	2,746		$	518		$	571		$	—		$	—
Actual return on plan assets	517			(145		)	61			(7		)	—			—
Employer contribution	37			380			33			39			28			36
Plan participants' contributions	—			—			1			1			—			—
Benefits paid	(263		)	(305		)	(30		)	(31		)	(28		)	(36		)
Transfer of plan assets	—			—			(2		)	—			—			—
Other adjustments	—			—			5			—			—			—
Settlements	(33		)	—			(13		)	(22		)	—			—
Foreign currency exchange rates	—			—			20			(31		)	—			—
Reclassification of plan assets to held for sale	—			—			—			(2		)	—			—
Fair value of plan assets, end of year	$	2,934		$	2,676		$	593		$	518		$	—		$	—

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

	United States Pension Benefits									Foreign Pension Benefits									Other Postretirement Benefits
Millions of dollars	2019			2018			2017			2019			2018			2017			2019			2018		2017
Service cost	$	2		$	2		$	2		$	6		$	5		$	5		$	6		$	7	$	7
Interest cost	123			118			134			23			23			23			16			15		16
Expected return on plan assets	(177		)	(170		)	(175		)	(29		)	(32		)	(30		)	—			—		—
Amortization:
Actuarial loss	47			53			50			8			9			6			1			—		—
Prior service cost (credit)	(2		)	(3		)	(3		)	—			—			—			(16		)	—		(4		)
Special termination benefit	—			—			—			—			—			—			—			—		4
Curtailment (gain) / loss	—			—			—			—			(4		)	—			—			—		—
Settlement loss	9			—			—			2			3			2			—			—		—
Net periodic benefit cost	$	2		$	—		$	8		$	10		$	4		$	6		$	7		$	22	$	23

Net Periodic Cost Recognized in Operating Profit and Interest and Sundry (Income) Expense

The following table summarizes the net periodic cost recognized in operating profit and interest and sundry (income) expense for the years ending December 31, 2019, 2018 and 2017:

	United States Pension Benefits							Foreign Pension Benefits							Other Postretirement Benefits
Millions of dollars	2019		2018			2017		2019		2018			2017		2019		2018		2017
Operating profit (loss)	$	2	$	2		$	2	$	6	$	5		$	5	$	6	$	7	$	7
Interest and sundry (income) expense	—		(2		)	6		4		(1		)	1		1		15		16
Net periodic benefit cost	$	2	$	—		$	8	$	10	$	4		$	6	$	7	$	22	$	23

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2018

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Pre-Tax) in 2019

Millions of dollars	United States Pension Benefits			Foreign Pension Benefits			Other Postretirement Benefits
Current year actuarial loss / (gain)	$	(60	)	$	52		$	14
Actuarial (loss) recognized during the year	(56		)	(10		)	(1		)
Current year prior service cost (credit)	—			6			(15		)
Prior service credit (cost) recognized during the year	2			—			16
Total recognized in other comprehensive income (loss) (pre-tax)	$	(114	)	$	48		$	14
Total recognized in net periodic benefit costs and other comprehensive income (loss) (pre-tax)	$	(112	)	$	58		$	21

Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2013

Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2020

Millions of dollars	United States Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
Actuarial loss	$	62	$	12	$	1
Prior service (credit)	—		—		(8		)
Total	$	62	$	12	$	(7	)

Weighted-average Assumptions Used to Determine Benefit Obligation at the End of the Year and Net Periodic Cost

Weighted-Average Assumptions used to Determine Benefit Obligation at End of Year

	United States Pension Benefits				Foreign Pension Benefits				Other Postretirement Benefits
	2019		2018		2019		2018		2019		2018
Discount rate	3.30	%	4.30	%	2.04	%	2.90	%	3.45	%	4.64	%
Rate of compensation increase	4.50	%	4.50	%	3.10	%	3.29	%	N/A		N/A

Weighted-Average Assumptions used to Determine Net Periodic Cost

	United States Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Discount rate	4.30	%	3.65	%	4.15	%	2.90	%	2.57	%	2.64	%	4.80	%	4.35	%	4.73	%
Expected long-term rate of return on plan assets	6.50	%	6.75	%	6.75	%	5.56	%	5.81	%	5.78	%	N/A		N/A		N/A
Rate of compensation increase	4.50	%	4.50	%	4.50	%	3.29	%	3.20	%	3.08	%	N/A		N/A		N/A
Health care cost trend rate
Initial rate	N/A		N/A		N/A		N/A		N/A		N/A		6.50	%	6.50	%	6.75	%
Ultimate rate	N/A		N/A		N/A		N/A		N/A		N/A		5.00	%	5.00	%	5.00	%
Year that ultimate rate will be reached	N/A		N/A		N/A		N/A		N/A		N/A		2025		2025		2025

Estimated Impact of One Percentage-Point Change in Assumed Health Care Cost Trend Rate

A one percentage point change in assumed health care cost trend rates would have the following effects on our health care plan:

Millions of dollars	One Percentage Point Increase		One Percentage Point Decrease
Effect on total of service and interest cost	$	—	$	—
Effect on postretirement benefit obligations	3		(2		)

Expected Employer Contributions to Funded Plans

Expected Employer Contributions to Funded Plans

Millions of dollars	United States Pension Benefits		Foreign Pension Benefits
2020	$	—	$	18

Expected Benefit Payments

Expected Benefit Payments

Millions of dollars	United States Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
2020	$	284	$	39	$	33
2021	257		35		33
2022	248		38		32
2023	238		38		30
2024	233		36		28
2025-2029	1,019		199		115

Schedule of Allocation of Plan Assets

The fair values of our pension plan assets at December 31, 2019 and 2018, by asset category were as follows:

	December 31,
	Quoted prices (Level 1)				Other significant observable inputs (Level 2)				Significant unobservable inputs (Level 3)				Net Asset Value				Total
Millions of dollars	2019		2018		2019		2018		2019		2018		2019		2018		2019		2018
Cash and cash equivalents	$	—	$	—	$	24	$	10	$	—	$	—	$	—	$	—	$	24	$	10
Government and government agency securities (1)
U.S. securities	—		—		488		761		—		—		—		—		488		761
International securities	—		—		97		97		—		—		—		—		97		97
Corporate bonds and notes (1)
U.S. companies	—		—		1,389		860		—		—		—		—		1,389		860
International companies	—		—		277		155		—		—		—		—		277		155
Equity securities (2)
U.S. companies	—		18		—		—		—		—		—		—		—		18
International companies	51		185		—		—		—		—		—		—		51		185
Mutual funds (3)	—		35		128		—		—		—		—		—		128		35
Investments at net asset value
U.S. equity securities (4)	—		—		—		—		—		—		367		501		367		501
International equity securities (4)	—		—		—		—		—		—		215		52		215		52
Short-term investment fund (4)	—		—		—		—		—		—		15		102		15		102
International debt securities (5)	—		—		—		—		—		—		251		209		251		209
International equity securities (5)	—		—		—		—		—		—		59		50		59		50
Real estate (6)	—		—		—		—		—		—		34		36		34		36
Limited partnerships (7)
U.S. private equity investments	—		—		—		—		53		68		—		—		53		68
Diversified fund of funds	—		—		—		—		5		6		—		—		5		6
Emerging growth	—		—		—		—		8		12		—		—		8		12
All other investments	—		—		34		18		—		—		32		19		66		37
	$	51	$	238	$	2,437	$	1,901	$	66	$	86	$	973	$	969	$	3,527	$	3,194

⁽¹⁾  Valued using pricing vendors who use proprietary models to estimate the price a dealer would pay to buy a security using significant observable inputs, such as interest rates, yield curves, and credit risk.

⁽²⁾  Valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year.

⁽³⁾  Valued using the net asset value (NAV) of the fund, which is based on the fair value of underlying securities. The fund primarily invests in a diversified portfolio of equity securities, fixed income debt securities and real estate issued by non-U.S. companies.

⁽⁴⁾  Common and collective trust funds valued using the NAV of the fund, which is based on the fair value of underlying securities.

⁽⁵⁾  Fund of funds valued using the NAV of the fund, which is based on the fair value of underlying securities. International debt securities includes corporate bonds and notes and government and government agency securities.

⁽⁶⁾  Valued using the NAV of the fund, which is based on the fair value of underlying assets.

⁽⁷⁾ 

Valued at estimated fair value based on the proportionate share of the limited partnership's fair value, as determined by the general partner.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Millions of dollars	Limited Partnerships
Balance, December 31, 2018	$	86
Realized gains (net)	16
Unrealized losses (net)	(14		)
Purchases	—
Settlements	(22		)
Balance, December 31, 2019	$	66

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2019 and 2018 were as follows:

	United States Pension Benefits				Foreign Pension Benefits
Millions of dollars	2019		2018		2019		2018
Projected benefit obligation	$	2,622	$	3,033	$	844	$	753
Fair value of plan assets	2,409		2,676		491		430

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2019 and 2018 were as follows:

	United States Pension Benefits				Foreign Pension Benefits
Millions of dollars	2019		2018		2019		2018
Projected benefit obligation	$	2,622	$	3,033	$	800	$	720
Accumulated benefit obligation	2,609		3,022		776		699
Fair value of plan assets	$	2,409	$	2,676	$	450	$	396