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RETIREMENT AND DEFERRED COMPENSATION PLANS (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Changes in Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension and Postretirement Benefit Plans
The following tables set forth the benefit obligation, fair value of plan assets and funded status as of December 31, 2019, 2018, and 2017, and the underlying weighted average actuarial assumptions used for the U.K. Pension Plan and U.S. postretirement benefit plan. Apache uses a measurement date of December 31 for its pension and postretirement benefit plans.
 
 
2019
 
2018
 
2017
 
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
 
(In millions)
Change in Projected Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
 
$
187

 
$
27

 
$
216

 
$
27

 
$
202

 
$
26

Service cost
 
3

 
2

 
4

 
2

 
4

 
2

Interest cost
 
5

 
1

 
5

 
1

 
6

 
1

Foreign currency exchange rates
 
7

 
—

 
(11
)
 
—

 
20

 
—

Actuarial losses (gains)
 
15

 
(9
)
 
(11
)
 
(2
)
 
(4
)
 
1

Plan settlements
 
(14
)
 
—

 
(11
)
 
—

 
—

 
—

Benefits paid
 
(4
)
 
(2
)
 
(5
)
 
(3
)
 
(12
)
 
(4
)
Retiree contributions
 
—

 
1

 
—

 
2

 
—

 
1

Projected benefit obligation at end of year
 
199

 
20

 
187

 
27

 
216

 
27

Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
208

 
—

 
238

 
—

 
206

 
—

Actual return on plan assets
 
25

 
—

 
(6
)
 
—

 
17

 
—

Foreign currency exchange rates
 
8

 
—

 
(13
)
 
—

 
22

 
—

Employer contributions
 
5

 
1

 
5

 
2

 
5

 
3

Plan settlements
 
(14
)
 
—

 
(11
)
 
—

 
—

 
—

Benefits paid
 
(4
)
 
(2
)
 
(5
)
 
(4
)
 
(12
)
 
(4
)
Retiree contributions
 
—

 
1

 
—

 
2

 
—

 
1

Fair value of plan assets at end of year
 
228

 
—

 
208

 
—

 
238

 
—

Funded status at end of year
 
$
29

 
$
(20
)
 
$
21

 
$
(27
)
 
$
22

 
$
(27
)
Amounts recognized in Consolidated Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Current liability
 
$
—

 
$
(2
)
 
$
—

 
$
(2
)
 
$
—

 
$
(2
)
Non-current asset (liability)
 
29

 
(18
)
 
21

 
(25
)
 
22

 
(25
)
 
 
$
29

 
$
(20
)
 
$
21

 
$
(27
)
 
$
22

 
$
(27
)
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated gain (loss)
 
$
(7
)
 
$
19

 
$
(13
)
 
$
10

 
$
(11
)
 
$
8

 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Assumptions used as of December 31
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
2.10
%
 
3.00
%
 
2.90
%
 
4.13
%
 
2.60
%
 
3.44
%
Salary increases
 
4.30
%
 
N/A

 
4.70
%
 
N/A

 
4.70
%
 
N/A

Expected return on assets
 
2.80
%
 
N/A

 
2.80
%
 
N/A

 
2.90
%
 
N/A

Healthcare cost trend
 
 
 
 
 
 
 
 
 
 
 
 
Initial
 
N/A

 
6.25
%
 
N/A

 
6.50
%
 
N/A

 
6.75
%
Ultimate in 2025
 
N/A

 
5.00
%
 
N/A

 
5.00
%
 
N/A

 
5.00
%
Allocations for Plan Asset Holding and Target Allocation for Company's Plan Asset A breakout of previous allocations for plan asset holdings and the target allocation for the Company’s plan assets are summarized below:
 
 
 
Target
Allocation
 
Percentage of
Plan Assets at
Year-End
 
 
2019
 
2019
 
2018
Asset Category
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
Overseas quoted equities
 
22
%
 
23
%
 
22
%
Total equity securities
 
22
%
 
23
%
 
22
%
Debt securities:
 
 
 
 
 
 
U.K. Government bonds
 
62
%
 
62
%
 
62
%
U.K. corporate bonds
 
16
%
 
15
%
 
15
%
Total debt securities
 
78
%
 
77
%
 
77
%
Cash
 
—

 
—

 
1
%
Total
 
100
%
 
100
%
 
100
%
Fair Values of Plan Assets for Each Major Asset Category Based on Nature and Significant Concentration of Risks in Plan Assets The following tables present the fair values of plan assets for each major asset category based on the nature and significant concentration of risks in plan assets at December 31, 2019 and December 31, 2018:

 
 
December 31, 2019
 
December 31, 2018
 
 
(In millions)
Equity securities:
 
 
 
 
Overseas quoted equities(1)
 
$
52

 
$
46

Total equity securities
 
52

 
46

Debt securities:
 
 
 
 
U.K. Government bonds(2)
 
140

 
129

U.K. corporate bonds(3)
 
35

 
32

Total debt securities
 
175

 
161

Cash
 
1

 
1

Fair value of plan assets
 
$
228

 
$
208

(1)
This category includes overseas equities, which comprises 20 percent passive global equities benchmarked against the MSCI World (NDR) Index, 25 percent passive global equities (hedged) benchmarked against the MSCI World (NDR) Hedged Index, 20 percent fundamental indexation global equities benchmarked against the FTSE RAFI Developed 1000 index, 25 percent fundamental indexation global equities (hedged) benchmarked against the FTSE RAFI Developed 1000 Hedge Index, and 10 percent emerging markets benchmarked against the MSCI Emerging Markets (NDR) Index, which has a performance target of 2 percent per annum over the benchmark over a rolling three-year period.
(2)
This category includes U.K. Government bonds, which comprises 61 percent index-linked gilts benchmarked against the FTSE Actuaries Government Securities Index-Linked Over 5 Years Index, 8 percent sterling nominal LDI bonds, and 31 percent sterling inflation linked LDI bonds, both benchmarked against ILIM Custom Benchmark index.
(3)
This category comprises U.K. corporate bonds benchmarked against the BofAML Sterling Corporate & Collaterlised (excluding Subordinated) Index.
Components of Net Periodic Cost and Underlying Weighted Average Actuarial Assumptions Used for Pension and Postretirement Benefit Plans
The following tables set forth the components of the net periodic cost and the underlying weighted average actuarial assumptions used for the pension and postretirement benefit plans as of December 31, 2019, 2018, and 2017: 
 
 
2019
 
2018
 
2017
 
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
Pension
Benefits
 
Postretirement
Benefits
 
 
(In millions)
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
3

 
$
2

 
$
4

 
$
2

 
$
4

 
$
2

Interest cost
 
5

 
1

 
5

 
1

 
6

 
1

Expected return on assets
 
(5
)
 
—

 
(7
)
 
—

 
(8
)
 
—

Amortization of actuarial (gain) loss
 
—

 
(1
)
 
—

 
—

 
—

 
(1
)
Settlement loss
 
—

 
—

 
1

 
—

 
—

 
—

Net periodic benefit cost
 
$
3

 
$
2

 
$
3

 
$
3

 
$
2

 
$
2

Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
2.90
%
 
4.13
%
 
2.60
%
 
3.44
%
 
2.70
%
 
3.76
%
Salary increases
 
4.70
%
 
N/A

 
4.70
%
 
N/A

 
4.80
%
 
N/A

Expected return on assets
 
2.80
%
 
N/A

 
2.90
%
 
N/A

 
3.40
%
 
N/A

Healthcare cost trend
 
 
 
 
 
 
 
 
 
 
 
 
Initial
 
N/A

 
6.50
%
 
N/A

 
6.75
%
 
N/A

 
7.00
%
Ultimate in 2025
 
N/A

 
5.00
%
 
N/A

 
5.00
%
 
N/A

 
5.00
%
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates A one-percentage-point change in assumed health care cost trend rates would have the following effects:
 
 
 
Postretirement Benefits
 
 
1% Increase
 
1% Decrease
 
 
(In millions)
Effect on service and interest cost components
 
$
1

 
$
(1
)
Effect on postretirement benefit obligation
 
2

 
(1
)
Expected Future Benefit Payment The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 
 
 
Pension
Benefits
 
Postretirement
Benefits
 
 
(In millions)
2020
 
$
5

 
$
2

2021
 
4

 
2

2022
 
5

 
2

2023
 
6

 
2

2024
 
6

 
2

Years 2025-2029
 
32

 
8