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RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2019

Components of amounts recognized in the consolidated balance sheets

The following tables show the amounts recognized in Occidental’s consolidated balance sheets at December 31, 2019 and 2018, related to its pension and postretirement benefit plans:



	Pension Benefits						Postretirement Benefits
millions	2019			2018			2019			2018
Amounts recognized in the consolidated balance sheet:
Long-term receivables and other assets, net	$	85		$	60		$	—		$	—
Accrued liabilities	(96		)	(25		)	(72		)	(45		)
Deferred credits and other liabilities — pension and postretirement obligations	(704		)	(46		)	(1,103		)	(763		)
	$	(715	)	$	(11	)	$	(1,175	)	$	(808	)
Accumulated other comprehensive loss included the following after-tax balances:
Net (gain) loss	$	(25	)	$	91		$	184		$	151
Prior service credit	—			—			(67		)	(72		)
	$	(25	)	$	91		$	117		$	79

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 for the years ended December 31:



	Pension Benefits						Postretirement Benefits
millions	2019			2018			2019			2018
Changes in the benefit obligation:
Benefit obligation — beginning of year	$	349		$	391		$	808		$	999
Service cost — benefits earned during the period	45			5			24			23
Interest cost on projected benefit obligation	39			15			36			34
Actuarial (gain) loss	(33		)	(19		)	45			(90		)
Foreign currency exchange rate gain	—			(3		)	—			—
Curtailment (gain) loss	(136		)	—			10			—
Special termination benefits	49			—			—			—
Benefits paid	(95		)	(40		)	(51		)	(57		)
Participant contributions	—			—			2			—
Plan amendments	—			—			—			(101		)
Additions due to the Acquisition	2,136			—			301			—
Benefit obligation — end of year	$	2,354		$	349		$	1,175		$	808

Changes in plan assets:
Fair value of plan assets — beginning of year	$	338		$	403		$	—		$	—
Actual return on plan assets	122			(33		)	—			—
Participant contributions	—			—			2			—
Employer contributions	41			8			49			—
Benefits paid	(95		)	(40		)	(51		)	—
Additions due to the Acquisition	1,233			—			—			—
Fair value of plan assets — end of year	$	1,639		$	338		$	—		$	—
Unfunded status:	$	(715	)	$	(11	)	$	(1,175	)	$	(808	)

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 for the years December 31:



	Accumulated Benefit Obligation in Excess of Plan Assets				Plan Assets in Excess of Accumulated Benefit Obligation
millions	2019		2018		2019		2018
Projected benefit obligation	$	2,175	$	173	$	179	$	176
Accumulated benefit obligation	$	1,918	$	169	$	179	$	176
Fair value of plan assets	$	1,375	$	98	$	264	$	240

Components of the net periodic benefit costs

The following table sets forth the components of net periodic benefit costs for the years ended December 31:



	Pension Benefits									Postretirement Benefits
millions	2019			2018			2017			2019			2018			2017
Net periodic benefit costs:
Service cost — benefits earned during the period	$	45		$	5		$	6		$	24		$	23		$	21
Interest cost on projected benefit obligation	39			15			17			36			34			38
Expected return on plan assets	(50		)	(25		)	(24		)	—			—			—
Recognized actuarial loss	9			7			10			8			14			14
Recognized prior service credit	—			—			—			(8		)	—			—
Liability (gain) loss due to curtailment	(91		)	—			—			6			—			—
Special termination benefits	49			—			—			—			—			—
Other costs and adjustments	(2		)	1			3			—			(2		)	1
Net periodic benefit cost	$	(1	)	$	3		$	12		$	66		$	69		$	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 for the years ended December 31:



	Pension Benefits				Postretirement Benefits
	2019		2018		2019		2018
Benefit Obligation Assumptions:
Discount rate	3.10	%	4.09	%	3.26	%	4.29	%
Net Periodic Benefit Cost Assumptions:
Discount rate for January 1 - August 31 expense	3.21	%	3.45	%	3.41	%	3.61	%
Discount rate for September 1 - December 31 expense	3.21	%	3.45	%	3.41	%	4.14	%
Assumed long-term rate of return on assets	6.50	%	6.50	%	—		—
Rates of increase in compensation levels	5.44	%	—		—		—

Fair values of Occidental's pension plan assets by asset category

The fair values of Occidental’s pension plan assets by asset category were as follows:



millions	Level 1		Level 2		Level 3		Total
December 31, 2019
Asset Class:
U.S. government securities	$	13	$	—	$	—	$	13
Corporate bonds ^(a)	—		60		—		60
Mutual funds:
Bond funds	46		—		—		46
International funds	68		—		—		68
Common and preferred stocks ^(b)	173		—		—		173
Other	—		29		—		29
Investments measured at fair value	$	300	$	89	$	—	$	389
Investments measured at net asset value ^(c)	—		—		—		1,253
Total pension plan assets ^(d)	$	300	$	89	$	—	$	1,642

December 31, 2018
Asset Class:
U.S. government securities	$	17	$	—	$	—	$	17
Corporate bonds ^(a)	—		66		—		66
Common/collective trusts ^(e)	—		9		—		9
Mutual funds:
Bond funds	31		—		—		31
Blend funds	48		—		—		48
Common and preferred stocks ^(b)	141		—		—		141
Other	—		31		—		31
Total pension plan assets ^(d)	$	237	$	106	$	—	$	343


^(a)	This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries.


^(b)	This category included 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)	Certain investments measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets.

^(e)

Amounts exclude net payables of approximately $3 million and $5 million as of December 31, 2019 and 2018, 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:



millions	Pension Benefits		Postretirement Benefits
2020	$	810		$	73
2021	$	113		$	72
2022	$	125		$	71
2023	$	128		$	70
2024	$	124		$	68
2025 - 2029	$	625		$	321