v3.26.1
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Employee Benefit Plans
Note 15—Employee Benefit Plans
Pension and Postretirement Plans
Millions of Dollars
Pension Benefits
Other Benefits
2026202520262025
U.S.
Int'l.
U.S.
Int'l.
Components of net periodic benefit cost
Three months ended June 30
Service cost
$11 8 14 8 1 1 
Interest cost
19 35 23 31 2 2 
Expected return on plan assets
(18)(53)(19)(44)
Amortization of prior service cost (credit)
— 2 — 1 (1)(6)
Recognized net actuarial loss (gain)
2 9 2 12 — — 
Settlements5 — — — — — 
Net periodic benefit cost
$19 1 20 8 2 (3)
Six Months Ended June 30
Service cost$22 16 29 16 1 1 
Interest cost
40 69 46 62 3 4 
Expected return on plan assets
(38)(106)(38)(89)
Amortization of prior service cost (credit)
— 2 — 1 (2)(12)
Recognized net actuarial loss (gain)
4 18 5 23 — — 
Settlements
14 — — 1 — — 
Net periodic benefit cost$42 (1)42 14 2 (7)
The components of net periodic benefit cost, other than the service cost component, are included in the "Other expenses" line of our consolidated income statement.
We recognized a proportionate share of prior actuarial losses from other comprehensive income as pension settlement expense of $5 million and $14 million for the three- and six-month periods ended June 30, 2026, respectively. In conjunction with the recognition of pension settlement expense, the fair market value of the pension plan assets was updated, and the pension benefit obligations of the U.S. qualified pension plan and the U.S. non-qualified supplemental retirement plan were remeasured at June 30, 2026. At the measurement date, the net pension liability decreased by $24 million, primarily due to an increase in the discount rate resulting in a corresponding increase to other comprehensive income.
Severance Accrual
The following table summarizes our severance accrual activity for the six-month period ended June 30, 2026:

Millions of Dollars
Balance at December 31, 2025
$378 
Accruals31
Benefit payments(279)
Foreign currency translation adjustment(3)
Balance at June 30, 2026*
$127 
*Of the balance at June 30, 2026, $71 million is classified as short-ter