Pension And Other Postretirement Benefits

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Pension And Other Postretirement Benefits

Pension and Other Postretirement Benefits

The benefit obligations and plan assets associated with the Corporation’s principal benefit plans are measured on December 31.

	Pension Benefits				Other Postretirement Benefits
(millions of dollars, except where stated otherwise)	U.S.		Non-U.S.
	2024	2023	2024	2023	2024	2023
Weighted-average assumptions used to determine benefit obligations at December 31
Discount rate (percent)	5.70	5.30	4.60	4.30	5.80	5.30
Long-term rate of compensation increase (percent)	4.00	4.50	4.20	4.50	4.00	4.50
Change in benefit obligation
Benefit obligation at January 1	13,143	12,350	21,327	19,342	5,014	5,211
Service cost	499	466	338	323	81	78
Interest cost	671	664	823	922	250	276
Actuarial loss/(gain) (1)	(441)	550	(658)	1,393	(81)	176
Benefits paid (2)(3)	(874)	(870)	(1,240)	(1,214)	(534)	(545)
Foreign exchange rate changes	—	—	(1,274)	515	(40)	11
Amendments, divestments and other	1	(17)	(118)	46	101	(193)
Benefit obligation at December 31	12,999	13,143	19,198	21,327	4,791	5,014
Accumulated benefit obligation at December 31	11,227	11,033	17,818	19,769	—	—
(1) Actuarial loss/(gain) primarily reflects higher discount rates.
(2) Benefit payments for funded and unfunded plans.
(3) For 2024 and 2023, other postretirement benefits paid are net of $10 million and $19 million of Medicare subsidy receipts, respectively.

For selection of the discount rate for U.S. plans, several sources of information are considered, including interest rate market indicators and the effective discount rate determined by use of a yield curve based on high-quality, noncallable bonds applied to the estimated cash outflows for benefit payments. For major non-U.S. plans, the discount rate is determined by using a spot yield curve of high-quality, local-currency-denominated bonds at an average maturity approximating that of the liabilities.

The measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate of 4.0 percent in 2026 and subsequent years.

	Pension Benefits				Other Postretirement Benefits
(millions of dollars)	U.S.		Non-U.S.
	2024	2023	2024	2023	2024	2023
Change in plan assets
Fair value at January 1	11,367	10,989	18,431	16,757	371	348
Actual return on plan assets	286	1,121	862	1,484	20	36
Foreign exchange rate changes	—	—	(1,051)	492	—	—
Company contribution	300	—	288	615	24	38
Benefits paid (1)	(709)	(743)	(931)	(878)	(51)	(51)
Other	—	—	(221)	(39)	—	—
Fair value at December 31	11,244	11,367	17,378	18,431	364	371
(1) Benefit payments for funded plans.

The funding levels of all qualified pension plans are in compliance with standards set by applicable law or regulation. As shown in the table below, certain smaller U.S. pension plans and a number of non-U.S. pension plans are not funded because local applicable tax rules and regulatory practices do not encourage funding of these plans. All defined benefit pension obligations, regardless of the funding status of the underlying plans, are fully supported by the financial strength of the Corporation or the respective sponsoring affiliate.

	Pension Benefits
(millions of dollars)	U.S.		Non-U.S.
	2024	2023	2024	2023
Assets in excess of/(less than) benefit obligation
Balance at December 31
Funded plans	(267)	(271)	1,679	1,028
Unfunded plans	(1,488)	(1,505)	(3,499)	(3,924)
Total	(1,755)	(1,776)	(1,820)	(2,896)

The authoritative guidance for defined benefit pension and other postretirement plans requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheet and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.

	Pension Benefits				Other Postretirement Benefits
(millions of dollars)	U.S.		Non-U.S.
	2024	2023	2024	2023	2024	2023
Assets in excess of/(less than) benefit obligation
Balance at December 31 (1)	(1,755)	(1,776)	(1,820)	(2,896)	(4,427)	(4,643)
Amounts recorded in the Consolidated Balance Sheet consist of:
Other assets	2	—	2,399	1,895	—	—
Current liabilities	(213)	(201)	(207)	(225)	(283)	(288)
Postretirement benefits reserves	(1,544)	(1,575)	(4,012)	(4,566)	(4,144)	(4,355)
Total recorded	(1,755)	(1,776)	(1,820)	(2,896)	(4,427)	(4,643)
Amounts recorded in accumulated other comprehensive income consist of:
Net actuarial loss/(gain)	631	744	557	1,364	(1,421)	(1,453)
Prior service cost	(252)	(283)	420	401	(405)	(459)
Total recorded in accumulated other comprehensive income	379	461	977	1,765	(1,826)	(1,912)
(1) Fair value of assets less benefit obligation shown on the preceding page.

The long-term expected rate of return on funded assets shown below is established for each benefit plan by developing a forward-looking, long-term return assumption for each asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate of return is then calculated as the weighted-average of the target asset allocation percentages and the long-term return assumption for each asset class.

	Pension Benefits						Other Postretirement Benefits
(millions of dollars, except where stated otherwise)	U.S.			Non-U.S.
	2024	2023	2022	2024	2023	2022	2024	2023	2022
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
Discount rate (percent)	5.30	5.60	3.00	4.30	4.90	2.20	5.30	5.60	3.10
Long-term rate of return on funded assets (percent)	6.80	5.20	4.60	5.50	4.20	3.50	6.00	4.70	3.80
Long-term rate of compensation increase (percent)	4.50	4.50	4.50	4.50	5.20	4.20	4.50	4.50	4.50
Components of net periodic benefit cost
Service cost	499	466	712	338	323	570	81	78	138
Interest cost	671	664	518	823	922	614	250	276	216
Expected return on plan assets	(724)	(532)	(560)	(955)	(688)	(815)	(20)	(14)	(14)
Amortization of actuarial loss/(gain)	83	85	156	97	108	180	(103)	(122)	6
Amortization of prior service cost	(31)	(29)	(29)	50	52	43	(63)	(42)	(42)
Net pension enhancement and curtailment/settlement cost	27	29	205	16	5	4	—	—	—
Net periodic benefit cost	525	683	1,002	369	722	596	145	176	304
Changes in amounts recorded in accumulated other comprehensive income:
Net actuarial loss/(gain)	(3)	(39)	(607)	(611)	602	(1,641)	(81)	154	(1,910)
Amortization of actuarial (loss)/gain	(110)	(114)	(361)	(112)	(108)	(183)	103	122	(6)
Prior service cost/(credit)	—	(17)	—	81	153	84	(8)	(312)	—
Amortization of prior service (cost)/credit	31	29	29	(44)	(52)	(40)	63	42	42
Foreign exchange rate changes	—	—	—	(102)	46	(199)	9	(2)	(7)
Total recorded in other comprehensive income	(82)	(141)	(939)	(788)	641	(1,979)	86	4	(1,881)
Total recorded in net periodic benefit cost and other comprehensive income, before tax	443	542	63	(419)	1,363	(1,383)	231	180	(1,577)

Costs for defined contribution plans were $415 million, $383 million, and $365 million in 2024, 2023, and 2022, respectively.

A summary of the change in accumulated other comprehensive income is shown in the table below:

	Total Pension and Other Postretirement Benefits
(millions of dollars)	2024	2023	2022
(Charge)/credit to other comprehensive income, before tax
U.S. pension	82	141	939
Non-U.S. pension	788	(641)	1,979
Other postretirement benefits	(86)	(4)	1,881
Total (charge)/credit to other comprehensive income, before tax	784	(504)	4,799
(Charge)/credit to income tax (see Note 4)	(208)	180	(1,236)
(Charge)/credit to investment in equity companies	24	16	235
(Charge)/credit to other comprehensive income including noncontrolling interests, after tax	600	(308)	3,798
Charge/(credit) to equity of noncontrolling interests	(120)	54	(212)
(Charge)/credit to other comprehensive income attributable to ExxonMobil	480	(254)	3,586

The Corporation’s investment strategy for benefit plan assets reflects a long-term view, a careful assessment of the risks inherent in plan assets and liabilities, and broad diversification to reduce the risk of the portfolio. The benefit plan assets are primarily invested in passive global equity and local currency fixed income index funds to diversify risk while minimizing costs. The equity funds hold ExxonMobil stock only to the extent necessary to replicate the relevant equity index. The fixed income funds are largely invested in investment-grade corporate and government debt securities with interest rate sensitivity designed to approximate the interest rate sensitivity of plan liabilities.

Target asset allocations for benefit plans are reviewed periodically and set based on considerations such as risk, diversification, liquidity, and funding level. The target asset allocations for the major benefit plans range from 15 to 40 percent in equity securities and the remainder in fixed income securities. The equity allocation for the U.S. plan includes a target allocation of 10 percent to limited partnerships that focus on the venture capital, growth and buyout sectors of the private equity market. Certain non-U.S. plans include small allocations to private equity partnerships that primarily focus on early-stage venture capital.

The fair value measurement levels are accounting terms that refer to different methods of valuing assets. The terms do not represent the relative risk or credit quality of an investment.

The 2024 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below:

	U.S. Pension						Non-U.S. Pension
(millions of dollars)	Fair Value Measurement at December 31, 2024, Using:						Fair Value Measurement at December 31, 2024, Using:
	Level 1	Level 2		Level 3	Net Asset Value	Total	Level 1		Level 2		Level 3	Net Asset Value	Total
Asset category:
Equity securities
U.S.	—	—		—	2,263	2,263	—		—		—	2,865	2,865
Non-U.S.	—	—		—	1,225	1,225	43	(1)	—		—	1,560	1,603
Private equity	—	—		—	439	439	—		—		—	291	291
Debt securities
Corporate	—	971	(2)	—	4,498	5,469	—		49	(2)	—	3,650	3,699
Government	—	592	(2)	—	1,126	1,718	77	(3)	141	(2)	—	8,222	8,440
Asset-backed	—	—		—	1	1	—		12	(2)	—	180	192
Other	—	—		—	—	—	—		—		—	13	13
Real Estate	—	—		—	—	—	—		—		—	107	107
Cash	—	—		—	113	113	78		6	(4)	—	69	153
Other	—	14		—	—	14	—		—		—	—	—
Total at fair value	—	1,577		—	9,665	11,242	198		208		—	16,957	17,363
Insurance contracts at contract value						2							15
Total plan assets						11,244							17,378
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a level 2 input.

	Other Postretirement
(millions of dollars)	Fair Value Measurement at December 31, 2024, Using:
	Level 1		Level 2		Level 3	Net Asset Value	Total
Asset category:
Equity securities
U.S.	92	(1)	—		—	—	92
Non-U.S.	36	(1)	—		—	—	36
Debt securities
Corporate	—		57	(2)	—	—	57
Government	—		174	(2)	—	—	174
Asset-backed	—		3	(2)	—	—	3
Cash	—		2		—	—	2
Total at fair value	128		236		—	—	364
(1) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.

The 2023 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below: 

	U.S. Pension						Non-U.S. Pension
(millions of dollars)	Fair Value Measurement at December 31, 2023, Using:						Fair Value Measurement at December 31, 2023, Using:
	Level 1	Level 2		Level 3	Net Asset Value	Total	Level 1		Level 2		Level 3	Net Asset Value	Total
Asset category:
Equity securities
U.S.	—	—		—	2,114	2,114	—		—		—	2,642	2,642
Non-U.S.	—	—		—	1,344	1,344	52	(1)	—		—	1,688	1,740
Private equity	—	—		—	375	375	—		—		—	294	294
Debt securities
Corporate	—	4,699	(2)	—	1	4,700	—		61	(2)	—	4,370	4,431
Government	—	2,650	(2)	—	2	2,652	134	(3)	171	(2)	—	8,429	8,734
Asset-backed	—	—		—	1	1	—		22	(2)	—	221	243
Other	—	—		—	—	—	—		—		—	4	4
Real Estate	—	—		—	—	—	—		—		—	70	70
Cash	—	—		—	178	178	189		17	(4)	—	45	251
Total at fair value	—	7,349		—	4,015	11,364	375		271		—	17,763	18,409
Insurance contracts at contract value						3							22
Total plan assets						11,367							18,431
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a level 2 input.

	Other Postretirement
(millions of dollars)	Fair Value Measurement at December 31, 2023, Using:
	Level 1		Level 2		Level 3	Net Asset Value	Total
Asset category:
Equity securities
U.S.	84	(1)	—		—	—	84
Non-U.S.	40	(1)	—		—	—	40
Debt securities
Corporate	—		61	(2)	—	—	61
Government	—		182	(2)	—	—	182
Asset-backed	—		3	(2)	—	—	3
Cash	—		1		—	—	1
Total at fair value	124		247		—	—	371
(1) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.

A summary of pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown in the table below:

	Pension Benefits
(millions of dollars)	U.S.		Non-U.S.
	2024	2023	2024	2023
For funded pension plans with an accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation	—	—	1,025	1,145
Fair value of plan assets	—	—	574	562
For funded pension plans with a projected benefit obligation in excess of plan assets:
Projected benefit obligation	11,501	11,638	1,982	2,334
Fair value of plan assets	11,232	11,367	1,261	1,465
For unfunded pension plans:
Projected benefit obligation	1,488	1,505	3,499	3,924
Accumulated benefit obligation	1,229	1,173	3,224	3,592

All other postretirement benefit plans are unfunded or underfunded.

	Pension Benefits		Other Postretirement Benefits
(millions of dollars)	U.S.	Non-U.S.	Gross	Medicare Subsidy Receipt
Contributions expected in 2025	—	325	—	—
Benefit payments expected in:
2025	1,104	1,101	356	1
2026	1,109	1,077	349	1
2027	1,102	1,110	346	1
2028	1,119	1,146	344	1
2029	1,133	1,131	343	1
2030 - 2034	5,854	5,681	1,752	3