Retirement Plans

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Retirement Plans

9. Retirement Plans

Components of net periodic pension cost consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Service cost	$	14	$	12	$	42	$	33
Interest cost (a)	19		23		56		71
Expected return on plan assets (a)	(45)		(45)		(135)		(135)
Amortization of unrecognized net actuarial losses (a)	11		13		35		36
Settlement loss (a)	—		88		—		88
Pension (income) expense (a)	$	(1)	$	91	$	(2)	$	93

(a)  Net non-service pension cost included in Other, net in the Statement of Consolidated Income for the three and nine months ended September 30, 2020 was income of $15 million and $44 million, respectively, compared with an expense of $79 million and $60 million for the three and nine months ended September 30, 2019, respectively.

In the third quarter of 2019, the trust for the Hess Corporation Employees’ Pension Plan (the Plan) purchased a single premium annuity contract at a cost of approximately $250 million using assets of the Plan to settle and transfer certain of its obligations to a third party. The settlement transaction resulted in a noncash charge of $88 million to recognize unamortized pension actuarial losses.

To preserve cash in 2020, we are minimizing non-required cash contributions to funded pension plans.  In 2020, we expect to contribute approximately $2 million to our funded pension plans.