Retirement Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Retirement Plans

8. Retirement Plans

Components of net periodic benefit cost consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(In millions)
Service cost	$	10	$	12	$	19	$	25
Interest cost (a)	25		17		50		33
Expected return on plan assets (a)	(40)		(52)		(79)		(105)
Amortization of unrecognized net actuarial losses (a)	1		3		1		6
Settlement loss (a)	—		2		$	—	$	2
Net periodic benefit cost (income) (a)	$	(4)	$	(18)	$	(9)	$	(39)

(a)  Net non-service cost, which is included in Other, net in the Statement of Consolidated Income, was income of $14 million and $28 million for the three and six months ended June 30, 2023, respectively, compared with income of $30 million and $64 million for the three and six months ended June 30, 2022.

In the second quarter of 2022, the Hess Corporation Employees’ Pension Plan purchased a single premium annuity contract at a cost of $166 million using assets of the plan to settle and transfer certain of its obligations to a third party. This partial settlement resulted in a noncash settlement loss of $13 million to recognize unamortized actuarial losses.

In the second quarter of 2022, the HOVENSA Legacy Employees' Pension Plan paid lump sums to certain participants totaling $20 million, and purchased a single premium annuity contract at a cost of $80 million, to settle the plan's projected benefit obligation in connection with terminating the plan. The settlement transactions resulted in a noncash settlement gain of $11 million to recognize unamortized actuarial gains. The assets remaining after settlement of the plan's projected benefit obligation of $15 million were transferred to the Hess Corporation Employees' Pension Plan in December 2022.

In 2023, we expect to contribute approximately $2 million to our funded pension plans.