Retirement Plans

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Retirement Plans

8. Retirement Plans

Components of net periodic benefit cost consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Service cost	$	9	$	11	$	28	$	36
Interest cost (a)	25		19		75		52
Expected return on plan assets (a)	(39)		(47)		(118)		(152)
Amortization of unrecognized net actuarial losses (a)	—		2		1		8
Settlement loss (a)	—		—		—		2
Net periodic benefit cost (income) (a)	$	(5)	$	(15)	$	(14)	$	(54)

(a)  Net non-service cost, which is included in Other, net in the Statement of Consolidated Income, was income of $14 million and $42 million for the three and nine months ended September 30, 2023, respectively, compared with income of $26 million and $90 million for the three and nine months ended September 30, 2022, respectively.

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.