Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2024

The following table presents additional information about our international pension plans.


	December 31,
Millions of dollars	2024		2023
Amounts recognized on the Consolidated Balance Sheets
Other assets	$	11	$	39
Accrued employee compensation and benefits	11		10
Employee compensation and benefits	177		154
Pension plans in which projected benefit obligation exceeded plan assets
Projected benefit obligation	$	200	$	179
Fair value of plan assets	12		15
Pension plans in which accumulated benefit obligation exceeded plan assets
Accumulated benefit obligation	$	122	$	106
Fair value of plan assets	12		15

Schedule of Allocation of Plan Assets

The following table sets forth the fair values of assets held by our international pension plans by level within the fair value hierarchy.


Millions of dollars		Level 1		Level 2		Level 3		Net Asset Value (a)		Total
Cash and equivalents		$	—	$	—	$	—	$	—	$	—

Bond funds (b)		—		11		—		—		11

Real estate funds (c)		—		—		—		8		8
Other investments (d)		1		9		565		—		575
Fair value of plan assets at December 31, 2024		$	1	$	20	$	565	$	8	$	594

Cash and equivalents		$	29	$	234	$	—	$	—	$	263

Bond funds (e)		—		159		—		156		315

Real estate funds (c)		—		—		—		30		30
Other investments (d)		1		11		2		—		14
Fair value of plan assets at December 31, 2023		$	30	$	404	$	2	$	186	$	622

(a)	Represents investments measured at fair value using the Net Asset Value (NAV) per share practical expedient and thus has not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total value of our international pension plans assets.

(b)	Strategy of bond funds is to invest in fixed income securities meeting certain ratings thresholds focused on mitigating interest rate risk and protecting funded status.
(c)	Strategy of real estate funds is to invest in diversified funds of real estate investment trusts and private real estate.
(d)	Other investments consist of insurance contracts, a buy-in annuity insurance contract, balanced funds, and government bonds. The fair value of the buy-in annuity insurance contract is determined using the quote provided by an insurance company, reflecting prevailing market conditions for similar transactions.
(e)	Strategy of bond funds is to invest in diversified funds of fixed income securities of varying geographies and credit quality.

Defined Benefit Plan, Assumptions

Certain weighted-average actuarial assumptions used to determine benefit obligations of our international pension plans at December 31 were as follows:


	2024	2023
Discount rate	5.3%	5.1%
Rate of compensation increase	4.9%	5.6%

Certain weighted-average actuarial assumptions used to determine net periodic benefit cost of our international pension plans for the years ended December 31 were as follows:


	2024	2023	2022
Discount rate	5.1%	5.6%	2.3%
Expected long-term return on plan assets	4.0%	3.8%	3.0%
Rate of compensation increase	2.9%	5.4%	5.3%

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The following presents our Level 3 Rollforward for buy-in annuity insurance contract for 2024. Level 3 assets in 2023 were immaterial.


Millions of dollars	2024
Balance at the beginning of the year	$	2
Purchase of insurance contract	590
Return on assets	(18)
Payment from the insurance policy	(9)
Balance at the end of the year	$	565