RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2018

Components of amounts recognized in the consolidated balance sheets

The following tables show the amounts recognized in the consolidated balance sheets of Occidental related to its pension and postretirement benefit plans:



(in millions)	Pension Benefits						Postretirement Benefits
As of December 31,	2018			2017			2018			2017
Amounts recognized in the consolidated balance sheet:
Other assets	$	60		$	82		$	—		$	—
Accrued liabilities	(25		)	(5		)	(45		)	(59		)
Deferred credits and other liabilities — pension and postretirement obligations	(46		)	(65		)	(763		)	(940		)
	$	(11	)	$	12		$	(808	)	$	(999	)

After-tax balances included in AOCI



Accumulated other comprehensive loss included the following after-tax balances:
Net loss	$	91	$	59	$	151		$	192
Prior service cost	—		—		(72		)	1
	$	91	$	59	$	79		$	193

Funding status of Occidental's plans

The following tables show the funding status, obligations and plan asset fair values of Occidental related to its pension and postretirement benefit plans:



	Pension Benefits						Postretirement Benefits
For the years ended December 31,	2018			2017			2018			2017
Changes in the benefit obligation:
Benefit obligation — beginning of year	$	391		$	399		$	999		$	950
Service cost — benefits earned during the period	5			6			23			21
Interest cost on projected benefit obligation	15			17			34			38
Actuarial (gain) loss	(19		)	14			(90		)	61
Foreign currency exchange rate gain	(3		)	—			—			—
Liability gain due to curtailment	—			(2		)	—			(9		)
Special termination benefits	—			1			—			—
Benefits paid	(40		)	(44		)	(57		)	(62		)
Settlements	—			—			—			—
Plan amendments	—			—			(101		)	—
Benefit obligation — end of year	$	349		$	391		$	808		$	999

Changes in plan assets:
Fair value of plan assets — beginning of year	$	403		$	386		$	—		$	—
Actual return on plan assets	(33		)	52			—			—
Foreign currency exchange rate loss	—			—			—			—
Employer contributions	8			9			—			—
Benefits paid	(40		)	(44		)	—			—
Settlements	—			—			—			—
Fair value of plan assets — end of year	$	338		$	403		$	—		$	—
Funded/(Unfunded) status:	$	(11	)	$	12		$	(808	)	$	(999	)

Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with an accumulated benefit obligation in excess of plan assets and plan assets in excess of the accumulated benefit obligation

The following table sets forth details of the obligations and assets of Occidental's defined benefit pension plans:



(in millions)	Accumulated Benefit Obligation in Excess of Plan Assets				Plan Assets in Excess of Accumulated Benefit Obligation
As of December 31,	2018		2017		2018		2017
Projected Benefit Obligation	$	173	$	161	$	176	$	230
Accumulated Benefit Obligation	$	169	$	157	$	176	$	230
Fair Value of Plan Assets	$	98	$	91	$	240	$	312

Components of the net periodic benefit costs

The following table sets forth the components of net periodic benefit costs:



	Pension Benefits									Postretirement Benefits
For the years ended December 31, (in millions)	2018			2017			2016			2018			2017		2016
Net periodic benefit costs:
Service cost — benefits earned during the period	$	5		$	6		$	7		$	23		$	21	$	20
Interest cost on projected benefit obligation	15			17			18			34			38		39
Expected return on plan assets	(25		)	(24		)	(24		)	—			—		—
Recognized actuarial loss	7			10			12			14			14		15
Other costs and adjustments	1			3			4			(2		)	1		—
Net periodic benefit cost	$	3		$	12		$	17		$	69		$	74	$	74

Weighted-average assumptions used to determine Occidental's benefit obligation and net periodic benefit cost for domestic plans

The following table sets forth the weighted-average assumptions used to determine Occidental's benefit obligation and net periodic benefit cost for domestic plans:



	Pension Benefits				Postretirement Benefits
For the years ended December 31,	2018		2017		2018		2017
Benefit Obligation Assumptions:
Discount rate	4.09	%	3.45	%	4.29	%	3.61	%
Net Periodic Benefit Cost Assumptions:
Discount rate for January 1 - August 31 expense	3.45	%	3.90	%	3.61	%	4.15	%
Discount rate for September 1 - December 31 expense	3.45	%	3.90	%	4.14	%	4.15	%
Assumed long-term rate of return on assets	6.50	%	6.50	%	—		—

Fair values of Occidental's pension plan assets by asset category

The fair values of Occidental’s pension plan assets by asset category are as follows:



(in millions)	Fair Value Measurements at December 31, 2018, Using
Description	Level 1		Level 2		Level 3		Total
Asset Class:
U.S. government securities	$	17	$	—	$	—	$	17
Corporate bonds ^(a)	—		66		—		66
Common/collective trusts ^(b)	—		9		—		9
Mutual funds:
Bond funds	31		—		—		31
Blend funds	48		—		—		48
Common and preferred stocks ^(c)	141		—		—		141
Other	—		31		—		31
Total pension plan assets ^(d)	$	237	$	106	$	—	$	343



(in millions)	Fair Value Measurements at December 31, 2017, Using
Description	Level 1		Level 2		Level 3		Total
Asset Class:
U.S. government securities	$	12	$	—	$	—	$	12
Corporate bonds ^(a)	—		83		—		83
Common/collective trusts ^(b)	—		20		—		20
Mutual funds:
Bond funds	19		—		—		19
Blend funds	59		—		—		59
Common and preferred stocks ^(c)	188		—		—		188
Other	—		30		—		30
Total pension plan assets ^(d)	$	278	$	133	$	—	$	411


(a)	This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries.


(b)	This category includes investment funds that primarily invest in U.S. and non-U.S. common stocks and fixed-income securities.


(c)	This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries.


(d)	Amounts exclude net payables of approximately $6 million and $8 million as of December 31, 2018 and 2017, respectively.

Estimated future benefit payments, which reflect expected future service, as appropriate

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows:



For the years ended December 31, (in millions)	Pension Benefits		Postretirement Benefits
2019	$	60	$	46
2020	$	27	$	50
2021	$	28	$	50
2022	$	27	$	50
2023	$	26	$	50
2024 - 2028	$	129	$	249