Retirement and Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Retirement and Postretirement Benefit Plans

NOTE 12 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

Occidental has various defined benefit pension plans for certain domestic union, non-union hourly and foreign national employees. In addition, Occidental also provides medical and other benefits for certain active, retired and disabled employees and their eligible dependents. In conjunction with the Acquisition, Occidental acquired certain Anadarko contributory and non-contributory defined benefit pension plans, which include both qualified and supplemental plans, and plans that provide health care and life insurance benefits for certain retired employees. The Anadarko pension and postretirement obligations were remeasured as of the Acquisition date. Effective as of June 30, 2020, the defined benefit pension plans and certain of the supplemental plans covering active Anadarko employees were frozen.

Net periodic benefit costs related to pension benefits included net gains related to settlement, curtailment and special termination benefits of $118 million for three months ended June 30, 2020, and $116 million for the six months ended June 30, 2020, respectively.

The settlement and curtailment gains and special termination benefits for 2020 primarily relate to a separation program initiated in conjunction with the Acquisition and the freezing of benefit accruals for Anadarko employees. Excluding these items, net periodic benefit costs related to pension benefits were $13 million and $24 million for the three and six months ended June 30, 2020, respectively. Net periodic benefit costs related to pension benefits were not material for the three or six months ended June 30, 2019.

Net periodic benefit costs related to postretirement benefits were $18 million and $38 million for the three and six months ended June 30, 2020, respectively, compared to $15 million and $29 million for the same periods in 2019.

During the three and six months ended June 30, 2020, Occidental contributed $11 million and $102 million, respectively, to its qualified and supplemental plans. During the three and six months ended June 30, 2019, Occidental contributed an immaterial amount to its defined benefit plans. The increase in contributions is primarily due to distributions from the Anadarko supplemental plans related to the severance program described above. Occidental is reimbursed for a majority of these contributions from a trust for former Anadarko employees. Occidental is deferring all required contributions to the qualified defined benefit plans as permitted by the CARES Act.