XML 47 R21.htm IDEA: XBRL DOCUMENT v3.25.0.1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
NOTE 11 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

Occidental has various defined contribution and defined benefit plans for its salaried, domestic union and nonunion hourly and certain foreign national employees. In addition, Occidental also provides medical and other benefits for certain active, retired and disabled employees and their eligible dependents.

DEFINED CONTRIBUTION PLANS
All domestic employees and certain foreign national employees are eligible to participate in one or more of the defined contribution retirement or savings plans that provide for periodic contributions by Occidental based on plan-specific criteria, such as base pay, level and employee contributions. Certain salaried employees participate in a supplemental retirement plan that restores benefits lost due to government limitations on qualified retirement benefits. The accrued liabilities for the supplemental retirement plan were $387 million and $330 million as of December 31, 2024 and 2023, respectively. In 2024, 2023 and 2022 Occidental expensed $252 million, $221 million and $202 million, respectively, under the provisions of these defined contribution and supplemental retirement plans.

DEFINED BENEFIT PLANS
Participation in defined benefit plans is limited. Approximately 300 domestic and 300 foreign national employees, mainly union, nonunion hourly and certain employees that joined Occidental from acquired operations with grandfathered benefits, are currently accruing benefits under these plans.
Pension costs for Occidental’s defined benefit pension plans, determined by independent actuarial valuations, are generally funded by payments to trust funds, which are administered by independent trustees.

POSTRETIREMENT AND OTHER BENEFIT PLANS
Occidental provides medical and dental benefits and life insurance coverage for certain active, retired and disabled employees and their eligible dependents. Occidental generally funds the benefits as they are paid during the year. In 2024, 2023 and 2022, these benefit costs, including the postretirement costs, were $205 million, $175 million and $211 million, respectively.
OBLIGATIONS AND FUNDED STATUS
The following tables show the amounts recognized in Occidental’s Consolidated Balance Sheets related to its pension and postretirement benefit plans as of December 31:

Pension BenefitsPostretirement Benefits
millions2024202320242023
Amounts recognized in the Consolidated Balance Sheet:
Other long-term assets
$133 $126 $— $— 
Accrued liabilities(2)(3)(52)(57)
Deferred credits and other liabilities — pension and postretirement obligations(244)(270)(778)(661)
 $(113)$(147)$(830)$(718)
Accumulated other comprehensive loss included the following after-tax balances:
Net (gain) loss$(8)$3 $(122)$(217)
Prior service credit— — (40)(45)
 $(8)$3 $(162)$(262)

The following tables show the funding status, obligations and plan asset fair values of Occidental related to its pension and postretirement benefit plans for the years ended December 31:

Pension BenefitsPostretirement Benefits
millions2024202320242023
Changes in the benefit obligation:
Benefit obligation — beginning of year$879 $886 $718 $773 
Service cost — benefits earned during the period4 5 18 16 
Interest cost on projected benefit obligation42 45 35 37 
Actuarial (gain) loss
(38)19 105 (53)
Benefits paid(71)(80)(50)(65)
Other(3)4 4 10 
Benefit obligation — end of year$813 $879 $830 $718 
Changes in plan assets:
Fair value of plan assets — beginning of year$732 $641 $— $— 
Actual return on plan assets16 77 — — 
Employer contributions23 89 45 54 
Benefits paid(71)(80)(50)(64)
Other— 5 5 10 
Fair value of plan assets — end of year$700 $732 $— $— 
Unfunded status:$(113)$(147)$(830)$(718)
Actuarial losses related to postretirement benefits are primarily due to changes in health care trend rates and expected increases in premiums related to certain provisions in the Inflation Reduction Act that go into effect in 2025 and 2026. Other actuarial gains and losses are primarily driven by discount rate movement.
The following table sets forth details of the obligations and assets of Occidental’s defined benefit pension plans for the years ended December 31:

Accumulated Benefit
Obligation in Excess of
Plan Assets		Plan Assets in
Excess of Accumulated
Benefit Obligation
millions2024202320242023
Projected benefit obligation$648 $719 $165 $160 
Accumulated benefit obligation$647 $717 $165 $157 
Fair value of plan assets$505 $543 $195 $189 

COMPONENTS OF NET PERIODIC BENEFIT COSTS
The following table sets forth the components of net periodic benefit costs for the years ended December 31:

Pension BenefitsPostretirement Benefits
millions202420232022202420232022
Net periodic benefit costs:     
Service cost — benefits earned during the period$4 $5 $7 $18 $16 $38 
Interest cost on projected benefit obligation42 45 36 35 37 33 
Expected return on plan assets(41)(45)(38)— — — 
Recognized actuarial loss (gain)
2 4 1 (15)(20)5 
Recognized prior service credit— — — (8)(9)(9)
Gain (loss) due to settlement
— 1 (1)— — — 
Net periodic benefit costs$7 $10 $5 $30 $24 $67 

The service cost component of net periodic benefit costs is included in selling, general and administrative expense, oil and gas operating expense, chemical and midstream costs and exploration expense on Occidental’s Consolidated Statements of Operations. All other components of net periodic benefit costs are included in other operating and non-operating expense.

ADDITIONAL INFORMATION
The following table sets forth the weighted-average assumptions used to determine Occidental’s benefit obligation and net periodic benefit cost for domestic plans for the years ended December 31:

 Pension BenefitsPostretirement Benefits
2024202320242023
Benefit Obligation Assumptions:    
Discount rate5.52 %4.98 %5.68 %5.12 %
Rate of increase in compensation levels3.95 %3.96 %— — 
Net Periodic Benefit Cost Assumptions:
Discount rate4.98 %5.27 %5.12 %5.43 %
Rate of increase in compensation levels3.96 %3.95 %— — 
Assumed long-term rate of return on assets6.13 %6.65 %— — 

For domestic pension plans and postretirement benefit plans, Occidental based the discount rate on a AA-AAA Universe yield curve in 2024 and 2023. The assumed long-term rate of return on assets is estimated with regard to current market factors but within the context of historical returns for the asset mix that exists at year end. Assumed rates of compensation increases for active participants in certain plans vary by age group.
The postretirement benefit obligation was determined by application of the terms of medical and dental benefits and life insurance coverage, including the effect of established maximums on covered costs, together with relevant actuarial assumptions and health care cost trend rates. Health care cost trend rates for Medicare advantaged prescription drug plans
are 7.7% starting in 2024, then grading down to 4.5% in 2032 and beyond. Health care cost trend rates used for non-medicare advantaged prescription drug plans are 5.5% to 5.7% in 2024, then grading down to 4.5% in 2032 and beyond.
The actuarial assumptions used could change in the near term as a result of changes in expected future trends and other factors that, depending on the nature of the changes, could cause increases or decreases in the plan assets and liabilities.

FAIR VALUE OF PENSION PLAN ASSETS
Qualified defined benefit plan assets are monitored by Occidental’s Pension and Retirement Trust and Investment Committee in its role as a fiduciary. The Investment Committee selects and employs various external professional investment management firms to manage specific investments across the spectrum of asset classes. The Investment Committee employs a liability driven investment approach that uses a diversified blend of investments (equity securities, fixed-income securities, and alternative investments) along a glide path to optimize the long-term return of plan assets relative to plan liabilities, at a prudent level of risk. Equity investments are diversified across U.S. and non-U.S. stocks, as well as differing styles and market capitalizations. Investment performance is measured and monitored on an ongoing basis through quarterly investment portfolio and manager guideline compliance reviews, annual liability measurements and periodic studies.
The fair values of Occidental’s pension plan assets by asset category were as follows:

millionsLevel 1Level 2Level 3Total
December 31, 2024
Asset Class:    
Government securities$33 $— $— $33 
Corporate bonds (a)
— 17 — 17 
Equity securities (b)
31 — — 31 
Other2 41 — 43 
Investments measured at fair value$66 $58 $— $124 
Investments measured at net asset value (c)
— — — 576 
Total pension plan assets $66 $58 $— $700 
December 31, 2023
Asset Class:
Government securities$42 $— $— $42 
Corporate bonds (a)
— 19 — 19 
Equity securities (b)
33 — — 33 
Other— 47 — 47 
Investments measured at fair value$75 $66 $— $141 
Investments measured at net asset value (c)
— — — 591 
Total pension plan assets $75 $66 $— $732 
(a)This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries.
(b)This category represents direct investments in mutual funds and common and preferred stocks from diverse U.S. and non-U.S. industries.
(c)Certain investments measured at fair value using the NAV per share (or its equivalent) have not been categorized in the fair value hierarchy. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets.
Occidental expects to contribute approximately $29 million to its defined benefit pension plans during 2025.
Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows for the years ended December 31:

millionsPension BenefitsPostretirement Benefits
2025$73 $54 
202668 56 
202770 60 
202865 59 
202962 58 
2030 - 2034295 293