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RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
NOTE 10 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

The Company has various defined contribution and defined benefit plans for its salaried, domestic union and nonunion hourly and certain foreign national employees. In addition, the Company 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 the Company 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 $451 million and $387 million as of December 31, 2025 and 2024, respectively. In 2025, 2024 and 2023 the Company expensed $274 million, $252 million and $221 million, respectively, under the provisions of these defined contribution and supplemental retirement plans.

DEFINED BENEFIT PLANS
Participation in defined benefit plans is limited. Pension costs for the Company’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
The Company provides medical and dental benefits and life insurance coverage for certain active, retired and disabled employees and their eligible dependents. The Company generally funds the benefits as they are paid during the year. In 2025, 2024 and 2023, these benefit costs, including the postretirement costs, were $240 million, $205 million and $175 million, respectively.

OBLIGATIONS AND FUNDED STATUS
The following tables show the amounts recognized in the Company’s Consolidated Balance Sheets related to its pension and postretirement benefit plans as of December 31:

Pension BenefitsPostretirement Benefits
millions2025202420252024
Amounts recognized in the Consolidated Balance Sheet:
Other long-term assets
$153 $133 $— $— 
Accrued liabilities(2)(2)(51)(52)
Deferred credits and other liabilities(228)(244)(757)(778)
 $(77)$(113)$(808)$(830)
Accumulated other comprehensive loss included the following after-tax balances:
Net (gain) loss$(29)$(8)$(120)$(122)
Prior service credit— — (59)(40)
 $(29)$(8)$(179)$(162)
The following tables show the funding status, obligations and plan asset fair values of the Company related to its pension and postretirement benefit plans for the years ended December 31:

Pension BenefitsPostretirement Benefits
millions2025202420252024
Changes in the benefit obligation:
Benefit obligation — beginning of year$813 $879 $830 $718 
Service cost — benefits earned during the period4 4 20 18 
Interest cost on projected benefit obligation42 42 42 35 
Actuarial (gain) loss
14 (38)(10)105 
Benefits paid(68)(71)(45)(50)
Plan amendments— — (33)— 
Other4 (3)4 4 
Benefit obligation — end of year$809 $813 $808 $830 
Changes in plan assets:
Fair value of plan assets — beginning of year$700 $732 $— $— 
Actual return on plan assets72 16 — — 
Employer contributions21 23 41 45 
Benefits paid(68)(71)(45)(50)
Other7 — 4 5 
Fair value of plan assets — end of year$732 $700 $— $— 
Unfunded status:$(77)$(113)$(808)$(830)

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. Other actuarial gains and losses are primarily driven by discount rate movement. The decrease in postretirement obligation in 2025 due to plan amendments is related to changes in Medicare advantaged prescription drug plans to introduce an annual deductible and remove certain benefits.
The following table sets forth details of the obligations and assets of the Company’s defined benefit pension plans as of December 31:

Accumulated Benefit
Obligation in Excess of
Plan Assets		Plan Assets in
Excess of Accumulated
Benefit Obligation
millions2025202420252024
Projected benefit obligation$636 $648 $173 $165 
Accumulated benefit obligation$636 $647 $173 $165 
Fair value of plan assets$525 $505 $207 $195 
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
millions202520242023202520242023
Net periodic benefit costs:     
Service cost — benefits earned during the period$4 $4 $5 $20 $18 $16 
Interest cost on projected benefit obligation42 42 45 42 35 37 
Expected return on plan assets(36)(41)(45)— — — 
Recognized actuarial loss (gain)
3 2 4 (11)(15)(20)
Recognized prior service credit— — — (8)(8)(9)
Gain (loss) due to settlement
— — 1 — — — 
Net periodic benefit costs$13 $7 $10 $43 $30 $24 

The service cost component of net periodic benefit costs is included in selling, general and administrative expense, oil and gas operating expense, midstream costs and exploration expense on the Company’s Consolidated Statements of Operations. All other components of net periodic benefit costs are included in other operating and non-operating expense. As a result of the OxyChem Transaction, pension and postretirement net periodic benefit costs of approximately $9 million, $1 million and $2 million were reclassified to discontinued operations in the income statement for fiscal years 2025, 2024 and 2023 respectively.

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

 Pension BenefitsPostretirement Benefits
2025202420252024
Benefit Obligation Assumptions:    
Discount rate5.29 %5.52 %5.45 %5.68 %
Rate of increase in compensation levels3.49 %3.95 %— — 
Net Periodic Benefit Cost Assumptions:
Discount rate5.52 %4.98 %5.68 %5.12 %
Rate of increase in compensation levels3.95 %3.96 %— — 
Assumed long-term rate of return on assets5.49 %6.13 %— — 

For domestic pension plans and postretirement benefit plans, the Company based the discount rate on a AA-AAA Universe yield curve in 2025 and 2024. 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 44% in 2025, 45% in 2026, 10% in 2027, 6.5% in 2028, then grading down to 4.5% in 2036 and beyond. Health care cost trend rates used for non-medicare advantaged prescription drug plans are 6.2% in 2025, 7.0% in 2026, then grading down to 4.5% in 2036 and beyond. Increases in health care trend rates for Medicare advantaged prescription drug plans in 2025 and 2026 are due to increases in premiums related to certain provisions in the Inflation Reduction Act.
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 the Company’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 the Company’s pension plan assets by asset category as of December 31, 2025 and 2024 were as follows:

millionsLevel 1Level 2Level 3Total
December 31, 2025
Asset Class:    
Government securities$36 $— $— $36 
Corporate bonds (a)
— 17 — 17 
Equity securities (b)
30 — — 30 
Other1 43 — 44 
Investments measured at fair value$67 $60 $— $127 
Investments measured at net asset value (c)
— — — 605 
Total pension plan assets $67 $60 $— $732 
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 
(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.

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows for the years ended December 31:

millionsPension BenefitsPostretirement Benefits
2026$68 $52 
202767 55 
202862 54 
202959 54 
203058 53 
2031 - 2035268 264 

The Company expects to contribute approximately $33 million to its defined benefit pension plans during 2026.