Increase (decrease) in net pension liability



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| Notes to Consolidated Financial Statements | [Table of Contents](#if18581573a6045f6b6e889320c9d1887_7) |

The components of net periodic benefit cost, other than the service cost component, are included in the "Other expenses" line of our consolidated income statement.During the first six months of 2022, we contributed $44 million to our domestic benefit plans and $77 million to our international benefit plans. We expect our total contributions in 2022 to be approximately $95 million to our domestic qualified and nonqualified pension and postretirement benefit plans and $90 million to our international qualified and nonqualified pension and postretirement benefit plans.  
During the three-month period ended June 30, 2022, lump-sum benefit payments exceeded the sum of service and interest costs for the year for the U.S. qualified pension plan and a U.S. nonqualified supplemental retirement plan. As a result, we recognized a proportionate share of prior actuarial losses from other comprehensive income as pension settlement expense of $18 million. In conjunction with the recognition of pension settlement expense, the fair market values of the pension plan assets were updated and the pension benefit obligations of the U.S. qualified pension plan and the U.S. nonqualified supplemental retirement plan were remeasured at June 30, 2022. At the measurement date, the net pension liability increased by $82 million, primarily a result of lower than premised return on assets, partially offset by an increase in the discount rate, resulting in a corresponding decrease to other comprehensive income.  
The relevant discount rates are summarized in the following table:  


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|  | June 302022 | December 312021 |
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| Relevant discount rates |  |  |
| U.S. qualified pension plan | 4.85  | % | 2.85  |  |
| U.S. nonqualified pension plan | 4.70  |  | 2.50  |  |

  
Note 15—Related Party TransactionsOur related parties primarily include equity method investments and certain trusts for the benefit of employees.

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|  | Millions of Dollars |
|  | Three Months EndedJune 30 |  | Six Months EndedJune 30 |
| Significant Transactions with Equity Affiliates | 2022 | 2021 |  | 2022 | 2021 |
| Operating revenues and other income | $ | 21  |  | 24  |  |  | 43  |  | 40  |  |
| Purchases | —  |  | 3  |  |  | —  |  | 3  |  |
| Operating expenses and selling, general and administrative expenses | 44  |  | 63  |  |  | 90  |  | 89  |  |
| Net interest (income) expense\* | $ | —  |  | —  |  |  | (1) |  | (1) |  |

\*We paid interest to, or received interest from, various affiliates. [See Note](#if18581573a6045f6b6e889320c9d1887_43) 4 for information related to loans to equity affiliates.

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|  | ConocoPhillips      2022 Q2 10-Q | 26 |


