XML 67 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2013
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
EMPLOYEE BENEFIT PLANS
8.
EMPLOYEE BENEFIT PLANS

The components of net periodic benefit cost related to our defined benefit plans were as follows (in millions) :
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
2013
 
2012
 
2013
 
2012
Three months ended June 30:
 
 
 
 
 
 
 
Service cost
$
35

 
$
35

 
$
3

 
$
3

Interest cost
22

 
23

 
5

 
6

Expected return on plan assets
(34
)
 
(31
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Net actuarial loss
15

 
9

 
—

 
—

Prior service credit
(6
)
 
—

 
(3
)
 
(6
)
Net periodic benefit cost
$
32

 
$
36

 
$
5

 
$
3

 
 
 
 
 
 
 
 
Six months ended June 30:
 
 
 
 
 
 
 
Service cost
$
71

 
$
70

 
$
6

 
$
6

Interest cost
44

 
46

 
9

 
11

Expected return on plan assets
(66
)
 
(62
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Net actuarial loss
29

 
17

 
—

 
—

Prior service cost (credit)
(9
)
 
1

 
(6
)
 
(11
)
Net periodic benefit cost
$
69

 
$
72

 
$
9

 
$
6



On February 15, 2013, we announced changes to certain of our U.S. qualified pension plans that cover the majority of our U.S. employees who work in our refining segment and corporate operations. Benefits under our primary pension plan will change from a final average pay formula to a cash balance formula with staged effective dates that commence either on July 1, 2013 or January 1, 2015 depending on the age and service of the affected employees. All final average pay benefits will be frozen as of December 31, 2014, with all future benefits to be earned under the new cash balance formula. These plan amendments resulted in a $328 million decrease to pension liabilities and a related increase to other comprehensive income during the six months ended June 30, 2013. The benefit of this remeasurement will be amortized into income through 2025.

As a result of these plan amendments, management reduced its discretionary contributions to our pension plans by $100 million, resulting in expected contributions to our pension plans of $45 million for 2013. During the six months ended June 30, 2013 and 2012, we contributed $18 million and $16 million, respectively, to our pension plans and $8 million and $10 million, respectively, to our other postretirement benefit plans.