Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

The changes in benefit obligation, the changes in fair value of plan assets, and the funded status of our pension plans and other postretirement benefit plans

The changes in benefit obligation related to all of our defined benefit plans, the changes in fair value of plan assets^(a), and the funded status of our defined benefit plans as of and for the years ended were as follows (in millions):

	Pension Plans						Other Postretirement Benefit Plans
	December 31,						December 31,
	2019			2018			2019			2018
Changes in benefit obligation
Benefit obligation as of beginning of year	$	2,639		$	2,926		$	292		$	306
Service cost	119			133			5			6
Interest cost	98			91			11			10
Participant contributions	—			—			11			10
Benefits paid	(154		)	(207		)	(29		)	(28		)
Actuarial (gain) loss	528			(285		)	41			(9		)
Other	9			(19		)	5			(3		)
Benefit obligation as of end of year	$	3,239		$	2,639		$	336		$	292
Changes in plan assets (a)
Fair value of plan assets as of beginning of year	$	2,236		$	2,428		$	—		$	—
Actual return on plan assets	490			(130		)	—			—
Valero contributions	128			156			18			18
Participant contributions	—			—			11			10
Benefits paid	(154		)	(207		)	(29		)	(28		)
Other	9			(11		)	—			—
Fair value of plan assets as of end of year	$	2,709		$	2,236		$	—		$	—
Reconciliation of funded status (a)
Fair value of plan assets as of end of year	$	2,709		$	2,236		$	—		$	—
Less: Benefit obligation as of end of year	3,239			2,639			336			292
Funded status as of end of year	$	(530	)	$	(403	)	$	(336	)	$	(292	)
Accumulated benefit obligation	$	3,039		$	2,492		n/a			n/a

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(a)

Plan assets include only the assets associated with pension plans subject to legal minimum funding standards. Plan assets associated with U.S. nonqualified pension plans are not included here because they are not protected from our creditors and therefore cannot be reflected as a reduction from our obligations under the pension plans. As a result, the reconciliation of funded status does not reflect the effect of plan assets that exist for all of our defined benefit plans. See Note 19 for the assets associated with certain U.S. nonqualified pension plans.

Schedule of amounts recognized in balance sheet

Amounts recognized in our balance sheet for our pension and other postretirement benefits plans include (in millions):

	Pension Plans						Other Postretirement Benefit Plans
	December 31,						December 31,
	2019			2018			2019			2018
Deferred charges and other assets, net	$	5		$	2		$	—		$	—
Accrued expenses	(17		)	(22		)	(20		)	(21		)
Other long-term liabilities	(518		)	(383		)	(316		)	(271		)
	$	(530	)	$	(403	)	$	(336	)	$	(292	)

Projected benefit obligations in excess of fair value of plan assets

The following table presents information for our pension plans with projected benefit obligations in excess of plan assets (in millions).

	December 31,
	2019		2018
Projected benefit obligation	$	3,182	$	2,564
Fair value of plan assets	2,647		2,160

Accumulated benefit obligations in excess of fair value of plan assets

The following table presents information for our pension plans with accumulated benefit obligations in excess of plan assets (in millions).

	December 31,
	2019		2018
Accumulated benefit obligation	$	2,760	$	2,253
Fair value of plan assets	2,402		1,974

Expected benefit payments

Benefit payments that we expect to pay, including amounts related to expected future services that we expect to receive, are as follows for the years ending December 31 (in millions):

	Pension Benefits		Other Postretirement Benefits
2020	$	179	$	21
2021	219		20
2022	190		20
2023	204		19
2024	205		19
2025-2029	1,105		88

Components of net periodic benefit costs

The components of net periodic benefit cost (credit) related to our defined benefit plans were as follows (in millions):

	Pension Plans									Other Postretirement Benefit Plans
	Year Ended December 31,									Year Ended December 31,
	2019			2018			2017			2019			2018			2017
Service cost	$	119		$	133		$	123		$	5		$	6		$	6
Interest cost	98			91			86			11			10			10
Expected return on plan assets	(166		)	(163		)	(150		)	—			—			—
Amortization of:
Net actuarial (gain) loss	41			65			53			(3		)	(2		)	(3		)
Prior service credit	(19		)	(18		)	(20		)	(9		)	(11		)	(16		)
Special charges	4			7			4			1			—			—
Net periodic benefit cost (credit)	$	77		$	115		$	96		$	5		$	3		$	(3	)

Pre-tax amounts recognized in other comprehensive income (loss)

Pre-tax amounts recognized in other comprehensive income (loss) were as follows (in millions):

	Pension Plans									Other Postretirement Benefit Plans
	Year Ended December 31,									Year Ended December 31,
	2019			2018			2017			2019			2018			2017
Net gain (loss) arising during the year:
Net actuarial gain (loss)	$	(204	)	$	(8	)	$	(73	)	$	(41	)	$	9		$	(6	)
Prior service (cost) credit	—			7			(4		)	(3		)	—			—
Net (gain) loss reclassified into income:
Net actuarial (gain) loss	41			65			53			(3		)	(2		)	(3		)
Prior service credit	(19		)	(18		)	(20		)	(9		)	(11		)	(16		)
Curtailment and settlement loss	4			7			4			—			—			—
Total changes in other comprehensive income (loss)	$	(178	)	$	53		$	(40	)	$	(56	)	$	(4	)	$	(25	)

Pre-tax amounts in accumulated other comprehensive loss not yet recognized

The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost (credit) were as follows (in millions):

	Pension Plans						Other Postretirement Benefit Plans
	December 31,						December 31,
	2019			2018			2019			2018
Net actuarial (gain) loss	$	988		$	828		$	(20	)	$	(64	)
Prior service credit	(90		)	(108		)	(19		)	(31		)
Total	$	898		$	720		$	(39	)	$	(95	)

Weighted-average assumptions used to determine the benefit obligations and net periodic benefit cost

The weighted-average assumptions used to determine the benefit obligations were as follows:

	Pension Plans				Other Postretirement Benefit Plans
	December 31,				December 31,
	2019		2018		2019		2018
Discount rate	3.14	%	4.25	%	3.32	%	4.40	%
Rate of compensation increase	3.75	%	3.78	%	n/a		n/a
Interest crediting rate for cash balance plans	3.03	%	3.04	%	n/a		n/a

The weighted-average assumptions used to determine the net periodic benefit cost were as follows:

	Pension Plans						Other Postretirement Benefit Plans
	Year Ended December 31,						Year Ended December 31,
	2019		2018		2017		2019		2018		2017
Discount rate	4.24	%	3.59	%	4.08	%	4.40	%	3.72	%	4.26	%
Expected long-term rate of return on plan assets	7.22	%	7.24	%	7.29	%	n/a		n/a		n/a
Rate of compensation increase	3.78	%	3.86	%	3.81	%	n/a		n/a		n/a
Interest crediting rate for cash balance plans	3.04	%	3.04	%	3.04	%	n/a		n/a		n/a

Assumed health care cost trend rates

The assumed health care cost trend rates were as follows:

	December 31,
	2019		2018
Health care cost trend rate assumed for the next year	7.32	%	7.29	%
Rate to which the cost trend rate was assumed to decline (the ultimate trend rate)	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2026		2026

Fair value of pension plan assets by level of fair value hierarchy

The following tables present the fair values of the assets of our pension plans (in millions) as of December 31, 2019 and 2018 by level of the fair value hierarchy. Assets categorized in Level 1 of the hierarchy are measured at fair value using a market approach based on unadjusted quoted prices from national securities exchanges. Assets categorized in Level 2 of the hierarchy are measured at net asset value in a market that is not active. As previously noted, we do not fund or fully fund U.S. nonqualified and certain international pension plans that are not subject to funding requirements, and we do not fund our other postretirement benefit plans.

	Fair Value Hierarchy							Total as of December 31, 2019
	Level 1			Level 2		Level 3
Equity securities:
U.S. companies (a)	$	622		$	—	$	—	$	622
International companies	205			1		—		206
Preferred stock	4			—		—		4
Mutual funds:
International growth	123			—		—		123
Index funds	90			—		—		90
Corporate debt instruments (a)	—			293		—		293
Government securities:
U.S. Treasury securities	53			—		—		53
Other government securities	—			148		—		148
Common collective trusts (b)	—			751		—		751
Pooled separate accounts	—			250		—		250
Private funds	—			104		—		104
Insurance contract	—			17		—		17
Interest and dividends receivable	5			—		—		5
Cash and cash equivalents	59			—		—		59
Securities transactions payable, net	(16		)	—		—		(16		)
Total pension plan assets	$	1,145		$	1,564	$	—	$	2,709

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See notes on page 108.

	Fair Value Hierarchy							Total as of December 31, 2018
	Level 1			Level 2		Level 3
Equity securities:
U.S. companies (a)	$	497		$	—	$	—	$	497
International companies	159			1		—		160
Preferred stock	4			—		—		4
Mutual funds:
International growth	97			—		—		97
Index funds	76			—		—		76
Corporate debt instruments (a)	—			284		—		284
Government securities:
U.S. Treasury securities	45			—		—		45
Other government securities	—			138		—		138
Common collective trusts (b)	—			609		—		609
Pooled separate accounts	—			190		—		190
Private funds	—			87		—		87
Insurance contract	—			18		—		18
Interest and dividends receivable	5			—		—		5
Cash and cash equivalents	40			—		—		40
Securities transactions payable, net	(14		)	—		—		(14		)
Total pension plan assets	$	909		$	1,327	$	—	$	2,236

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(a) This class of securities is held in a wide range of industrial sectors.

(b) This class includes primarily investments in approximately 75 percent equities and 25 percent bonds as of December 31, 2019. As of December 31, 2018, this class included primarily investments in approximately 70 percent equities and 30 percent bonds.