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Incentive Plans
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Incentive Plans Incentive PlansDeferred compensation retirement plan. The Company's deferred compensation retirement plan allows for qualified officers and certain key employees of the Company to contribute up to 50 percent of their base salary, an increase from 25 percent prior to 2019, and 100 percent of their annual bonus. The Company provides a matching contribution of 100 percent of the officer's and key employee's contribution limited up to the first ten percent of the officer's base salary and eight percent of
the key employee's base salary. In response to cost savings measures implemented in response to the COVID-19 pandemic, the Company's matching contribution was reduced to 50 percent of the officer's and key employee's contribution, limited to the first ten percent of the officer's base salary and eight percent of the key employee's base salary, beginning on May 25, 2020. In January 2021, the matching contribution was reinstated to 100 percent of the officer's and key employee's contribution limited up to the first ten percent of the salary of all participants in the plan. The Company's matching contribution vests immediately. A trust fund has been established by the Company to accumulate the contributions made under this retirement plan.
The Company match for the deferred compensation plan is as follows:
Year Ended December 31,
202020192018
(in millions)
Deferred compensation plan$1 $2 $3 
401(k) plan. The Pioneer Natural Resources USA, Inc. ("Pioneer USA," a wholly-owned subsidiary of the Company) 401(k) and Matching Plan (the "401(k) Plan") is a defined contribution plan established under the Internal Revenue Code Section 401. All regular full-time and part-time employees of Pioneer USA are eligible to participate in the 401(k) Plan on the first day of the month following their date of hire. Participants may contribute up to 80 percent of their annual base salary into the 401(k) Plan. Matching contributions are made to the 401(k) Plan in cash by Pioneer USA in amounts equal to 200 percent of a participant's contributions to the 401(k) Plan that are not in excess of five percent of the participant's annual base salary (the "Matching Contribution"). In response to cost savings measures implemented in response to the COVID-19 pandemic, the 401(k) Plan was amended such that the Matching Contributions were reduced from 200 percent to 100 percent of a participant's contributions to the 401(k) Plan that are not in excess of five percent of the participant's annual base salary for each pay period beginning on May 25, 2020. In January 2021, the Matching Contributions were increased from 100 percent of a participant's contributions to the 401(k) Plan that are not in excess of five percent of the participant's annual base salary to 100 percent of a participant's contributions to the 401(k) Plan that are not in excess of ten percent of the participant's annual base salary. Each participant's account is credited with the participant's contributions, Matching Contributions and allocations of the 401(k) Plan's earnings. Participants are fully vested in their account balances except for Matching Contributions and their proportionate share of 401(k) Plan earnings attributable to Matching Contributions, which proportionately vest over a four-year period that begins on the participant's date of hire. Eligible employees are automatically enrolled in the 401(k) Plan at a contribution rate of five percent of the employee's annual base salary, unless the employee opts out of participation or makes an alternate election within 30 days of becoming eligible for participation.
The Company match for the 401(k) plan is as follows:
Year Ended December 31,
202020192018
(in millions)
401(k) plan$18 $27 $36 
Long-Term Incentive Plan. The Company's Amended and Restated 2006 Long-Term Incentive Plan ("LTIP") provides for the granting of various forms of awards, including stock options, stock appreciation rights, performance units, restricted stock and restricted stock units to directors, officers and employees of the Company.
The number of shares available for grant pursuant to awards under the LTIP is as follows:
As of December 31, 2020
Approved and authorized awards12,600,000 
Awards issued under plan(8,861,276)
Awards available for future grant3,738,724 
Employee Stock Purchase Plan. The Company's Employee Stock Purchase Plan ("ESPP") allows eligible employees to annually purchase the Company's common stock at a discounted price. Officers of the Company are not eligible to participate in the ESPP. Contributions to the ESPP are limited to 15 percent of an employee's base salary (subject to certain ESPP limits) during the eight-month offering period (January 1 to August 31). Participants in the ESPP purchase the Company's common stock at a price that is 15 percent below the closing sales price of the Company's common stock on either the first day or the last day of each offering period, whichever closing sales price is lower.
The number of shares available for issuance under the ESPP is as follows:
As of December 31, 2020
Approved and authorized shares1,250,000 
Shares issued(1,118,790)
Shares available for future issuance131,210 
Stock-based compensation expense and the associated income tax benefit for awards issued under both the LTIP and ESPP are as follows:
 Year Ended December 31,
 202020192018
 (in millions)
Restricted stock - Equity Awards$49 $79 $65 
Restricted stock - Liability Awards12 19 17 
Performance unit awards21 19 18 
Employee Stock Purchase Plan2 2 2 
Total stock-based compensation expense$84 $119 $102 
Income tax benefit$7 $18 $17 
As of December 31, 2020, there was $77 million of unrecorded stock-based compensation expense related to unvested share-based compensation plans, including $17 million attributable to Liability Awards that are expected to be settled in cash on their vesting dates. The weighted average remaining vesting period of the awards is less than three years.
Restricted stock awards. During 2020, the Company awarded 522,814 restricted shares or units of the Company's common stock as compensation to directors, officers and employees of the Company, including 136,136 shares or units representing Liability Awards.
Restricted stock award activity is as follows:
Year Ended December 31, 2020
Equity AwardsLiability Awards
 Number of SharesWeighted
Average Grant-
Date Fair
Value		Number of shares
Beginning incentive compensation awards824,193 $149.99 246,851 
Awards granted386,678 $108.24 136,136 
Awards forfeited(52,607)$115.00 (28,228)
Awards vested (a)(392,283)$151.16 (133,406)
Ending incentive compensation awards765,981 $130.72 221,353 
______________________
(a)Per the terms of award agreements and elections, the issuance of common stock may be deferred for certain restricted stock equity awards, performance units and stock options that vest during the period.
The weighted average grant-date fair value per unit of restricted stock Equity Awards awarded during 2020, 2019 and 2018 was $108.24, $137.23 and $180.66, respectively. The grant-date fair value of restricted stock Equity Awards that vested during 2020, 2019 and 2018 was $59 million, $99 million and $67 million, respectively.
As of December 31, 2020 and 2019, accounts payable - due to affiliates in the consolidated balance sheets includes $7 million and $11 million, respectively, of liabilities attributable to the Liability Awards, representing the fair value of the earned, but unvested, portion of the outstanding awards as of that date.
Cash paid for vested Liability Awards is as follows:
Year Ended December 31,
202020192018
(in millions)
Cash paid for vested Liability Awards$16 $20 $24 
Performance unit awards. Each year, at its discretion, the Company awards performance units to certain of the Company's officers under the LTIP. The number of shares of common stock to be issued is determined by comparing the Company's total shareholder return to the total shareholder return of a predetermined group of peer companies over the performance period. The performance unit awards vest over a 34-month service period.
The grant-date fair value per unit of the 2020, 2019 and 2018 performance unit awards were $184.06, $165.84 and $246.18, respectively, and are being recorded as stock-based compensation expense ratably over the performance period. The fair value of the performance unit awards was determined using the Monte Carlo simulation model that utilizes multiple input variables to determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant.
Assumptions used to estimate the fair value of performance unit awards granted in each of the following years are as follows: 
202020192018
Risk-free interest rate0.68%2.49%2.41%
Range of volatilities30.9% -44.7%27.7% -43.4%30.4% -53.3%
Performance unit activity is as follows:
Year Ended December 31, 2020
Number of
Units (a)		Weighted 
Average Grant-
Date Fair
Value
Beginning performance unit awards116,215 $191.58 
Units granted132,621 $184.06 
Units vested (b)(41,406)$238.68 
Ending performance unit awards207,430 $177.37 
_____________________
(a)Amount reflects the number of performance units initially granted. The actual payout of shares upon vesting may be between zero and 250 percent of the performance units included in this table depending upon the total shareholder return ranking of the Company compared to peer companies at the vesting date.
(b)Units vested reflects the number of performance units that vest upon retirement or departure of eligible officers or when the service period on the award has ended. Awards that vest upon retirement or departure of eligible officers are not transferred to the officer until the original service period of the award lapses. Of the 41,406 units that vested, 4,173 units vested upon retirement of eligible officers in 2020 and will be issued when the performance period ends in 2021 and 2022. On December 31, 2020, the service period lapsed on 62,541 performance unit awards that earned 1.70 shares for each vested award resulting in 106,329 aggregate shares of common stock being issued on January 2, 2021. Of the 62,541 performance unit awards that lapsed, 25,308 units were associated with units that vested in prior years upon retirement or departure of eligible officers.
The grant-date fair value of vested performance units is as follows:
Year Ended December 31,
202020192018
(in millions)
Grant-date fair value of vested performance units$10 $22 $21