Defined Contribution and Defined Benefit Plans

12 Months Ended

Dec. 31, 2014

Defined Contribution and Defined Benefit Plans [Abstract]

Defined Contribution and Defined Benefit Plans

Defined Contribution and Defined Benefit Plans

We maintain two defined contribution savings plans that are intended to be tax exempt under Sections 401(a) and 501(a) of the IRC. Our non-union plan generally covers employees who are not covered by a collective bargaining agreement, and our union plan covers employees who are covered by a collective bargaining agreement. We recorded expenses for these plans of approximately $12 million, $11 million and $12 million for the years ended December 31, 2014, 2013 and 2012, respectively. Employer matching contributions are 100% of the first 5% of compensation a participant defers for the non-union plan. The employee deferral limit is 75% of eligible compensation under both plans.

We also maintain a defined benefit pension plan whereby retirement benefits are primarily a function of age attained, years of participation, years of service, vesting and level of compensation. As of December 31, 2014 and 2013, our pension assets, liabilities and related costs were not material to us. As of December 31, 2014 and 2013, there were approximately $15 million and $14 million in plan assets and approximately $24 million and $20 million in pension liabilities, respectively. Our net pension liability recorded on our Consolidated Balance Sheets as of December 31, 2014 and 2013, was approximately $9 million and $6 million, respectively. For the years ended December 31, 2014, 2013 and 2012, we recognized net periodic benefit costs of approximately $1 million, $2 million and $1 million, respectively. Our net periodic benefit cost is included in plant operating expense on our Consolidated Statements of Operations. As of December 31, 2014 and 2013, the total amount recognized in AOCI for actuarial losses related to pension obligation was approximately $5 million and $1 million, respectively.

In making our estimates of our pension obligation and related costs, we utilize discount rates, rates of compensation increases and rates of return on our assets that we believe are reasonable. Due to relatively small size of our pension liability (which is not considered material), significant changes in these assumptions would not have a material effect on our pension liability. During 2014 and 2013, we made contributions of approximately $2 million and $1 million, respectively, and estimated contributions to the pension plan are expected to be approximately $1 million in 2015. Estimated future benefit payments to participants in each of the next five years are expected to be approximately $1 million in each year.