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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Compensation and Retirement Disclosure [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,
 
2013
 
2012
 
2013
 
2012
Changes in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation as of beginning of year
$
2,307

 
$
1,881

 
$
436

 
$
438

Service cost
137

 
140

 
12

 
12

Interest cost
86

 
93

 
18

 
21

Participant contributions
—

 
—

 
15

 
14

Plan amendments
(274
)
 
9

 
(43
)
 
—

Curtailment gain
(6
)
 
(16
)
 
—

 
—

Benefits paid
(170
)
 
(90
)
 
(37
)
 
(35
)
Actuarial (gain) loss
(169
)
 
289

 
(77
)
 
(17
)
Other
3

 
1

 
—

 
3

Benefit obligation as of end of year
$
1,914

 
$
2,307

 
$
324

 
$
436

 
 
 
 
 
 
 
 
Changes in plan assets(a):
 
 
 
 
 
 
 
Fair value of plan assets as of beginning of year
$
1,729

 
$
1,487

 
$
—

 
$
—

Actual return on plan assets
306

 
167

 
—

 
—

Valero contributions
41

 
164

 
19

 
19

Participant contributions
—

 
—

 
15

 
14

Benefits paid
(170
)
 
(90
)
 
(37
)
 
(35
)
Other
3

 
1

 
3

 
2

Fair value of plan assets as of end of year
$
1,909

 
$
1,729

 
$
—

 
$
—

 
 
 
 
 
 
 
 
Reconciliation of funded status(a):
 
 
 
 
 
 
 
Fair value of plan assets as of end of year
$
1,909

 
$
1,729

 
$
—

 
$
—

Less benefit obligation as of end of year
1,914

 
2,307

 
324

 
436

Funded status as of end of year
$
(5
)
 
$
(578
)
 
$
(324
)
 
$
(436
)
 
 
 
 
 
 
 
 
Accumulated benefit obligation
$
1,811

 
$
1,857

 
n/a

 
n/a


___________________________ 
(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 20 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 as of December 31, 2013 and 2012 include (in millions):
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
2013
 
2012
 
2013
 
2012
Deferred charges and other assets, net
$
208

 
$
—

 
$
—

 
$
—

Accrued expenses
(11
)
 
(11
)
 
(19
)
 
(21
)
Other long-term liabilities
(202
)
 
(567
)
 
(305
)
 
(415
)
 
$
(5
)
 
$
(578
)
 
$
(324
)
 
$
(436
)
Benefit obligations in excess of fair value of plan assets
The accumulated benefit obligations for certain of our pension plans exceed the fair values of the assets of those plans. For those plans, the table below presents the total projected benefit obligation, accumulated benefit obligation, and fair value of the plan assets (in millions).
 
December 31,
 
2013
 
2012
Projected benefit obligation
$
215

 
$
250

Accumulated benefit obligation
168

 
191

Fair value of plan assets
3

 
31
Expected benefit payments
Benefit payments that we expect to pay, including amounts related to expected future services, and the anticipated Medicare subsidies that we expect to receive are as follows for the years ending December 31 (in millions):
 
Pension
Benefits
 
Other
Postretirement
Benefits
2014
$
100

 
$
19

2015
125

 
19

2016
116

 
20

2017
127

 
20

2018
146

 
21

2019-2023
820

 
107
Components of net periodic benefit costs
The components of net periodic benefit cost were as follows for the years ended (in millions):
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
December 31,
 
December 31,
 
2013
 
2012

2011
 
2013
 
2012
 
2011
Components of net periodic
benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
137

 
$
140

 
$
104

 
$
12

 
$
12

 
$
11

Interest cost
86

 
93

 
85

 
18

 
21

 
22

Expected return on plan assets
(131
)
 
(125
)
 
(112
)
 
—

 
—

 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (credit)
(19
)
 
3

 
2

 
(14
)
 
(23
)
 
(23
)
Net actuarial loss
57

 
33

 
12

 
—

 
1

 
2

Special charges (credits)
(5
)
 
(3
)
 
4

 
—

 
—

 
4

Net periodic benefit cost
$
125

 
$
141

 
$
95

 
$
16

 
$
11

 
$
16
Amounts recognized in other comprehensive income
Pre-tax amounts recognized in other comprehensive income for the years ended were as follows (in millions):
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
December 31,
 
December 31,
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Net gain (loss) arising during
the year:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss)
$
290

 
$
(245
)
 
$
(294
)
 
$
77

 
$
17

 
$
9

Prior service cost
—

 
(9
)
 
(4
)
 
—

 
—

 
—

Remeasurement due to plan amendments
328

 
—

 
—

 
43

 
—

 
—

Net (gain) loss reclassified into
income:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial loss
57

 
33

 
12

 
—

 
1

 
2

Prior service cost (credit)
(19
)
 
3

 
2

 
(14
)
 
(23
)
 
(23
)
Curtailment and settlement loss
1

 
12

 
4

 
—

 
—

 
—

Total changes in other
comprehensive income (loss)
$
657

 
$
(206
)
 
$
(280
)
 
$
106

 
$
(5
)
 
$
(12
)
Amounts in accumulated other comprehensive income not yet recognized
The pre-tax amounts in accumulated other comprehensive income as of December 31, 2013 and 2012 that have not yet been recognized as components of net periodic benefit cost were as follows (in millions):
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
2013

2012
 
2013
 
2012
Prior service cost (credit)
$
(233
)
 
$
21

 
$
(110
)
 
$
(81
)
Net actuarial loss (gain)
479

 
882

 
(44
)
 
34

Total
$
246

 
$
903

 
$
(154
)
 
$
(47
)
Amounts in accumulated other comprehensive income to be recognized in the next fiscal year
The following pre-tax amounts included in accumulated other comprehensive income as of December 31, 2013 are expected to be recognized as components of net periodic benefit cost during the year ending December 31, 2014 (in millions):
 
Pension Plans
 
Other
Postretirement
Benefit Plans
Amortization of prior service credit
$
(22
)
 
$
(18
)
Amortization of net actuarial loss (gain)
35

 
(1
)
Total
$
13

 
$
(19
)
Weighted-average assumptions used to determine the benefit obligations and net periodic benefit cost
The weighted-average assumptions used to determine the net periodic benefit cost for the years ended December 31, 2013, 2012, and 2011 were as follows:
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Discount rate
4.33
%
 
5.08
%
 
5.40
%
 
4.19
%
 
4.97
%
 
5.22
%
Expected long-term rate of return
on plan assets
7.62
%
 
7.67
%
 
7.69
%
 
—
%
 
—
%
 
—
%
Rate of compensation increase
3.73
%
 
3.68
%
 
3.56
%
 
—
%
 
—
%
 
—
%
The weighted-average assumptions used to determine the benefit obligations as of December 31, 2013 and 2012 were as follows:
 
Pension Plans
 
Other
Postretirement
Benefit Plans
 
2013
 
2012
 
2013
 
2012
Discount rate
4.92
%
 
4.28
%
 
4.88
%
 
4.19
%
Rate of compensation increase
3.81
%
 
3.73
%
 
—
%
 
—
%
Assumed health care cost trend rates
The assumed health care cost trend rates as of December 31, 2013 and 2012 were as follows:
 
2013
 
2012
Health care cost trend rate assumed for the next year
7.39
%
 
7.32
%
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
2020

 
2020
Effect of one percentage-point change in assumed health care cost trend rates
A one percentage-point change in assumed health care cost trend rates would have the following effects on other postretirement benefits (in millions):
 
1% Increase
 
1% Decrease
Effect on total of service and interest cost components
$
—

 
$
—

Effect on accumulated postretirement benefit obligation
3

 
(3
)
Fair value of pension plan assets by level of fair value hierarchy
The tables below present the fair values of the assets of our pension plans (in millions) as of December 31, 2013 and 2012 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 quotations from national securities exchanges. Assets categorized in Level 2 of the hierarchy are measured at net asset value as a practical expedient for fair value. 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 Measurements Using
 
 
 
Quoted
Prices in
Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total as of
December 31,
2013
Equity securities:
 
 
 
 
 
 
 
U.S. companies(a)
$
529

 
$
—

 
$
—

 
$
529

International companies
155

 
—

 
—

 
155

Preferred stock
3

 
—

 
—

 
3

Mutual funds:
 
 
 
 
 
 
 
International growth
131

 
—

 
—

 
131

Index funds(b)
160

 
—

 
—

 
160

Corporate debt instruments
—

 
260

 
—

 
260

Government securities:
 
 
 
 
 
 
 
U.S. Treasury securities
81

 
—

 
—

 
81

Other government securities
—

 
79

 
—

 
79

Common collective trusts
—

 
373

 
—

 
373

Private fund
—

 
38

 
—

 
38

Insurance contracts
—

 
17

 
—

 
17

Interest and dividends receivable
5

 
—

 
—

 
5

Cash and cash equivalents
72

 
6

 
—

 
78

Total
$
1,136

 
$
773

 
$
—

 
$
1,909


______________________
See notes on page 102.
 
Fair Value Measurements Using
 
 
 
Quoted
Prices in
Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total as of
December 31,
2012
Equity securities:
 
 
 
 
 
 
 
U.S. companies(a)
$
441

 
$
—

 
$
—

 
$
441

International companies
135

 
—

 
—

 
135

Preferred stock
2

 
1

 
—

 
3

Mutual funds:
 
 
 
 
 
 
 
International growth
127

 
—

 
—

 
127

Index funds(b)
117

 
—

 
—

 
117

Corporate debt instruments
—

 
290

 
—

 
290

Government securities:
 
 
 
 
 
 
 
U.S. Treasury securities
107

 
—

 
—

 
107

Other government securities
3

 
65

 
—

 
68

Common collective trusts
—

 
294

 
—

 
294

Insurance contracts
—

 
17

 
—

 
17

Interest and dividends receivable
5

 
—

 
—

 
5

Cash and cash equivalents
98

 
27

 
—

 
125

Total
$
1,035

 
$
694

 
$
—

 
$
1,729


___________________ 
(a) 
Equity securities are held in a wide range of industrial sectors, including consumer goods, information technology, healthcare, industrials, and financial services.
(b) 
This class includes primarily investments in approximately 60 percent equities and 40 percent bonds.