Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2014			2013			2014			2013
Changes in benefit obligation:
Benefit obligation as of beginning of year	$	1,914		$	2,307		$	324		$	436
Service cost	120			137			7			12
Interest cost	91			86			15			18
Participant contributions	—			—			7			15
Plan amendments	2			(274		)	—			(43		)
Curtailment gain	—			(6		)	—			—
Benefits paid	(109		)	(170		)	(30		)	(37		)
Actuarial (gain) loss	440			(169		)	37			(77		)
Other	(8		)	3			1			—
Benefit obligation as of end of year	$	2,450		$	1,914		$	361		$	324
Changes in plan assets(a):
Fair value of plan assets as of beginning of year	$	1,909		$	1,729		$	—		$	—
Actual return on plan assets	139			306			—			—
Valero contributions	46			41			20			19
Participant contributions	—			—			7			15
Benefits paid	(109		)	(170		)	(30		)	(37		)
Other	(7		)	3			3			3
Fair value of plan assets as of end of year	$	1,978		$	1,909		$	—		$	—
Reconciliation of funded status(a):
Fair value of plan assets as of end of year	$	1,978		$	1,909		$	—		$	—
Less benefit obligation as of end of year	2,450			1,914			361			324
Funded status as of end of year	$	(472	)	$	(5	)	$	(361	)	$	(324	)
Accumulated benefit obligation	$	2,354		$	1,811		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 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, 2014 and 2013 include (in millions):

	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Deferred charges and other assets, net	$	7		$	208		$	—		$	—
Accrued expenses	(28		)	(11		)	(20		)	(19		)
Other long-term liabilities	(451		)	(202		)	(341		)	(305		)
	$	(472	)	$	(5	)	$	(361	)	$	(324	)

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,
	2014		2013
Projected benefit obligation	$	2,288	$	215
Accumulated benefit obligation	2,217		168
Fair value of plan assets	1,812		3

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
2015	$	131	$	20
2016	127		20
2017	132		21
2018	142		21
2019	189		21
2020-2024	845		108

Components of net periodic benefit costs

The components of net periodic benefit cost 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,
	2014			2013			2012			2014			2013			2012
Components of net periodic benefit cost:
Service cost	$	120		$	137		$	140		$	7		$	12		$	12
Interest cost	91			86			93			15			18			21
Expected return on plan assets	(133		)	(131		)	(125		)	—			—			—
Amortization of:
Prior service cost (credit)	(22		)	(19		)	3			(18		)	(14		)	(23		)
Net actuarial (gain) loss	35			57			33			(1		)	—			1
Special charges (credits)	3			(5		)	(3		)	—			—			—
Net periodic benefit cost	$	94		$	125		$	141		$	3		$	16		$	11

Pre-tax amounts recognized in other comprehensive income

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

	Pension Plans									Other Postretirement Benefit Plans
	Year Ended December 31,									Year Ended December 31,
	2014			2013			2012			2014			2013			2012
Net gain (loss) arising during the year:
Net actuarial gain (loss)	$	(434	)	$	290		$	(245	)	$	(37	)	$	77		$	17
Prior service cost	(1		)	—			(9		)	—			—			—
Remeasurement due to plan amendments	—			328			—			—			43			—
Net (gain) loss reclassified into income:
Net actuarial (gain) loss	35			57			33			(1		)	—			1
Prior service cost (credit)	(22		)	(19		)	3			(18		)	(14		)	(23		)
Curtailment and settlement loss	3			1			12			—			—			—
Total changes in other comprehensive income (loss)	$	(419	)	$	657		$	(206	)	$	(56	)	$	106		$	(5	)

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

The pre-tax amounts in accumulated other comprehensive income as of December 31, 2014 and 2013 that have not yet been recognized as components of net periodic benefit cost were as follows (in millions):

	Pension Plans						Other Postretirement Benefit Plans
	2014			2013			2014			2013
Prior service credit	$	(210	)	$	(233	)	$	(92	)	$	(110	)
Net actuarial (gain) loss	876			479			(6		)	(44		)
Total	$	666		$	246		$	(98	)	$	(154	)

Pre-tax 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, 2014 are expected to be recognized as components of net periodic benefit cost during the year ending December 31, 2015 (in millions):

	Pension Plans			Other Postretirement Benefit Plans
Amortization of prior service credit	$	(22	)	$	(18	)
Amortization of net actuarial loss	63			—
Total	$	41		$	(18	)

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, 2014, 2013, and 2012 were as follows:

	Pension Plans						Other Postretirement Benefit Plans
	2014		2013		2012		2014		2013		2012
Discount rate	4.92	%	4.33	%	5.08	%	4.88	%	4.19	%	4.97	%
Expected long-term rate of return on plan assets	7.61	%	7.62	%	7.67	%	—	%	—	%	—	%
Rate of compensation increase	3.81	%	3.73	%	3.68	%	—	%	—	%	—	%

The weighted-average assumptions used to determine the benefit obligations as of December 31, 2014 and 2013 were as follows:

	Pension Plans				Other Postretirement Benefit Plans
	2014		2013		2014		2013
Discount rate	4.10	%	4.92	%	4.13	%	4.88	%
Rate of compensation increase	3.78	%	3.81	%	—	%	—	%

Assumed health care cost trend rates

The assumed health care cost trend rates as of December 31, 2014 and 2013 were as follows:

	2014		2013
Health care cost trend rate assumed for the next year	7.36	%	7.39	%
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	5		(4		)

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, 2014 and 2013 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						Total as of December 31, 2014
	Level 1		Level 2		Level 3
Equity securities:
U.S. companies(a)	$	541	$	—	$	—	$	541
International companies	144		—		—		144
Preferred stock	1		1		—		2
Mutual funds:
International growth	119		—		—		119
Index funds(b)	199		—		—		199
Corporate debt instruments	—		263		—		263
Government securities:
U.S. Treasury securities	71		—		—		71
Other government securities	—		100		—		100
Common collective trusts	—		379		—		379
Private fund	—		40		—		40
Insurance contracts	—		18		—		18
Interest and dividends receivable	5		—		—		5
Cash and cash equivalents	75		22		—		97
Total	$	1,155	$	823	$	—	$	1,978

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See notes on page 98.

	Fair Value Measurements Using						Total as of December 31, 2013
	Level 1		Level 2		Level 3
Equity securities:
U.S. companies(a)	$	529	$	—	$	—	$	529
International companies	155		—		—		155
Preferred stock	2		1		—		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	$	1,135	$	774	$	—	$	1,909

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^(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.