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EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Disclosures for our Pension Plans and other postretirement benefit plans
The changes in the benefit obligation, the changes in fair value of plan assets, the funded status and the amounts recognized in our consolidated balance sheet for our Pension Plans and other postretirement benefit plans as of and for the years ended December 31, 2013 and 2012 were as follows:
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
2013
 
2012
 
2013
 
2012
 
(Thousands of Dollars)
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation, January 1
$
114,046

 
$
78,017

 
$
20,962

 
$
18,672

Service cost
16,321

 
15,614

 
1,171

 
1,258

Interest cost
5,036

 
4,012

 
940

 
976

Transfer to joint venture
—

 
—

 
(1,284
)
 
(90
)
Disposition charges (a)
180

 
4,397

 
—

 
1,284

Plan amendments
(24,560
)
 
(295
)
 
(11,822
)
 
(2,420
)
Benefits paid
(7,353
)
 
(1,647
)
 
(248
)
 
(149
)
Participants contributions
—

 
—

 
125

 
62

Actuarial (gain) loss
(15,708
)
 
18,359

 
(2,690
)
 
2,622

Curtailment (a)
(330
)
 
(4,411
)
 
—

 
(1,253
)
Benefit obligation, December 31
$
87,632

 
$
114,046

 
$
7,154

 
$
20,962

Change in plan assets:
 
 
 
 
 
 
 
Plan assets at fair value, January 1
$
69,269

 
$
53,787

 
$
—

 
$
—

Actual return on plan assets
11,905

 
6,063

 
—

 
—

Company contributions
1,752

 
11,066

 
123

 
87

Benefits paid
(7,353
)
 
(1,647
)
 
(248
)
 
(149
)
Participants contributions
—

 
—

 
125

 
62

Plan assets at fair value, December 31
$
75,573

 
$
69,269

 
$
—

 
$
—

Reconciliation of funded status:
 
 
 
 
 
 
 
Fair value of plan assets at December 31
$
75,573

 
$
69,269

 
$
—

 
$
—

Less: Benefit obligation at December 31
87,632

 
114,046

 
7,154

 
20,962

Funded status at December 31
$
(12,059
)
 
$
(44,777
)
 
$
(7,154
)
 
$
(20,962
)
Amounts recognized in the consolidated balance sheets:
 
 
 
 
 
 
 
Accrued compensation expense
$
(2,333
)
 
$
(137
)
 
$
(141
)
 
$
(243
)
Long-term liabilities
(9,726
)
 
(44,640
)
 
(7,013
)
 
(20,719
)
Net pension liability
$
(12,059
)
 
$
(44,777
)
 
$
(7,154
)
 
$
(20,962
)

 
(a)
Disposition charge in 2013 relates to NuStar Energy’s San Antonio Refinery Sale and the curtailment in 2013 relates to the SERP retirement benefits. Disposition charges and curtailment in 2012 relate to the Asphalt Sale.
The components of net periodic benefit cost
The components of net periodic benefit cost related to our Pension Plans and other postretirement benefit plans, which are reimbursed to us by NuStar Energy, were as follows:
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
Year Ended December 31,
 
Year Ended December 31,
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
(Thousands of Dollars)
Components of net periodic benefit
cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
16,321

 
$
15,614

 
$
12,484

 
$
1,171

 
$
1,258

 
$
1,040

Interest cost
5,036

 
4,012

 
2,881

 
940

 
976

 
888

Expected return on plan assets
(4,535
)
 
(3,917
)
 
(3,617
)
 
—

 
—

 
—

Amortization of prior service credit
(41
)
 
(18
)
 
(18
)
 
(198
)
 
—

 
—

Amortization of net loss
2,071

 
1,393

 
485

 
209

 
139

 
71

Net periodic benefit cost before other charges
18,852


17,084

 
12,215

 
2,122

 
2,373

 
1,999

Other charges (a)
847

 
4,397

 
—

 
—

 
1,284

 
—

Net periodic benefit cost
$
19,699

 
$
21,481

 
$
12,215

 
$
2,122

 
$
3,657

 
$
1,999



(a)
In 2013 other charges for the Pension Plans include an Excess Pension settlement, disposition charges and a curtailment gain associated with the SERP retirement benefits. Other charges in 2012 include disposition charges related to Asphalt JV.
Adjustments recognized in other comprehensive (loss) income
Adjustments recognized in other comprehensive income (loss) related to our Pension Plans and other postretirement benefit plans were as follows:
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
Year Ended December 31,
 
Year Ended December 31,
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
(Thousands of Dollars)
Net unrecognized gain (loss)
arising during the year:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss) (a)
$
24,122

 
$
(11,800
)
 
$
(16,260
)
 
$
2,690

 
$
(1,368
)
 
$
(1,433
)
Prior service credit
24,514

 
295

 
—

 
11,822

 
2,420

 
—

Net unrealized gain (loss)
arising during the year
48,636

 
(11,505
)
 
(16,260
)
 
14,512

 
1,052

 
(1,433
)
Net loss reclassified into income:
 
 
 
 
 
 
 
 
 
 
 
Amortization of prior service credit
(41
)
 
(18
)
 
(18
)
 
(198
)
 
—

 
—

Amortization of net loss
2,071

 
1,393

 
485

 
209

 
139

 
71

Net loss reclassified into income
2,030

 
1,375

 
467

 
11

 
139

 
71

 
 
 
 
 
 
 
 
 
 
 
 
Income tax (expense) benefit
(18,053
)
 
4,269

 
6,064

 
(5,499
)
 
(390
)
 
535

Total changes in other
comprehensive income (loss)
$
32,613

 
$
(5,861
)
 
$
(9,729
)
 
$
9,024

 
$
801

 
$
(827
)


(a) In 2013 net actuarial gain (loss) for the Pension Plans includes an Excess Pension settlement and in 2012 includes the Asphalt JV curtailment.
The amounts recorded as a component of accumulated other comprehensive loss
The amounts recorded as a component of accumulated other comprehensive loss related to our Pension Plans and other postretirement benefit plans were as follows:
 
Pension Plans
 
Other Postretirement
Benefit Plans
 
December 31,
 
December 31,
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
(Thousands of Dollars)
Unrecognized actuarial loss (a)
$
(10,283
)
 
$
(36,476
)
 
$
(26,069
)
 
$
(2,289
)
 
$
(5,188
)
 
$
(3,959
)
Prior service credit (a)
24,853

 
380

 
103

 
14,044

 
2,420

 
—

Deferred tax (liability) asset
(3,639
)
 
14,414

 
10,145

 
(4,328
)
 
1,171

 
1,561

Accumulated other comprehensive
income (loss), net of tax
$
10,931

 
$
(21,682
)
 
$
(15,821
)
 
$
7,427

 
$
(1,597
)
 
$
(2,398
)
 
(a)
Represents the balance of accumulated other comprehensive income (loss) that has not been recognized as a component of net periodic benefit cost.
Schedule of fair value of plan assets
The major classes of plan assets measured at fair value for the Pension Plan, were as follows:
 
December 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Thousands of Dollars)
Asset class:
 
 
 
 
 
 
 
Cash equivalent securities
$
1,552

 
$
—

 
$
—

 
$
1,552

Equity securities:
 
 
 
 
 
 
 
U.S. large cap equity fund (a)
—

 
45,756

 
—

 
45,756

International stock index fund (b)
7,652

 
—

 
—

 
7,652

Fixed income securities:
 
 
 
 
 
 
 
Bond market index fund (c)
20,613

 
—

 
—

 
20,613

Total
$
29,817

 
$
45,756

 
$
—

 
$
75,573

 
 
December 31, 2012
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(Thousands of Dollars)
Asset class:
 
 
 
 
 
 
 
Cash equivalent securities
$
1,294

 
$
—

 
$
—

 
$
1,294

Equity securities:
 
 
 
 
 
 
 
U.S. large cap equity fund (a)
—

 
39,676

 
—

 
39,676

International stock index fund (b)
6,652

 
—

 
—

 
6,652

Fixed income securities:
 
 
 
 
 
 
 
Bond market index fund (c)
21,647

 
—

 
—

 
21,647

Total
$
29,593

 
$
39,676

 
$
—

 
$
69,269


(a)
This fund is a low-cost equity index fund not actively managed that tracks the S&P 500. Fair values were estimated using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.
(b)
This fund tracks the performance of the Total International Composite Index.
(c)
This fund tracks the performance of the Barclays Capital U.S. Aggregate Bond Index.
Schedule of expected benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the years ending December 31: 
 
Pension Plans
 
Other
Postretirement
Benefit Plans
 
(Thousands of Dollars)
2014
$
7,129

 
$
141

2015
$
5,337

 
$
168

2016
$
5,833

 
$
196

2017
$
6,971

 
$
220

2018
$
7,392

 
$
252

Years 2019-2023
$
49,601

 
$
1,992
Assumptions used to determine the benefit obligations
The weighted-average assumptions used to determine the benefit obligations were as follows:
 
Pension Plans
 
Other
Postretirement
Benefit Plans
 
December 31,
 
December 31,
 
2013
 
2012
 
2013
 
2012
Discount rate
5.04
%
 
4.48
%
 
5.28
%
 
4.51
%
Rate of compensation increase
3.51
%
 
3.69
%
 
n/a  

 
n/a  
Assumptions used to determine the net periodic benefit cost
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,
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Discount rate
4.48
%
 
5.21
%
 
5.82
%
 
4.51
%
 
5.25
%
 
5.80
%
Expected long-term rate of
return on plan assets
6.75
%
 
7.00
%
 
7.50
%
 
n/a  

 
n/a  

 
n/a  

Rate of compensation increase
3.69
%
 
4.05
%
 
4.07
%
 
n/a  

 
n/a  

 
n/a  
Schedule of assumed health care cost trend rates
The assumed health care cost trend rates were as follows: 
 
December 31,
 
2013
 
2012
Health care cost trend rate assumed for next year
7.45
%
 
7.64
%
Rate to which the cost trend rate was assumed to decline (the ultimate trend rate)
5.00
%
 
5.00
%
Year that the rate reached the ultimate trend rate
2020

 
2020