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Defined Benefit Pension and Other Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Text Block [Abstract]  
Summary Of Defined Benefit Plans With Accumulated Benefit Obligations In Excess Of Plan Assets
The following summarizes our defined benefit pension plans that have accumulated benefit obligations in excess of plan assets.
 
December 31,
(In millions)
2013
 
2012
Projected benefit obligations
$
1,927

 
$
2,192

Accumulated benefit obligations
1,912

 
2,035

Fair value of plan assets
1,800

 
1,478
Summary Of Projected Benefit Obligations And Funded Status For Defined Benefit Pension And Other Postretirement Plans
The following summarizes the projected benefit obligations and funded status for our defined benefit pension and other postretirement plans:
 
Pension Benefits
 
Other Benefits
(In millions)
2013
 
2012
 
2013
 
2012
Change in benefit obligations:
 
 
 
 
 
 
 
Benefit obligations at January 1
$
2,192

 
$
2,685

 
$
591

 
$
551

Service cost
93

 
66

 
25

 
20

Interest cost
73

 
94

 
26

 
24

Actuarial (gain) loss
(183
)
 
117

 
17

 
53

Benefits paid
(248
)
 
(233
)
 
(20
)
 
(17
)
Liability gain due to curtailment
—

 
(17
)
 
—

 
—

Other(a)
—

 
(520
)
 
48

 
(40
)
Benefit obligations at December 31
1,927

 
2,192

 
687

 
591

Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at January 1
1,478

 
1,423

 
—

 
—

Actual return on plan assets
241

 
157

 
—

 
—

Employer contributions
329

 
131

 
—

 
—

Benefits paid from plan assets
(248
)
 
(233
)
 
—

 
—

Fair value of plan assets at December 31
1,800

 
1,478

 
—

 
—

Funded status of plans at December 31
$
(127
)
 
$
(714
)
 
$
(687
)
 
$
(591
)
Amounts recognized in the consolidated balance sheets:
 
 
 
 
 
 
 
Current liabilities
$
(18
)
 
$
(18
)
 
$
(25
)
 
$
(21
)
Noncurrent liabilities
(109
)
 
(696
)
 
(662
)
 
(570
)
Accrued benefit cost
$
(127
)
 
$
(714
)
 
$
(687
)
 
$
(591
)
Pretax amounts recognized in accumulated other comprehensive loss:(b)
 
 
 
 
 
 
 
Net loss
$
668

 
$
1,147

 
$
107

 
$
93

Prior service credit
(415
)
 
(460
)
 
(30
)
 
(38
)
(a) 
Includes adjustments related to plan amendments in 2013 and 2012. Also, includes adjustments related to the Galveston Bay Refinery and Related Assets acquisition in 2013.
(b) 
Amounts exclude those related to LOOP, an equity method investee with defined benefit pension and postretirement plans for which net losses of $16 million and $2 million were recorded in accumulated other comprehensive loss in 2013, reflecting our 51 percent share.
Components Of Net Periodic Benefit Cost And Other Comprehensive Loss
Components of net periodic benefit cost and other comprehensive loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive loss for our defined benefit pension and other postretirement plans.
 
Pension Benefits
 
Other Benefits
(In millions)
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
93

 
$
66

 
$
65

 
$
25

 
$
20

 
$
19

Interest cost
73

 
94

 
110

 
26

 
24

 
27

Expected return on plan assets
(107
)
 
(104
)
 
(97
)
 
—

 
—

 
—

Amortization – prior service cost (credit)
(45
)
 
(18
)
 
6

 
(4
)
 
(2
)
 
—

– actuarial loss
66

 
93

 
71

 
3

 
2

 
—

– net settlement/curtailment loss(a)
95

 
125

 
8

 
—

 
—

 
—

Net periodic benefit cost(b)
$
175

 
$
256

 
$
163

 
$
50

 
$
44

 
$
46

Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax):
 
 
 
 
 
 
 
 
 
 
 
Actuarial (gain) loss
$
(317
)
 
$
46

 
$
427

 
$
17

 
$
53

 
$
39

Prior service cost (credit)(c)
—

 
(520
)
 
—

 
4

 
(40
)
 
—

Amortization of actuarial loss
(161
)
 
(218
)
 
(79
)
 
(3
)
 
(2
)
 
—

Amortization of prior service cost (credit)
45

 
18

 
(6
)
 
4

 
2

 
—

Other(d) 
—

 
—

 
6

 
—

 
—

 
—

Total recognized in other comprehensive loss
$
(433
)
 
$
(674
)
 
$
348

 
$
22

 
$
13

 
$
39

Total recognized in net periodic benefit cost and other comprehensive loss
$
(258
)
 
$
(418
)
 
$
511

 
$
72

 
$
57

 
$
85

(a) 
A curtailment gain was recorded in 2011 on the Speedway pension plan at the end of the transition services period related to the sale of most of our Minnesota Assets in 2010. See Note 6.
(b) 
Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.
(c) 
Includes adjustments due to plan amendments approved in 2013 and adjustments due to changes made to the defined pension plans and the post-65 medical plan coverage effective January 1, 2013.
(d) 
Includes adjustments related to the Spinoff in 2011.
Plan Assumptions
Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2013, 2012 and 2011.
 
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Weighted-average assumptions used to determine benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.30
%
 
3.45
%
 
4.30
%
 
4.95
%
 
4.05
%
 
4.65
%
Rate of compensation increase
3.70
%
 
5.00
%
 
5.00
%
 
3.70
%
 
5.00
%
 
5.00
%
Weighted-average assumptions used to determine net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.88
%
 
4.06
%
 
4.98
%
 
4.11
%
 
4.54
%
 
5.55
%
Expected long-term return on plan assets(a)
7.50
%
 
7.50
%
 
8.50
%
 
—
%
 
—
%
 
—
%
Rate of compensation increase
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%

(a)
Effective January 1, 2014, the expected long-term rate of return on plan assets changed from 7.50 percent to 7.00 percent due to a change in our plan investment strategy.
Assumed Health Care Cost Trend Rates
The following summarizes the assumed health care cost trend rates.
 
December 31,
 
2013
 
2012
 
2011
Health care cost trend rate assumed for the following year:
 
 
 
 
 
Medical:
 
 
 
 
 
Pre-65
8.00
%
 
8.00
%
 
7.50
%
Post-65(a)
N/A

 
N/A

 
7.00
%
Prescription drugs
7.00
%
 
7.00
%
 
7.50
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate):
 
 
 
 
 
Medical:
 
 
 
 
 
Pre-65
5.00
%
 
5.00
%
 
5.00
%
Post-65(a)
N/A

 
N/A

 
5.00
%
Prescription drugs
5.00
%
 
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate:
 
 
 
 
 
Medical:
 
 
 
 
 
Pre-65
2020

 
2020

 
2018

Post-65(a)
N/A

 
N/A

 
2017

Prescription drugs
2018

 
2018

 
2018

(a) 
Effective 2013, as a result of changes in the post-65 medical plan coverage of the Marathon Petroleum Health Plan and the Marathon Petroleum Retiree Health Plan, increases are the lower of the trend rate or 4 percent.
Effects 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:
 
1-Percentage-
 
1-Percentage-
(In millions)
Point Increase
 
Point Decrease
Effect on total of service and interest cost components
$
5

 
$
(4
)
Effect on other postretirement benefit obligations
39

 
(34
)
Fair Values Of Defined Benefit Pension Plan Assets
The following tables present the fair values of our defined benefit pension plans’ assets, by level within the fair value hierarchy, as of December 31, 2013 and 2012.
 
December 31, 2013
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
$
—

 
$
189

 
$
—

 
$
189

Equity:
 
 
 
 
 
 
 
Common stocks
69

 
—

 
—

 
69

Mutual funds
217

 
—

 
—

 
217

Pooled funds
—

 
590

 
—

 
590

Fixed income:
 
 
 
 
 
 
 
Corporate
—

 
356

 
—

 
356

Government
—

 
22

 
—

 
22

Pooled funds
—

 
218

 
—

 
218

Private equity
—

 
—

 
57

 
57

Real estate
—

 
—

 
60

 
60

Other
2

 
—

 
20

 
22

Total investments, at fair value
$
288

 
$
1,375

 
$
137

 
$
1,800

 
December 31, 2012
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
$
107

 
$
—

 
$
—

 
$
107

Equity:
 
 
 
 
 
 
 
Exchange-traded funds
166

 
—

 
—

 
166

Investment trusts
17

 
94

 
—

 
111

Pooled funds
—

 
709

 
—

 
709

Fixed income:
 
 
 
 
 
 
 
Pooled funds
—

 
258

 
—

 
258

Private equity
—

 
—

 
56

 
56

Real estate
—

 
—

 
54

 
54

Other
—

 
—

 
17

 
17

Total investments, at fair value
$
290

 
$
1,061

 
$
127

 
$
1,478
Reconciliation Of Beginning And Ending Balances Of Plan Assets Classified As Level 3
The following is a reconciliation of the beginning and ending balances recorded for plan assets classified as Level 3 in the fair value hierarchy:
 
2013
(In millions)
Private
Equity
 
Real
Estate
 
Other
 
Total
Beginning balance
$
56

 
$
54

 
$
17

 
$
127

Actual return on plan assets:
 
 
 
 
 
 


Realized
13

 
3

 
—

 
16

Unrealized
3

 
10

 
3

 
16

Purchases
7

 
5

 
—

 
12

Sales
(22
)
 
(12
)
 
—

 
(34
)
Ending balance
$
57

 
$
60

 
$
20

 
$
137

 
2012
(In millions)
Private
Equity
 
Real
Estate
 
Other
 
Total
Beginning balance
$
55

 
$
49

 
$
17

 
$
121

Actual return on plan assets:
 
 
 
 
 
 


Realized
5

 
(2
)
 
—

 
3

Unrealized
(3
)
 
2

 
—

 
(1
)
Purchases
12

 
10

 
—

 
22

Sales
(13
)
 
(5
)
 
—

 
(18
)
Ending balance
$
56

 
$
54

 
$
17

 
$
127
Estimated Future Benefit Payment
Estimated future benefit payments – The following gross benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years indicated.
(In millions)
Pension Benefits
 
Other Benefits(a)
2014
$
186

 
$
26

2015
181

 
29

2016
177

 
32

2017
178

 
34

2018
175

 
38

2019 through 2023
814

 
231

(a) 
Effective 2013, as a result of the Patient Protection and Affordable Care Act, future Medicare reimbursements will no longer be tax deductible and must be used to reduce the costs of providing Medicare part D equivalent prescription drug benefits to retirees.
Multi Employer Pension Plan
 
 
 
 
Pension Protection
Act Zone Status
 
FIP/RP Status
Pending/Implemented
 
MPC Contributions (In millions)
 
Surcharge
Imposed
 
Expiration Date of
Collective - Bargaining
Agreement
Pension Fund
 
EIN
 
2013
 
2012
 
 
2013
 
2012
 
2011
 
 
Central States, Southeast and Southwest Areas Pension Plan(a)
 
36-6044243
 
Red
 
Red
 
Implemented
 
$
3

 
$
4

 
$
3

 
No
 
January 31, 2019
(a) 
This agreement has a minimum contribution requirement of $269 per week per employee for 2014. A total of 257 employees participated in the plan as of December 31, 2013.