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Defined Benefit Pension and Other Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [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)
2016
 
2015
Projected benefit obligations
$
2,024

 
$
1,997

Accumulated benefit obligations
1,914

 
1,918

Fair value of plan assets
1,659

 
1,570
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)
2016
 
2015
 
2016
 
2015
Change in benefit obligations:
 
 
 
 
 
 
 
Benefit obligations at January 1
$
1,997

 
$
2,075

 
$
800

 
$
812

Service cost
114

 
101

 
32

 
31

Interest cost
73

 
71

 
35

 
32

Actuarial (gain) loss
15

 
(63
)
 
(101
)
 
(63
)
Benefits paid
(175
)
 
(187
)
 
(26
)
 
(24
)
Other(a)
—

 
—

 
—

 
12

Benefit obligations at December 31
2,024

 
1,997

 
740

 
800

Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at January 1
1,570

 
1,744

 
—

 
—

Actual return on plan assets
145

 
(33
)
 
—

 
—

Employer contributions
119

 
46

 
26

 
24

Benefits paid from plan assets
(175
)
 
(187
)
 
(26
)
 
(24
)
Fair value of plan assets at December 31
1,659

 
1,570

 
—

 
—

Funded status of plans at December 31
$
(365
)
 
$
(427
)
 
$
(740
)
 
$
(800
)
Amounts recognized in the consolidated balance sheets:
 
 
 
 
 
 
 
Current liabilities
$
(18
)
 
$
(19
)
 
$
(32
)
 
$
(29
)
Noncurrent liabilities
(347
)
 
(408
)
 
(708
)
 
(771
)
Accrued benefit cost
$
(365
)
 
$
(427
)
 
$
(740
)
 
$
(800
)
Pretax amounts recognized in accumulated other comprehensive loss:(b)
 
 
 
 
 
 
 
Net actuarial loss
$
645

 
$
723

 
$
17

 
$
120

Prior service credit
(276
)
 
(323
)
 
(6
)
 
(9
)
(a) 
Includes adjustments related to the MarkWest Merger in 2015.
(b) 
Amounts exclude those related to LOOP and Explorer, equity method investees with defined benefit pension and postretirement plans for which net losses of $16 million and less than $1 million were recorded in accumulated other comprehensive loss in 2016, reflecting our ownership share.
Components of Net Periodic Benefit Costs
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)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
114

 
$
101

 
$
88

 
$
32

 
$
31

 
$
27

Interest cost
73

 
71

 
74

 
35

 
32

 
33

Expected return on plan assets
(98
)
 
(98
)
 
(107
)
 
—

 
—

 
—

Amortization – prior service credit
(46
)
 
(46
)
 
(46
)
 
(3
)
 
(4
)
 
(4
)
 – actuarial loss
38

 
51

 
51

 
2

 
8

 
2

 – settlement loss
7

 
4

 
96

 
—

 
—

 
—

Net periodic benefit cost(a)
$
88

 
$
83

 
$
156

 
$
66

 
$
67

 
$
58

Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax):
 
 
 
 
 
 
 
 
 
 
 
Actuarial (gain) loss
$
(33
)
 
$
69

 
$
188

 
$
(101
)
 
$
(63
)
 
$
86

Prior service cost(b)
—

 
—

 
—

 
—

 
13

 
—

Amortization of actuarial loss
(45
)
 
(55
)
 
(147
)
 
(2
)
 
(8
)
 
(2
)
Amortization of prior service cost
46

 
46

 
46

 
3

 
4

 
4

Other
—

 
—

 
—

 
—

 
—

 
—

Total recognized in other comprehensive loss
$
(32
)
 
$
60

 
$
87

 
$
(100
)
 
$
(54
)
 
$
88

Total recognized in net periodic benefit cost and other comprehensive loss
$
56

 
$
143

 
$
243

 
$
(34
)
 
$
13

 
$
146


(a) 
Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.
(b) 
Includes adjustments related to the MarkWest Merger in 2015.
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pretax)
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)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
114

 
$
101

 
$
88

 
$
32

 
$
31

 
$
27

Interest cost
73

 
71

 
74

 
35

 
32

 
33

Expected return on plan assets
(98
)
 
(98
)
 
(107
)
 
—

 
—

 
—

Amortization – prior service credit
(46
)
 
(46
)
 
(46
)
 
(3
)
 
(4
)
 
(4
)
 – actuarial loss
38

 
51

 
51

 
2

 
8

 
2

 – settlement loss
7

 
4

 
96

 
—

 
—

 
—

Net periodic benefit cost(a)
$
88

 
$
83

 
$
156

 
$
66

 
$
67

 
$
58

Other changes in plan assets and benefit obligations recognized in other comprehensive loss (pretax):
 
 
 
 
 
 
 
 
 
 
 
Actuarial (gain) loss
$
(33
)
 
$
69

 
$
188

 
$
(101
)
 
$
(63
)
 
$
86

Prior service cost(b)
—

 
—

 
—

 
—

 
13

 
—

Amortization of actuarial loss
(45
)
 
(55
)
 
(147
)
 
(2
)
 
(8
)
 
(2
)
Amortization of prior service cost
46

 
46

 
46

 
3

 
4

 
4

Other
—

 
—

 
—

 
—

 
—

 
—

Total recognized in other comprehensive loss
$
(32
)
 
$
60

 
$
87

 
$
(100
)
 
$
(54
)
 
$
88

Total recognized in net periodic benefit cost and other comprehensive loss
$
56

 
$
143

 
$
243

 
$
(34
)
 
$
13

 
$
146


(a) 
Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.
(b) 
Includes adjustments related to the MarkWest Merger in 2015.
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 2016, 2015 and 2014.
 
Pension Benefits
 
Other Benefits
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Weighted-average assumptions used to determine benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.90
%
 
4.00
%
 
3.65
%
 
4.25
%
 
4.50
%
 
4.15
%
Rate of compensation increase
5.00
%
 
3.70
%
 
3.70
%
 
5.00
%
 
3.70
%
 
3.70
%
Weighted-average assumptions used to determine net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.80
%
 
3.70
%
 
4.05
%
 
4.50
%
 
4.30
%
 
4.95
%
Expected long-term return on plan assets(a)
6.50
%
 
6.75
%
 
7.00
%
 
—
%
 
—
%
 
—
%
Rate of compensation increase
5.00
%
 
3.70
%
 
3.70
%
 
5.00
%
 
3.70
%
 
3.70
%
(a) 
Effective January 1, 2017, the expected long-term rate of return on plan assets is 6.50 percent due to a continuation of a change in our primary plan investment strategy, which began January 1, 2014.
Assumed Health Care Cost Trend Rates
The following summarizes the assumed health care cost trend rates.
 
December 31,
 
2016
 
2015
 
2014
Health care cost trend rate assumed for the following year:
 
 
 
 
 
Medical: Pre-65
7.00
%
 
7.50
%
 
8.00
%
Prescription drugs
9.00
%
 
7.00
%
 
7.00
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate):
 
 
 
 
 
Medical: Pre-65
4.50
%
 
5.00
%
 
5.00
%
Prescription drugs
4.50
%
 
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate:
 
 
 
 
 
Medical: Pre-65
2026

 
2021

 
2021

Prescription drugs
2026

 
2021

 
2021
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
$
6

 
$
(5
)
Effect on other postretirement benefit obligations
33

 
(29
)
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, 2016 and 2015.
 
December 31, 2016
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
$
—

 
$
24

 
$
—

 
$
24

Equity:
 
 
 
 
 
 
 
Common stocks
71

 
—

 
—

 
71

Mutual funds
160

 
—

 
—

 
160

Pooled funds
—

 
451

 
—

 
451

Fixed income:
 
 
 
 
 
 
 
Corporate
—

 
570

 
—

 
570

Government
—

 
90

 
—

 
90

Pooled funds
—

 
173

 
—

 
173

Private equity
—

 
—

 
60

 
60

Real estate
—

 
—

 
39

 
39

Other
2

 
—

 
19

 
21

Total investments, at fair value
$
233

 
$
1,308

 
$
118

 
$
1,659

 
December 31, 2015
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
$
—

 
$
27

 
$
—

 
$
27

Equity:
 
 
 
 
 
 
 
Common stocks
57

 
—

 
—

 
57

Mutual funds
142

 
—

 
—

 
142

Pooled funds
—

 
399

 
—

 
399

Fixed income:
 
 
 
 
 
 
 
Corporate
—

 
516

 
—

 
516

Government
—

 
103

 
—

 
103

Pooled funds
—

 
193

 
—

 
193

Private equity
—

 
—

 
62

 
62

Real estate
—

 
—

 
50

 
50

Other
2

 
—

 
19

 
21

Total investments, at fair value
$
201

 
$
1,238

 
$
131

 
$
1,570
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:
 
2016
(In millions)
Private Equity
 
Real Estate
 
Other
 
Total
Beginning balance
$
62

 
$
50

 
$
19

 
$
131

Actual return on plan assets:
 
 
 
 
 
 
 
Realized
8

 
5

 
—

 
13

Unrealized
2

 
(3
)
 
—

 
(1
)
Purchases
2

 
1

 
—

 
3

Sales
(14
)
 
(14
)
 
—

 
(28
)
Ending balance
$
60

 
$
39

 
$
19

 
$
118

 
2015
(In millions)
Private Equity
 
Real Estate
 
Other
 
Total
Beginning balance
$
66

 
$
57

 
$
21

 
$
144

Actual return on plan assets:
 
 
 
 
 
 
 
Realized
12

 
6

 
—

 
18

Unrealized
(1
)
 
(3
)
 
(2
)
 
(6
)
Purchases
5

 
5

 
—

 
10

Sales
(20
)
 
(15
)
 
—

 
(35
)
Ending balance
$
62

 
$
50

 
$
19

 
$
131
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
2017
$
174

 
$
32

2018
177

 
35

2019
182

 
37

2020
165

 
39

2021
165

 
41

2022 through 2026
801

 
222
Multi Employer Pension Plan
Our participation in this plan for 2016, 2015 and 2014 is outlined in the table below. The “EIN” column provides the Employee Identification Number for the plan. The most recent Pension Protection Act zone status available in 2016 and 2015 is for the plan’s year ended December 31, 2015 and December 31, 2014, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The “FIP/RP Status Pending/Implemented” column indicates a financial improvement plan or a rehabilitation plan has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. There have been no significant changes that affect the comparability of 2016, 2015 and 2014 contributions. Our portion of the contributions does not make up more than five percent of total contributions to the 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
 
2016
 
2015
 
 
2016
 
2015
 
2014
 
 
Central States, Southeast and Southwest Areas Pension Plan(a)
 
36-6044243
 
Red
 
Red
 
Implemented
 
$
4

 
$
4

 
$
4

 
No
 
January 31, 2019
(a) 
This agreement has a minimum contribution requirement of $303 per week per employee for 2017. A total of 280 employees participated in the plan as of December 31, 2016.