Employee Benefit Plans
Subsequent to spin-off
On January 1, 2012, several new plans became effective for us including a defined contribution plan. WPX matches dollar-for-dollar up to the first 6 percent of eligible pay per period. Employees also receive a non-matching annual employer contribution of equal to 8 percent of eligible pay if they are age 40 or older and 6 percent of eligible pay if they are under age 40. Total contributions to this plan were $16 million and $6 million for 2013 and 2012, respectively. Approximately $11 million and $10 million were included in accrued and other current liabilities at December 31, 2013 and December 31, 2012, respectively, related to the non-matching annual employer contribution.
Prior to spin-off
Through the spin-off date, certain benefit costs associated with direct employees who supported our operations were determined based on a specific employee basis and were charged to us by Williams as described below. These pension and post retirement benefit costs included amounts associated with vested participants who are no longer employees. As described in Note 3, Williams also charged us for the allocated cost of certain indirect employees of Williams who provided general and administrative services on our behalf. Williams included an allocation of the benefit costs associated with these Williams employees based upon Williams’ determined benefit rate, not necessarily specific to the employees providing general and administrative services on our behalf. As a result, the information described below is limited to amounts associated with the direct employees that supported our operations.
For the periods presented, we were not the plan sponsor for these plans. Accordingly, our Consolidated Balance Sheets do not reflect any assets or liabilities related to these plans.
Pension plans
Williams is the sponsor of noncontributory defined benefit pension plans that provide pension benefits for its eligible employees. Pension expense charged to us by Williams for 2011 totaled $8 million.
Other postretirement benefits
Williams is the sponsor of subsidized retiree medical and life insurance benefit plans (“other postretirement benefits”) that provide benefits to certain eligible participants, generally including employees hired on or before December 31, 1991, and other miscellaneous defined participant groups. Other postretirement benefit expense charged to us by Williams for 2011 totaled less than $1 million.
Defined contribution plan
Williams also is the sponsor of a defined contribution plan that provides benefits to certain eligible participants and charged us compensation expense of $4 million in 2011 for Williams’ matching contributions to this plan.
