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Retirement Benefits
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Retirement Benefits RETIREMENT BENEFITS:
Savings and Profit Sharing Plans
We and our subsidiaries sponsor defined contribution savings and profit sharing plans, which collectively cover virtually all eligible employees, including those of Sunoco LP and USAC. Employer matching contributions are calculated using a formula based on employee contributions. We and our subsidiaries made matching contributions of $79 million, $65 million and $35 million to these 401(k) savings plans for the years ended December 31, 2022, 2021 and 2020, respectively.
As a result of the economic conditions in 2020, effective June 8, 2020, the Partnership ceased employer matching and profit sharing contributions through December 31, 2020. The Partnership resumed all such contributions in 2021.
Pension and Other Postretirement Benefit Plans
Certain of the Partnership’s subsidiaries sponsor pension and/or other postretirement benefit plans that provide benefits to a defined group of retirees. The following table contains information at the dates indicated about the obligations and funded status of pension and other postretirement plans on a combined basis:
December 31, 2022December 31, 2021
Pension BenefitsPension Benefits
Funded PlansUnfunded PlansOther Postretirement BenefitsFunded PlansUnfunded PlansOther Postretirement Benefits
Change in benefit obligation:
Benefit obligation at beginning of period
$50 $26 $195 $55 $31 $208 
Service cost
— — 1 — — 1 
Interest cost
1 1 4 1 1 4 
Benefits paid, net
(1)(3)(14)(2)(4)(16)
Actuarial gain and other(8)(3)(38)(2)(2)(2)
Settlements
— — — (2)— — 
Energy Transfer Canada sale(20)(2)— — — — 
Benefit obligation at end of period
22 19 148 50 26 195 
Change in plan assets:
Fair value of plan assets at beginning of period
44 — 311 45 — 291 
Return on plan assets and other
(4)— (41)2 — 26 
Employer contributions
1 — 3 1 — 10 
Benefits paid, net
(1)— (14)(2)— (16)
Settlements
— — — (2)— — 
Energy Transfer Canada sale(20)— — — — — 
Fair value of plan assets at end of period
20 — 259 44 — 311 
Amount underfunded (overfunded) at end of period
$2 $19 $(111)$6 $26 $(116)
Amounts recognized in the consolidated balance sheets consist of:
Non-current assets
$— $— $127 $— $— $138 
Current liabilities
— (3)(2)— (4)(2)
Non-current liabilities
(2)(16)(14)(6)(22)(20)
$(2)$(19)$111 $(6)$(26)$116 
Amounts recognized in accumulated other comprehensive income (pre-tax basis) consist of:
Net actuarial gain (loss)
$— $(2)$5 $— $1 $(27)
Prior service cost (credit)— — (3)— — 19 
$— $(2)$2 $— $1 $(8)
The following table summarizes information at the dates indicated for plans with an accumulated benefit obligation in excess of plan assets:
December 31, 2022December 31, 2021
Pension BenefitsPension Benefits
Funded PlansUnfunded PlansOther Postretirement BenefitsFunded PlansUnfunded PlansOther Postretirement Benefits
Projected benefit obligation$22 $19 N/A$50 $26 N/A
Accumulated benefit obligation22 19 148 50 26 195 
Fair value of plan assets20 — 259 44 — 311 
Components of Net Periodic Benefit Cost
December 31, 2022December 31, 2021
Pension BenefitsOther Postretirement BenefitsPension BenefitsOther Postretirement Benefits
Net periodic benefit cost:
Service cost$— $1 $— $1 
Interest cost2 4 2 4 
Expected return on plan assets(2)(11)(2)(11)
Prior service cost amortization— 19 — 19 
Net periodic benefit cost$— $13 $— $13 
Assumptions
The weighted-average assumptions used in determining benefit obligations at the dates indicated are shown in the following table:
December 31, 2022December 31, 2021
Pension BenefitsOther Postretirement BenefitsPension BenefitsOther Postretirement Benefits
Discount rate5.00 %2.46 %2.79 %2.24 %
The weighted-average assumptions used in determining net periodic benefit cost for the periods presented are shown in the following table:
December 31, 2022December 31, 2021
Pension BenefitsOther Postretirement BenefitsPension BenefitsOther Postretirement Benefits
Discount rate2.70 %2.58 %2.57 %2.18 %
Expected return on assets:
Tax exempt accounts7.00 %7.00 %4.76 %7.00 %
Taxable accounts— 4.75 %— 4.75 %
The long-term expected rate of return on plan assets was estimated based on a variety of factors including the historical investment return achieved over a long-term period, the targeted allocation of plan assets and expectations concerning future returns in the marketplace for both equity and fixed income securities. Current market factors such as inflation and interest rates are evaluated before long-term market assumptions are determined. Peer data and historical returns are reviewed to ensure reasonableness and appropriateness.
The assumed health care cost trend weighted-average rates used to measure the expected cost of benefits covered by the plans are shown in the following table:
December 31,
 20222021
Health care cost trend rate7.48 %7.14 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)5.18 %4.95 %
Year that the rate reaches the ultimate trend rate20302028
Changes in the health care cost trend rate assumptions are not expected to have a significant impact on postretirement benefits.
Plan Assets
For the Panhandle plans, the overall investment strategy is to maintain an appropriate balance of actively managed investments with the objective of optimizing longer-term returns while maintaining a high standard of portfolio quality and achieving proper diversification. To achieve diversity within its other postretirement plan asset portfolio, Panhandle has targeted the following asset allocations: equity of 25% to 35%, fixed income of 65% to 75%. 
The investment strategy of ETC Sunoco funded defined benefit plans is to achieve consistent positive returns, after adjusting for inflation, and to maximize long-term total return within prudent levels of risk through a combination of income and capital appreciation. The objective of this strategy is to reduce the volatility of investment returns and maintain a sufficient funded status of the plans. In anticipation of the pension plan termination, ETC Sunoco targeted the asset allocations to a more stable position by investing in growth assets and liability hedging assets.
The fair value of the pension plan assets by asset category at the dates indicated is as follows:
Fair Value Measurements at December 31, 2022
 Fair Value TotalLevel 1Level 2Level 3
Asset Category:    
Cash and cash equivalents$2 $2 $— $— 
Mutual funds (1)
18 18 — — 
Total$20 $20 $— $— 
(1)Comprised of approximately 100% equities as of December 31, 2022.
Fair Value Measurements at December 31, 2021
 Fair Value TotalLevel 1Level 2Level 3
Asset Category:    
Cash and cash equivalents$1 $1 $— $— 
Mutual funds (1)
24 24 — — 
Fixed income securities19 — 19 — 
Total$44 $25 $19 $— 
(1)Comprised of approximately 100% equities as of December 31, 2021.
The fair value of other postretirement plan assets by asset category at the dates indicated is as follows:
Fair Value Measurements at December 31, 2022
Fair Value TotalLevel 1Level 2Level 3
Asset category:
Cash and cash equivalents$19 $19 $— $— 
Mutual funds(1)
146 146 — — 
Fixed income securities94 — 94 — 
Total$259 $165 $94 $— 
(1)Primarily composed of market index funds as of December 31, 2022.
Fair Value Measurements at December 31, 2021
Fair Value TotalLevel 1Level 2Level 3
Asset category:
Cash and cash equivalents$22 $22 $— $— 
Mutual funds(1)
175 175 — — 
Fixed income securities114 — 114 — 
Total$311 $197 $114 $— 
(1)Primarily composed of market index funds as of December 31, 2021.
The Level 1 plan assets are valued based on active market quotes. The Level 2 plan assets are valued based on the net asset value per share (or its equivalent) of the investments, which was not determinable through publicly published sources but was calculated consistent with authoritative accounting guidelines. 
Contributions
We expect to contribute $5 million to pension plans and $1 million to other postretirement plans in 2023. The cost of the plans are funded in accordance with federal regulations, not to exceed the amounts deductible for income tax purposes.
Benefit Payments
The Partnership’s estimate of expected benefit payments, which reflect expected future service, as appropriate, in each of the next five years and in the aggregate for the five years thereafter are shown in the following table:
YearsPension Benefits - Funded PlansPension Benefits - Unfunded PlansOther Postretirement Benefits (Gross, Before Medicare Part D)
2023$1 $4 $16 
20241 3 15 
20251 3 15 
20261 2 14 
20271 2 13 
2028 – 20327 6 55 
The Medicare Prescription Drug Act provides for a prescription drug benefit under Medicare (“Medicare Part D”) as well as a federal subsidy to sponsors of retiree health care benefit plans that provide a prescription drug benefit that is at least actuarially equivalent to Medicare Part D.
The Partnership does not expect to receive any Medicare Part D subsidies in any future periods.