
10.	ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES

Accrued expenses and other long-term liabilities consisted of the following (in millions):



	Accrued Expenses				Other Long- Term Liabilities
	December 31,
	2014		2013		2014		2013
Defined benefit plan liabilities (see Note 14)	$	48	$	30	$	792	$	507
Wage and other employee-related liabilities	294		257		104		97
Uncertain income tax position liabilities, including related penalties and interest (see Note 16) ^(a)	—		—		316		205
Environmental liabilities	26		24		269		277
Accrued interest expense	88		90		—		—
Derivative liabilities	—		13		—		—
Asset retirement obligations	20		5		71		26
Other accrued liabilities	120		103		387		217
Accrued expenses and other long-term liabilities	$	596	$	522	$	1,939	$	1,329

^{___________________________}

^(a)As of December 31, 2014, our total liability for uncertain tax positions, including related penalties and interest, was $484 million, with $168 million classified as a current liability and reflected in “Income taxes payable” and the remaining $316 million classified as a long-term liability and reflected in “Other long-term liabilities” as detailed in this table. As of December 31, 2013, our total liability for uncertain tax positions, including related penalties and interest, was $443 million, with $238 million classified as a current liability and reflected in “Income taxes payable” and the remaining $205 million classified as a long-term liability and reflected in “Other long-term liabilities” as detailed in this table.

Environmental Liabilities

Changes in our environmental liabilities were as follows (in millions):



	Year Ended December 31,
	2014			2013			2012
Balance as of beginning of year	$	301		$	269		$	274
Additions to liability	26			67			23
Reductions to liability	—			(1		)	(1		)
Payments, net of third-party recoveries	(27		)	(28		)	(29		)
Separation of retail business	—			(4		)	—
Foreign currency translation	(5		)	(2		)	2
Balance as of end of year	$	295		$	301		$	269

See Note 12 for further information regarding environmental matters.

Asset Retirement Obligations

We have asset retirement obligations with respect to certain of our refinery assets due to various legal obligations to clean and/or dispose of various component parts of each refinery at the time they are retired. However, these component parts can be used for extended and indeterminate periods of time as long as they are properly maintained and/or upgraded. It is our practice and current intent to maintain our refinery assets and continue making improvements to those assets based on technological advances. As a result, we believe that our refineries have indeterminate lives for purposes of estimating asset retirement obligations because dates or ranges of dates upon which we would retire refinery assets cannot reasonably be estimated at this time. When a date or range of dates can reasonably be estimated for the retirement of any component part of a refinery, we estimate the cost of performing the retirement activities and record a liability for the fair value of that cost using established present value techniques.

Prior to the separation of our retail business, we also had asset retirement obligations for the removal of underground storage tanks (USTs) at owned and leased retail sites. There is no legal obligation to remove USTs while they remain in service. However, environmental laws in the U.S. and Canada require that unused USTs be removed within certain periods of time after the USTs are no longer in service, usually one to two years depending on the jurisdiction in which the USTs are located. We had previously estimated that USTs at our formerly owned retail sites would remain in service approximately 20 years and that we would then have an obligation to remove those USTs. For our formerly leased retail sites, our lease agreements generally required that we remove certain improvements, primarily USTs and signage, upon termination of the lease. All of the USTs and the related asset retirement obligations were retained by CST after the separation from us. Therefore, we have no asset retirement obligations in connection with the USTs subsequent to the separation of our retail business on May 1, 2013.

Changes in our asset retirement obligations were as follows (in millions).



	Year Ended December 31,
	2014			2013			2012
Balance as of beginning of year	$	31		$	108		$	87
Additions to accrual	60			2			14
Revisions in estimated cash flows	—			—			13
Accretion expense	1			2			5
Settlements	(1		)	(1		)	(11		)
Separation of retail business	—			(80		)	—
Balance as of end of year	$	91		$	31		$	108

See Note 2 for further information regarding the 2014 additions to accrual related to our Aruba Refinery.

There are no assets that are legally restricted for purposes of settling our asset retirement obligations.