Pension Plans and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Change in Benefit Obligation and Plan Assets

The following table sets forth the pension and other postretirement benefit plan disclosures as of December 31, 2020 and 2019 and the components of net periodic benefit costs for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands):

	Pension Benefits						Other Post- retirement Benefits
	2020			2019			2020			2019
Change in benefit obligation:
Benefit obligation as of beginning of year	$	742,382		$	671,629		$	159,296		$	134,053
Service cost		22,392			19,755			3,902			3,006
Interest cost		27,853			28,417			6,042			5,598
Actuarial (gain)/loss		74,688			57,829			(2,589	)		23,344
Benefits paid		(40,400	)		(35,248	)		(5,418	)		(6,705	)
Benefit obligation as of end of year	$	826,915		$	742,382		$	161,233		$	159,296
Change in plan assets:
Fair value of plan assets as of beginning of year	$	642,063		$	544,051		$	44,853		$	36,852
Actual return on plan assets		96,591			109,942			7,320			8,001
Employer contributions		22,000			22,000			—			—
Benefits paid		(38,630	)		(33,930	)		—			—
Fair value of plan assets as of end of year	$	722,024		$	642,063		$	52,173		$	44,853
Funded status	$	(104,891	)	$	(100,319	)	$	(109,060	)	$	(114,443	)
Amounts recognized in the Consolidated Balance Sheets:
Other current liabilities	$	(1,943	)	$	(1,602	)	$	(669	)	$	(640	)
Non-current liabilities		(102,948	)		(98,717	)		(108,391	)		(113,803	)
Net amount recognized	$	(104,891	)	$	(100,319	)	$	(109,060	)	$	(114,443	)
Accumulated pension benefit obligation	$	710,023		$	644,004
Accumulated postretirement benefit obligation:
For retirees							$	75,876		$	72,816
For fully eligible employees							$	32,097		$	34,545
For other participants							$	53,260		$	51,935
Included in accumulated other comprehensive loss (income) (net of tax):
Unrecognized prior service cost	$	1,902		$	2,105		$	(3,570	)	$	(4,400	)
Unrecognized net actuarial loss		119,318			114,368			53,737			63,101
Total		121,220			116,473			50,167			58,701
Less regulatory asset		(108,301	)		(107,395	)		(48,708	)		(57,520	)
Accumulated other comprehensive loss for unfunded benefit obligation for pensions and other postretirement benefit plans	$	12,919		$	9,078		$	1,459		$	1,181

	Pension Benefits						Other Post- retirement Benefits
	2020			2019			2020			2019
Weighted-average assumptions as of December 31:
Discount rate for benefit obligation		3.25	%		3.85	%		3.27	%		3.89	%
Discount rate for annual expense		3.85	%		4.31	%		3.89	%		4.32	%
Expected long-term return on plan assets		5.50	%		5.90	%		5.30	%		5.70	%
Rate of compensation increase		4.74	%		4.66	%
Medical cost trend pre-age 65 – initial								6.25	%		5.75	%
Medical cost trend pre-age 65 – ultimate								5.00	%		5.00	%
Ultimate medical cost trend year pre-age 65							2026			2023
Medical cost trend post-age 65 – initial								6.25	%		6.50	%
Medical cost trend post-age 65 – ultimate								5.00	%		5.00	%
Ultimate medical cost trend year post-age 65							2026			2026

Components of Net Periodic Benefit Cost

	Pension Benefits									Other Post-retirement Benefits
	2020			2019			2018			2020			2019			2018
Components of net periodic benefit cost:
Service cost (a)	$	22,392		$	19,755		$	21,614		$	3,902		$	3,006		$	3,188
Interest cost		27,853			28,417			26,096			6,042			5,598			4,831
Expected return on plan assets		(34,886	)		(31,763	)		(33,018	)		(2,377	)		(2,101	)		(1,973	)
Amortization of prior service cost		257			257			257			(958	)		(981	)		(1,089	)
Net loss recognition		6,717			10,216			7,879			4,871			4,013			4,232
Net periodic benefit cost	$	22,333		$	26,882		$	22,828		$	11,480		$	9,535		$	9,189

(a)

Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded to various projects based on whether the work is a capital project or an operating expense. Approximately 40 percent of all labor and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.

Schedule of Allocation of Plan Assets

The target investment allocation percentages by asset classes are indicated in the table below:

	2020			2019
Equity securities		35	%		35	%
Debt securities		49	%		49	%
Real estate		7	%		7	%
Absolute return		9	%		9	%

Employer Matching Contributions

Employer matching contributions were as follows for the years ended December 31 (dollars in thousands):

		2020				2019				2018
Employer 401(k) matching contributions		$	11,742			$	10,412			$	10,243

Deferred Compensation Assets and Liabilities

There were deferred compensation assets included in other property and investments-net and corresponding deferred compensation liabilities included in other non-current liabilities and deferred credits on the Consolidated Balance Sheets of the following amounts as of December 31 (dollars in thousands):

		2020				2019
Deferred compensation assets and liabilities		$	9,174			$	8,948

Pension Plan And SERP [Member]

Schedule of Expected Benefit Payments

The Company expects that benefit payments under the pension plan and the SERP will total (dollars in thousands):

2021

2022

2023

2024

2025

Total 2026-

2030

Expected benefit payments

42,390

42,673

42,478

43,149

43,752

223,788

Schedule of Allocation of Plan Assets

The following table discloses by level within the fair value hierarchy (see Note 18 for a description of the fair value hierarchy) of the pension plan’s assets measured and reported as of December 31, 2020 at fair value (dollars in thousands):

	Level 1		Level 2		Level 3		Total
Cash equivalents	$	—	$	3,309	$	—	$	3,309
Fixed income securities:
U.S. government issues		—		10,990		—		10,990
Corporate issues		—		279,857		—		279,857
International issues		—		39,634		—		39,634
Municipal issues		—		22,431		—		22,431
Mutual funds:
U.S. equity securities		146,375		—		—		146,375
International equity securities		96,311		—		—		96,311
Absolute return (1)		11,640		—		—		11,640
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate		—		—		—		29,532
Partnership/closely held investments:
Absolute return (1)		—		—		—		47,188
International equity securities		—		—		—		26,760
Real estate		—		—		—		7,997
Total	$	254,326	$	356,221	$	—	$	722,024

	Level 1		Level 2		Level 3		Total
Cash equivalents	$	—	$	2,852	$	—	$	2,852
Fixed income securities:
U.S. government issues		—		37,297		—		37,297
Corporate issues		—		207,222		—		207,222
International issues		—		35,836		—		35,836
Municipal issues		—		23,539		—		23,539
Mutual funds:
U.S. equity securities		173,568		—		—		173,568
International equity securities		46,416		—		—		46,416
Absolute return (1)		16,720		—		—		16,720
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts:
Real estate		—		—		—		31,473
Partnership/closely held investments:
Absolute return (1)		—		—		—		59,260
Real estate		—		—		—		7,880
Total	$	236,704	$	306,746	$	—	$	642,063

(1)	This category invests in multiple strategies to diversify risk and reduce volatility. The strategies include: (a) event driven, relative value, convertible, and fixed income arbitrage, (b) distressed investments, (c) long/short equity and fixed income, and (d) market neutral strategies.