Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Pension and Post-Retirement Medical Plans:

Employee benefit plans

Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability

The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2013 and 2012:

	Pension Benefits						Post-Retirement Medical Benefits
(dollars in thousands)	2013			2012			2013			2012
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	163,230		$	146,127		$	12,296		$	12,448
Service cost	6,967			6,675			407			419
Interest cost	6,907			6,657			439			534
Actuarial loss (gain)	(19,918		)	7,759			(1,340		)	(657		)
Benefits/expenses paid	(4,506		)	(3,988		)	(414		)	(448		)
Projected benefit obligation at end of year	$	152,680		$	163,230		$	11,388		$	12,296
Changes in Plan Assets:
Fair value of plan assets at beginning of year	$	107,638		$	92,910		$	8,359		$	7,916
Actual return on plan assets	17,846			12,599			1,320			736
Employer contributions	6,556			6,117			608			155
Benefits/expenses paid	(4,506		)	(3,988		)	(414		)	(448		)
Fair value of plan assets at end of year	$	127,534		$	107,638		$	9,873		$	8,359
Funded Status:
Net amount recognized as accrued pension cost	$	(25,146	)	$	(55,592	)	$	(1,515	)	$	(3,937	)

	Pension Benefits						Post-Retirement Medical Benefits
(in thousands)	2013			2012			2013			2012
Amounts recognized on the balance sheets:
Current liabilities	$	—		$	—		$	—		$	—
Non-current liabilities	(25,146		)	(55,592		)	(1,515		)	(3,937		)
Net amount recognized	$	(25,146	)	$	(55,592	)	$	(1,515	)	$	(3,937	)
Amounts recognized in regulatory assets consist of:
Initial net obligation	$	—		$	—		$	417		$	837
Prior service cost (credit)	285			404			(433		)	(633		)
Net (gain) loss	15,581			48,648			(3,159		)	(889		)
Regulatory assets (liabilities)	15,866			49,052			(3,175		)	(685		)
Unfunded accrued pension cost	9,280			6,540			4,690			4,622
Net liability recognized	$	25,146		$	55,592		$	1,515		$	3,937
Changes in plan assets and benefit obligations recognized in regulatory assets:
Regulatory asset at beginning of year	$	49,052		$	50,505		$	(685	)	$	570
Net loss (gain)	(30,190		)	1,700			(2,278		)	(1,036		)
Amortization of initial net obligation	—			—			(419		)	(419		)
Amortization of prior service (cost) credit	(118		)	(118		)	200			200
Amortization of net gain (loss)	(2,878		)	(3,035		)	7			—
Total change in regulatory asset	(33,186		)	(1,453		)	(2,490		)	(1,255		)
Regulatory asset (liability) at end of year	$	15,866		$	49,052		$	(3,175	)	$	(685	)
Net periodic pension costs	$	9,296		$	9,945		$	676		$	815
Change in regulatory asset	(33,186		)	(1,453		)	(2,490		)	(1,255		)
Total recognized in net periodic pension cost and regulatory asset (liability)	$	(23,890	)	$	8,492		$	(1,814	)	$	(440	)
Estimated amounts that will be amortized from regulatory asset over the next fiscal year:
Initial net obligation	$	—		$	—		$	(418	)	$	(419	)
Prior service (cost) credit	$	(118	)	$	(118	)	$	200		$	200
Net gain (loss)	$	(29	)	$	(2,846	)	$	262		$	—
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	152,680		$	163,230		$	11,388		$	12,296
Accumulated benefit obligation	$	131,580		$	138,230		N/A			N/A
Fair value of plan assets	$	127,534		$	107,368		$	9,873		$	8,359
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	5.10		%	4.30		%	4.65		%	3.75		%
Rate of compensation increase	4.00		%	4.00		%	N/A			N/A

Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool

The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2013, 2012 and 2011 are as follows:

	Pension Benefits									Post-Retirement  Medical Benefits
(dollars in thousands, except percent)	2013			2012			2011			2013			2012			2011
Components of Net Periodic Benefits Cost:
Service cost	$	6,967		$	6,675		$	5,624		$	407		$	419		$	391
Interest cost	6,907			6,657			6,524			439			534			549
Expected return on plan assets	(7,574		)	(6,540		)	(6,349		)	(382		)	(357		)	(298		)
Amortization of transition	—			—			—			419			419			419
Amortization of prior service cost (credit)	118			118			118			(200		)	(200		)	(200		)
Amortization of actuarial (gain) loss	2,878			3,035			1,242			(7		)	—			—
Net periodic pension cost under accounting standards	$	9,296		$	9,945		$	7,159		$	676		$	815		$	861
Regulatory adjustment - deferred	(1,920		)	(2,305		)	(209		)	—			—			—
Total expense recognized, before allocation to overhead pool	$	7,376		$	7,640		$	6,950		$	676		$	815		$	861
Weighted-average assumptions used to determine net periodic cost:
Discount rate	4.30		%	4.65		%	5.55		%	3.75		%	4.45		%	5.20		%
Expected long-term return on plan assets	7.00		%	7.00		%	7.00		%	*			*			*
Rate of compensation increase	4.00		%	4.00		%	4.00		%	N/A			N/A			N/A

*7.0% for union plan, 4.2% for non-union, net of income taxes in 2013, 2012 and 2011.

Schedule of pension and post-retirement plan weighted-average asset allocations, by asset category

The Committee approves the target asset allocations.  Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2013 and 2012, by asset category are as follows:

	Pension Benefits				Post-Retirement Medical Benefits
Asset Category	2013		2012		2013		2012
Actual Asset Allocations:
Equity securities	61	%	60	%	61	%	61	%
Debt securities	37	%	39	%	38	%	38	%
Cash equivalents	2	%	1	%	1	%	1	%
Total	100	%	100	%	100	%	100	%

Schedule of pension and post-retirement plan target asset allocations

Equity securities did not include AWR’s stock as of December 31, 2013 and 2012.

Target Asset Allocations for 2014:	Pension Benefits		Post-retirement Medical Benefits
Equity securities	60	%	60	%
Debt securities	40	%	40	%
Total	100	%	100	%

Schedule of pension and post-retirement plans' investment assets measured at fair value

The following tables set forth by level, within the fair value hierarchy, the pension and post-retirement plans’ investment assets measured at fair value as of December 31, 2013 and 2012:

	Fair Value as of December 31, 2013
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Pension Plan Assets:
Cash equivalents	$	2,096	—	—	$	2,096
Fixed income securities	47,627		—	—	47,627
Equity securities:
U.S. small cap stocks	6,576		—	—	6,576
U.S. mid cap stocks	13,119		—	—	13,119
U.S. large cap stocks	39,280		—	—	39,280
International funds	12,501		—	—	12,501
Real estate funds	6,335		—	—	6,335
Total equity securities	77,811		—	—	77,811
Total investments measured at fair value	$	127,534	—	—	$	127,534
Fair Value of Post-Retirement Plan Assets:
Cash equivalents	$	142	—	—	$	142
Fixed income	3,731		—	—	3,731
U.S. equity securities (large cap stocks)	6,000		—	—	6,000
Total investments measured at fair value	$	9,873	—	—	$	9,873

	Fair Value as of December 31, 2012
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Pension Plan Assets:
Cash equivalents	$	1,721	—	—	$	1,721
Fixed income securities	41,590		—	—	41,590
Equity securities:
U.S. small cap stocks	5,396		—	—	5,396
U.S. mid cap stocks	10,722		—	—	10,722
U.S. large cap stocks	31,966		—	—	31,966
International funds	10,797		—	—	10,797
Real estate funds	5,446		—	—	5,446
Total equity securities	64,327		—	—	64,327
Total investments measured at fair value	$	107,638	—	—	$	107,638
Fair Value of Post-Retirement Plan Assets:
Cash equivalents	$	65	—	—	$	65
Fixed income	3,192		—	—	3,192
U.S. equity securities (large cap stocks)	5,102		—	—	5,102
Total investments measured at fair value	$	8,359	—	—	$	8,359

Schedule of estimated future benefit payments

Registrant’s estimated future benefit payments at December 31, 2013 for the next five years and thereafter are as follows (in thousands):

	Pension Benefits		Post-Retirement Medical Benefits
2014	$	4,971	$	483
2015	5,447		558
2016	5,929		630
2017	6,513		713
2018	7,094		814
Thereafter	45,594		5,057
Total	$	75,548	$	8,255

Schedule of 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 on the post-retirement medical plan:

(dollars in thousands)	1-Percentage-Point Increase		1-Percentage-Point Decrease
Effect on total of service and interest cost components	$	99	$	(85	)
Effect on post-retirement benefit obligation	$	1,243	$	(1,083	)

SERP

Employee benefit plans

Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability

The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2013 and 2012:

(dollars in thousands)	2013			2012
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	12,406		$	10,604
Service cost	803			731
Interest cost	514			488
Actuarial (gain) loss	(1,198		)	803
Benefits paid	(229		)	(220		)
Benefit obligation at end of year	$	12,296		$	12,406
Changes in Plan Assets:
Fair value of plan assets at beginning of year	—			—
Fair value of plan assets at end of year	—			—
Funded Status:
Net amount recognized as accrued cost	$	(12,296	)	$	(12,406	)

(in thousands)	2013			2012
Amounts recognized on the balance sheets:
Current liabilities	$	(230	)	$	(317	)
Non-current liabilities	(12,066		)	(12,089		)
Net amount recognized	$	(12,296	)	$	(12,406	)
Amounts recognized in regulatory assets consist of:
Prior service cost	$	314		$	475
Net loss	2,172			3,709
Regulatory assets	2,486			4,184
Unfunded accrued cost	9,810			8,222
Net liability recognized	$	12,296		$	12,406
Changes in plan assets and benefit obligations recognized in regulatory assets consist of:
Regulatory asset at beginning of year	$	4,184		$	3,848
Net (gain) loss	(1,199		)	805
Amortization of prior service credit	(161		)	(161		)
Amortization of net loss	(338		)	(308		)
Total change in regulatory asset	(1,698		)	336
Regulatory asset at end of year	$	2,486		$	4,184
Net periodic pension cost	$	1,817		$	1,687
Change in regulatory asset	(1,698		)	336
Total recognized in net periodic pension and net income	$	119		$	2,023
Estimated amounts that will be amortized from regulatory asset over the next fiscal year:
Initial net asset (obligation)	—			—
Prior service cost	$	(161	)	$	(161	)
Net loss	(139		)	(339		)
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	12,296		$	12,406
Accumulated benefit obligation	10,116			9,601
Fair value of plan assets	—			—
Weighted-average assumptions used to determine benefit obligations:
Discount rate	5.05		%	4.20		%
Rate of compensation increase	4.00		%	4.00		%

Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool

The components of SERP expense, before allocation to the overhead pool, for 2013, 2012 and 2011 are as follows:

(dollars in thousands, except percent)	2013			2012			2011
Components of Net Periodic Benefits Cost:
Service cost	$	803		$	731		$	600
Interest cost	514			488			464
Amortization of prior service cost	161			161			161
Amortization of net loss	339			307			134
Net periodic pension cost	$	1,817		$	1,687		$	1,359
Weighted-average assumptions used to determine net periodic cost:
Discount rate	4.20		%	4.65		%	5.55		%
Rate of compensation increase	4.00		%	4.00		%	4.00		%

Schedule of pension and post-retirement plans' investment assets measured at fair value

The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2013 and 2012.

	Fair Value as of December 31, 2013
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Assets held in Rabbi Trust:
Cash equivalents	$	27	—	—	$	27
Fixed income securities	2,587		—	—	2,587
Equity securities	4,202		—	—	4,202
Total investments measured at fair value	$	6,816	—	—	$	6,816

	Fair Value as of December 31, 2012
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Assets held in Rabbi Trust:
Cash equivalents	$	116	—	—	$	116
Fixed income securities	1,878		—	—	1,878
Equity securities	2,822		—	—	2,822
Total investments measured at fair value	$	4,816	—	—	$	4,816

Schedule of estimated future benefit payments

Registrant’s estimated future benefit payments for the SERP at December 31, 2013 for the next ten years are as follows (in thousands):

2014	$	230
2015	383
2016	394
2017	466
2018	570
Thereafter	4,115
Total	$	6,158