|
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 |
|
|