XML 40 R26.htm IDEA: XBRL DOCUMENT v3.5.0.2
Employee Benefit Plans (Tables)
9 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
CenterPoint Energy’s net periodic cost includes the following components relating to pension and postretirement benefits:
 
Three Months Ended September 30,
 
2016
 
2015
 
Pension
Benefits (1)
 
Postretirement
Benefits (1)
 
Pension
Benefits (1)
 
Postretirement
Benefits (1)
 
(in millions)
Service cost
$
10

 
$
1

 
$
10

 
$
1

Interest cost
23

 
4

 
24

 
5

Expected return on plan assets
(26
)
 
(2
)
 
(30
)
 
(2
)
Amortization of prior service cost (credit)
3

 
(1
)
 
2

 

Amortization of net loss
15

 

 
14

 
1

Settlement cost (2)

 

 
1

 

Net periodic cost
$
25

 
$
2

 
$
21

 
$
5

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
2016
 
2015
 
Pension
Benefits (1)
 
Postretirement
Benefits (1)
 
Pension
Benefits (1)
 
Postretirement
Benefits (1)
 
(in millions)
Service cost
$
28

 
$
2

 
$
30

 
$
2

Interest cost
70

 
13

 
70

 
15

Expected return on plan assets
(76
)
 
(5
)
 
(90
)
 
(5
)
Amortization of prior service cost (credit)
7

 
(2
)
 
7

 
(1
)
Amortization of net loss
47

 

 
43

 
3

Settlement cost (2)

 

 
10

 

Curtailment gain (3)

 
(3
)
 

 

Net periodic cost
$
76

 
$
5

 
$
70

 
$
14


(1)
Net periodic cost in these tables is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes.  

(2)
A one-time, non-cash settlement charge is required when lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of net periodic cost for that year.  Due to the amount of lump sum payment distributions from the non-qualified pension plan during the three and nine months ended September 30, 2015, CenterPoint Energy recognized a non-cash settlement charge of $1 million and $10 million, respectively.  This charge is an acceleration of costs that would otherwise be recognized in future periods. 

(3)
A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods.
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]
CenterPoint Energy’s changes in accumulated comprehensive loss related to defined benefit and postretirement plans are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
Pension and Postretirement Plans
 
Pension and Postretirement Plans
 
(in millions)
Beginning Balance
$
(65
)
 
$
(81
)
 
$
(65
)
 
$
(85
)
Other comprehensive income (loss) before reclassifications (1)

 

 
(4
)
 

Amounts reclassified from accumulated other comprehensive loss:
 
 
 
 
 
 
 
Prior service cost (2)
1

 
1

 
1

 
1

Actuarial losses (2)
2

 
1

 
5

 
7

Tax expense
(2
)
 
(1
)
 
(1
)
 
(3
)
Net current period other comprehensive income
1

 
1

 
1

 
5

Ending Balance
$
(64
)
 
$
(80
)
 
$
(64
)
 
$
(80
)

(1)
Total other comprehensive income (loss) related to the remeasurement of the postretirement plan.

(2)
These accumulated other comprehensive components are included in the computation of net periodic cost.