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Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Tables)
12 Months Ended
Dec. 31, 2018
General Discussion Of Pension And Other Postretirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations

The change in benefit obligation, change in plan assets and funded status for company-sponsored benefit plans and obligations are as follows: 

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Benefit obligation at beginning of year

 

$

(392,371

)

 

$

(385,461

)

 

$

(30,349

)

 

$

(33,337

)

Service cost

 

 

(8,454

)

 

 

(6,753

)

 

 

(341

)

 

 

(14

)

Interest cost

 

 

(16,992

)

 

 

(16,096

)

 

 

(1,482

)

 

 

(1,262

)

Actuarial gain (loss)

 

 

20,445

 

 

 

(15,876

)

 

 

2,100

 

 

 

471

 

Benefits paid

 

 

31,530

 

 

 

31,815

 

 

 

3,582

 

 

 

3,793

 

Plan acquisitions

 

 

(62,067

)

 

 

 

 

 

(13,542

)

 

 

 

Benefit obligation at end of year

 

$

(427,909

)

 

$

(392,371

)

 

$

(40,032

)

 

$

(30,349

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

313,862

 

 

$

289,675

 

 

$

 

 

$

 

Actual (loss) return on plan assets

 

 

(23,745

)

 

 

49,158

 

 

 

 

 

 

 

Employer contributions and benefit payments

 

 

53,998

 

 

 

6,844

 

 

 

3,582

 

 

 

3,794

 

Benefits paid

 

 

(31,530

)

 

 

(31,815

)

 

 

(3,582

)

 

 

(3,794

)

Plan acquisitions

 

 

38,700

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at end of year

 

$

351,285

 

 

$

313,862

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in the consolidated balance sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

(2,121

)

 

$

(1,629

)

 

$

(3,876

)

 

$

(3,705

)

Noncurrent liabilities

 

 

(74,503

)

 

 

(76,880

)

 

 

(36,156

)

 

 

(26,644

)

Funded status

 

$

(76,624

)

 

$

(78,509

)

 

$

(40,032

)

 

$

(30,349

)

Schedule of Actual Asset Allocations of the Pension Benefit Plans' Assets

The asset allocations of the pension benefit plans’ assets at December 31 by asset category are as follows:

 

 

 

Pension Plans

 

Asset Category

 

 

2018

 

 

 

2017

 

Domestic and international equities

 

 

30

%

 

 

37

%

Fixed income securities

 

 

58

 

 

 

47

 

Other (includes cash and cash equivalents and alternatives)

 

 

12

 

 

 

16

 

Total

 

 

100

%

 

 

100

%

Schedule of Allocation of Plan Assets

Fair value measurements are as follows:

 

(Dollars in thousands)

 

December 31, 2018

 

Asset Category

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents

 

$

4,120

 

 

$

 

 

$

4,120

 

Domestic equity securities1

 

 

31,315

 

 

 

23,384

 

 

 

54,699

 

International equity securities2

 

 

 

 

 

21,848

 

 

 

21,848

 

Emerging markets3

 

 

6,909

 

 

 

21,225

 

 

 

28,134

 

Fixed income securities4

 

 

204,072

 

 

 

 

 

 

204,072

 

Alternatives5

 

 

 

 

 

38,412

 

 

 

38,412

 

Total

 

$

246,416

 

 

$

104,869

 

 

$

351,285

 

 

(Dollars in thousands)

 

December 31, 2017

 

Asset Category

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents

 

$

3,004

 

 

$

 

 

$

3,004

 

Domestic equity securities1

 

 

29,178

 

 

 

28,382

 

 

 

57,560

 

International equity securities2

 

 

 

 

 

28,413

 

 

 

28,413

 

Emerging markets3

 

 

12

 

 

 

29,245

 

 

 

29,257

 

Fixed income securities4

 

 

148,833

 

 

 

 

 

 

148,833

 

Alternatives5

 

 

 

 

 

46,795

 

 

 

46,795

 

Total

 

$

181,027

 

 

$

132,835

 

 

$

313,862

 

 

1

Level 1 assets are managed investments in U.S. small/mid-cap equities that track the Russell 2500 Growth index or Russell 2500 Value index. Level 2 assets are collective investments, which are invested in U.S. large-cap equities that track the S&P 500.

2

Level 2 assets are collective investments in equity funds of developed markets outside of the United States and Canada that track the MSCI EAFE Value index or MSCI EAFE Growth index.

3

Level 1 assets are mutual funds which are invested in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index. Level 2 assets are collective investments in the common stock of companies located (or with primary operations) in emerging markets that track the MSCI Emerging Markets index.

4

Level 1 assets are mutual funds and investments in a diversified portfolio of fixed income instruments of varying maturities representing corporates, sovereign debt, U.S. treasuries and municipals that track the Bloomberg Barclay's Long-term Credit index.

5

Level 2 assets are collective investments in inflation-indexed bonds, securities of real estate companies, commodity index-linked notes, fixed income securities, foreign currencies, securities of natural resource companies, master limited partnerships, publicly listed infrastructure companies, floating-rate debt, securities of global agriculture companies and securities of global timber companies.

Pre-tax Components of Net Periodic Cost (Benefit)

Pre-tax components of net periodic cost (benefit) recognized in our Consolidated Statements of Income were as follows:

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

 

2018

 

 

 

2017

 

 

 

2016

 

 

 

2018

 

 

 

2017

 

 

 

2016

 

Service cost

 

$

8,454

 

 

$

6,753

 

 

$

6,508

 

 

$

341

 

 

$

14

 

 

$

14

 

Interest cost

 

 

16,992

 

 

 

16,096

 

 

 

17,020

 

 

 

1,482

 

 

 

1,262

 

 

 

1,421

 

Expected return on plan assets

 

 

(20,035

)

 

 

(18,406

)

 

 

(18,999

)

 

 

 

 

 

 

 

 

 

Amortization of prior service cost (credit)

 

 

186

 

 

 

288

 

 

 

518

 

 

 

(8,877

)

 

 

(8,877

)

 

 

(8,877

)

Amortization of actuarial loss

 

 

16,589

 

 

 

14,484

 

 

 

16,339

 

 

 

1,311

 

 

 

1,537

 

 

 

1,717

 

Net periodic cost (benefit)

 

$

22,186

 

 

$

19,215

 

 

$

21,386

 

 

$

(5,743

)

 

$

(6,064

)

 

$

(5,725

)

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Other amounts recognized in our Consolidated Statements of Comprehensive Income were as follows: 

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

 

2018

 

 

 

2017

 

 

 

2016

 

 

 

2018

 

 

 

2017

 

 

 

2016

 

Net amount at beginning of year

 

$

100,611

 

 

$

120,627

 

 

$

128,244

 

 

$

(5,055

)

 

$

(9,182

)

 

$

(13,741

)

Amounts arising during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (gain)

 

 

23,335

 

 

 

(14,874

)

 

 

4,370

 

 

 

(2,100

)

 

 

(471

)

 

 

313

 

Taxes

 

 

(6,067

)

 

 

3,869

 

 

 

(1,704

)

 

 

546

 

 

 

121

 

 

 

(122

)

Net amount arising during the period

 

 

17,268

 

 

 

(11,005

)

 

 

2,666

 

 

 

(1,554

)

 

 

(350

)

 

 

191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts reclassified during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service (cost) credit

 

 

(185

)

 

 

(288

)

 

 

(518

)

 

 

8,877

 

 

 

8,877

 

 

 

8,877

 

Amortization of actuarial loss

 

 

(16,589

)

 

 

(14,484

)

 

 

(16,339

)

 

 

(1,311

)

 

 

(1,537

)

 

 

(1,717

)

Taxes

 

 

4,361

 

 

 

5,761

 

 

 

6,574

 

 

 

(1,967

)

 

 

(2,863

)

 

 

(2,792

)

Reclassification of certain tax effects due to tax law changes1

 

 

23,787

 

 

 

 

 

 

 

 

 

(372

)

 

 

 

 

 

 

Net reclassifications during the period

 

 

11,374

 

 

 

(9,011

)

 

 

(10,283

)

 

 

5,227

 

 

 

4,477

 

 

 

4,368

 

Net amount at end of year

 

$

129,253

 

 

$

100,611

 

 

$

120,627

 

 

$

(1,382

)

 

$

(5,055

)

 

$

(9,182

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

During 2018 we reclassified certain tax effects of tax law changes from accumulated other comprehensive loss to accumulated deficit on our Consolidated Balance Sheets in accordance with ASU 2018-02. See Note 1: Summary of Significant Accounting Policies.

 

Schedule of Accumulated Other Comprehensive Income (Loss)

Amounts recognized in accumulated other comprehensive loss on our Consolidated Balance Sheets, net of tax, consist of:

 

 

 

Pension Plans

 

 

OPEB

 

(Dollars in thousands)

 

2018

 

 

2017

 

 

 

2018

 

 

 

2017

 

Net loss

 

$

128,849

 

 

$

100,070

 

 

$

7,269

 

 

$

10,165

 

Prior service cost (credit)

 

 

404

 

 

 

541

 

 

 

(8,651

)

 

 

(15,220

)

Net amount recognized

 

$

129,253

 

 

$

100,611

 

 

$

(1,382

)

 

$

(5,055

)

Schedule of Expected Future Benefit Payments

Estimated future benefit payments, which reflect expected future service are as follows for the years indicated:

 

(Dollars in thousands)

 

Pension Plans

 

 

OPEB

 

2019

 

$

30,496

 

 

$

3,876

 

2020

 

$

30,464

 

 

$

3,727

 

2021

 

$

30,548

 

 

$

3,502

 

2022

 

$

30,451

 

 

$

3,349

 

2023

 

$

30,346

 

 

$

3,175

 

2024–2028

 

$

144,685

 

 

$

12,984

 

Weighted Average Assumptions Used to Determine the Benefit Obligation for Non-Deltic and Deltic Plans

The weighted average assumptions used to determine the benefit obligation for non-Deltic plans as of December 31 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2018

 

 

 

2017

 

 

 

2016

 

 

 

2018

 

 

 

2017

 

 

 

2016

 

Discount rate

 

 

4.40

%

 

 

3.85

%

 

 

4.40

%

 

 

4.40

%

 

 

3.65

%

 

 

4.10

%

Rate of salaried compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

 

 

 

 

 

 

 

 

 

The weighted average assumptions used to determine the benefit obligation for Deltic plans as of December 31, 2018 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2018

 

 

 

2018

 

Discount rate

 

 

4.40

%

 

 

4.40

%

Rate of salaried compensation increase

 

 

4.00

%

 

 

 

Schedule of Weighted Average Assumptions Used to Determine the Net Periodic Cost (Benefit) for Non-Deltic and Deltic Plans

The weighted average assumptions used for non-Deltic plans to determine the net periodic cost (benefit) for the years ended December 31 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2018

 

 

 

2017

 

 

 

2016

 

 

 

2018

 

 

 

2017

 

 

 

2016

 

Discount rate

 

 

3.85

%

 

 

4.40

%

 

 

4.65

%

 

 

3.65

%

 

 

4.10

%

 

 

4.25

%

Expected return on plan assets

 

 

6.25

%

 

 

6.50

%

 

 

6.50

%

 

 

 

 

 

 

 

 

 

Rate of salaried compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

 

 

 

 

 

 

 

 

The weighted average assumptions used for Deltic plans to determine the net periodic cost (benefit) for the years ended December 31 were:

 

 

 

Pension Plans

 

 

OPEB

 

 

 

 

2018

 

 

 

2018

 

Discount rate

 

 

4.30

%

 

 

4.30

%

Expected return on plan assets

 

 

6.25

%

 

 

 

Rate of salaried compensation increase

 

 

4.00

%

 

 

 

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in the health care cost trend rates would have the following effects on our December 31, 2018 Consolidated Financial Statements:

 

(Dollars in thousands)

 

1% Increase

 

 

1% Decrease

 

Effect on total service cost plus interest cost

 

$

118

 

 

$

(119

)

Effect on accumulated postretirement benefit obligation

 

$

2,021

 

 

$

(1,584

)