Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Assets by Investment Type

The following schedule summarizes the assets of the Chesapeake Pension Plan and the FPU Pension Plan, by investment type, at December 31, 2016, 2015 and 2014:

	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2016		2015		2014		2016		2015		2014
Asset Category
Equity securities	52.93	%	48.01	%	51.42	%	53.18	%	48.56	%	52.62	%
Debt securities	37.64	%	39.62	%	37.31	%	37.74	%	41.74	%	37.69	%
Other	9.43	%	12.37	%	11.27	%	9.08	%	9.70	%	9.69	%
Total	100.00	%	100.00	%	100.00	%	100.00	%	100.00	%	100.00	%

Schedule of Asset Allocation Strategy

The following allocation range of asset classes is intended to produce a rate of return sufficient to meet the plans’ goals and objectives:

Asset Allocation Strategy
Asset Class	Minimum Allocation Percentage		Maximum Allocation Percentage
Domestic Equities (Large Cap, Mid Cap and Small Cap)	14	%	32	%
Foreign Equities (Developed and Emerging Markets)	13	%	25	%
Fixed Income (Inflation Bond and Taxable Fixed)	26	%	40	%
Alternative Strategies (Long/Short Equity and Hedge Fund of Funds)	6	%	14	%
Diversifying Assets (High Yield Fixed Income, Commodities, and Real Estate)	7	%	19	%
Cash	0	%	5	%

Summary of Pension Plan Assets

At December 31, 2016 and 2015, the assets of the Chesapeake Pension Plan and the FPU Pension Plan were comprised of the following investments:

	Fair Value Measurement Hierarchy
	December 31, 2016								December 31, 2015
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(in thousands)
Mutual Funds - Equity securities
U.S. Large Cap (1)	$	4,031	$	—	$	—	$	4,031	$	3,641	$	—	$	—	$	3,641
U.S. Mid Cap (1)	1,677		—		—		1,677		1,577		—		—		1,577
U.S. Small Cap (1)	845		—		—		845		865		—		—		865
International (2)	9,574		—		—		9,574		9,416		—		—		9,416
Alternative Strategies (3)	5,238		—		—		5,238		2,737		—		—		2,737
	21,365		—		—		21,365		18,236		—		—		18,236
Mutual Funds - Debt securities
Fixed income (4)	16,958		—		—		16,958		18,565		—		—		18,565
High Yield (4)	2,636		—		—		2,636		2,521		—		—		2,521
	19,594		—		—		19,594		21,086		—		—		21,086
Mutual Funds - Other
Commodities (5)	2,134		—		—		2,134		1,365		—		—		1,365
Real Estate (6)	2,116		—		—		2,116		2,529		—		—		2,529
Guaranteed deposit (7)	—		—		498		498		—		—		1,286		1,286
	4,250		—		498		4,748		3,894		—		1,286		5,180
Total Pension Plan Assets in fair value hierarchy	$	45,209	$	—	$	498	45,707		$	43,216	$	—	$	1,286	44,502
Investments measured at net asset value (8)							6,233								6,457
Total Pension Plan Assets							$	51,940							$	50,959

Schedule of Level Three Defined Benefit Plan Assets Roll Forward

The following table sets forth the summary of the changes in the fair value of Level 3 investments for the years ended December 31, 2016 and 2015:

	For the Year Ended December 31,
	2016			2015
(in thousands)
Balance, beginning of year	$	1,286		$	1,144
Purchases	2,023			1,926
Transfers in	1,435			1,900
Disbursements	(4,268		)	(3,688		)
Investment income	22			4
Balance, end of year	$	498		$	1,286

Schedule of Amounts Not Yet Reflected in Net Periodic Benefit Cost and Included in Accumulated Other Comprehensive Income Loss or Regulatory Assets

The following table presents the amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss or as a regulatory asset as of December 31, 2016:

(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
Prior service cost (credit)	$	—	$	—	$	—	$	(678	)	$	—	$	(678	)
Net loss	4,223		20,043		757		748			58		25,829
Total	$	4,223	$	20,043	$	757	$	70		$	58	$	25,151
Accumulated other comprehensive loss pre-tax(1)	$	4,223	$	3,808	$	757	$	70		$	11	$	8,869
Post-merger regulatory asset	—		16,235		—		—			47		16,282
Subtotal	4,223		20,043		757		70			58		25,151
Pre-merger regulatory asset	—		2,065		—		—			30		2,095
Total unrecognized cost	$	4,223	$	22,108	$	757	$	70		$	88	$	27,246

⁽¹⁾  The total amount of accumulated other comprehensive loss recorded on our consolidated balance sheet as of December 31, 2016 is net of income tax benefits of $3.5 million.

Amounts in Accumulated Other Comprehensive Income/Loss and Regulatory Asset

The amounts in accumulated other comprehensive loss and recorded as a regulatory asset for our pension and postretirement benefits plans that are expected to be recognized as a component of net periodic benefit cost in 2017 are set forth in the following table:

(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
Prior service cost (credit)	$	—	$	—	$	—	$	(77	)	$	—	$	(77	)
Net loss	$	426	$	523	$	87	$	65		$	—	$	1,101
Amortization of pre-merger regulatory asset	$	—	$	761	$	—	$	—		$	8	$	769

Schedule of Estimated Future Benefit Payments

The schedule below shows the estimated future benefit payments for each of the plans previously described:

	Chesapeake Pension Plan(1)		FPU Pension Plan(1)		Chesapeake SERP(2)		Chesapeake Postretirement Plan(2)		FPU Medical Plan(2)
(in thousands)
2017	$	746	$	3,041	$	151	$	83	$	129
2018	$	664	$	3,128	$	150	$	82	$	93
2019	$	713	$	3,235	$	149	$	82	$	99
2020	$	649	$	3,319	$	148	$	76	$	93
2021	$	902	$	3,370	$	376	$	72	$	95
Years 2022 through 2026	$	5,020	$	18,447	$	732	$	319	$	405

⁽¹⁾  The pension plan is funded; therefore, benefit payments are expected to be paid out of the plan assets.

⁽²⁾  Benefit payments are expected to be paid out of our general funds.

Pension benefit

Component of Net Periodic Pension Cost (Benefit)

	Chesapeake Pension Plan									FPU Pension Plan
For the Years Ended December 31,	2016			2015			2014			2016			2015			2014
(in thousands)
Components of net periodic pension cost:
Interest cost	$	421		$	407		$	425		$	2,525		$	2,504		$	2,613
Expected return on assets	(501		)	(530		)	(516		)	(2,702		)	(3,107		)	(3,089		)
Amortization of actuarial loss	459			392			176			519			456			8
Settlement expense	161			—			—			—			—			—
Net periodic pension cost	540			269			85			342			(147		)	(468		)
Amortization of pre-merger regulatory asset	—			—			—			761			761			761
Total periodic cost	$	540		$	269		$	85		$	1,103		$	614		$	293
Assumptions:
Discount rate	3.75		%	3.50		%	4.25		%	4.00		%	3.75		%	4.75		%
Expected return on plan assets	6.00		%	6.00		%	6.00		%	6.50		%	7.00		%	7.00		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following schedule sets forth the funded status at December 31, 2016 and 2015 and the net periodic cost for the years ended December 31, 2016, 2015 and 2014 for the Chesapeake and FPU Pension Plans:

	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2016			2015			2016			2015
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	11,501		$	11,981		$	64,435		$	68,173
Interest cost	421			407			2,525			2,504
Actuarial loss (gain)	330			(401		)	(216		)	(3,374		)
Effect of settlement	(433		)	—			—			—
Benefits paid	(464		)	(486		)	(2,912		)	(2,868		)
Benefit obligation — end of year	11,355			11,501			63,832			64,435
Change in plan assets:
Fair value of plan assets — beginning of year	8,752			9,078			42,207			45,077
Actual return on plan assets	424			(289		)	2,343			(1,464		)
Employer contributions	389			449			1,634			1,462
Benefits paid	(464		)	(486		)	(2,912		)	(2,868		)
Effect of settlement	(433		)	—			—			—
Fair value of plan assets — end of year	8,668			8,752			43,272			42,207
Reconciliation:
Funded status	(2,687		)	(2,749		)	(20,560		)	(22,228		)
Accrued pension cost	$	(2,687	)	$	(2,749	)	$	(20,560	)	$	(22,228	)
Assumptions:
Discount rate	3.75		%	3.75		%	4.00		%	4.00		%
Expected return on plan assets	6.00		%	6.00		%	6.50		%	7.00		%

Rabbi trust (associated with Supplemental Executive Retirement Savings Plan)

Component of Net Periodic Pension Cost (Benefit)

For the Years Ended December 31,	2016			2015			2014
(in thousands)
Components of net periodic pension cost:
Interest cost	$	91		$	91		$	92
Amortization of prior service cost	—			9			19
Amortization of actuarial loss	87			99			47
Net periodic pension cost	$	178		$	199		$	158
Assumptions:
Discount rate	3.75		%	3.50		%	4.25		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following sets forth the funded status at December 31, 2016 and 2015 and the net periodic cost for the years ended December 31, 2016, 2015 and 2014 for the Chesapeake SERP:

At December 31,	2016			2015
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	2,510		$	2,650
Interest cost	91			91
Actuarial gain	(21		)	(85		)
Benefits paid	(152		)	(146		)
Benefit obligation — end of year	2,428			2,510
Change in plan assets:
Fair value of plan assets — beginning of year	—			—
Employer contributions	152			146
Benefits paid	(152		)	(146		)
Fair value of plan assets — end of year	—			—
Reconciliation:
Funded status	(2,428		)	(2,510		)
Accrued pension cost	$	(2,428	)	$	(2,510	)
Assumptions:
Discount rate	3.75		%	3.75		%

Other Postretirement Benefit Plans

Component of Net Periodic Pension Cost (Benefit)

Net periodic postretirement benefit costs for 2016, 2015, and 2014 include the following components:

	Chesapeake Postretirement Plan									FPU Medical Plan
For the Years Ended December 31,	2016			2015			2014			2016			2015			2014
(in thousands)
Components of net periodic postretirement cost:
Interest cost	$	43		$	42		$	39		$	55		$	57		$	69
Amortization of:
Actuarial loss	64			72			55			—			—			—
Prior service cost	(77		)	(77		)	(77		)	—			—			—
Net periodic cost	30			37			17			55			57			69
Amortization of pre-merger regulatory asset	—			—			—			8			8			8
Net periodic cost	$	30		$	37		$	17		$	63		$	65		$	77
Assumptions
Discount rate	3.75		%	3.50		%	4.25		%	4.00		%	3.75		%	4.75		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

he following table sets forth the funded status at December 31, 2016 and 2015 and the net periodic cost for the years ended December 31, 2016, 2015, and 2014:

	Chesapeake Postretirement Plan						FPU Medical Plan
At December 31,	2016			2015			2016			2015
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	1,153		$	1,238		$	1,444		$	1,712
Interest cost	43			42			55			57
Plan participants contributions	90			108			64			75
Actuarial loss (gain)	20			(58		)	(41		)	(132		)
Benefits paid	(174		)	(177		)	(173		)	(268		)
Benefit obligation — end of year	1,132			1,153			1,349			1,444
Change in plan assets:
Fair value of plan assets — beginning of year	—			—			—			—
Employer contributions(1)	84			69			109			193
Plan participants contributions	90			108			64			75
Benefits paid	(174		)	(177		)	(173		)	(268		)
Fair value of plan assets — end of year	—			—			—			—
Reconciliation:
Funded status	(1,132		)	(1,153		)	(1,349		)	(1,444		)
Accrued postretirement cost	$	(1,132	)	$	(1,153	)	$	(1,349	)	$	(1,444	)
Assumptions:
Discount rate	3.75		%	3.75		%	4.00		%	4.00		%

⁽¹⁾  The Chesapeake Postretirement Plan does not receive a Medicare Part-D subsidy. The FPU Medical Plan did not receive a significant subsidy for the post-merger period.