XML 27 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Employee Benefits
 9 Months Ended
Sep. 30, 2018
Retirement Benefits, Description [Abstract]  
Employee Benefits
Employee Benefits
The Company adopted ASU 2017-07, Compensation-Retirement Benefits, effective January 1, 2018. Upon adoption of the new standard, the service cost is included in "Operations and maintenance" in the Company's Statements of Operations. The expected return on plan assets is included in "Investment and interest income, net". The amortization of prior service benefit and amortization of gains are included in "Miscellaneous non-operating income". The amortization of prior service cost and amortization of losses are included in "Miscellaneous non-operating deductions". The interest cost component of net periodic benefit cost is included in "Other interest".
The provisions in ASU 2017-07 were applied retrospectively for the income statement presentation of the service cost component and the other components of net benefit costs. The Company elected to apply the practical expedient and used the amounts disclosed in its pension and other postretirement benefit plan note for the 2017 comparative period as the estimation basis for applying the retrospective presentation requirements. The Company reclassified $2.1 million to "Operations and maintenance" in the Company’s Statement of Operations for the three months ended September 30, 2017 by increasing (i) "Investment and interest income, net" by $5.3 million, (ii) "Miscellaneous non-operating income" by $2.8 million, (iii) "Miscellaneous non-operating deductions" by $2.1 million, and (iv) "Other interest" by $3.9 million. As a result of the reclassifications, "Operations and maintenance" increased to $2.7 million in service cost from the $0.6 million in net periodic benefit cost previously reported.
The Company reclassified $6.2 million to "Operations and maintenance" in the Company’s Statement of Operations for the nine months ended September 30, 2017 by increasing (i) "Investment and interest income, net" by $15.8 million, (ii) "Miscellaneous non-operating income" by $8.5 million, (iii) "Miscellaneous non-operating deductions" by $6.3 million, and (iv) "Other interest" by $11.8 million. As a result of the reclassifications, "Operations and maintenance" increased to $8.1 million in service cost from the $1.9 million in net periodic benefit cost previously reported.
The Company reclassified $8.5 million to "Operations and maintenance" in the Company’s Statement of Operations for the twelve months ended September 30, 2017 by increasing (i) "Investment and interest income, net" by $21.0 million, (ii) "Miscellaneous non-operating income" by $11.3 million, (iii) "Miscellaneous non-operating deductions" by $8.2 million, and (iv) "Other interest" by $15.6 million. As a result of the reclassifications, "Operations and maintenance" increased to $10.7 million in service cost from the $2.2 million in net periodic benefit cost previously reported.
Retirement Plans
The net periodic benefit cost recognized for the three, nine and twelve months ended September 30, 2018 and 2017, is made up of the components listed below as determined using the projected unit credit actuarial cost method (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
Twelve Months Ended
 
September 30,
 
September 30,
 
September 30,
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
2,801

 
$
2,129

 
$
8,316

 
$
6,388

 
$
10,446

 
$
8,388

Interest cost
3,214

 
3,264

 
9,659

 
9,794

 
12,924

 
13,053

Expected return on plan assets
(5,176
)
 
(4,797
)
 
(15,806
)
 
(14,392
)
 
(20,603
)
 
(19,112
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Net loss
2,214

 
2,114

 
6,414

 
6,341

 
8,527

 
8,175

Prior service benefit
(875
)
 
(877
)
 
(2,630
)
 
(2,630
)
 
(3,506
)
 
(3,506
)
Net periodic benefit cost
$
2,178

 
$
1,833

 
$
5,953

 
$
5,501

 
$
7,788

 
$
6,998


During the nine months ended September 30, 2018, the Company contributed $8.7 million of its projected $9.4 million 2018 annual contribution to its retirement plans.
Other Postretirement Benefits
The net periodic benefit recognized for the three, nine and twelve months ended September 30, 2018 and 2017, is made up of the components listed below (in thousands): 
 
Three Months Ended
 
Nine Months Ended
 
Twelve Months Ended
 
September 30,
 
September 30,
 
September 30,
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Components of net periodic benefit:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
696

 
$
559

 
$
2,096

 
$
1,677

 
$
2,655

 
$
2,267

Interest cost
559

 
680

 
1,689

 
2,042

 
2,370

 
2,593

Expected return on plan assets
(602
)
 
(477
)
 
(1,827
)
 
(1,430
)
 
(2,304
)
 
(1,893
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Prior service benefit
(1,538
)
 
(1,537
)
 
(4,613
)
 
(4,613
)
 
(6,151
)
 
(6,151
)
Net gain
(574
)
 
(419
)
 
(1,624
)
 
(1,258
)
 
(2,044
)
 
(1,659
)
Net periodic benefit
$
(1,459
)
 
$
(1,194
)
 
$
(4,279
)
 
$
(3,582
)
 
$
(5,474
)
 
$
(4,843
)

During the nine months ended September 30, 2018, the Company contributed $0.3 million of its projected $0.5 million 2018 annual contribution to its other postretirement benefits plan.