XML 57 R41.htm IDEA: XBRL DOCUMENT v3.21.2
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Summary of Changes in Funded Status of Plans and Liabilities Recognized
The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30:
Pension (1)
OPEB
(Thousands)2020201920202019
Change in Benefit Obligation
Benefit obligation at beginning of year$360,477 $298,575 $260,003 $196,785 
Service cost8,223 7,381 4,854 4,404 
Interest cost10,587 12,173 7,026 8,324 
Plan participants’ contributions (2)
25 43 194 210 
Actuarial loss (gain)29,738 52,549 (23,226)54,700 
Benefits paid, net of retiree subsidies received(11,886)(10,244)(2,989)(4,420)
Benefit obligation at end of year$397,164 $360,477 $245,862 $260,003 
Change in plan assets
Fair value of plan assets at beginning of year$288,634 $279,410 $83,925 $77,980 
Actual return on plan assets30,632 19,194 6,872 2,499 
Employer contributions596 231 8,436 7,926 
Benefits paid, net of plan participants’ contributions (2)
(11,894)(10,201)(2,827)(4,479)
Fair value of plan assets at end of year$307,968 $288,634 $96,406 $83,926 
Funded status$(89,196)$(71,843)$(149,456)$(176,077)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee (liability)
Current$(531)$(603)$(900)$(800)
Noncurrent(88,665)(71,240)(148,556)(175,277)
Total$(89,196)$(71,843)$(149,456)$(176,077)
(1)Includes the Company’s PEP.
(2)Prior to July 1, 1998, employees were eligible to elect an additional participant contribution to enhance their benefits and contributions made during the periods were insignificant.
Summary of Regulatory Assets and Accumulated Other Comprehensive Income
The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30:
Regulatory AssetsAccumulated Other Comprehensive Income (Loss)
PensionOPEBPensionOPEB
Balance at September 30, 2018$66,233 $68,685 $14,633 $7,659 
Amounts arising during the period:
Net actuarial loss38,137 48,452 14,271 9,264 
Amounts amortized to net periodic costs:
Net actuarial (loss)(4,662)(5,820)(1,103)(648)
Prior service credit(102)312 — 53 
Balance at September 30, 2019$99,606 $111,629 $27,801 $16,328 
Amounts arising during the period:
Net actuarial loss (gain)11,953 (21,974)7,731 (1,614)
Amounts amortized to net periodic costs:
Net actuarial (loss)(7,893)(6,536)(2,528)(907)
Prior service (cost) credit(102)182 — 16 
Balance at September 30, 2020$103,564 $83,301 $33,004 $13,823 
The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are:
Regulatory AssetsAccumulated Other Comprehensive Income (Loss)
PensionOPEBPensionOPEB
(Thousands)20202019202020192020201920202019
Net actuarial loss$103,197 $99,139 $83,600 $112,109 $33,004 $27,801 $13,847 $16,367 
Prior service cost (credit)367 467 (299)(480)— — (24)(39)
Total$103,564 $99,606 $83,301 $111,629 $33,004 $27,801 $13,823 $16,328 
Schedule of Amounts Expected to be Recognized as Components of Net Periodic Benefit Cost Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2021 are as follows:
Regulatory AssetsAccumulated Other Comprehensive Income (Loss)
(Thousands)PensionOPEBPensionOPEB
Net actuarial loss$8,269 $6,846 $3,178 $1,064 
Prior service cost (credit)102 (166)— (13)
Total$8,371 $6,680 $3,178 $1,051 
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows:
Pension
(Thousands)20202019
Projected benefit obligation$397,164 $360,477 
Accumulated benefit obligation$352,320 $319,527 
Fair value of plan assets$307,968 $288,634 
Components of Net Periodic Cost
The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows:
PensionOPEB
(Thousands)202020192018202020192018
Service cost$8,223 $7,381 $8,139 $4,854 $4,404 $4,607 
Interest cost10,587 12,173 10,493 7,026 8,324 6,365 
Expected return on plan assets(20,579)(19,054)(19,639)(6,510)(5,515)(5,352)
Recognized actuarial loss10,424 5,765 7,537 7,442 6,466 4,660 
Prior service cost (credit) amortization102 102 106 (197)(365)(365)
Net periodic benefit cost8,757 $6,367 $6,636 $12,615 $13,314 9,915 
Special termination benefit— — 3,730 — — 490 
Net periodic benefit cost recognized as expense$8,757 $6,367 $10,366 $12,615 $13,314 $10,405 
Schedule of Weighted Average Assumptions Used
The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows:
PensionOPEB
202020192018202020192018
Benefit costs:
Discount rate
3.37/3.35%
(1)
4.36/4.35%
(1)
4.04/4.03%
(1)
3.48/3.44%
(1)
4.38/4.37%
(1)
4.12/4.08%
(1)
Expected asset return7.25 7.00 %7.50 %7.25 7.00 %7.50 %
Compensation increase
3.00/3.50%
(1)
3.25/3.50%
(1)
3.25/3.50%
(1)
3.00/3.50%
(1)
3.25/3.50%
(1)
3.25/3.50%
(1)
Obligations:
Discount rate
2.95/2.92%
(1)
3.37/3.35%
(1)
4.36/4.35%
3.08/3.03%
(1)
3.48/3.44%
(1)
4.38/4.37%
(1)
Compensation increase
3.00/3.50%
(1)
3.00/3.50%
(1)
3.25/3.50%
(1)
3.00/3.50%
(1)
3.00/3.50%
(1)
3.25/3.50%
(1)
(1)Percentages for represented and nonrepresented plans, respectively.
Information on Assumed HCCTR Used to Determine Expected OPEB Benefits
Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a 1 percent change in the rate, are as follows:
($ in thousands)202020192018
HCCTR7.6%7.6%7.9%
Ultimate HCCTR4.5%4.5%4.5%
Year ultimate HCCTR reached202620262024
Effect of a 1 percentage point increase in the HCCTR on:
Year-end benefit obligation$49,106 $49,061 $36,260 
Total service and interest cost$2,799 $2,923 $2,482 
Effect of a 1 percentage point decrease in the HCCTR on:
Year-end benefit obligation$(38,844)$(38,747)$(28,743)
Total service and interest costs$(2,151)$(2,250)$(1,937)
Schedule of Mix and Targeted Allocation of Plan Assets
The mix and targeted allocation of the pension and OPEB plans’ assets are as follows:
2021Assets at
TargetSeptember 30,
Asset AllocationAllocation20202019
U.S. equity securities34 %38 %37 %
International equity securities17 18 17 
Fixed income38 39 42 
Other assets11 5 4 
Total100 %100 %100 %
Schedule of Expected Benefit Payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years:
(Thousands)PensionOPEB
2021$12,799 $6,179 
2022$13,765 $6,837 
2023$14,512 $7,420 
2024$15,345 $7,988 
2025$16,267 $8,625 
2026 - 2030$95,969 $52,480 
Schedule of Estimated Subsidy Payments
The following estimated subsidy payments are expected to be paid during the following fiscal years:
Estimated Subsidy
(Thousands) Payment
2021$292 
2022$316 
2023$349 
2024$384 
2025$420 
2026 - 2030$2,789 
Summary of Pension and OPEB Assets Held in the Master Trust
Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows:
(Thousands)Quoted Prices in Active Markets for Identical Assets
(Level 1)		TotalQuoted Prices in Active Markets for Identical Assets
(Level 1)		Total
As of September 2020:PensionOPEB
Assets
Money market funds$— $— $15 $15 
Registered Investment Companies:
Equity Funds:
Large Cap Index95,542 95,542 29,908 29,908 
Extended Market Index21,085 21,085 6,470 6,470 
International Stock56,912 56,912 17,390 17,390 
Fixed Income Funds:
Emerging Markets16,008 16,008 4,958 4,958 
Core Fixed Income— — 11,146 11,146 
Opportunistic Income— — 7,128 7,128 
Ultra Short Duration— — 7,057 7,057 
High Yield Bond Fund26,303 26,303 8,223 8,223 
Long Duration Fund77,036 77,036 — — 
Total assets at in the fair value hierarchy$292,886 292,886 $92,295 92,295 
Investments measured at net asset value
Common collective trusts15,082 4,111 
Total assets at fair value$307,968 $96,406 
(Thousands)Quoted Prices in Active Markets for Identical Assets
(Level 1)		TotalQuoted Prices in Active Markets for Identical Assets
(Level 1)		Total
As of September 30, 2019:PensionOPEB
Assets
Money market funds$— $— $21 $21 
Registered Investment Companies:
Equity Funds:
Large Cap Index89,374 89,374 25,474 25,474 
Extended Market Index16,548 16,548 5,036 5,036 
International Stock49,929 49,929 14,564 14,564 
Fixed Income Funds:
Emerging Markets15,794 15,794 4,764 4,764 
Core Fixed Income— — 10,570 10,570 
Opportunistic Income— — 6,365 6,365 
Ultra Short Duration— — 6,340 6,340 
High Yield Bond Fund24,328 24,328 7,350 7,350 
Long Duration Fund80,041 80,041 — — 
Total assets at in the fair value hierarchy$276,014 276,014 $80,484 80,484 
Investments measured at net asset value
Common collective trusts12,620 3,442 
Total assets at fair value$288,634 $83,926