XML 81 R58.htm IDEA: XBRL DOCUMENT v3.20.4
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Pension Plan and Other Postretirement Benefit Plan Obligations and Plan Assets and Includes a Statement of the Plans Funded Status

The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans’ funded status for Dominion Energy:

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

10,446

 

 

$

8,500

 

 

$

1,769

 

 

$

1,363

 

Dominion Energy SCANA Combination (See Note 3)

 

 

—

 

 

 

854

 

 

 

—

 

 

 

253

 

Service cost

 

 

173

 

 

 

162

 

 

 

28

 

 

 

26

 

Interest cost

 

 

351

 

 

 

394

 

 

 

58

 

 

 

68

 

Benefits paid

 

 

(461

)

 

 

(470

)

 

 

(120

)

 

 

(96

)

Actuarial (gains) losses during the year

 

 

992

 

 

 

1,054

 

 

 

33

 

 

 

111

 

Plan amendments

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

—

 

Settlements, curtailments and special termination benefits(1)

 

 

(138

)

 

 

(48

)

 

 

(16

)

 

 

44

 

Benefit obligation at end of year

 

$

11,363

 

 

$

10,446

 

 

$

1,746

 

 

$

1,769

 

Changes in fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

9,631

 

 

$

7,197

 

 

$

1,880

 

 

$

1,581

 

Dominion Energy SCANA Combination (See Note 3)

 

 

—

 

 

 

727

 

 

 

—

 

 

 

—

 

Actual return (loss) on plan assets

 

 

1,602

 

 

 

1,747

 

 

 

300

 

 

 

349

 

Employer contributions

 

 

278

 

 

 

557

 

 

 

13

 

 

 

12

 

Benefits paid

 

 

(461

)

 

 

(470

)

 

 

(93

)

 

 

(62

)

Settlements(2)

 

 

(71

)

 

 

(127

)

 

 

—

 

 

 

—

 

Fair value of plan assets at end of year

 

$

10,979

 

 

$

9,631

 

 

$

2,100

 

 

$

1,880

 

Funded status at end of year

 

$

(384

)

 

$

(815

)

 

$

354

 

 

$

111

 

Amounts recognized in the Consolidated Balance Sheets

   at December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent pension and other postretirement benefit assets

 

$

1,054

 

 

$

1,266

 

 

$

650

 

 

$

442

 

Other current liabilities

 

 

(14

)

 

 

(29

)

 

 

(15

)

 

 

(17

)

Noncurrent pension and other postretirement benefit liabilities

 

 

(1,424

)

 

 

(2,052

)

 

 

(281

)

 

 

(314

)

Net amount recognized

 

$

(384

)

 

$

(815

)

 

$

354

 

 

$

111

 

Significant assumptions used to determine benefit

   obligations as of December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

2.73%–2.95%

 

 

3.47%–3.63%

 

 

2.69%–2.80%

 

 

3.44%–3.52%

 

Weighted average rate of increase for compensation

 

 

4.53

%

 

 

4.23

%

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar plans

 

1.93% - 2.15%

 

 

2.67-2.83%

 

 

n/a

 

 

n/a

 

 

 

(1)

2020 amounts include curtailments and settlements recognized as a result of the GT&S Transaction as well as settlements of qualified and nonqualified pension obligations. 2019 amounts relate primarily to a curtailment and settlement as a result of the voluntary retirement program.  

 

(2)

2020 amounts relate primarily to settlements of qualified and nonqualified pension obligations. 2019 amounts relate primarily to a settlement as a result of the voluntary retirement program.

Benefit Obligation in Excess of Plan Asset

The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion Energy:

 

 

 

Pension Benefits

 

 

Other Postretirement

Benefits

 

As of  December 31,

 

2020

 

 

2019

 

 

2020(1)

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation

 

$

10,697

 

 

$

9,552

 

 

$

305

 

 

$

341

 

Fair value of plan assets

 

 

9,259

 

 

 

7,471

 

 

 

9

 

 

 

10

 
Accumulated Benefit Obligation in Excess of Plan Assets

The following table provides information on the ABO and fair value of plan assets for Dominion Energy’s pension plans with an ABO in excess of plan assets:

 

As of  December 31,

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

Accumulated benefit obligation

 

$

9,970

 

 

$

8,852

 

Fair value of plan assets

 

 

9,259

 

 

 

7,471

 
Benefit Payments Expected Future Service

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion Energy’s plans:

 

 

 

Estimated Future Benefit Payments

 

 

 

Pension Benefits

 

 

Other Postretirement

Benefits

 

(millions)

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

2021

 

$

486

 

 

$

110

 

2022

 

 

512

 

 

 

108

 

2023

 

 

515

 

 

 

106

 

2024

 

 

533

 

 

 

104

 

2025

 

 

535

 

 

 

101

 

2026-2030

 

 

2,792

 

 

 

478

 
Fair Values of Pension and Post Retirement Plan Assets by Asset Category

The fair values of Dominion Energy’s pension plan assets by asset category are as follows:

 

At December 31,

 

2020

 

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

20

 

 

$

1

 

 

$

—

 

 

$

21

 

 

$

22

 

 

$

1

 

 

$

—

 

 

$

23

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.(1)

 

 

2,405

 

 

 

—

 

 

 

—

 

 

 

2,405

 

 

 

2,284

 

 

 

—

 

 

 

—

 

 

 

2,284

 

International

 

 

1,727

 

 

 

—

 

 

 

—

 

 

 

1,727

 

 

 

1,634

 

 

 

—

 

 

 

—

 

 

 

1,634

 

Insurance contracts

 

 

—

 

 

 

409

 

 

 

—

 

 

 

409

 

 

 

—

 

 

 

360

 

 

 

—

 

 

 

360

 

Corporate debt instruments

 

 

32

 

 

 

1,385

 

 

 

—

 

 

 

1,417

 

 

 

273

 

 

 

859

 

 

 

—

 

 

 

1,132

 

Government securities

 

 

30

 

 

 

772

 

 

 

—

 

 

 

802

 

 

 

58

 

 

 

757

 

 

 

—

 

 

 

815

 

Total recorded at fair value

 

$

4,214

 

 

$

2,567

 

 

$

—

 

 

$

6,781

 

 

$

4,271

 

 

$

1,977

 

 

$

—

 

 

$

6,248

 

Assets recorded at NAV(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,355

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

91

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

787

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

159

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,406

 

Total investments(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

9,654

 

 

(1)

Includes $365 million and $508 million of Dominion Energy common stock at December 31, 2020 and 2019, respectively.

(2)

These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.

(3)

Excludes net assets related to pending sales of securities and advanced subscriptions of $198 million, net accrued income of $20 million, and includes net assets related to pending purchases of securities of $71 million at December 31, 2020. Excludes net assets related to pending sales of securities of $52 million, net accrued income of $24 million, and includes net assets related to pending purchases of securities of $99 million at December 31, 2019.

The fair values of Dominion Energy’s other postretirement plan assets by asset category are as follows:  

 

 

At December 31,

 

2020

 

 

2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

2

 

 

$

—

 

 

$

2

 

 

$

2

 

 

$

—

 

 

$

—

 

 

$

2

 

Common and preferred stocks:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

817

 

 

 

—

 

 

 

—

 

 

 

817

 

 

 

719

 

 

 

—

 

 

 

—

 

 

 

719

 

International

 

 

240

 

 

 

—

 

 

 

—

 

 

 

240

 

 

 

206

 

 

 

—

 

 

 

—

 

 

 

206

 

Insurance contracts

 

 

—

 

 

 

23

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

21

 

 

 

—

 

 

 

21

 

Corporate debt instruments

 

 

2

 

 

 

60

 

 

 

—

 

 

 

62

 

 

 

1

 

 

 

50

 

 

 

—

 

 

 

51

 

Government securities

 

 

2

 

 

 

42

 

 

 

—

 

 

 

44

 

 

 

2

 

 

 

44

 

 

 

—

 

 

 

46

 

Total recorded at fair value

 

$

1,061

 

 

$

127

 

 

$

—

 

 

$

1,188

 

 

$

930

 

 

$

115

 

 

$

—

 

 

$

1,045

 

Assets recorded at NAV(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

717

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

Private equity funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100

 

Debt funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Total recorded at NAV

 

 

 

 

 

 

 

 

 

 

 

 

 

$

903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

836

 

Total investments(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,881

 

 

 

(1)

These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.

(2)

Excludes net assets related to pending sales of securities of $10 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2020. Excludes net assets related to pending sales of securities of $2 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $5 million at December 31, 2019.
Net Periodic Benefit (Credit) Cost and Amounts Recognized in Other Comprehensive Income and Regulatory Assets and Liabilities The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities for Dominion Energy plans are as follows:

 

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

Year Ended December 31,

 

2020

 

 

2019

 

 

2018

 

 

2020

 

 

2019

 

 

2018

 

(millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

173

 

 

$

162

 

 

$

157

 

 

$

28

 

 

$

26

 

 

$

27

 

Interest cost

 

 

351

 

 

 

394

 

 

 

337

 

 

 

58

 

 

 

68

 

 

 

56

 

Expected return on plan assets

 

 

(777

)

 

 

(708

)

 

 

(663

)

 

 

(156

)

 

 

(140

)

 

 

(143

)

Amortization of prior service (credit) cost

 

 

1

 

 

 

1

 

 

 

1

 

 

 

(49

)

 

 

(52

)

 

 

(52

)

Amortization of net actuarial loss

 

 

206

 

 

 

172

 

 

 

193

 

 

 

6

 

 

 

10

 

 

 

11

 

Settlements, curtailments and special termination benefits

 

 

14

 

 

 

72

 

 

 

—

 

 

 

(59

)

 

 

42

 

 

 

—

 

Net periodic benefit (credit) cost

 

$

(32

)

 

$

93

 

 

$

25

 

 

$

(172

)

 

$

(46

)

 

$

(101

)

Changes in plan assets and benefit obligations

   recognized in other comprehensive income

   and regulatory assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year net actuarial (gain) loss

 

$

166

 

 

$

16

 

 

$

490

 

 

$

(110

)

 

$

(98

)

 

$

78

 

Prior service (credit) cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

2

 

 

 

(4

)

Settlements and curtailments

 

 

(81

)

 

 

6

 

 

 

—

 

 

 

59

 

 

 

—

 

 

 

—

 

Less amounts included in net periodic benefit

   cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of net actuarial loss

 

 

(206

)

 

 

(172

)

 

 

(193

)

 

 

(6

)

 

 

(10

)

 

 

(11

)

Amortization of prior service credit (cost)

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

49

 

 

 

52

 

 

 

52

 

Total recognized in other comprehensive

   income and regulatory assets and liabilities

 

$

(122

)

 

$

(151

)

 

$

296

 

 

$

(14

)

 

$

(54

)

 

$

115

 

Significant assumptions used to determine

   periodic cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

2.77%-3.63%

 

 

3.57%-4.43%

 

 

3.80%-3.81%

 

 

3.07%-3.52%

 

 

4.05% to 4.41%

 

 

3.76%

 

Expected long-term rate of return on plan assets

 

7.00%-8.60%

 

 

7.00% -8.65%

 

 

 

8.75

%

 

 

8.50

%

 

 

8.50

%

 

 

8.50

%

Weighted average rate of increase for

   compensation

 

 

4.23

%

 

 

4.20

%

 

 

4.09

%

 

n/a

 

 

n/a

 

 

n/a

 

Crediting interest rate for cash balance and similar plans

 

2.31-2.83%

 

 

2.77-3.63%

 

 

3.00-3.01%

 

 

n/a

 

 

n/a

 

 

n/a

 

Healthcare cost trend rate(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.25

%

 

6.50% to 6.60%

 

 

 

7.00

%

Rate to which the cost trend rate is assumed to

   decline (the ultimate trend rate)(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.00

%

 

 

5.00

%

 

 

5.00

%

Year that the rate reaches the ultimate trend rate(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

2025-2026

 

 

2023-2025

 

 

2022

 

(1)

Assumptions used to determine net periodic cost for the following year.

 
Components of AOCI and Regulatory Assets and Liabilities that have Not been Recognized as Components of Periodic Benefit (Credit) Cost

The components of AOCI and regulatory assets and liabilities for Dominion Energy’s plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:

 

 

 

Pension Benefits

 

 

Other

Postretirement

Benefits

 

At December 31,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dominion Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

3,207

 

 

$

3,327

 

 

$

120

 

 

$

241

 

Prior service (credit) cost

 

 

4

 

 

 

5

 

 

 

(232

)

 

 

(339

)

Total(1)

 

$

3,211

 

 

$

3,332

 

 

$

(112

)

 

$

(98

)

(1)

As of December 31, 2020, of the $3.2 billion and $(112) million related to pension benefits and other postretirement benefits, $1.9 billion and $(40) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2019, of the $3.3 billion and $(98) million related to pension benefits and other postretirement benefits, $2.0 billion and $(65) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities.