Retirement and Post-Retirement Employee Benefit Plans (Table)
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12 Months Ended |
Sep. 30, 2014
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Compensation and Retirement Disclosure [Abstract] |
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Schedule of Net Periodic Benefit Cost Not Yet Recognized And Recorded as Regulatory Assets |
The amounts that have not yet been recognized in net periodic pension cost that have been recorded as regulatory assets are as follows: | | | | | | | | | | | | | | | | | | Defined Benefits Plans | | Supplemental Executive Retirement Plans | | Postretirement Plans | | Total | | (In thousands) | September 30, 2014 | | | | | | | | Unrecognized transition obligation | $ | — |
| | $ | — |
| | $ | 354 |
| | $ | 354 |
| Unrecognized prior service credit | (1,927 | ) | | — |
| | (6,168 | ) | | (8,095 | ) | Unrecognized actuarial loss | 109,767 |
| | 34,447 |
| | 7,531 |
| | 151,745 |
| | $ | 107,840 |
| | $ | 34,447 |
| | $ | 1,717 |
| | $ | 144,004 |
| September 30, 2013 | | | | | | | | Unrecognized transition obligation | $ | — |
| | $ | — |
| | $ | 628 |
| | $ | 628 |
| Unrecognized prior service credit | (91 | ) | | — |
| | (5,961 | ) | | (6,052 | ) | Unrecognized actuarial loss | 108,621 |
| | 31,466 |
| | 35,961 |
| | 176,048 |
| | $ | 108,530 |
| | $ | 31,466 |
| | $ | 30,628 |
| | $ | 170,624 |
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Schedule of Allocation of Plan Assets |
The following table presents asset allocation information for the Master Trust as of September 30, 2014 and 2013. | | | | | | | | | | Targeted Allocation Range | | Actual Allocation September 30 | Security Class | 2014 | | 2013 | Domestic equities | 35%-55% | | 51.9 | % | | 46.5 | % | International equities | 10%-20% | | 15.3 | % | | 16.1 | % | Fixed income | 10%-30% | | 9.7 | % | | 14.9 | % | Company stock | 5%-15% | | 12.9 | % | | 12.6 | % | Other assets | 5%-15% | | 10.2 | % | | 9.9 | % |
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Schedule of Assumptions Used for Employee Pension Plans |
These assumptions are presented in the following table: | | | | | | | | | | | | | | | | | | Pension Liability | | Pension Cost | | 2014 | | 2013 | | 2014 | | 2013 | | 2012 | | Discount rate | 4.43 | % | | 4.95 | % | | 4.95 | % | | 4.04 | % | | 5.05 | % | | Rate of compensation increase | 3.50 | % | | 3.50 | % | | 3.50 | % | | 3.50 | % | | 3.50 | % | | Expected return on plan assets | 7.25 | % | | 7.25 | % | | 7.25 | % | | 7.75 | % | | 7.75 | % | |
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Schedule of Accumulated and Projected Benefit Obligations and Funded Status for Employee Pension Plans |
The following table presents the Plans’ accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2014 and 2013: | | | | | | | | | | 2014 | | 2013 | | (In thousands) | Accumulated benefit obligation | $ | 466,182 |
| | $ | 446,133 |
| Change in projected benefit obligation: | | | | Benefit obligation at beginning of year | $ | 455,799 |
| | $ | 480,031 |
| Service cost | 15,345 |
| | 17,754 |
| Interest cost | 22,330 |
| | 19,334 |
| Actuarial (gain) loss | 26,611 |
| | (29,822 | ) | Benefits paid | (24,519 | ) | | (25,073 | ) | Plan amendments | (1,972 | ) | | — |
| Divestitures | — |
| | (6,425 | ) | Benefit obligation at end of year | 493,594 |
| | 455,799 |
| Change in plan assets: | | | | Fair value of plan assets at beginning of year | 396,887 |
| | 343,144 |
| Actual return on plan assets | 35,289 |
| | 52,496 |
| Employer contributions | 27,110 |
| | 32,745 |
| Benefits paid | (24,519 | ) | | (25,073 | ) | Divestitures | — |
| | (6,425 | ) | Fair value of plan assets at end of year | 434,767 |
| | 396,887 |
| Reconciliation: | | | | Funded status | (58,827 | ) | | (58,912 | ) | Unrecognized prior service cost | — |
| | — |
| Unrecognized net loss | — |
| | — |
| Net amount recognized | $ | (58,827 | ) | | $ | (58,912 | ) |
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Components of Net Periodic Pension Cost Table for Employee Pension Plans |
Net periodic pension cost for the Plans for fiscal 2014, 2013 and 2012 is recorded as operating expense and included the following components: | | | | | | | | | | | | | | Fiscal Year Ended September 30 | | 2014 | | 2013 | | 2012 | | (In thousands) | Components of net periodic pension cost: | | | | | | Service cost | $ | 15,345 |
| | $ | 17,754 |
| | $ | 15,084 |
| Interest cost | 22,330 |
| | 19,334 |
| | 21,568 |
| Expected return on assets | (23,601 | ) | | (22,955 | ) | | (21,474 | ) | Amortization of prior service credit | (136 | ) | | (141 | ) | | (141 | ) | Recognized actuarial loss | 13,777 |
| | 19,066 |
| | 14,451 |
| Net periodic pension cost | $ | 27,715 |
| | $ | 33,058 |
| | $ | 29,488 |
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Schedule of Employee Pension Plans Investments at Fair Value |
In addition to the assets shown below, the Master Trust had net accounts receivable of $2.7 million and $0.4 million at September 30, 2014 and 2013 which materially approximates fair value due to the short-term nature of these assets. | | | | | | | | | | | | | | | | | | Assets at Fair Value as of September 30, 2014 | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Investments: | | | | | | | | Common stocks — domestic equities | $ | 155,107 |
| | $ | — |
| | $ | — |
| | $ | 155,107 |
| Money market funds | — |
| | 11,226 |
| | — |
| | 11,226 |
| Registered investment companies: | | | | | | | | Domestic funds | 63,850 |
| | — |
| | — |
| | 63,850 |
| International funds | 48,134 |
| | — |
| | — |
| | 48,134 |
| Common/collective trusts — domestic funds | — |
| | 61,208 |
| | — |
| | 61,208 |
| Government securities: | | | | | | | | Mortgage-backed securities | — |
| | 12,520 |
| | — |
| | 12,520 |
| U.S. treasuries | 3,117 |
| | 562 |
| | — |
| | 3,679 |
| Corporate bonds | — |
| | 25,734 |
| | — |
| | 25,734 |
| Limited partnerships | — |
| | 50,496 |
| | — |
| | 50,496 |
| Real estate | — |
| | — |
| | 155 |
| | 155 |
| Total investments at fair value | $ | 270,208 |
| | $ | 161,746 |
| | $ | 155 |
| | $ | 432,109 |
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| | | | | | | | | | | | | | | | | | Assets at Fair Value as of September 30, 2013 | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Investments: | | | | | | | | Common stocks — domestic equities | $ | 143,543 |
| | $ | — |
| | $ | — |
| | $ | 143,543 |
| Money market funds | — |
| | 12,266 |
| | — |
| | 12,266 |
| Registered investment companies: | | | | | | | | Domestic funds | 30,200 |
| | — |
| | — |
| | 30,200 |
| International funds | 47,036 |
| | — |
| | — |
| | 47,036 |
| Common/collective trusts — domestic funds | — |
| | 57,627 |
| | — |
| | 57,627 |
| Government securities: | | | | | | | | Mortgage-backed securities | — |
| | 18,446 |
| | — |
| | 18,446 |
| U.S. treasuries | 4,117 |
| | 663 |
| | — |
| | 4,780 |
| Corporate bonds | — |
| | 35,012 |
| | — |
| | 35,012 |
| Limited partnerships | — |
| | 47,417 |
| | — |
| | 47,417 |
| Real estate | — |
| | — |
| | 155 |
| | 155 |
| Total investments at fair value | $ | 224,896 |
| | $ | 171,431 |
| | $ | 155 |
| | $ | 396,482 |
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Schedule of Assumptions Used for Supplemental Plans |
The actuarial assumptions used to determine the pension liability for the supplemental plans were determined as of September 30, 2014 and 2013 and the actuarial assumptions used to determine the net periodic pension cost for the supplemental plans were determined as of September 30, 2013, 2012 and 2011. These assumptions are presented in the following table: | | | | | | | | | | | | | | | | | | Pension Liability | | Pension Cost | | 2014 | | 2013 | | 2014 | | 2013 | | | 2012 | Discount rate | 4.43 | % | | 4.95 | % | | 4.95 | % | | 4.04 | % | (1) | | 5.05 | % | Rate of compensation increase | 3.50 | % | | 3.50 | % | | 3.50 | % | | 3.50 | % | | | 3.50 | % |
| | (1) | The discount rate for the supplemental plans increased from 4.04% to 4.21% effective April 1, 2013 due to a settlement loss recorded in fiscal 2013. |
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Schedule of Accumulated and Projected Benefit Obligations and Funded Status for Supplemental Plans |
The following table presents the supplemental plans’ accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2014 and 2013: | | | | | | | | | | 2014 | | 2013 | | (In thousands) | Accumulated benefit obligation | $ | 106,276 |
| | $ | 109,817 |
| Change in projected benefit obligation: | | | | Benefit obligation at beginning of year | $ | 117,080 |
| | $ | 130,186 |
| Service cost | 3,607 |
| | 3,039 |
| Interest cost | 4,966 |
| | 4,755 |
| Actuarial (gain) loss | 9,468 |
| | (6,451 | ) | Benefits paid | (5,085 | ) | | (4,375 | ) | Settlements | (16,817 | ) | | (10,074 | ) | Benefit obligation at end of year | 113,219 |
| | 117,080 |
| Change in plan assets: | | | | Fair value of plan assets at beginning of year | — |
| | — |
| Employer contribution | 21,902 |
| | 14,449 |
| Benefits paid | (5,085 | ) | | (4,375 | ) | Settlements | (16,817 | ) | | (10,074 | ) | Fair value of plan assets at end of year | — |
| | — |
| Reconciliation: | | | | Funded status | (113,219 | ) | | (117,080 | ) | Unrecognized prior service cost | — |
| | — |
| Unrecognized net loss | — |
| | — |
| Accrued pension cost | $ | (113,219 | ) | | $ | (117,080 | ) |
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Components of Net Periodic Pension Cost Table for Supplemental Plans |
Net periodic pension cost for the supplemental plans for fiscal 2014, 2013 and 2012 is recorded as operating expense and included the following components: | | | | | | | | | | | | | | Fiscal Year Ended September 30 | | 2014 | | 2013 | | 2012 | | (In thousands) | Components of net periodic pension cost: | | | | | | Service cost | $ | 3,607 |
| | $ | 3,039 |
| | $ | 2,108 |
| Interest cost | 4,966 |
| | 4,755 |
| | 5,142 |
| Amortization of transition asset | — |
| | — |
| | — |
| Amortization of prior service cost | — |
| | — |
| | — |
| Recognized actuarial loss | 1,948 |
| | 2,918 |
| | 2,118 |
| Settlements | 4,539 |
| | 3,160 |
| | — |
| Net periodic pension cost | $ | 15,060 |
| | $ | 13,872 |
| | $ | 9,368 |
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Schedule of Expected Benefit Payments |
The following benefit payments for our defined benefit plans, which reflect expected future service, as appropriate, are expected to be paid in the following fiscal years: | | | | | | | | | | Pension Plans | | Supplemental Plans | | (In thousands) | 2015 | $ | 33,592 |
| | $ | 11,381 |
| 2016 | 32,811 |
| | 4,617 |
| 2017 | 33,131 |
| | 17,260 |
| 2018 | 33,501 |
| | 14,772 |
| 2019 | 34,846 |
| | 7,675 |
| 2020-2024 | 182,998 |
| | 32,843 |
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Schedule of Allocation of Postretirement Benefit Plan Assets |
The following table presents asset allocation information for the postretirement benefit plan assets as of September 30, 2014 and 2013. | | | | | | | | Actual Allocation September 30 | Security Class | 2014 | | 2013 | Diversified investment funds | 99.7 | % | | 96.8 | % | Cash and cash equivalents | 0.3 | % | | 3.2 | % |
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Schedule of Assumptions Used for Postretirement Benefit Plan |
The actuarial assumptions used to determine the pension liability for our postretirement plan were determined as of September 30, 2014 and 2013 and the actuarial assumptions used to determine the net periodic pension cost for the postretirement plan were determined as of September 30, 2013, 2012 and 2011. The assumptions are presented in the following table: | | | | | | | | | | | | | | | | | Postretirement Liability | | Postretirement Cost | | 2014 | | 2013 | | 2014 | | 2013 | | 2012 | Discount rate | 4.43 | % | | 4.95 | % | | 4.95 | % | | 4.04 | % | | 5.05 | % | Expected return on plan assets | 4.60 | % | | 4.60 | % | | 4.60 | % | | 4.70 | % | | 5.00 | % | Initial trend rate | 7.50 | % | | 8.00 | % | | 8.00 | % | | 8.00 | % | | 8.00 | % | Ultimate trend rate | 5.00 | % | | 5.00 | % | | 5.00 | % | | 5.00 | % | | 5.00 | % | Ultimate trend reached in | 2020 |
| | 2020 |
| | 2020 |
| | 2019 |
| | 2018 |
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Schedule of Accumulated and Projected Benefit Obligations and Funded Status for Postretirement Benefit Plan |
The following table presents the postretirement plan’s benefit obligation and funded status as of September 30, 2014 and 2013: | | | | | | | | | | 2014 | | 2013 | | (In thousands) | Change in benefit obligation: | | | | Benefit obligation at beginning of year | $ | 312,148 |
| | $ | 308,315 |
| Service cost | 16,784 |
| | 18,800 |
| Interest cost | 15,951 |
| | 12,964 |
| Plan participants’ contributions | 4,435 |
| | 3,815 |
| Actuarial (gain) loss | (18,963 | ) | | (13,801 | ) | Benefits paid | (13,580 | ) | | (14,458 | ) | Plan amendments | (1,657 | ) | | — |
| Divestitures | — |
| | (3,487 | ) | Benefit obligation at end of year | 315,118 |
| | 312,148 |
| Change in plan assets: | | | | Fair value of plan assets at beginning of year | 106,413 |
| | 77,072 |
| Actual return on plan assets | 14,003 |
| | 13,432 |
| Employer contributions | 23,550 |
| | 26,552 |
| Plan participants’ contributions | 4,435 |
| | 3,815 |
| Benefits paid | (13,580 | ) | | (14,458 | ) | Fair value of plan assets at end of year | 134,821 |
| | 106,413 |
| Reconciliation: | | | | Funded status | (180,297 | ) | | (205,735 | ) | Unrecognized transition obligation | — |
| | — |
| Unrecognized prior service cost | — |
| | — |
| Unrecognized net loss | — |
| | — |
| Accrued postretirement cost | $ | (180,297 | ) | | $ | (205,735 | ) |
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Components of Net Periodic Pension Cost Table for Postretirement Benefit Plan |
Net periodic postretirement cost for fiscal 2014, 2013 and 2012 is recorded as operating expense and included the components presented below. | | | | | | | | | | | | | | Fiscal Year Ended September 30 | | 2014 | | 2013 | | 2012 | | (In thousands) | Components of net periodic postretirement cost: | | | | | | Service cost | $ | 16,784 |
| | $ | 18,800 |
| | $ | 16,353 |
| Interest cost | 15,951 |
| | 12,964 |
| | 13,861 |
| Expected return on assets | (5,167 | ) | | (3,988 | ) | | (2,607 | ) | Amortization of transition obligation | 274 |
| | 1,081 |
| | 1,511 |
| Amortization of prior service credit | (1,450 | ) | | (1,450 | ) | | (1,450 | ) | Recognized actuarial loss | 631 |
| | 4,196 |
| | 2,648 |
| Net periodic postretirement cost | $ | 27,023 |
| | $ | 31,603 |
| | $ | 30,316 |
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Assumed Heath Care Cost Effect on Postretirement Benefit Plan Cost |
Assumed health care cost trend rates have a significant effect on the amounts reported for the plan. A one-percentage point change in assumed health care cost trend rates would have the following effects on the latest actuarial calculations: | | | | | | | | | | One-Percentage Point Increase | | One-Percentage Point Decrease | | (In thousands) | Effect on total service and interest cost components | $ | 4,533 |
| | $ | (3,700 | ) | Effect on postretirement benefit obligation | $ | 40,922 |
| | $ | (34,169 | ) |
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Schedule of Postretirement Benefit Plans Investments at Fair Value |
| | | | | | | | | | | | | | | | | | Assets at Fair Value as of September 30, 2014 | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Investments: | | | | | | | | Money market funds | $ | — |
| | $ | 434 |
| | $ | — |
| | $ | 434 |
| Registered investment companies: | | | | | | | | Domestic funds | 11,398 |
| | — |
| | — |
| | 11,398 |
| International funds | 122,989 |
| | — |
| | — |
| | 122,989 |
| Total investments at fair value | $ | 134,387 |
| | $ | 434 |
| | $ | — |
| | $ | 134,821 |
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| | | | | | | | | | | | | | | | | | Assets at Fair Value as of September 30, 2013 | | Level 1 | | Level 2 | | Level 3 | | Total | | (In thousands) | Investments: | | | | | | | | Money market funds | $ | — |
| | $ | 3,356 |
| | $ | — |
| | $ | 3,356 |
| Registered investment companies: | | | | | | | | Domestic funds | 9,614 |
| | — |
| | — |
| | 9,614 |
| International funds | 93,443 |
| | — |
| | — |
| | 93,443 |
| Total investments at fair value | $ | 103,057 |
| | $ | 3,356 |
| | $ | — |
| | $ | 106,413 |
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Schedule of Expected Benefit Payments for Postretirement Benefit Plan |
The following benefit payments paid by us, retirees and prescription drug subsidy payments for our postretirement benefit plans, which reflect expected future service, as appropriate, are expected to be paid in the following fiscal years. Company payments for fiscal 2015 include contributions to our postretirement plan trusts. | | | | | | | | | | | | | | | | | | Company Payments | | Retiree Payments | | Subsidy Payments | | Total Postretirement Benefits | | (In thousands) | 2015 | $ | 22,177 |
| | $ | 3,582 |
| | $ | — |
| | $ | 25,759 |
| 2016 | 15,008 |
| | 4,615 |
| | — |
| | 19,623 |
| 2017 | 17,551 |
| | 5,796 |
| | — |
| | 23,347 |
| 2018 | 19,660 |
| | 7,148 |
| | — |
| | 26,808 |
| 2019 | 21,302 |
| | 8,549 |
| | — |
| | 29,851 |
| 2020-2024 | 127,741 |
| | 63,524 |
| | — |
| | 191,265 |
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