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Retirement and Post-Retirement Employee Benefit Plans (Tables)
12 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Cost Not yet Recognized Additionally, the amounts that have not yet been recognized in net periodic pension cost that have been recorded as regulatory assets or liabilities are as follows:
 
Defined
Benefit Plan
 
Supplemental
Executive
Retirement Plans
 
Postretirement
Plans
 
Total
 
(In thousands)
September 30, 2019
 
 
 
 
 
 
 
Unrecognized prior service (credit) cost
$
(815
)
 
$

 
$
1,125

 
$
310

Unrecognized actuarial (gain) loss
67,191

 
56,784

 
(43,782
)
 
80,193

 
$
66,376

 
$
56,784

 
$
(42,657
)
 
$
80,503

September 30, 2018
 
 
 
 
 
 
 
Unrecognized prior service (credit) cost
$
(1,047
)
 
$

 
$
1,298

 
$
251

Unrecognized actuarial (gain) loss
(2,310
)
 
33,912

 
(100,966
)
 
(69,364
)
 
$
(3,357
)
 
$
33,912

 
$
(99,668
)
 
$
(69,113
)

Schedule of Allocation of Plan Assets The following table presents asset allocation information for the postretirement benefit plan assets as of September 30, 2019 and 2018.
 
Actual
Allocation
September 30
Security Class
2019
 
2018
Diversified investment funds
97.1%
 
97.5%
Cash and cash equivalents
2.9%
 
2.5%

The following table presents asset allocation information for the Master Trust as of September 30, 2019 and 2018.
 
Targeted
Allocation  Range
 
Actual
Allocation
September 30
Security Class
2019
 
2018
Domestic equities
35%-55%
 
40.6%
 
44.3%
International equities
10%-20%
 
14.5%
 
15.4%
Fixed income
5%-30%
 
18.8%
 
16.9%
Company stock
0%-15%
 
15.4%
 
12.7%
Other assets
0%-20%
 
10.7%
 
10.7%

Schedule of Assumptions Used The actuarial assumptions used to determine the pension liability for our postretirement plan were determined as of September 30, 2019 and 2018 and the actuarial assumptions used to determine the net periodic pension cost for the postretirement plan were determined as of September 30, 2018, 2017 and 2016. The assumptions are presented in the following table:
 
Postretirement
Liability
 
Postretirement Cost
 
2019
 
2018
 
2019
 
2018
 
2017
Discount rate
3.29
%
 
4.38
%
 
4.38
%
 
3.89
%
 
3.73
%
Expected return on plan assets
5.14
%
 
5.33
%
 
5.33
%
 
4.29
%
 
4.45
%
Initial trend rate
6.25
%
 
6.50
%
 
6.50
%
 
7.00
%
 
7.50
%
Ultimate trend rate
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
 
5.00
%
Ultimate trend reached in
2025

 
2022

 
2022

 
2022

 
2022


As of September 30, 2019, we updated our assumed mortality rates to incorporate the updated mortality table.
Additional assumptions are presented in the following table:
 
Pension
Liability
 
Pension Cost
 
2019
 
2018
 
2019
 
2018
 
2017
Discount rate
3.29
%
 
4.38
%
 
4.38
%
 
3.89
%
 
3.73
%
Rate of compensation increase
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
Expected return on plan assets
6.50
%
 
6.75
%
 
6.75
%
 
6.75
%
 
7.00
%
Interest crediting rate
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%

The actuarial assumptions used to determine the pension liability for the supplemental plans were determined as of September 30, 2019 and 2018 and the actuarial assumptions used to determine the net periodic pension cost for the supplemental plans were determined as of September 30, 2018, 2017 and 2016. These assumptions are presented in the following table:
 
Pension
Liability
 
Pension Cost
 
2019
 
2018
 
2019
 
2018
 
2017
Discount rate(1)
3.29
%
 
4.38
%
 
4.38
%
 
4.08
%
 
3.73
%
Rate of compensation increase
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
 
3.50
%
Interest crediting rate
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%
 
4.69
%

 (1)
Reflects a weighted average discount rate for pension cost for fiscal 2018 due to settlements during the year.
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan
The following table presents the Plan’s accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2019 and 2018:
 
2019
 
2018
 
(In thousands)
Accumulated benefit obligation
$
541,287

 
$
478,750

Change in projected benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
504,719

 
$
533,455

Service cost
15,311

 
17,264

Interest cost
22,071

 
20,803

Actuarial (gain) loss
71,139

 
(29,087
)
Benefits paid
(35,970
)
 
(37,716
)
Benefit obligation at end of year
577,270

 
504,719

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
531,691

 
508,244

Actual return on plan assets
25,888

 
54,163

Employer contributions
8,500

 
7,000

Benefits paid
(35,970
)
 
(37,716
)
Fair value of plan assets at end of year
530,109

 
531,691

Reconciliation:
 
 
 
Funded status
(47,161
)
 
26,972

Unrecognized prior service cost

 

Unrecognized net loss

 

Net amount recognized
$
(47,161
)
 
$
26,972


The following table presents the supplemental plans’ accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2019 and 2018:
 
2019
 
2018
 
(In thousands)
Accumulated benefit obligation
$
138,772

 
$
116,943

Change in projected benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
121,370

 
$
134,480

Service cost
869

 
1,332

Interest cost
5,127

 
4,988

Actuarial (gain) loss
25,099

 
(1,020
)
Benefits paid
(8,478
)
 
(4,523
)
Settlements

 
(13,887
)
Benefit obligation at end of year
143,987

 
121,370

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year

 

Employer contribution
8,478

 
18,410

Benefits paid
(8,478
)
 
(4,523
)
Settlements

 
(13,887
)
Fair value of plan assets at end of year

 

Reconciliation:
 
 
 
Funded status
(143,987
)
 
(121,370
)
Unrecognized prior service cost

 

Unrecognized net loss

 

Accrued pension cost
$
(143,987
)
 
$
(121,370
)

The following table presents the postretirement plan’s benefit obligation and funded status as of September 30, 2019 and 2018:
 
2019
 
2018
 
(In thousands)
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
265,986

 
$
274,098

Service cost
10,810

 
12,078

Interest cost
11,839

 
10,907

Plan participants’ contributions
5,901

 
4,720

Actuarial (gain) loss
39,472

 
(17,252
)
Benefits paid
(17,975
)
 
(18,565
)
Benefit obligation at end of year
316,033

 
265,986

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
199,361

 
184,790

Actual return on plan assets
1,125

 
10,997

Employer contributions
13,489

 
17,419

Plan participants’ contributions
5,901

 
4,720

Benefits paid
(17,975
)
 
(18,565
)
Fair value of plan assets at end of year
201,901

 
199,361

Reconciliation:
 
 
 
Funded status
(114,132
)
 
(66,625
)
Unrecognized transition obligation

 

Unrecognized prior service cost

 

Unrecognized net loss

 

Accrued postretirement cost
$
(114,132
)
 
$
(66,625
)

Schedule of Net Benefit Costs Supplemental Plan
Net periodic postretirement cost for fiscal 2019, 2018 and 2017 is presented in the following table.
 
Fiscal Year Ended September 30
 
2019
 
2018
 
2017
 
(In thousands)
Components of net periodic postretirement cost:
 
 
 
 
 
Service cost
$
10,810

 
$
12,078

 
$
12,436

Interest cost(1)
11,839

 
10,907

 
10,679

Expected return on assets(1)
(10,659
)
 
(8,006
)
 
(7,185
)
Amortization of transition obligation(1)

 

 

Amortization of prior service cost (credit)(1)
173

 
11

 
(1,644
)
Recognized actuarial gain(1)
(8,178
)
 
(6,473
)
 
(2,827
)
Net periodic postretirement cost
$
3,985

 
$
8,517

 
$
11,459



(1)
The components of net periodic cost other than the service cost component are included in the line item other non-operating income (expense) in the consolidated statements of comprehensive income or are capitalized on the consolidated balance sheets as a regulatory asset or liability, as described in Note 2.
Net periodic pension cost for the supplemental plans for fiscal 2019, 2018 and 2017 is presented in the following table.
 
Fiscal Year Ended September 30
 
2019
 
2018
 
2017
 
(In thousands)
Components of net periodic pension cost:
 
 
 
 
 
Service cost
$
869

 
$
1,332

 
$
2,756

Interest cost(1)
5,127

 
4,988

 
4,744

Recognized actuarial loss(1)
2,227

 
3,079

 
4,251

Settlements(1)

 
4,159

 
2,685

Net periodic pension cost
$
8,223

 
$
13,558

 
$
14,436



(1)
The components of net periodic cost other than the service cost component are included in the line item other non-operating income (expense) in the consolidated statements of comprehensive income or are capitalized on the consolidated balance sheets as a regulatory asset or liability, as described in Note 2.

Net periodic pension cost for the Plan for fiscal 2019, 2018 and 2017 is presented in the following table.
 
Fiscal Year Ended September 30
 
2019
 
2018
 
2017
 
(In thousands)
Components of net periodic pension cost:
 
 
 
 
 
Service cost
$
15,311

 
$
17,264

 
$
18,109

Interest cost(1)
22,071

 
20,803

 
20,443

Expected return on assets(1)
(28,451
)
 
(27,666
)
 
(27,975
)
Amortization of prior service credit(1)
(232
)
 
(231
)
 
(231
)
Recognized actuarial loss(1)
4,201

 
9,114

 
12,744

Net periodic pension cost
$
12,900

 
$
19,284

 
$
23,090



(1)
The components of net periodic cost other than the service cost component are included in the line item other non-operating income (expense) in the consolidated statements of comprehensive income or are capitalized on the consolidated balance sheets as a regulatory asset or liability, as described in Note 2.
Schedule of Employee Pension Plans Investments at Fair Value In addition to the assets shown below, the Plan had net accounts receivable of $1.3 million and $2.0 million at September 30, 2019 and 2018, which materially approximates fair value due to the short-term nature of these assets.
 
Assets at Fair Value as of September 30, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Common stocks
$
212,785

 
$

 
$

 
$
212,785

Money market funds

 
16,419

 

 
16,419

Registered investment companies
26,326

 

 

 
26,326

Government securities:
 
 
 
 
 
 
 
Mortgage-backed securities

 
19,986

 

 
19,986

U.S. treasuries
22,930

 
885

 

 
23,815

Corporate bonds

 
55,774

 

 
55,774

Total investments measured at fair value
$
262,041

 
$
93,064

 
$

 
355,105

Investments measured at net asset value:
 
 
 
 
 
 
 
Common/collective trusts (1)
 
 
 
 
 
 
108,975

Limited partnerships (1)
 
 
 
 
 
 
64,718

Total investments
 
 
 
 
 
 
$
528,798


 
Assets at Fair Value as of September 30, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Common stocks
$
197,577

 
$

 
$

 
$
197,577

Money market funds

 
19,153

 

 
19,153

Registered investment companies
50,895

 

 

 
50,895

Government securities:
 
 
 
 
 
 
 
Mortgage-backed securities

 
18,821

 

 
18,821

U.S. treasuries
23,071

 
868

 

 
23,939

Corporate bonds

 
46,498

 

 
46,498

Total investments measured at fair value
$
271,543

 
$
85,340

 
$

 
356,883

Investments measured at net asset value:
 
 
 
 
 
 
 
Common/collective trusts (1)
 
 
 
 
 
 
108,391

Limited partnerships (1)
 
 
 
 
 
 
64,399

Total investments
 
 
 
 
 
 
$
529,673


(1)
The fair value of our common/collective trusts and limited partnerships are measured using the net asset value per share practical expedient. There are no redemption restrictions, redemption notice periods or unfunded commitments for these investments. The redemption frequency is daily.
Schedule of Expected Benefit Payments
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 2019 include contributions to our postretirement plan trusts.
 
Company
Payments
 
Retiree
Payments
 
Subsidy
Payments
 
Total
Postretirement
Benefits
 
(In thousands)
2020
$
18,797

 
$
3,901

 
$

 
$
22,698

2021
14,161

 
4,150

 

 
18,311

2022
14,408

 
4,470

 

 
18,878

2023
15,277

 
4,939

 

 
20,216

2024
16,078

 
5,369

 

 
21,447

2025-2029
89,998

 
32,135

 

 
122,133


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
Plan
 
Supplemental
Plans
 
(In thousands)
2020
$
33,238

 
$
26,197

2021
35,037

 
24,407

2022
36,128

 
8,978

2023
37,851

 
9,105

2024
39,395

 
8,440

2025-2029
207,634

 
50,187


Schedule of Postretirement Benefit Plans Investments at Fair Value
The following tables set forth by level, within the fair value hierarchy, the Retiree Medical Plan’s assets at fair value as of September 30, 2019 and 2018. The methods used to determine fair value for the assets held by the Retiree Medical Plan are fully described in Note 2.
 
Assets at Fair Value as of September 30, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Money market funds
$

 
$
5,972

 
$

 
$
5,972

Registered investment companies
195,929

 

 

 
195,929

Total investments measured at fair value
$
195,929

 
$
5,972

 
$

 
$
201,901

 
 
Assets at Fair Value as of September 30, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Investments:
 
 
 
 
 
 
 
Money market funds
$

 
$
5,003

 
$

 
$
5,003

Registered investment companies
194,358

 

 

 
194,358

Total investments measured at fair value
$
194,358

 
$
5,003

 
$

 
$
199,361