Retirement and Post-Retirement Employee Benefit Plans (Tables)
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12 Months Ended |
Sep. 30, 2019 |
Retirement Benefits [Abstract] |
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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 | ) |
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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% |
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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 |
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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.
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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 |
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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 | ) |
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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 |
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(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 |
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| | (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 |
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(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.
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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 |
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| | | | | | | | | | | | | | | | | | 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 |
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(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.
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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 |
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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 |
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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 |
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| | | | | | | | | | | | | | | | | | 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 |
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