Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Key Assumptions used in Determining Benefit Plan Costs and Obligations

The following table includes the key assumptions used in determining the Company’s benefit plan costs and obligations:


	2016			2015			2014
Used to Determine Plan costs for years ended December 31:
Discount Rate⁽¹⁾		4.30	%		4.00	%		4.80	%
Rate of Compensation Increase		3.00	%		3.00	%		3.00	%
Expected Long-term rate of return on plan assets		8.00	%		8.00	%		8.00	%
Health Care Cost Trend Rate Assumed for Next Year		7.00	%		7.00	%		8.00	%
Ultimate Health Care Cost Trend Rate		4.00	%		4.00	%		4.00	%
Year that Ultimate Health Care Cost Trend Rate is reached		2022			2018			2018
Effect of 1% Increase in Health Care Cost Trend Rate (000’s)	$	1,352		$	1,383		$	989
Effect of 1% Decrease in Health Care Cost Trend Rate (000’s)	$	(1,032	)	$	(1,040	)	$	(771	)

⁽¹⁾

As a result of the addition of a plan participant to the SERP in July 2015, the Company was required to update the discount rate used in determining SERP costs for the remainder of 2015. Based on an assessment of current market conditions using high quality corporate bond interest rate indices and pension yield curves at that time, the Company assumed a discount rate of 4.30% for the SERP from July through December of 2015.


Used to Determine Benefit Obligations at December 31:
Discount Rate		4.10	%		4.30	%		4.00	%
Rate of Compensation Increase		3.00	%		3.00	%		3.00	%
Health Care Cost Trend Rate Assumed for Next Year		8.00	%		7.00	%		7.00	%
Ultimate Health Care Cost Trend Rate		4.00	%		4.00	%		4.00	%
Year that Ultimate Health care Cost Trend Rate is reached		2025			2022			2018
Effect of 1% Increase in Health Care Cost Trend Rate (000’s)	$	19,471		$	14,877		$	15,325
Effect of 1% Decrease in Health Care Cost Trend Rate (000’s)	$	(15,153	)	$	(11,611	)	$	(11,829	)

Components of Retirement Plan Costs

The following table provides the components of the Company’s Retirement plan costs (000’s):


	Pension Plan									PBOP Plan									SERP
	2016			2015			2014			2016			2015			2014			2016		2015		2014

Service Cost	$	3,402		$	3,689		$	3,006		$	2,610		$	2,622		$	1,988		$	162	$	120	$	57

Interest Cost		5,945			5,392			5,092			3,232			2,918			2,686			386		330		272

Expected Return on Plan Assets		(7,257	)		(6,779	)		(6,245	)		(1,205	)		(1,093	)		(920	)		—		—		—

Prior Service Cost Amortization		263			265			211			1,486			1,682			1,682			189		85		11

Actuarial Loss Amortization		4,398			4,714			2,847			1,049			1,150			56			375		327		100


Sub-total		6,751			7,281			4,911			7,172			7,279			5,492			1,112		862		440

Amounts Capitalized or Deferred		(3,008	)		(3,397	)		(1,881	)		(3,351	)		(3,423	)		(2,270	)		—		—		—

NPBC Recognized	$	3,743		$	3,884		$	3,030		$	3,821		$	3,856		$	3,222		$	1,112	$	862	$	440

Plans' Assets, Projected Benefit Obligations (PBO), and Funded Status

The following table represents information on the plans’ assets, projected benefit obligations (PBO), and funded status (000’s):


	Pension Plan						PBOP Plan						SERP
Change in Plan Assets:	2016			2015			2016			2015			2016			2015

Plan Assets at Beginning of Year	$	87,194		$	86,744		$	14,174		$	12,840		$	—		$	—

Actual Return on Plan Assets		3,618			645			792			(214	)		—			—

Employer Contributions		5,146			4,215			4,000			4,000			34			40

Participant Contributions		—			—			61			63			—			—

Benefits Paid		(4,900	)		(4,410	)		(2,421	)		(2,515	)		(34	)		(40	)

Plan Assets at End of Year	$	91,058		$	87,194		$	16,606		$	14,174		$	—		$	—


	Pension Plan						PBOP Plan						SERP
Change in Plan Assets:	2016			2015			2016			2015			2016			2015
Change in PBO:

PBO at Beginning of Year	$	140,816		$	136,662		$	76,249		$	73,923		$	9,177		$	7,965

Service Cost		3,402			3,689			2,610			2,622			162			120

Interest Cost		5,945			5,392			3,232			2,918			386			330

Participant Contributions		—			—			61			63			—			—

Plan Amendments		—			474			—			—			—			608

Benefits Paid		(4,900	)		(4,410	)		(2,421	)		(2,515	)		(34	)		(40	)

Actuarial (Gain) or Loss		5,176			(991	)		16,928			(762	)		(125	)		194

PBO at End of Year	$	150,439		$	140,816		$	96,659		$	76,249		$	9,566		$	9,177

Funded Status: Assets vs PBO	$	(59,381	)	$	(53,622	)	$	(80,053	)	$	(62,075	)	$	(9,566	)	$	(9,177	)

Employer Contributions, Participant Contributions and Benefit Payments

The following table represents employer contributions, participant contributions and benefit payments (000’s).


	Pension Plan						PBOP Plan						SERP
	2016		2015		2014		2016		2015		2014		2016		2015		2014
Employer Contributions	$	5,146	$	4,215	$	4,191	$	4,000	$	4,000	$	3,650	$	34	$	40	$	53
Participant Contributions	$	—	$	—	$	—	$	61	$	63	$	59	$	—	$	—	$	—
Benefit Payments	$	4,900	$	4,410	$	4,246	$	2,421	$	2,515	$	2,184	$	34	$	40	$	53

Estimated Future Benefit Payments

The following table represents estimated future benefit payments (000’s).


Estimated Future Benefit Payments
	Pension		PBOP		SERP
2017	$	5,451	$	2,439	$	34
2018		5,475		2,690		33
2019		6,035		2,922		578
2020		6,288		3,138		569
2021		6,759		3,470		703
2022 - 2026		40,623		21,533		3,753

Pension Plans

Schedule of Allocation of Plan Assets

The actual investment allocations are shown in the tables below.


Pension Plan	Target Allocation 2017			Actual Allocation at December 31,
	Target Allocation 2017			2016			2015			2014
Equity Funds		47	%		46	%		46	%		49	%
Debt Funds		37	%		37	%		37	%		36	%
Real Estate Fund		10	%		10	%		11	%		10	%
Asset Allocation Fund⁽¹⁾		6	%		7	%		6	%		5	%

Total					100	%		100	%		100	%

(1)

Represents investments in an asset allocation fund. This fund invests in both equity and debt securities.

Assets measured at fair value on a recurring basis for the Pension Plan as of December 31, 2016 and 2015 are as follows (000’s):


	Fair Value Measurements at Reporting Date Using
Description	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
2016
Pension Plan Assets:
Equity Funds	$	42,134	$	42,134	$	—	$	—
Fixed Income Funds		33,924		33,924		—		—
Asset Allocation Fund		6,172		6,172		—		—

Total Assets in the Fair Value Hierarchy	$	82,230	$	82,230	$	—	$	—

Real Estate Fund–Measured at Net Asset Value		8,828

Total Assets	$	91,058


2015
Pension Plan Assets:
Equity Funds	$	40,124	$	40,124	$	—	$	—
Fixed Income Funds		32,192		32,192		—		—
Asset Allocation Fund		5,527		5,527		—		—

Total Assets in the Fair Value Hierarchy	$	77,843	$	77,843	$	—	$	—

Real Estate Fund–Measured at Net Asset Value		9,351

Total Assets	$	87,194

Other Postretirement Benefit Plans, Defined Benefit

Schedule of Allocation of Plan Assets

The actual investment allocations are shown in the tables below.


PBOP Plan	Target Allocation 2017			Actual Allocation at December 31,
PBOP Plan	Target Allocation 2017			2016			2015			2014
Equity Funds		55	%		55	%		53	%		56	%
Debt Funds		45	%		43	%		47	%		44	%
Other⁽¹⁾		0	%		2	%		0	%		0	%

Total					100	%		100	%		100	%

(1)

Represents investments being held in cash equivalents as of December 31, 2016 pending transfer into debt and equity funds.

Assets measured at fair value on a recurring basis for the PBOP Plan as of December 31, 2016 and 2015 are as follows (000’s):


	Fair Value Measurements at Reporting Date Using
Description	Balance as of December 31,		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
2016
PBOP Plan Assets:
Mutual Funds:
Fixed Income Funds	$	7,078	$	7,078	$	—	$	—
Equity Funds		9,128		9,128

Total Mutual Funds		16,206		16,206
Cash Equivalents		400		400

Total Assets	$	16,606	$	16,606	$	—	$	—


2015
PBOP Plan Assets:
Mutual Funds:
Fixed Income Funds	$	6,620	$	6,620	$	—	$	—
Equity Funds		7,554		7,554

Total Assets	$	14,174	$	14,174	$	—	$	—