Defined Benefit Plan (Tables)

9 Months Ended

Sep. 30, 2018

The components of net periodic benefit costs for San Jose Water Company’s pension plan, its Executive Supplemental Retirement Plan, Cash Balance Executive Supplemental Retirement Plan and Social Welfare Plan for the three and nine months ended September 30, 2018, and 2017 are as follows:



	Three months ended September 30,					Nine months ended September 30,
	2018			2017		2018			2017
Service cost	$	1,601		1,308		$	4,804		3,922
Interest cost	1,876			1,912		5,629			5,735
Other cost	1,139			1,101		3,417			3,304
Expected return on assets	(2,426		)	(2,060	)	(7,279		)	(6,179	)
	$	2,190		2,261		$	6,571		6,782

September 30, 2017, utility plant included $420 of capitalized pension non-service cost. The components of net periodic benefit cost have been recorded in the consolidated statements of comprehensive income as follows:



	Three months ended September 30,			Nine months ended September 30,
	2018		2017	2018		2017
Other production expenses	$	424	342	$	1,273	1,027
Administrative and general expense	898		733	2,695		2,197
Maintenance expense	279		233	836		698
Pension non-service costs	589		953	1,767		2,860
	$	2,190	2,261	$	6,571	6,782

Schedule of Allocation of Plan Assets

The following tables summarize the fair values of plan assets by major categories as of September 30, 2018, and December 31, 2017:



		Fair Value Measurements at September 30, 2018
				Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
Asset Category	Benchmark	Total		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	—	$	4,286	$	4,286	$	—	$	—
Actively Managed (a):
All Cap Equity	Russell 3000 Value	6,613		6,572		41		—
U.S. Large Cap Equity	Russell 1000, Russell 1000 Growth, Russell 1000 Value	55,782		55,782		—		—
U.S. Mid Cap Equity	Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value	9,747		9,747		—		—
U.S. Small Cap Equity	Russell 2000, Russell 2000 Growth, Russell 2000 Value	9,848		9,848		—		—
Non-U.S. Large Cap Equity	MSCI EAFE	5,881		5,881		—		—
REIT	NAREIT - Equity REIT’S	6,346		—		6,346		—
Fixed Income (b)	(b)	46,528		—		46,528		—
Total		$	145,031	$	92,116	$	52,915	$	—

The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities and cash to provide preservation of capital plus generation of income.


(a)	Actively managed portfolio of securities with the goal to exceed the stated benchmark performance.


(b)	Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate.



		Fair Value Measurements at December 31, 2017
				Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
Asset Category	Benchmark	Total		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	—	$	8,207	$	8,207	$	—	$	—
Actively Managed (a):
All Cap Equity	Russell 3000 Value	6,413		6,376		37		—
U.S. Large Cap Equity	Russell 1000, Russell 1000 Growth, Russell 1000 Value	50,351		50,351		—		—
U.S. Mid Cap Equity	Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value	9,358		9,358		—		—
U.S. Small Cap Equity	Russell 2000, Russell 2000 Growth, Russell 2000 Value	8,725		8,725		—		—
Non-U.S. Large Cap Equity	MSCI EAFE	5,973		5,973		—		—
REIT	NAREIT - Equity REIT’S	6,143		—		6,143		—
Fixed Income (b)	(b)	44,994		—		44,994		—
Total		$	140,164	$	88,990	$	51,174	$	—


(a)	Actively managed portfolio of securities with the goal to exceed the stated benchmark performance.


(b)	Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate.