Employee Benefits (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Retirement Benefits [Abstract] |
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| Reconciliation of the changes in the plans' benefit obligations and fair value of assets |
The following tables provide a reconciliation of the changes in our plans' benefit obligations and fair value of assets: | | | | | | | | | | | | | | | | | | | | Pension Costs | | OPEB Costs | (in millions) | | 2017 | | 2016 | | 2017 | | 2016 | Change in benefit obligation | | | | | | | | | Obligation at January 1 | | $ | 3,058.8 |
| | $ | 3,083.0 |
| | $ | 818.4 |
| | $ | 842.0 |
| Service cost | | 44.6 |
| | 45.4 |
| | 24.1 |
| | 26.1 |
| Interest cost | | 121.8 |
| | 130.8 |
| | 32.9 |
| | 37.0 |
| Participant contributions | | — |
| | — |
| | 13.4 |
| | 16.4 |
| Plan amendments | | — |
| | (3.0 | ) | | (36.4 | ) | | (18.9 | ) | Actuarial loss (gain) | | 162.6 |
| | 71.7 |
| | 12.9 |
| | (36.5 | ) | Benefit payments | | (224.1 | ) | | (269.1 | ) | | (48.8 | ) | | (49.1 | ) | Federal subsidy on benefits paid | | N/A |
| | N/A |
| | 2.0 |
| | 1.4 |
| Obligation at December 31 | | $ | 3,163.7 |
| | $ | 3,058.8 |
| | $ | 818.5 |
| | $ | 818.4 |
| | | | | | | | | | Change in fair value of plan assets | | | | | | | | | Fair value at January 1 | | $ | 2,709.2 |
| | $ | 2,755.1 |
| | $ | 773.5 |
| | $ | 749.8 |
| Actual return on plan assets | | 368.7 |
| | 199.4 |
| | 95.9 |
| | 51.5 |
| Employer contributions | | 113.0 |
| | 23.8 |
| | 7.5 |
| | 4.9 |
| Participant contributions | | — |
| | — |
| | 13.4 |
| | 16.4 |
| Benefit payments | | (224.1 | ) | | (269.1 | ) | | (48.8 | ) | | (49.1 | ) | Fair value at December 31 | | $ | 2,966.8 |
| | $ | 2,709.2 |
| | $ | 841.5 |
| | $ | 773.5 |
| Funded status at December 31 | | $ | (196.9 | ) | | $ | (349.6 | ) | | $ | 23.0 |
| | $ | (44.9 | ) |
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| Amounts recognized on the balance sheets at December 31 related to the funded status of the benefit plans |
The amounts recognized on our balance sheets at December 31 related to the funded status of the benefit plans were as follows: | | | | | | | | | | | | | | | | | | | | Pension Costs | | OPEB Costs | (in millions) | | 2017 | | 2016 | | 2017 | | 2016 | Other long-term assets | | $ | 143.0 |
| | $ | 74.4 |
| | $ | 80.5 |
| | $ | 29.7 |
| Pension and OPEB obligations | | 339.9 |
| | 424.0 |
| | 57.5 |
| | 74.6 |
| Total net (liabilities) assets | | $ | (196.9 | ) | | $ | (349.6 | ) | | $ | 23.0 |
| | $ | (44.9 | ) |
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| Information for pension plans with an accumulated benefit obligation in excess of plan assets |
The following table shows information for pension plans with an accumulated benefit obligation in excess of plan assets. Amounts presented are as of December 31: | | | | | | | | | | (in millions) | | 2017 | | 2016 | Projected benefit obligation | | $ | 679.5 |
| | $ | 1,667.0 |
| Accumulated benefit obligation | | 630.3 |
| | 1,549.5 |
| Fair value of plan assets | | 339.6 |
| | 1,242.9 |
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| Amounts that had not yet been recognized in the entity's net periodic benefit cost |
The following table shows the amounts that have not yet been recognized in our net periodic benefit cost as of December 31: | | | | | | | | | | | | | | | | | | | | Pension Costs | | OPEB Costs | (in millions) | | 2017 | | 2016 | | 2017 | | 2016 | Accumulated other comprehensive loss (pre-tax) (1) | | | | | | | | | Net actuarial loss (gain) | | $ | 10.0 |
| | $ | 12.0 |
| | $ | (1.0 | ) | | $ | (1.0 | ) | Prior service credits | | — |
| | — |
| | (0.1 | ) | | — |
| Total | | $ | 10.0 |
| | $ | 12.0 |
| | $ | (1.1 | ) | | $ | (1.0 | ) | | | | | | | | | | Net regulatory assets (2) | | | | | | | | | Net actuarial loss (gain) | | $ | 1,136.8 |
| | $ | 1,240.7 |
| | $ | (4.7 | ) | | $ | 25.8 |
| Prior service costs (credits) | | 7.5 |
| | 10.5 |
| | (111.8 | ) | | (87.9 | ) | Total | | $ | 1,144.3 |
| | $ | 1,251.2 |
| | $ | (116.5 | ) | | $ | (62.1 | ) |
| | (1) | Amounts related to the nonregulated entities are included in accumulated other comprehensive loss. |
| | (2) | Amounts related to the utilities and WBS are recorded as net regulatory assets or liabilities. |
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| Estimated amounts that will be amortized into net periodic benefit cost |
The following table shows the estimated amounts that will be amortized into net periodic benefit cost during 2018: | | | | | | | | | | (in millions) | | Pension Costs | | OPEB Costs | Net actuarial loss | | $ | 92.5 |
| | $ | 1.3 |
| Prior service costs (credits) | | 2.6 |
| | (15.3 | ) | Total 2018 – estimated amortization | | $ | 95.1 |
| | $ | (14.0 | ) |
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| Schedule of the components of net periodic benefit cost |
The components of net periodic benefit cost (including amounts capitalized to our balance sheets) for the years ended December 31 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pension Costs | | OPEB Costs | (in millions) | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | Service cost | | $ | 44.6 |
| | $ | 45.4 |
| | $ | 30.4 |
| | $ | 24.1 |
| | $ | 26.1 |
| | $ | 20.7 |
| Interest cost | | 121.8 |
| | 130.8 |
| | 94.3 |
| | 32.9 |
| | 37.0 |
| | 26.7 |
| Expected return on plan assets | | (195.7 | ) | | (195.9 | ) | | (155.6 | ) | | (55.5 | ) | | (52.7 | ) | | (39.6 | ) | Plan settlement | | 9.0 |
| | 16.5 |
| | — |
| | — |
| | — |
| | — |
| Plan curtailment | | — |
| | — |
| | (0.3 | ) | | — |
| | — |
| | — |
| Amortization of prior service cost (credit) | | 2.9 |
| | 3.4 |
| | 2.2 |
| | (12.3 | ) | | (9.4 | ) | | (6.4 | ) | Amortization of net actuarial loss | | 86.1 |
| | 82.9 |
| | 68.5 |
| | 3.1 |
| | 8.5 |
| | 3.9 |
| Net periodic benefit cost (credit) | | $ | 68.7 |
| | $ | 83.1 |
| | $ | 39.5 |
| | $ | (7.7 | ) | | $ | 9.5 |
| | $ | 5.3 |
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| Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost for the plans |
The weighted-average assumptions used to determine the benefit obligations for the plans were as follows for the years ended December 31: | | | | | | | | | | | | Pension | | OPEB | | | 2017 | | 2016 | | 2017 | | 2016 | Discount rate | | 3.66% | | 4.16% | | 3.63% | | 4.14% | Rate of compensation increase | | 3.61% | | 3.60% | | N/A | | N/A | Assumed medical cost trend rate (Pre 65) | | N/A | | N/A | | 6.50% | | 7.00% | Ultimate trend rate (Pre 65) | | N/A | | N/A | | 5.00% | | 5.00% | Year ultimate trend rate is reached (Pre 65) | | N/A | | N/A | | 2024 | | 2021 | Assumed medical cost trend rate (Post 65) | | N/A | | N/A | | 6.09% | | 7.00% | Ultimate trend rate (Post 65) | | N/A | | N/A | | 5.00% | | 5.00% | Year ultimate trend rate is reached (Post 65) | | N/A | | N/A | | 2028 | | 2021 |
The weighted-average assumptions used to determine the net periodic benefit cost for the plans were as follows for the years ended December 31: | | | | | | | | | | Pension Costs | | | 2017 | | 2016 | | 2015 | Discount rate | | 4.11% | | 4.35% | | 4.11% | Expected return on plan assets | | 7.11% | | 7.12% | | 7.37% | Rate of compensation increase | | 3.60% | | 3.75% | | 4.00% |
| | | | | | | | | | OPEB Costs | | | 2017 | | 2016 | | 2015 | Discount rate | | 4.04% | | 4.38% | | 4.09% | Expected return on plan assets | | 7.25% | | 7.25% | | 7.54% | Assumed medical cost trend rate (Pre 65/Post 65) | | 7.00% | | 7.50% | | 7.50% | Ultimate trend rate | | 5.00% | | 5.00% | | 5.00% | Year ultimate trend rate is reached | | 2021 | | 2021 | | 2021 |
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| Effects of a one-percentage-point change in assumed health care cost trend rates |
For the year ended December 31, 2017, a one-percentage-point change in assumed health care cost trend rates would have had the following effects: | | | | | | | | | | (in millions) | | 1% Increase | | 1% Decrease | Effect on total of service and interest cost components of net periodic postretirement health care benefit cost | | $ | 8.0 |
| | $ | (6.4 | ) | Effect on health care component of the accumulated postretirement benefit obligations | | 76.2 |
| | (62.5 | ) |
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| Investments recorded at fair value, by asset class |
The following tables provide the fair values of our investments by asset class: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2017 | | | Pension Plan Assets | | OPEB Assets | (in millions) | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | Asset Class | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | — |
| | $ | 53.6 |
| | $ | — |
| | $ | 53.6 |
| | $ | 19.6 |
| | $ | 2.3 |
| | $ | — |
| | $ | 21.9 |
| Equity securities: | | | | | | | | | | | | | | | | | United States Equity | | 345.0 |
| | 0.1 |
| | — |
| | 345.1 |
| | 101.0 |
| | — |
| | — |
| | 101.0 |
| International Equity | | 352.1 |
| | — |
| | 0.8 |
| | 352.9 |
| | 115.3 |
| | — |
| | 0.2 |
| | 115.5 |
| Fixed income securities: * | | | | | | | | | | | | | | | | | United States Bonds | | 138.6 |
| | 892.9 |
| | — |
| | 1,031.5 |
| | 121.0 |
| | 148.1 |
| | — |
| | 269.1 |
| International Bonds | | 17.8 |
| | 86.8 |
| | — |
| | 104.6 |
| | 7.2 |
| | 9.1 |
| | — |
| | 16.3 |
| Private Equity and Real Estate | | — |
| | 154.1 |
| | 100.1 |
| | 254.2 |
| | — |
| | 6.6 |
| | 7.7 |
| | 14.3 |
| | | $ | 853.5 |
| | $ | 1,187.5 |
| | $ | 100.9 |
| | $ | 2,141.9 |
| | $ | 364.1 |
| | $ | 166.1 |
| | $ | 7.9 |
| | $ | 538.1 |
| Investments measured at net asset value | | | | | | | | $ | 824.9 |
| | | | | | | | $ | 303.4 |
| Total | | $ | 853.5 |
| | $ | 1,187.5 |
| | $ | 100.9 |
| | $ | 2,966.8 |
| | $ | 364.1 |
| | $ | 166.1 |
| | $ | 7.9 |
| | $ | 841.5 |
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| | * | This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2016 | | | Pension Plan Assets | | OPEB Assets | (in millions) | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | Asset Class | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 3.7 |
| | $ | 58.0 |
| | $ | — |
| | $ | 61.7 |
| | $ | 28.8 |
| | $ | 3.4 |
| | $ | — |
| | $ | 32.2 |
| Equity securities: | | | | | | | | | | | | | | | | | United States Equity | | 273.9 |
| | 0.1 |
| | — |
| | 274.0 |
| | 34.3 |
| | — |
| | — |
| | 34.3 |
| International Equity | | 54.1 |
| | 0.6 |
| | — |
| | 54.7 |
| | 3.5 |
| | 0.2 |
| | — |
| | 3.7 |
| Fixed income securities: * | | | | | | | | | | | | | | | | | United States Bonds | | — |
| | 861.3 |
| | 0.8 |
| | 862.1 |
| | — |
| | 137.9 |
| | — |
| | 137.9 |
| International Bonds | | — |
| | 75.9 |
| | — |
| | 75.9 |
| | — |
| | 8.8 |
| | — |
| | 8.8 |
| Private Equity and Real Estate | | — |
| | — |
| | 14.6 |
| | 14.6 |
| | — |
| | — |
| | 1.3 |
| | 1.3 |
| | | $ | 331.7 |
| | $ | 995.9 |
| | $ | 15.4 |
| | $ | 1,343.0 |
| | $ | 66.6 |
| | $ | 150.3 |
| | $ | 1.3 |
| | $ | 218.2 |
| Investments measured at net asset value | | | | | | | | $ | 1,366.2 |
| | | | | | | | $ | 555.3 |
| Total | | $ | 331.7 |
| | $ | 995.9 |
| | $ | 15.4 |
| | $ | 2,709.2 |
| | $ | 66.6 |
| | $ | 150.3 |
| | $ | 1.3 |
| | $ | 773.5 |
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| | * | This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries. |
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| Reconciliation of changes in the fair value of plan assets categorized as Level 3 measurements |
The following tables set forth a reconciliation of changes in the fair value of pension and OPEB plan assets categorized as Level 3 in the fair value hierarchy: | | | | | | | | | | | | | | | | | | | | | | | | Private Equity and Real Estate | | International Equity | | U.S. Bonds | (in millions) | | Pension | | OPEB | | Pension | | OPEB | | Pension | Beginning balance at January 1, 2017 | | $ | 14.6 |
| | $ | 1.3 |
| | $ | — |
| | $ | — |
| | $ | 0.8 |
| Realized and unrealized gains (losses) | | 2.8 |
| | 0.3 |
| | (0.2 | ) | | — |
| | (0.8 | ) | Purchases | | 55.5 |
| | 3.6 |
| | 1.0 |
| | 0.2 |
| | — |
| Transfers into level 3 | | 27.2 |
| | 2.5 |
| | — |
| | — |
| | — |
| Ending balance at December 31, 2017 | | $ | 100.1 |
| | $ | 7.7 |
| | $ | 0.8 |
| | $ | 0.2 |
| | $ | — |
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| | | | | | | | | | | | | | | | Private Equity and Real Estate | | U.S. Bonds | (in millions) | | Pension | | OPEB | | Pension | Beginning balance at January 1, 2016 | | $ | 5.5 |
| | $ | 0.4 |
| | $ | — |
| Realized and unrealized gains | | 0.5 |
| | 0.1 |
| | — |
| Purchases | | 8.6 |
| | 0.8 |
| | 0.8 |
| Ending balance at December 31, 2016 | | $ | 14.6 |
| | $ | 1.3 |
| | $ | 0.8 |
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| Schedule of expected future benefit payments |
The following table shows the payments, reflecting expected future service, that we expect to make for pension and OPEB: | | | | | | | | | | (in millions) | | Pension Costs | | OPEB Costs | 2018 | | $ | 234.3 |
| | $ | 44.2 |
| 2019 | | 233.4 |
| | 46.3 |
| 2020 | | 236.3 |
| | 46.6 |
| 2021 | | 233.4 |
| | 48.1 |
| 2022 | | 220.3 |
| | 49.4 |
| 2023-2027 | | 1,026.8 |
| | 258.2 |
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