XML 50 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Benefit Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2018
Benefit Plans and Other Postretirement Benefits [Abstract]  
Target Asset Allocations and Plan Assets Measured at Fair Value
 
 
Pension Benefits
 
Postretirement Benefits
 
 
2018
 
2017
 
2018
 
2017
Domestic and international equity securities
 
35
%
 
34
%
 
18
%
 
24
%
Long-duration fixed income securities
 
32

 
32

 
—

 
—

Short-to-intermediate fixed income securities
 
16

 
18

 
70

 
60

Alternative investments
 
15

 
14

 
8

 
9

Cash
 
2

 
2

 
4

 
7

Total
 
100
%
 
100
%
 
100
%
 
100
%
, PSCo’s pension plan assets measured at fair value:
 
 
Dec. 31, 2018 (a)
 
Dec. 31, 2017 (a) 
(Millions of Dollars)
 
Level 1
 
Level 2
 
Level 3
 
Measured
at NAV
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Measured
at NAV
 
Total
Cash equivalents
 
$
53.0

 
$
—

 
$
—

 
$
—

 
$
53.0

 
$
67.2

 
$
—

 
$
—

 
$
—

 
$
67.2

Commingled funds
 
316.2

 
—

 
—

 
326.1

 
642.3

 
363.4

 
—

 
—

 
355.5

 
718.9

Debt securities
 
—

 
242.3

 
—

 
—

 
242.3

 
—

 
263.8

 
—

 
—

 
263.8

Equity securities
 
35.2

 
—

 
—

 
—

 
35.2

 
37.8

 
—

 
—

 
—

 
37.8

Other
 
0.6

 
2.0

 
—

 
(9.9
)
 
(7.3
)
 
(9.9
)
 
1.4

 
—

 
0.2

 
(8.3
)
Total
 
$
405.0

 
$
244.3

 
$
—

 
$
316.2

 
$
965.5

 
$
458.5

 
$
265.2

 
$
—

 
$
355.7

 
$
1,079.4


(a) 
See Note 9 for further information on fair value measurement inputs and methods.
 
 
Dec. 31, 2018 (a)
 
Dec. 31, 2017 (a)
(Millions of Dollars)
 
Level 1
 
Level 2
 
Level 3
 
Measured at NAV
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Measured at NAV
 
Total
Cash equivalents
 
$
17.0

 
$
—

 
$
—

 
$
—

 
$
17.0

 
$
25.7

 
$
—

 
$
—

 
$
—

 
$
25.7

Insurance contracts
 
—

 
40.2

 
—

 
—

 
40.2

 
—

 
43.5

 
—

 
—

 
43.5

Commingled funds
 
118.7

 
—

 
—

 
35.8

 
154.5

 
130.2

 
—

 
—

 
—

 
130.2

Debt securities
 
—

 
159.7

 
—

 
—

 
159.7

 
—

 
175.4

 
—

 
—

 
175.4

Equity securities
 
—

 
—

 
—

 
—

 
—

 
30.7

 
—

 
—

 
—

 
30.7

Other
 
—

 
0.7

 
—

 
—

 
0.7

 
—

 
0.9

 
—

 
—

 
0.9

Total
 
$
135.7

 
$
200.6

 
$
—

 
$
35.8

 
$
372.1

 
$
186.6

 
$
219.8

 
$
—

 
$
—

 
$
406.4

(a) 
See Note 9 for further information on fair value measurement inputs and methods
Change in Projected Benefit Obligation
 
 
Pension Benefits
 
Postretirement Benefits
(Millions of Dollars)
 
2018
 
2017
 
2018
 
2017
Change in Benefit Obligation:
 
 
 
 
 
 
 
 
Obligation at Jan. 1
 
$
1,334.2

 
$
1,251.8

 
$
429.2

 
$
421.8

Service cost
 
29.0

 
27.3

 
0.7

 
0.7

Interest cost
 
47.3

 
50.6

 
15.0

 
16.8

Plan amendments
 
—

 
(1.1
)
 
—

 
—

Actuarial loss
 
(96.5
)
 
83.5

 
(40.6
)
 
18.3

Plan participants’ contributions
 
—

 
—

 
6.5

 
6.0

Medicare subsidy reimbursements
 
—

 
—

 
0.9

 
1.0

Benefit payments
 
(84.7
)
 
(77.9
)
 
(35.2
)
 
(35.4
)
Obligation at Dec. 31
 
$
1,229.3

 
$
1,334.2

 
$
376.5

 
$
429.2

Change in Fair Value of Plan Assets:
 
 
 
 
 
 
 
 
Fair value of plan assets at Jan. 1
 
$
1,079.4

 
$
1,004.2

 
$
406.4

 
$
393.5

Actual return on plan assets
 
(50.9
)
 
135.6

 
(11.1
)
 
37.0

Employer contributions
 
21.7

 
17.5

 
5.5

 
5.3

Plan participants’ contributions
 
—

 
—

 
6.5

 
6.0

Benefit payments
 
(84.7
)
 
(77.9
)
 
(35.2
)
 
(35.4
)
Fair value of plan assets at Dec. 31
 
$
965.5

 
$
1,079.4

 
$
372.1

 
$
406.4

Funded status of plans at Dec. 31
 
$
(263.8
)
 
$
(254.8
)
 
$
(4.4
)
 
$
(22.8
)
Amounts recognized in the Consolidated Balance Sheet at Dec. 31:
 
 
 
 
 
 
 
 
Noncurrent liabilities
 
(263.8
)
 
(254.8
)
 
(4.4
)
 
(22.8
)
Net amounts recognized
 
$
(263.8
)
 
$
(254.8
)
 
$
(4.4
)
 
$
(22.8
)
Significant Assumptions Used to Measure Benefit Obligations:
 
 
 
 
 
 
 
 
Discount rate for year-end valuation
 
4.31
%
 
3.63
%
 
4.32
%
 
3.62
%
Expected average long-term increase in compensation level
 
3.75

 
3.75

 
N/A

 
N/A

Mortality table
 
RP-2014

 
RP-2014

 
RP-2014

 
RP-2014

Health care costs trend rate — initial: Pre-65
 
N/A

 
N/A

 
6.50
%
 
7.00
%
Health care costs trend rate — initial: Post-65
 
N/A

 
N/A

 
5.30
%
 
5.50
%
Ultimate trend assumption — initial: Pre-65
 
N/A

 
N/A

 
4.50
%
 
4.50
%
Ultimate trend assumption — initial: Post-65
 
N/A

 
N/A

 
4.50
%
 
4.50
%
Years until ultimate trend is reached
 
N/A

 
N/A

 
4

 
5
Amounts Not Yet Recognized as Components of Net Periodic Benefit Costs Recorded on the Balance Sheet Based Upon Expected Recovery in Rates
 
 
Pension Benefits
 
Postretirement Benefits
(Millions of Dollars)
 
2018
 
2017
 
2018
 
2017
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
 
 
 
 
 
 
 
 
Net loss
 
$
530.8

 
$
543.7

 
$
66.9

 
$
77.8

Prior service credit
 
(7.2
)
 
(10.6
)
 
(15.3
)
 
(21.5
)
Total
 
$
523.6

 
$
533.1

 
$
51.6

 
$
56.3

Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
 
 
 
 
 
 
 
 
Current regulatory assets
 
$
25.8

 
$
27.7

 

 
$
—

Noncurrent regulatory assets
 
497.5
 
505.1

 
51.6
 
56.3

Deferred income taxes
 
0.1

 
0.1

 
—

 
—

Net-of-tax accumulated other comprehensive income
 
0.2
 
0.2

 
—

 
—

Total
 
$
523.6

 
$
533.1

 
$
51.6

 
$
56.3

Measurement date
 
Dec. 31, 2018
 
Dec. 31, 2017
 
Dec. 31, 2018
 
Dec. 31, 2017
Components of Net Periodic Benefit Costs
 
 
Pension Benefits
 
Postretirement Benefits
(Millions of Dollars)
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost
 
$
29.0

 
$
27.3

 
$
25.9

 
$
0.7

 
$
0.7

 
$
0.8

Interest cost
 
47.3

 
50.6

 
55.4

 
15.0

 
16.8

 
18.1

Expected return on plan assets
 
(68.5
)
 
(68.5
)
 
(70.8
)
 
(22.7
)
 
(21.9
)
 
(22.3
)
Amortization of prior service credit
 
(3.4
)
 
(3.2
)
 
(3.2
)
 
(6.2
)
 
(6.2
)
 
(6.3
)
Amortization of net loss
 
31.2

 
28.3

 
26.8

 
4.0

 
3.8

 
1.9

Settlement charge (a)
 
4.5

 
—

 
—

 
—

 
—

 
—

Net periodic pension cost (credit)
 
40.1

 
34.5

 
34.1

 
(9.2
)
 
(6.8
)
 
(7.8
)
Costs (credits) not recognized due to effects of regulation
 
(3.9
)
 
(2.7
)
 
3.4

 
1.8

 
—

 
—

Net benefit cost (credit) recognized for financial reporting
 
$
36.2

 
$
31.8

 
$
37.5

 
$
(7.4
)
 
$
(6.8
)
 
$
(7.8
)
Significant Assumptions Used to Measure Costs:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.63
%
 
4.13
%
 
4.66
%
 
3.62
%
 
4.13
%
 
4.65
%
Expected average long-term increase in compensation level
 
3.75

 
3.75

 
4.00

 
N/A

 
N/A

 
N/A

Expected average long-term rate of return on assets
 
6.84

 
6.84

 
6.84

 
5.80

 
5.80

 
5.80

(a) 
A settlement charge is required when the amount of all lump-sum distributions during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. In 2018, as a result of lump-sum distributions during the 2018 plan years, PSCo recorded a total pension settlement charge of $4.5 million in 2018, the majority of which was not recognized due to the effects of regulation.
Projected Benefit Payments for the Pension and Postretirement Benefit Plans
PSCo’s projected benefit payments:
(Millions of Dollars)
 
Projected Pension
Benefit Payments
 
Gross Projected
Postretirement
Health Care
Benefit Payments
 
Expected Medicare
Part D Subsidies
 
Net Projected
Postretirement
Health Care
Benefit Payments
2019
 
$
81.2

 
$
31.6

 
$
2.0

 
$
29.6

2020
 
80.9

 
31.7

 
2.1

 
29.6

2021
 
82.4

 
31.6

 
2.2

 
29.4

2022
 
82.8

 
31.5

 
2.3

 
29.2

2023
 
83.4

 
31.0

 
2.4

 
28.6

2024-2028
 
410.2

 
141.5

 
13.0

 
128.5