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Pension Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]  
Summary of contributions to qualified defined contribution plan, 401(k), non-qualified defined contribution plan and total assets of the plans
Contributions to employees' accounts under the qualified defined contribution plan, the 401(k) plan and the non-qualified defined contribution plan, as well as total assets of the plans, were as follows:
 
 
 
 
Year Ended December 31,
 
 
 
 
 
2014
 
 
 
 
2013
 
 
 
 
2012
 
 
Qualified defined contribution plan:
 
 
 
 
 
 
 
 
 
 
 
 
Contributions to employees’ accounts
 
$
4,580
 
 
$
4,616
 
 
$
4,148
 
Total assets at the end of the year
 
 
117,720
 
 
 
135,097
 
 
 
141,286
 
401(k) plan:
 
 
 
 
 
 
 
 
 
 
 
 
Contributions to employees’ accounts
 
 
2,753
 
 
 
2,781
 
 
 
2,753
 
Total assets at the end of the year
 
 
132,053
 
 
 
134,897
 
 
 
118,073
 
Non-qualified defined contribution plan:
 
 
 
 
 
 
 
 
 
 
 
 
Contributions to employees’ accounts
 
 
74
 
 
 
110
 
 
 
-
 
Total assets at the end of the year
 
 
-
 
 
 
-
 
 
 
-
 
Defined benefit plan and the supplemental defined benefit plans
The change in the Company’s AOCI for the defined benefit plan for the year ended December 31, 2012 was primarily attributable to revisions of the discount rate assumption, partially offset by the performance of the plan assets.
  
 
 
 
 
 
Supplemental
 
 
 
Defined Benefit Plan
 
 
Defined Benefit Plans
 
 
 
Year Ended December 31,
 
 
Year Ended December 31,
 
 
 
 
2014
 
 
 
2013
 
 
 
2012
 
 
 
2014
 
 
 
2013
 
 
 
2012
 
Components of net periodic pension (income) expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit accrual
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
Other expenses
 
 
360
 
 
 
360
 
 
 
360
 
 
 
-
 
 
 
-
 
 
 
-
 
Interest cost
 
 
1,679
 
 
 
1,369
 
 
 
1,427
 
 
 
716
 
 
 
616
 
 
 
676
 
Expected return on plan assets
 
 
(2,402
)
 
 
(2,238
)
 
 
(2,423
)
 
 
-
 
 
 
-
 
 
 
-
 
Settlement loss
 
 
2,668
 
 
 
867
 
 
 
1,209
 
 
 
-
 
 
 
-
 
 
 
-
 
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
124
 
 
 
124
 
Actuarial loss
 
 
1,371
 
 
 
1,602
 
 
 
2,367
 
 
 
157
 
 
 
203
 
 
 
171
 
Net periodic pension expense
 
$
3,676
 
 
$
1,960
 
 
$
2,940
 
 
$
873
 
 
$
943
 
 
$
971
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in plan assets and benefit obligations included in other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
Net actuarial loss
 
 
(1,037
)
 
 
(1,888
)
 
 
115
 
 
 
2,431
 
 
 
(783
)
 
 
817
 
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(2
)
 
 
(124
)
 
 
(124
)
Actuarial loss
 
 
(1,371
)
 
 
(1,602
)
 
 
(2,367
)
 
 
(157
)
 
 
(203
)
 
 
(171
)
Total recognized in other comprehensive income (loss)
 
$
(2,408
)
 
$
(3,490
)
 
$
(2,252
)
 
$
2,272
 
 
$
(1,110
)
 
$
522
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
4.46
%
 
 
3.51
%
 
 
3.66
%
 
 
4.46
%
 
 
3.51
%
 
 
3.86
%
Expected return on plan assets
 
 
7.50
%
 
 
7.50
%
 
 
7.50
%
 
 
*
 
 
 
*
 
 
 
*
 
Annual rate of salary increase
 
 
*
 
 
 
*
 
 
 
*
 
 
 
*
 
 
 
*
 
 
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine benefit obligations as of December 31:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
3.66
%
 
 
4.46
%
 
 
3.51
%
 
 
3.66
%
 
 
4.46
%
 
 
3.51
%
Expected return on plan assets
 
 
7.50
%
 
 
7.50
%
 
 
7.50
%
 
 
*
 
 
 
*
 
 
 
*
 
Annual rate of salary increase
 
 
*
 
 
 
*
 
 
 
*
 
 
 
*
 
 
 
*
 
 
 
*
 
 
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 
*
Not applicable.
Fair value hierarchy for the Company's defined benefit pension plan assets
The following table presents the fair value hierarchy for the Company’s defined benefit pension plan assets, excluding cash held.
 
 
 
 
 
 
Fair Value Measurements at
 
 
 
 
 
 
Reporting Date Using
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity security funds (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
12,718
 
 
 
$
-
 
 
 
$
12,718
 
 
 
$
-
 
 
International
 
 
2,790
 
 
 
 
-
 
 
 
 
2,790
 
 
 
 
-
 
 
Fixed income funds
 
 
15,591
 
 
 
 
-
 
 
 
 
15,591
 
 
 
 
-
 
 
Total
 
$
31,099
 
 
 
$
-
 
 
 
$
31,099
 
 
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity security funds (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
14,730
 
 
 
$
-
 
 
 
$
14,730
 
 
 
$
-
 
 
International
 
 
3,579
 
 
 
 
-
 
 
 
 
3,579
 
 
 
 
-
 
 
Fixed income funds
 
 
17,413
 
 
 
 
-
 
 
 
 
17,413
 
 
 
 
-
 
 
Total
 
$
35,722
 
 
 
$
-
 
 
 
$
35,722
 
 
 
$
-
 
 
 
 
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
(1)
None of the trust fund assets for the defined benefit pension plan have been invested in shares of HMEC’s common stock.
Summary of change in accumulated postretirement benefit obligations
A one percentage point change in the assumed health care cost trend rate for each year would change the accumulated postretirement benefit obligations as follows:
 
 
 
December 31,
 
 
 
2014
 
2013
 
2012
Accumulated postretirement benefit obligations
 
 
 
 
 
 
 
 
 
 
 
 
Effect of a one percentage point increase
 
 
*
 
 
$
-
 
 
$
45
 
Effect of a one percentage point decrease
 
 
*
 
 
 
-
 
 
 
(43
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Service and interest cost components of the net periodic postretirement benefit expense
 
 
 
 
 
 
 
 
 
 
 
 
Effect of a one percentage point increase
 
 
*
 
 
$
2
 
 
$
1
 
Effect of a one percentage point decrease
 
 
*
 
 
 
(2
)
 
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine benefit obligations as of December 31:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
3.66
%
 
 
4.46
%
 
 
3.51
%
Healthcare cost trend rate
 
 
*
 
 
 
*
 
 
 
7.50
%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
 
 
*
 
 
 
*
 
 
 
5.00
%
Year the rate is assumed to reach the ultimate trend rate
 
 
*
 
 
 
*
 
 
 
2022
 
Expected return on plan assets
 
 
*
 
 
 
*
 
 
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
4.46
%
 
 
3.51
%
 
 
2.95
%
Healthcare cost trend rate
 
 
*
 
 
 
7.50
%
 
 
8.00
%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
 
 
*
 
 
 
5.00
%
 
 
5.00
%
Year the rate is assumed to reach the ultimate trend rate
 
 
*
 
 
 
2022
 
 
 
2022
 
Expected return on plan assets
 
 
*
 
 
 
*
 
 
 
*
 
 
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 
*
Not applicable.
Summary of minimum funding requirement and the expected full year contributions for the Company's plans
The following table discloses that minimum funding requirement and the expected full year contributions for the Company’s plans.
 
 
 
Defined Benefit Pension Plans
 
 
 
 
Defined
 
 
 
Supplemental
 
 
 
 
Benefit
 
 
 
Defined Benefit
 
 
 
 
Plan
 
 
 
Plans
 
 
 
 
 
 
 
 
Minimum funding requirement for 2015
 
$   -    
 
 
 
N/A     
 
Expected contributions (approximations) for the year ended December 31, 2015 as of the time of this Form 10-K (1)
 
 
-    
 
 
$1,320    
 
 
______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
N/A - Not applicable.
(1) HMEC’s Annual Report on Form 10-K for the year ended December 31, 2014.
Estimated future benefit payments
Estimated future benefit payments as of December 31, 2014 were as follows:
 
 
 
2015
 
 
2016
 
 
2017
 
 
2018
 
 
2019
 
 
2020-2024
 
Pension plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plan
 
$
3,580
 
 
$
3,398
 
 
$
2,911
 
 
$
2,714
 
 
$
3,163
 
 
$13,659
 
Supplemental retirement plans
 
 
1,320
 
 
 
1,310
 
 
 
1,299
 
 
 
1,286
 
 
 
1,272
 
 
 
6,072
 
Postretirement Benefit Costs [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Funded status of the defined benefit, supplemental retirement pension plans and postretirement benefits other than pensions
The following table presents the funded status of postretirement benefits other than pensions of active and retired employees (including employees on disability more than 2 years) as of December 31, 2014, 2013 and 2012 (the measurement dates) reconciled with amounts recognized in the Company's Consolidated Balance Sheets:
 
 
 
December 31,
 
 
 
 
2014
 
 
 
2013
 
 
 
2012
 
Change in accumulated postretirement benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated postretirement benefit obligations at beginning of year
 
$
1,130
 
 
$
2,862
 
 
$
3,326
 
Changes during fiscal year
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
 
-
 
 
 
-
 
 
 
-
 
Interest cost
 
 
46
 
 
 
92
 
 
 
91
 
Plan amendment
 
 
-
 
 
 
(1,393
)
 
 
-
 
Settlements
 
 
(965
)
 
 
-
 
 
 
-
 
Employer payments net of participant contributions
 
 
(95
)
 
 
(491
)
 
 
(488
)
Actuarial (gain) loss
 
 
(116
)
 
 
60
 
 
 
(67
)
Accumulated postretirement benefit obligations at end of year
 
$
-
 
 
$
1,130
 
 
$
2,862
 
Unfunded status
 
$
-
 
 
$
(1,130
)
 
$
(2,862
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total amount recognized in Consolidated Balance Sheets, all in Other Liabilities
 
$
-
 
 
$
(1,130
)
 
$
(2,862
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”):
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (credit)
 
$
-
 
 
$
(1,341
)
 
$
-
 
Net actuarial loss (gain)
 
 
-
 
 
 
(604
)
 
 
(900
)
Total amount recognized in AOCI
 
$
-
 
 
$
(1,945
)
 
$
(900
)
 
 
 
Year Ended December 31,
 
 
 
 
2014
 
 
 
2013
 
 
 
2012
 
Components of net periodic benefit:
 
 
 
 
 
 
 
 
 
Service cost
 
$
-
 
 
$
-
 
 
$
-
 
Interest cost
 
 
46
 
 
 
92
 
 
 
91
 
Curtailment gain
 
 
(713
)
 
 
-
 
 
 
-
 
Settlement gain
 
 
(1,439
)
 
 
-
 
 
 
-
 
Amortization of prior service cost
 
 
(628
)
 
 
(52
)
 
 
-
 
Amortization of prior gain
 
 
(246
)
 
 
(236
)
 
 
(522
)
Net periodic income
 
$
(2,980
)
 
$
(196
)
 
$
(431
)
Defined Benefit Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Funded status of the defined benefit, supplemental retirement pension plans and postretirement benefits other than pensions
The following tables summarize the funded status of the defined benefit and supplemental retirement pension plans as of December 31, 2014, 2013 and 2012 (the measurement dates) and identify (1) the assumptions used to determine the projected benefit obligation and (2) the components of net pension cost for the defined benefit plan and supplemental retirement plans for the following periods:
 
 
 
 
 
 
 
 
 
Supplemental
 
 
 
 
 
Defined Benefit Plan
 
 
 
 
Defined Benefit Plans
 
 
 
 
 
December 31,
 
 
 
 
December 31,
 
 
 
 
 
2014
 
 
 
 
2013
 
 
 
 
2012
 
 
 
 
2014
 
 
 
 
2013
 
 
 
 
2012
 
 
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
 
$
39,483
 
 
$
40,994
 
 
$
41,736
 
 
$
16,706
 
 
$
18,192
 
 
$
18,012
 
Service cost
 
 
360
 
 
 
360
 
 
 
360
 
 
 
-
 
 
 
-
 
 
 
-
 
Interest cost
 
 
1,679
 
 
 
1,369
 
 
 
1,427
 
 
 
716
 
 
 
616
 
 
 
676
 
Plan amendments
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Actuarial loss (gain)
 
 
1,254
 
 
 
624
 
 
 
1,686
 
 
 
2,431
 
 
 
(783
)
 
 
817
 
Benefits paid
 
 
(1,737
)
 
 
(1,715
)
 
 
(1,664
)
 
 
(1,329
)
 
 
(1,319
)
 
 
(1,313
)
Settlements
 
 
(6,760
)
 
 
(2,149
)
 
 
(2,551
)
 
 
-
 
 
 
-
 
 
 
-
 
Projected benefit obligation at end of year
 
$
34,279
 
 
$
39,483
 
 
$
40,994
 
 
$
18,524
 
 
$
16,706
 
 
$
18,192
 
Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
35,879
 
 
$
32,757
 
 
$
31,653
 
 
$
-
 
 
$
-
 
 
$
-
 
Actual return on plan assets
 
 
2,535
 
 
 
4,396
 
 
 
3,168
 
 
 
-
 
 
 
-
 
 
 
-
 
Employer contributions
 
 
2,000
 
 
 
3,103
 
 
 
2,534
 
 
 
1,329
 
 
 
1,319
 
 
 
1,313
 
Benefits paid
 
 
(1,737
)
 
 
(1,715
)
 
 
(1,664
)
 
 
(1,329
)
 
 
(1,319
)
 
 
(1,313
)
Expenses paid
 
 
(509
)
 
 
(513
)
 
 
(383
)
 
 
-
 
 
 
-
 
 
 
-
 
Settlements
 
 
(6,760
)
 
 
(2,149
)
 
 
(2,551
)
 
 
-
 
 
 
-
 
 
 
-
 
Fair value of plan assets at end of year
 
$
31,408
 
 
$
35,879
 
 
$
32,757
 
 
$
-
 
 
$
-
 
 
$
-
 
Funded status
 
$
(2,871
)
 
$
(3,604
)
 
$
(8,237
)
 
$
(18,524
)
 
$
(16,706
)
 
$
(18,192
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prepaid (accrued) benefit expense
 
$
10,656
 
 
$
12,331
 
 
$
11,188
 
 
$
(12,024
)
 
$
(12,479
)
 
$
(12,855
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total amount recognized in Consolidated Balance Sheets, all in Other Liabilities
 
$
(2,871
)
 
$
(3,604
)
 
$
(8,237
)
 
$
(18,524
)
 
$
(16,706
)
 
$
(18,192
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive income (loss) (“AOCI”):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
124
 
Net actuarial loss
 
 
13,527
 
 
 
15,935
 
 
 
19,425
 
 
 
6,500
 
 
 
4,227
 
 
 
5,213
 
Total amount recognized in AOCI
 
$
13,527
 
 
$
15,935
 
 
$
19,425
 
 
$
6,500
 
 
$
4,227
 
 
$
5,337
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Information for pension plans with an accumulated benefit obligation greater than plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation
 
$
34,729
 
 
$
39,483
 
 
$
40,994
 
 
$
18,524
 
 
$
16,706
 
 
$
18,192
 
Accumulated benefit obligation
 
 
34,729
 
 
 
39,483
 
 
 
40,994
 
 
 
18,524
 
 
 
16,706
 
 
 
18,192
 
Fair value of plan assets
 
 
31,408
 
 
 
35,879
 
 
 
32,757
 
 
 
-
 
 
 
-
 
 
 
-