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EMPLOYEE BENEFIT PLANS (Tables)
12 Months Ended
Dec. 31, 2011
EMPLOYEE BENEFIT PLANS  
Schedule of changes in the projected benefit obligation for retirement benefits and the accumulated benefit obligation for other postretirement benefits

 

 

 

 

Pension
Benefits

 

Other
Postretirement
Benefits

 

Millions of dollars

 

2011

 

2010

 

2011

 

2010

 

Benefit obligation, January 1

 

$

811.8

 

$

789.4

 

$

213.5

 

$

210.4

 

Service cost

 

18.3

 

17.9

 

4.3

 

4.2

 

Interest cost

 

43.5

 

44.0

 

12.2

 

11.9

 

Plan participants’ contributions

 

 

 

3.2

 

3.1

 

Actuarial (gain) loss

 

0.4

 

(1.1

)

7.2

 

(1.6

)

Benefits paid

 

(43.9

)

(38.4

)

(14.3

)

(14.5

)

Benefit obligation, December 31

 

$

830.1

 

$

811.8

 

$

226.1

 

$

213.5

 

Schedule of significant assumptions used to determine the benefit obligations

 

 

 

 

Pension
Benefits

 

Other
Postretirement
Benefits

 

 

 

2011

 

2010

 

2011

 

2010

 

Annual discount rate used to determine benefit obligation

 

5.25

%

5.56

%

5.35

%

5.72

%

Assumed annual rate of future salary increases for projected benefit obligation

 

4.00

%

4.00

%

4.00

%

4.00

%

Schedule of funded status

 

 

Millions of Dollars

 

Pension
Benefits

 

Other
Postretirement
Benefits

 

December 31,

 

2011

 

2010

 

2011

 

2010

 

Fair value of plan assets

 

$

755.0

 

$

817.2

 

 

 

Benefit obligations

 

830.1

 

811.8

 

$

226.1

 

$

213.5

 

Funded status - asset (liability)

 

$

(75.1

)

$

5.4

 

$

(226.1

)

$

(213.5

)

Schedule of amount recognized on the consolidated balance sheets

 

 

Millions of Dollars

 

Pension
Benefits

 

Other
Postretirement
Benefits

 

December 31,

 

2011

 

2010

 

2011

 

2010

 

Noncurrent asset

 

 

$

5.4

 

 

 

Current liability

 

 

 

$

(10.5

)

$

(11.4

)

Noncurrent liability

 

$

(75.1

)

 

(215.6

)

(202.1

)

Schedule of amounts recognized in accumulated other comprehensive income (a component of common equity)

 

 

Millions of Dollars

 

Pension
Benefits

 

Other
Postretirement
Benefits

 

December 31,

 

2011

 

2010

 

2011

 

2010

 

Net actuarial loss

 

$

9.6

 

$

7.1

 

$

1.7

 

$

1.3

 

Prior service cost

 

1.2

 

1.4

 

0.1

 

0.2

 

Transition obligation

 

 

 

0.2

 

0.3

 

Total

 

$

10.8

 

$

8.5

 

$

2.0

 

$

1.8

 

Schedule of changes in fair value of plan assets

 

 

 

 

Pension Benefits

 

Millions of dollars

 

2011

 

2010

 

Fair value of plan assets, January 1

 

$

817.2

 

$

758.9

 

Actual return on plan assets

 

(18.3

)

96.7

 

Benefits paid

 

(43.9

)

(38.4

)

Fair value of plan assets, December 31

 

$

755.0

 

$

817.2

 

Schedule of the entity's pension plan asset allocation and target allocation

 

 

 

 

Percentage of Plan Assets

 

 

 

Target
Allocation

 

At
December 31,

 

Asset Category

 

2012

 

2011

 

2010

 

Equity Securities

 

65

%

65

%

68

%

Debt Securities

 

35

%

35

%

32

%

Schedule of assets held by the pension plan measured at fair value

 

 

 

 

 

 

Fair Value Measurements at Reporting
Date Using

 

Millions of dollars

 

Total

 

Quoted Market Prices
in Active Market for
Identical
Assets/Liabilities
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Other
Unobservable
Inputs
(Level 3)

 

December 31, 2011

 

 

 

 

 

 

 

 

 

Common stock

 

$

324

 

$

324

 

 

 

 

 

Preferred stock

 

1

 

1

 

 

 

 

 

Mutual funds

 

183

 

20

 

$

163

 

 

 

Short-term investment vehicles

 

23

 

 

 

23

 

 

 

Government agency securities

 

32

 

 

 

32

 

 

 

Corporate debt securities

 

51

 

 

 

51

 

 

 

Loans secured by mortgages

 

12

 

 

 

12

 

 

 

Municipals

 

4

 

 

 

4

 

 

 

Common collective trusts

 

37

 

 

 

37

 

 

 

Limited partnerships

 

23

 

 

 

23

 

 

 

Multi-strategy hedge funds

 

65

 

 

 

 

 

$

65

 

 

 

$

755

 

$

345

 

$

345

 

$

65

 

 

 

 

 

 

 

 

 

 

 

December 31, 2010

 

 

 

 

 

 

 

 

 

Common stock

 

$

363

 

$

363

 

 

 

 

 

Mutual funds

 

206

 

25

 

$

181

 

 

 

Short-term investment vehicles

 

18

 

 

 

18

 

 

 

Government agency securities

 

51

 

 

 

51

 

 

 

Corporate debt securities

 

51

 

 

 

51

 

 

 

Loans secured by mortgages

 

9

 

 

 

9

 

 

 

Municipals

 

3

 

 

 

3

 

 

 

Common collective trusts

 

45

 

 

 

45

 

 

 

Limited partnerships

 

26

 

1

 

25

 

 

 

Multi-strategy hedge funds

 

45

 

 

 

 

 

$

45

 

 

 

$

817

 

$

389

 

$

383

 

$

45

 

Changes in fair value measurements of level 3 investments

 

 

 

 

Fair Value
Measurements
Using
Significant
Unobservable
Inputs
(Level 3)

 

Millions of dollars

 

2011

 

2010

 

Beginning Balance

 

$

45

 

$

14

 

Unrealized gains (losses) included in changes in net assets

 

(1

)

2

 

Purchases, issuances, and settlements

 

21

 

29

 

Transfers in or out of Level 3

 

 

 

Ending Balance

 

$

65

 

$

45

 

Schedule of expected benefit payments

 

 

 

 

 

 

Other Postretirement Benefits*

 

Millions of dollars

 

Pension
Benefits

 

Excluding Medicare
Subsidy

 

Including Medicare
Subsidy

 

2012

 

$

73.4

 

$

11.1

 

$

10.8

 

2013

 

66.8

 

11.8

 

11.5

 

2014

 

61.8

 

12.6

 

12.3

 

2015

 

63.3

 

13.4

 

13.1

 

2016

 

65.5

 

14.0

 

13.7

 

2017 - 2021

 

315.5

 

78.6

 

77.3

Components of Net Periodic Benefit Cost (Income)

 

 

 

 

Pension Benefits

 

Other
Postretirement Benefits

 

Millions of dollars

 

2011

 

2010

 

2009

 

2011

 

2010

 

2009

 

Service cost

 

$

18.3

 

$

17.9

 

$

15.5

 

$

4.3

 

$

4.2

 

$

3.7

 

Interest cost

 

43.5

 

44.0

 

44.9

 

12.2

 

11.9

 

12.3

 

Expected return on assets

 

(63.7

)

(61.4

)

(50.8

)

n/a

 

n/a

 

n/a

 

Prior service cost amortization

 

7.0

 

7.0

 

7.0

 

1.0

 

1.0

 

1.0

 

Amortization of actuarial losses

 

12.2

 

16.0

 

23.4

 

0.4

 

 

 

Transition amount amortization

 

 

 

 

0.7

 

0.7

 

0.7

 

Net periodic benefit cost

 

$

17.3

 

$

23.5

 

$

40.0

 

$

18.6

 

$

17.8

 

$

17.7

 

Other changes in plan assets and benefit obligations recognized in other comprehensive income

 

 

 

 

Pension Benefits

 

Other
Postretirement Benefits

 

Millions of dollars

 

2011

 

2010

 

2009

 

2011

 

2010

 

2009

 

Current year actuarial (gain)/loss

 

$

2.9

 

$

(26.4

)

$

(10.4

)

$

0.4

 

$

(0.1

)

$

0.7

 

Amortization of actuarial losses

 

(0.4

)

(2.0

)

(3.7

)

 

 

 

Amortization of prior service cost

 

(0.2

)

(0.1

)

(0.1

)

(0.1

)

 

(0.1

)

Prior service cost OCI adjustment

 

 

0.8

 

 

 

 

 

Amortization of transition obligation

 

 

 

 

(0.1

)

(0.1

)

(0.1)

 

Total recognized in other comprehensive income

 

$

2.3

 

$

(27.7

)

$

(14.2

)

$

0.2

 

$

(0.2

)

$

0.5

 

Schedule of Significant Assumptions Used in Determining Net Periodic Benefit Cost

 

 

 

 

Pension Benefits

 

Other
Postretirement Benefits

 

 

 

2011

 

2010

 

2009

 

2011

 

2010

 

2009

 

Discount rate

 

5.56

%

5.75

%

6.45

%

5.72

%

5.90

%

6.45

%

Expected return on plan assets

 

8.25

%

8.50

%

8.50

%

n/a

 

n/a

 

n/a

 

Rate of compensation increase

 

4.00

%

4.00

%

4.00

%

4.00

%

4.00

%

4.00

%

Health care cost trend rate

 

n/a

 

n/a

 

n/a

 

8.00

%

8.50

%

8.00

%

Ultimate health care cost trend rate

 

n/a

 

n/a

 

n/a

 

5.00

%

5.00

%

5.00

%

Year achieved

 

n/a

 

n/a

 

n/a

 

2017

 

2017

 

2015

Schedule of amounts to be amortized from accumulated other comprehensive income into net periodic benefit cost

 

 

Millions of Dollars

 

Pension
Benefits

 

Other
Postretirement
Benefits

 

Actuarial loss

 

$

0.6

 

 

Prior service cost

 

0.2

 

$

0.1

 

Transition obligation

 

 

0.1

 

Total

 

$

0.8

 

$

0.2