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Employee Benefit Plans
6 Months Ended
Jun. 30, 2020
Compensation And Retirement Disclosure [Abstract]  
Employee Benefit Plans

Note 20. Employee Benefit Plans

Dominion Energy

The service cost component and non-service cost components of net periodic benefit (credit) cost are reflected in other operations and maintenance expense and other income, respectively, in the Consolidated Statements of Income. The components of Dominion Energy’s provision for net periodic benefit cost (credit) are as follows:

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

43

 

 

$

40

 

 

$

7

 

 

$

6

 

Interest cost

 

 

90

 

 

 

98

 

 

 

15

 

 

 

17

 

Expected return on plan assets

 

 

(192

)

 

 

(176

)

 

 

(39

)

 

 

(35

)

Amortization of prior service cost (credit)

 

 

1

 

 

 

1

 

 

 

(13

)

 

 

(13

)

Amortization of net actuarial loss

 

 

48

 

 

 

43

 

 

 

2

 

 

 

3

 

Settlement and curtailment(1)

 

 

2

 

 

 

71

 

 

 

 

 

 

42

 

Net periodic benefit cost (credit)

 

$

(8

)

 

$

77

 

 

$

(28

)

 

$

20

 

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

86

 

 

$

80

 

 

$

14

 

 

$

13

 

Interest cost

 

 

181

 

 

 

199

 

 

 

30

 

 

 

34

 

Expected return on plan assets

 

 

(385

)

 

 

(353

)

 

 

(78

)

 

 

(68

)

Amortization of prior service cost (credit)

 

 

1

 

 

 

1

 

 

 

(25

)

 

 

(26

)

Amortization of net actuarial loss

 

 

97

 

 

 

82

 

 

 

3

 

 

 

7

 

Settlement and curtailment(1)

 

 

2

 

 

 

73

 

 

 

 

 

 

42

 

Net periodic benefit cost (credit)

 

$

(18

)

 

$

82

 

 

$

(56

)

 

$

2

 

 

(1) 2019 amounts relate primarily to a voluntary retirement program.

Voluntary Retirement Program

In March 2019, the Companies announced a voluntary retirement program to employees that meet certain age and service requirements. In the second quarter of 2019, upon the determinations made concerning the number of employees that elected to participate in the program, Dominion Energy recorded a charge of $423 million ($316 million after-tax) included within other operations and maintenance expense ($288 million), other taxes ($23 million) and other income ($112 million), Virginia Power recorded a charge of $194 million ($144 million after-tax) included within other operations and maintenance expense ($186 million)  and other taxes ($8 million) and Dominion Energy Gas recorded a charge of $74 million ($58 million after-tax) included within other operations and maintenance expense ($39 million), other taxes ($2 million), other income ($1 million) and discontinued operations ($32 million) in their respective Consolidated Statements of Income. See Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019 for more information.

Employer Contributions

During the six months ended June 30, 2020, Dominion Energy made no contributions to its qualified defined benefit pension plans or other postretirement benefit plans. Dominion Energy does not expect to make contributions to its defined benefit pension plans and expects to contribute $12 million to other postretirement benefit plans through VEBAs, respectively, during the remainder of 2020.

Following closing of the transaction with BHE described in Note 3, Dominion Energy expects to utilize $250 million of the proceeds from the sale to contribute to its qualified defined benefit pension plans by the end of 2020.  In addition, Dominion Energy would not expect to make any further contributions to other postretirement plans in 2020.

 

 

Dominion Energy Gas

Dominion Energy Gas participates in certain Dominion Energy benefit plans as described in Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2019. See Note 19 for more information.

 

The service cost component and non-service cost components of net periodic benefit (credit) cost are reflected in other operations and maintenance expense and other income, respectively, in the Consolidated Statements of Income. The components of Dominion Energy Gas’ provision for net periodic benefit cost (credit) for employees represented by collective bargaining units are as follows:

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

2

 

 

$

4

 

 

$

 

 

$

1

 

Interest cost

 

 

2

 

 

 

8

 

 

 

1

 

 

 

2

 

Expected return on plan assets

 

 

(14

)

 

 

(39

)

 

 

(5

)

 

 

(7

)

Amortization of prior service credit

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Amortization of net actuarial loss

 

 

2

 

 

 

5

 

 

 

1

 

 

 

1

 

Curtailment(1)

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Net periodic benefit credit

 

$

(8

)

 

$

(21

)

 

$

(4

)

 

$

(3

)

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

3

 

 

$

8

 

 

$

1

 

 

$

2

 

Interest cost

 

 

5

 

 

 

16

 

 

 

2

 

 

 

5

 

Expected return on plan assets

 

 

(28

)

 

 

(78

)

 

 

(10

)

 

 

(14

)

Amortization of prior service credit

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

Amortization of net actuarial loss

 

 

4

 

 

 

10

 

 

 

1

 

 

 

2

 

Curtailment(1)

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Net periodic benefit credit

 

$

(16

)

 

$

(43

)

 

$

(8

)

 

$

(6

)

(1) 2019 amounts relate to a voluntary retirement program.

 

Employer Contributions

During the six months ended June 30, 2020, Dominion Energy Gas made no contributions to its qualified defined benefit pension plan or other postretirement benefit plans. Dominion Energy Gas does not expect to make contributions to its qualified defined benefit pension plan and expects to contribute approximately $12 million to its other postretirement benefit plans through VEBAs during the remainder of 2020.