XML 78 R58.htm IDEA: XBRL DOCUMENT v3.10.0.1
Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
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)
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation
 
 
 
 
 
 
 
 
Obligation at January 1
 
$
3,163.7

 
$
3,058.8

 
$
818.5

 
$
818.4

Service cost
 
47.1

 
44.6

 
23.7

 
24.1

Interest cost
 
114.3

 
121.8

 
29.9

 
32.9

Participant contributions
 
—

 
—

 
15.5

 
13.4

Plan amendments
 
—

 
—

 
(3.5
)
 
(36.4
)
Actuarial loss (gain)
 
(171.8
)
 
162.6

 
(222.6
)
 
12.9

Benefit payments
 
(226.1
)
 
(224.1
)
 
(55.4
)
 
(48.8
)
Federal subsidy on benefits paid
 
N/A

 
N/A

 
1.0

 
2.0

Transfer
 
—

 
—

 
1.1

 
—

Obligation at December 31
 
$
2,927.2

 
$
3,163.7

 
$
608.2

 
$
818.5

 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
Fair value at January 1
 
$
2,966.8

 
$
2,709.2

 
$
841.5

 
$
773.5

Actual return on plan assets
 
(122.2
)
 
368.7

 
(35.2
)
 
95.9

Employer contributions
 
72.3

 
113.0

 
5.3

 
7.5

Participant contributions
 
—

 
—

 
15.5

 
13.4

Benefit payments
 
(226.1
)
 
(224.1
)
 
(55.4
)
 
(48.8
)
Fair value at December 31
 
$
2,690.8

 
$
2,966.8

 
$
771.7

 
$
841.5

Funded status at December 31
 
$
(236.4
)
 
$
(196.9
)
 
$
163.5

 
$
23.0
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)
 
2018
 
2017
 
2018
 
2017
Other long-term assets
 
$
139.1

 
$
143.0

 
$
210.8

 
$
80.5

Pension and OPEB obligations
 
375.5

 
339.9

 
47.3

 
57.5

Total net (liabilities) assets
 
$
(236.4
)
 
$
(196.9
)
 
$
163.5

 
$
23.0
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)
 
2018
 
2017
Projected benefit obligation
 
$
1,930.8

 
$
679.5

Accumulated benefit obligation
 
1,882.2

 
630.3

Fair value of plan assets
 
1,572.7

 
339.6
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)
 
2018
 
2017
 
2018
 
2017
Pre-tax accumulated other comprehensive loss (income) (1)
 
 
 
 
 
 
 
 
Net actuarial loss (gain)
 
$
14.5

 
$
10.0

 
$
(1.6
)
 
$
(1.0
)
Prior service credits
 
—

 
—

 
(0.1
)
 
(0.1
)
Total
 
$
14.5

 
$
10.0

 
$
(1.7
)
 
$
(1.1
)
 
 
 
 
 
 
 
 
 
Net regulatory assets (liabilities) (2)
 
 
 
 
 
 
 
 
Net actuarial loss (gain)
 
$
1,184.1

 
$
1,136.8

 
$
(133.0
)
 
$
(4.7
)
Prior service costs (credits)
 
4.9

 
7.5

 
(100.0
)
 
(111.8
)
Total
 
$
1,189.0

 
$
1,144.3

 
$
(233.0
)
 
$
(116.5
)


(1) 
Amounts related to the nonregulated entities are included in accumulated other comprehensive loss (income).

(2) 
Amounts related to the utilities and WBS are recorded as net regulatory assets or liabilities.
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 2019:
(in millions)
 
Pension Costs
 
OPEB Costs
Net actuarial loss (gain)
 
$
76.1

 
$
(5.7
)
Prior service costs (credits)
 
2.2

 
(15.4
)
Total 2019 – estimated amortization
 
$
78.3

 
$
(21.1
)
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)
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost
 
$
47.1

 
$
44.6

 
$
45.4

 
$
23.7

 
$
24.1

 
$
26.1

Interest cost
 
114.3

 
121.8

 
130.8

 
29.9

 
32.9

 
37.0

Expected return on plan assets
 
(196.5
)
 
(195.7
)
 
(195.9
)
 
(59.5
)
 
(55.5
)
 
(52.7
)
Plan settlement
 
1.0

 
9.0

 
16.5

 
—

 
—

 
—

Amortization of prior service cost (credit)
 
2.7

 
2.9

 
3.4

 
(15.4
)
 
(12.3
)
 
(9.4
)
Amortization of net actuarial loss
 
94.0

 
86.1

 
82.9

 
1.0

 
3.1

 
8.5

Net periodic benefit cost (credit)
 
$
62.6

 
$
68.7

 
$
83.1

 
$
(20.3
)
 
$
(7.7
)
 
$
9.5
Schedule of financial statement impacts from retrospective restatements
The impacts to our income statements from adoption of this standard are reflected in the table below.
 
 
Year Ended December 31, 2017
 
Year Ended December 31, 2016
(in millions)
 
Form
10-K Income Statement
 
Impact of ASU 2017-07
 
Income Statement After Adoption
 
Form
10-K Income Statement
 
Impact of ASU 2017-07
 
Income Statement After Adoption
Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
Other operation and maintenance
 
$
2,047.0

 
$
9.1

 
$
2,056.1

 
$
2,185.5

 
$
(14.2
)
 
$
2,171.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense
 
 
 
 
 
 
 
 
 
 
 
 
Other income, net
 
64.6

 
9.1

 
73.7

 
80.8

 
(14.2
)
 
66.6
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
 
 
2018
 
2017
 
2018
 
2017
Discount rate
 
4.30%
 
3.66%
 
4.27%
 
3.63%
Rate of compensation increase
 
3.66%
 
3.61%
 
N/A
 
N/A
Assumed medical cost trend rate (Pre 65)
 
N/A
 
N/A
 
6.25%
 
6.50%
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
 
2024
Assumed medical cost trend rate (Post 65)
 
N/A
 
N/A
 
6.01%
 
6.09%
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
 
2028

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
 
 
2018
 
2017
 
2016
Discount rate
 
3.71%
 
4.11%
 
4.35%
Expected return on plan assets
 
7.12%
 
7.11%
 
7.12%
Rate of compensation increase
 
3.66%
 
3.60%
 
3.75%

 
 
OPEB Costs
 
 
2018
 
2017
 
2016
Discount rate
 
3.63%
 
4.04%
 
4.38%
Expected return on plan assets
 
7.25%
 
7.25%
 
7.25%
Assumed medical cost trend rate (Pre 65)
 
6.50%
 
7.00%
 
7.50%
Ultimate trend rate (Pre 65)
 
5.00%
 
5.00%
 
5.00%
Year ultimate trend rate is reached (Pre 65)
 
2024
 
2021
 
2021
Assumed medical cost trend rate (Post 65)
 
6.09%
 
7.00%
 
7.50%
Ultimate trend rate (Post 65)
 
5.00%
 
5.00%
 
5.00%
Year ultimate trend rate is reached (Post 65)
 
2028
 
2021
 
2021
Effects of a one-percentage-point change in assumed health care cost trend rates
For the year ended December 31, 2018, 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
 
$
7.5

 
$
(5.9
)
Effect on health care component of the accumulated postretirement benefit obligations
 
44.3

 
(37.1
)
Investments recorded at fair value, by asset class
The following tables provide the fair values of our investments by asset class:
 
 
December 31, 2018
 
 
Pension Plan Assets
 
OPEB Assets
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Asset Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States Equity
 
$
281.7

 
$
—

 
$
—

 
$
281.7

 
$
88.2

 
$
—

 
$
—

 
$
88.2

International Equity
 
279.7

 
0.7

 
—

 
280.4

 
92.2

 
0.2

 
—

 
92.4

Fixed income securities: *
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States Bonds
 
123.7

 
838.8

 
—

 
962.5

 
119.6

 
150.8

 
—

 
270.4

International Bonds
 
16.1

 
85.5

 
—

 
101.6

 
7.1

 
8.9

 
—

 
16.0

 
 
$
701.2

 
$
925.0

 
$
—

 
$
1,626.2

 
$
307.1

 
$
159.9

 
$
—

 
$
467.0

Investments measured at net asset value
 
 
 
 
 
 
 
$
1,064.6

 
 
 
 
 
 
 
$
304.7

Total
 
$
701.2

 
$
925.0

 
$
—

 
$
2,690.8

 
$
307.1

 
$
159.9

 
$
—

 
$
771.7


*
This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries.
 
 
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



*
This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries.
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
(in millions)
 
Pension
 
OPEB
 
Pension
 
OPEB
Beginning balance at January 1, 2018
 
$
100.1

 
$
7.7

 
$
0.8

 
$
0.2

Realized and unrealized gains (losses)
 
8.0

 
1.1

 
(0.1
)
 
—

Purchases
 
18.3

 
1.5

 
—

 
—

Liquidations
 
(1.7
)
 
(0.2
)
 
—

 
—

Transfers out of level 3
 
(124.7
)
 
(10.1
)
 
(0.7
)
 
(0.2
)
Ending balance at December 31, 2018
 
$
—

 
$
—

 
$
—

 
$
—


 
 
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

 
$
—
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
2019
 
$
239.0

 
$
35.4

2020
 
233.0

 
39.6

2021
 
230.9

 
41.3

2022
 
225.7

 
41.6

2023
 
215.8

 
42.5

2024-2028
 
985.5

 
213.6