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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
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 Benefits
 
OPEB Benefits
(in millions)
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation
 
 
 
 
 
 
 
 
Obligation at January 1
 
$
2,927.2

 
$
3,163.7

 
$
608.2

 
$
818.5

Service cost
 
47.0

 
47.1

 
16.3

 
23.7

Interest cost
 
120.4

 
114.3

 
25.7

 
29.9

Participant contributions
 
—

 
—

 
12.3

 
15.5

Plan amendments
 
—

 
—

 
(4.0
)
 
(3.5
)
Actuarial loss (gain)
 
269.3

 
(171.8
)
 
(60.7
)
 
(222.6
)
Benefit payments
 
(240.2
)
 
(226.1
)
 
(42.3
)
 
(55.4
)
Federal subsidy on benefits paid
 
N/A

 
N/A

 
1.3

 
1.0

Transfer
 
—

 
—

 
1.8

 
1.1

Obligation at December 31
 
$
3,123.7

 
$
2,927.2

 
$
558.6

 
$
608.2

 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
Fair value at January 1
 
$
2,690.8

 
$
2,966.8

 
$
771.7

 
$
841.5

Actual return on plan assets
 
494.1

 
(122.2
)
 
134.3

 
(35.2
)
Employer contributions
 
62.3

 
72.3

 
3.6

 
5.3

Participant contributions
 
—

 
—

 
12.3

 
15.5

Benefit payments
 
(240.2
)
 
(226.1
)
 
(42.3
)
 
(55.4
)
Fair value at December 31
 
$
3,007.0

 
$
2,690.8

 
$
879.6

 
$
771.7

Funded status at December 31
 
$
(116.7
)
 
$
(236.4
)
 
$
321.0

 
$
163.5
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 Benefits
 
OPEB Benefits
(in millions)
 
2019
 
2018
 
2019
 
2018
Other long-term assets
 
$
188.8

 
$
139.1

 
$
341.7

 
$
210.8

Pension and OPEB obligations
 
305.5

 
375.5

 
20.7

 
47.3

Total net (liabilities) assets
 
$
(116.7
)
 
$
(236.4
)
 
$
321.0

 
$
163.5
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)
 
2019
 
2018
Projected benefit obligation
 
$
1,810.1

 
$
1,930.8

Accumulated benefit obligation
 
1,754.2

 
1,882.2

Fair value of plan assets
 
1,504.6

 
1,572.7
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 Benefits
 
OPEB Benefits
(in millions)
 
2019
 
2018
 
2019
 
2018
Pre-tax accumulated other comprehensive loss (1)
 
 
 
 
 
 
 
 
Net actuarial loss (gain)
 
$
10.6

 
$
14.5

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

 
—

 
(0.1
)
 
(0.1
)
Total
 
$
10.6

 
$
14.5

 
$
(1.7
)
 
$
(1.7
)
 
 
 
 
 
 
 
 
 
Net regulatory assets (liabilities) (2)
 
 
 
 
 
 
 
 
Net actuarial loss (gain)
 
$
1,067.7

 
$
1,184.1

 
$
(266.6
)
 
$
(133.0
)
Prior service costs (credits)
 
2.7

 
4.9

 
(88.6
)
 
(100.0
)
Total
 
$
1,070.4

 
$
1,189.0

 
$
(355.2
)
 
$
(233.0
)


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

(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 2020:
(in millions)
 
Pension Benefits
 
OPEB Benefits
Net actuarial loss (gain)
 
$
97.1

 
$
(21.5
)
Prior service costs (credits)
 
1.6

 
(15.0
)
Total 2020 – estimated amortization
 
$
98.7

 
$
(36.5
)
Schedule of the components of net periodic benefit cost
The components of net periodic benefit cost (credit) (including amounts capitalized to our balance sheets) for the years ended December 31 were as follows:
 
 
Pension Benefits
 
OPEB Benefits
(in millions)
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
 
$
47.0

 
$
47.1

 
$
44.6

 
$
16.3

 
$
23.7

 
$
24.1

Interest cost
 
120.4

 
114.3

 
121.8

 
25.7

 
29.9

 
32.9

Expected return on plan assets
 
(193.3
)
 
(196.5
)
 
(195.7
)
 
(54.7
)
 
(59.5
)
 
(55.5
)
Plan settlement
 
11.5

 
1.0

 
9.0

 
—

 
—

 
—

Amortization of prior service cost (credit)
 
2.2

 
2.7

 
2.9

 
(15.4
)
 
(15.4
)
 
(12.3
)
Amortization of net actuarial loss
 
77.3

 
94.0

 
86.1

 
(6.6
)
 
1.0

 
3.1

Net periodic benefit cost (credit)
 
$
65.1

 
$
62.6

 
$
68.7

 
$
(34.7
)
 
$
(20.3
)
 
$
(7.7
)
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 Benefits
 
OPEB Benefits
 
 
2019
 
2018
 
2019
 
2018
Discount rate
 
3.41%
 
4.30%
 
3.39%
 
4.27%
Rate of compensation increase
 
4.00%
 
3.66%
 
N/A
 
N/A
Assumed medical cost trend rate (Pre 65)
 
N/A
 
N/A
 
6.00%
 
6.25%
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
 
2028
 
2024
Assumed medical cost trend rate (Post 65)
 
N/A
 
N/A
 
5.91%
 
6.01%
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 Benefits
 
 
2019
 
2018
 
2017
Discount rate
 
4.21%
 
3.71%
 
4.11%
Expected return on plan assets
 
7.12%
 
7.12%
 
7.11%
Rate of compensation increase
 
3.66%
 
3.66%
 
3.60%

 
 
OPEB Benefits
 
 
2019
 
2018
 
2017
Discount rate
 
4.27%
 
3.63%
 
4.04%
Expected return on plan assets
 
7.25%
 
7.25%
 
7.25%
Assumed medical cost trend rate (Pre 65)
 
6.25%
 
6.50%
 
7.00%
Ultimate trend rate (Pre 65)
 
5.00%
 
5.00%
 
5.00%
Year ultimate trend rate is reached (Pre 65)
 
2024
 
2024
 
2021
Assumed medical cost trend rate (Post 65)
 
6.01%
 
6.09%
 
7.00%
Ultimate trend rate (Post 65)
 
5.00%
 
5.00%
 
5.00%
Year ultimate trend rate is reached (Post 65)
 
2028
 
2028
 
2021
Effects of a one-percentage-point change in assumed health care cost trend rates For the year ended December 31, 2019, 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
 
$
4.7

 
$
(3.8
)
Effect on health care component of the accumulated postretirement benefit obligations
 
43.5

 
(36.5
)
Investments recorded at fair value, by asset class
The following tables provide the fair values of our investments by asset class:
 
 
December 31, 2019
 
 
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
 
$
335.6

 
$
—

 
$
—

 
$
335.6

 
$
103.0

 
$
—

 
$
—

 
$
103.0

International equity
 
321.6

 
0.7

 
—

 
322.3

 
107.3

 
0.2

 
—

 
107.5

Fixed income securities: *
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States bonds
 
94.3

 
887.4

 
—

 
981.7

 
119.1

 
165.9

 
—

 
285.0

International bonds
 
51.5

 
87.0

 
—

 
138.5

 
24.6

 
8.5

 
—

 
33.1

 
 
$
803.0

 
$
975.1

 
$
—

 
$
1,778.1

 
$
354.0

 
$
174.6

 
$
—

 
$
528.6

Investments measured at net asset value
 
 
 
 
 
 
 
$
1,228.9

 
 
 
 
 
 
 
$
351.0

Total
 
$
803.0

 
$
975.1

 
$
—

 
$
3,007.0

 
$
354.0

 
$
174.6

 
$
—

 
$
879.6


*
This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries.
 
 
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.
Reconciliation of changes in the fair value of plan assets categorized as Level 3 measurements
The following table sets 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
 
$
—

 
$
—

 
$
—

 
$
—
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 over the next 10 years:
(in millions)
 
Pension Benefits
 
OPEB Benefits
2020
 
$
236.9

 
$
37.1

2021
 
236.7

 
34.7

2022
 
228.4

 
35.6

2023
 
226.8

 
36.1

2024
 
218.8

 
36.1

2025-2029
 
1,004.2

 
179.5