XML 121 R59.htm IDEA: XBRL DOCUMENT v3.20.1

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

20. Employee Benefit Plans

Changes in benefit obligation and plan assets, and the funded status for all plans

For the	Year ended December 31
millions of Canadian dollars	2019				2018
Change in Projected Benefit Obligation ("PBO") and Accumulated Post-retirement Benefit Obligation ("APBO")	Defined benefit pension plans		Non-pension benefit plans		Defined benefit pension plans		Non-pension benefit plans
Balance, January 1	$	2,650	$	350	$	2,683	$	356
Service cost		47		4		51		6
Plan participant contributions		8		5		8		5
Interest cost		102		14		95		13
Benefits paid		(130)		(23)		(143)		(33)
Actuarial (gains) losses		231		19		(133)		(25)
Settlements and curtailments		(20)		-		(18)		-
Foreign currency translation adjustment		(66)		(16)		107		28
Balance, December 31		2,822		353		2,650		350
Change in plan assets
Balance, January 1		2,300		49		2,408		45
Employer contributions		52		19		51		31
Plan participant contributions		8		5		8		5
Benefits paid		(130)		(23)		(143)		(33)
Actual return on assets, net of expenses		424		7		(105)		(3)
Settlements and curtailments		(7)		-		(18)		-
Foreign currency translation adjustment		(54)		(1)		99		4
Balance, December 31		2,593		56		2,300		49
Funded status, end of year	$	(229)	$	(297)	$	(350)	$	(301)

Plans with PBO/APBO in Excess of Plan Assets and Plans with Accumulated Benefit Obligation ("ABO") in Excess of Plan Assets

millions of Canadian dollars			2019		2018
	Defined benefit pension plans		Non-pension benefit plans		Defined benefit pension plans		Non-pension benefit plans
PBO/APBO	$	2,797	$	323	$	2,623	$	318
Fair value of plan assets		2,557		7		2,264		6
Funded status	$	(240)	$	(316)	$	(359)	$	(312)

millions of Canadian dollars	2019		2018
	Defined benefit pension plans		Defined benefit pension plans
ABO	$	2,665	$	2,504
Fair value of plan assets		2,557		2,264
Funded status	$	(108)	$	(240)

Amounts recognized in the Consolidated Balance Sheets

As at		December 31				December 31
millions of Canadian dollars	2019				2018
	Defined benefit pension plans		Non-pension benefit plans		Defined benefit pension plans		Non-pension benefit plans
Other current liabilities	$	(4)	$	(18)	$	(12)	$	(19)
Long-term liabilities		(206)		(254)		(347)		(294)
Long-term liabilities associated with assets held for sale (1)		(30)		(44)		-		-
Other long-term assets		11		19		9		11
Amount included in deferred income tax		(7)		1		5		(2)
AOCI, net of tax and regulatory assets		524		72		628		60
Net amount recognized	$	288	$	(224)	$	283	$	(244)
(1) On March 25, 2019, Emera announced the sale of Emera Maine. As at December 31, 2019, Emera Maine's assets and liabilities were classified as held for sale. Refer to note 4 for further details.

Amounts Recognized in AOCI and Regulatory Assets

	Regulatory assets		Actuarial (gains) losses		Past service (gains) costs
millions of Canadian dollars
Defined Benefit Pension Plans
Balance, January 1, 2019	$	389	$	246	$	(2)
Amortized in current period		(20)		(17)		1
Current year addition to AOCI or regulatory assets		6		(69)		-
Change in foreign exchange rate		(17)		-		-
Balance, December 31, 2019	$	358	$	160	$	(1)
Non-pension benefits plans
Balance, January 1, 2019	$	65	$	(7)	$	-
Amortized in current period		5		-		-
Current year addition to AOCI or regulatory assets		11		2		-
Change in foreign exchange rate		(3)		-		-
Balance, December 31, 2019	$	78	$	(5)	$	-

	2019				2018
	Defined benefit pension plans		Non-pension benefit plans		Defined benefit pension plans		Non-pension benefit plans
Actuarial losses (gains)	$	160	$	(5)	$	246	$	(7)
Past service (gains) costs		(1)		-		(2)		-
Regulatory assets		358		78		389		65
Total AOCI and regulatory assets before deferred income taxes		517		73		633		58
Amount included in deferred income tax assets		7		(1)		(5)		2
Net amount in AOCI and regulatory assets	$	524	$	72	$	628	$	60

Benefit Cost Components

As at						Year ended December 31
millions of Canadian dollars	2019				2018
	Defined benefit pension plans		Non-pension benefit plans		Defined benefit pension plans		Non-pension benefit plans
Service cost	$	47	$	4	$	51	$	6
Interest cost		102		14		95		13
Expected return on plan assets		(147)		(2)		(138)		(2)
Current year amortization of:
Actuarial losses		16		-		33		(1)
Past service costs (gains)		(1)		-		(1)		-
Regulatory assets (liability)		20		(5)		26		(2)
Settlement, curtailments		1		-		4		-
Total	$	38	$	11	$	70	$	14

Pension Plan Asset Allocations

Canadian Pension Plans
Asset Class	Target Range at Market
Short-term securities		0%	to	5%
Fixed income		35%	to	50%
Equities:
Canadian		12%	to	22%
Non-Canadian		30%	to	55%

Non-Canadian Pension Plans
Asset Class	Target Range at MarketWeighted average
Fixed income		40%	to	45%
Equities		55%	to	60%

Cassification of the methodology used by the Company to fair value its investments

millions of Canadian dollars	NAV		Level 1		Level 2		Total			Percentage
					December 31, 2019
Cash and cash equivalents	$	-	$	44	$	-	$	44		2	%
Net in-transits		-		(48)		-		(48)		-2	%
Equity Securities:
Canadian equity		-		210		-		210		8	%
US equity		-		388		-		388		15	%
Other equity		-		176		-		176		7	%
Fixed income securities:
Government		-		-		93		93		3	%
Corporate		-		-		126		126		5	%
Other		-		5		9		14		-	%
Mutual funds		-		199		-		199		8	%
Other		-		(5)		1		(4)		-	%
Open-ended investments measured at NAV (1)		860		-		-		860		33	%
Common collective trusts measured at NAV (2)		535		-		-		535		21	%
Total	$	1,395	$	969	$	229	$	2,593		100	%

				December 31, 2018
Cash and cash equivalents	$	-	$	30	$	-	$	30		1	%
Net in-transits		-		(56)		-		(56)		-2	%
Equity securities:
Canadian equity		-		191		-		191		8	%
US equity		-		330		-		330		14	%
Other equity		-		157		-		157		7	%
Fixed Income securities:
Government		-		-		119		119		5	%
Corporate		-		-		108		108		5	%
Other		-		4		3		7		-
Mutual funds		-		132		-		132		6	%
Other		-		8		4		12		1	%
Open-ended investments measured at NAV (1)		820		-		-		820		36	%
Common collective trusts measured at NAV (2)		450		-		-		450		19	%
Total	$	1,270	$	796	$	234	$	2,300		100	%
(1) NAV investments are open-ended registered and non-registered mutual funds, collective investment trusts, or pooled funds. NAV’s are calculated daily and the funds honor subscription and redemption activity regularly.
(2) The common collective trusts are private funds valued at NAV. The NAVs are calculated based on bid prices of the underlying securities. Since the prices are not published to external sources, NAV is used as a practical expedient. Certain funds invest primarily in equity securities of domestic and foreign issuers while others invest in long duration U.S. investment grade fixed income assets and seeks to increase return through active management of interest rate and credit risks. The funds honor subscription and redemption activity regularly.

Expected cash flows for defined benefit pension and other post-retirement benefit plans

millions of Canadian dollars	Defined benefit pension plans (1)		Non-pension benefit plans (2)
Expected employer contributions
2020	$	44	$	21
Expected benefit payments
2020		143		23
2021		154		23
2022		158		23
2023		165		23
2024		173		23
2025 – 2029		959		115
(1) Includes expected employer contributions related to Emera Maine of $3 million in 2020; and expected benefit payments related to Emera Maine of $10 million in 2020; $10 million in 2021; $11 million in 2022; $11 million in 2023; $12 million in 2024 and $62 million in 2025-2029.
(2) Includes expected employer contributions related to Emera Maine of $3 million in 2020; and expected benefit payments related to Emera Maine of $3 million in 2020; $3 million in 2021; $3 million in 2022; $3 million in 2023; $4 million in 2024 and $17 million in 2025-2029.

Assumptions that have been used in accounting for defined benefit pension and other post-retirement benefit plans

Assumptions
The following table shows the assumptions that have been used in accounting for defined benefit pension and other post-retirement benefit plans:
	2019				2018
(weighted average assumptions)	Defined benefit pension plans		Non-pension benefit plans		Defined benefit pension plans		Non-pension benefit plans
Benefit obligation – December 31:
Discount rate - past service	3.17	%	3.27	%	4.05	%	4.30	%
Discount rate - future service	3.21	%	3.28	%	4.05	%	4.30	%
Rate of compensation increase	3.32	%	3.70	%	3.30	%	3.67	%
Health care trend - initial (next year)	-		6.15	%	-		6.39	%
- ultimate	-		4.38	%	-		4.45	%
- year ultimate reached	-		2038		-		2035
Benefit cost for year ended December 31:
Discount rate - past and future service	4.05	%	4.30	%	3.55	%	3.65	%
Expected long-term return on plan assets	6.50	%	2.81	%	6.38	%	3.73	%
Rate of compensation increase	3.30	%	3.67	%	3.12	%	3.28	%
Health care trend - initial (current year)	-		6.39	%	-		6.65	%
- ultimate	-		4.45	%	-		4.45	%
- year ultimate reached	-		2035		-		2036
Figures shown are weighted averages. Actual assumptions used differ by plan.

Sensitivity Analysis for Non-Pension Benefits Plans and Defined Benefit Pension Plans

millions of Canadian dollars	Increase		Decrease
Service cost and interest cost	$	1	$	(1)
Accumulated post-retirement benefit obligation, December 31		16		(14)

millions of Canadian dollars	Increase		Decrease
Discount rate assumption	$	(9)	$	9
Asset rate assumption		(6)		6

Amounts to be Amortized in the Next Fiscal Year

Amounts to be Amortized in the Next Fiscal Year
The following table shows the amounts from the AOCL and regulatory assets, which are expected to be recognized as part of the net periodic benefit cost in fiscal 2020:
millions of Canadian dollars	Defined benefit pension plans		Non-pensionbenefit plans
Actuarial gains (losses)	$	(14)	$	-
Past service gains		(1)		-
Regulatory assets		(29)		(1)
Total	$	(44)	$	(1)

X

- Definition

Tabular disclosure of the change in the benefit obligation, fair value of plan assets, and funded status of pension plans or other employee benefit plans.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(b)(c)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ChangesInProjectedBenefitObligationsFairValueOfPlanAssetsAndFundedStatusOfPlanTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of benefit obligation and plan assets of defined benefit plan with accumulated benefit obligation in excess of plan assets.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2417-114920

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2417-114920

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

+ Details

Name:	us-gaap_ScheduleOfAccumulatedBenefitObligationsInExcessOfFairValueOfPlanAssetsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the major categories of plan assets of pension plans and/or other employee benefit plans. This information may include, but is not limited to, the target allocation of plan assets, the fair value of each major category of plan assets, and the level within the fair value hierarchy in which the fair value measurements fall.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(5)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfAllocationOfPlanAssetsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amounts related to pension plans and/or other employee benefit plans in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year, including the net gain (loss), net prior service cost or credit, and net transition asset or obligation.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (s)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfAmountsInAccumulatedOtherComprehensiveIncomeLossToBeRecognizedOverNextFiscalYearTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amounts that are recognized in the balance sheet (or statement of financial position) for pension plans and/or other employee benefit plans, showing separately the assets and current and noncurrent liabilities (if applicable) recognized.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfAmountsRecognizedInBalanceSheetTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the net gain (loss) and net prior service cost or credit recognized in other comprehensive income (loss) for the period for pension plans and/or other employee benefit plans, and reclassification adjustments of other comprehensive income (loss) for the period, as those amounts, including amortization of the net transition asset or obligation, are recognized as components of net periodic benefit cost.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfAmountsRecognizedInOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assumption used to determine benefit obligation and net periodic benefit cost of defined benefit plan. Includes, but is not limited to, discount rate, rate of compensation increase, expected long-term rate of return on plan assets and interest crediting rate.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (k)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfAssumptionsUsedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2439-114920

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2410-114920

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e2417-114920

+ Details

Name:	us-gaap_ScheduleOfDefinedBenefitPlansDisclosuresTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the effect of a one-percentage-point increase and the effect of a one-percentage-point decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic postretirement health care benefit costs and the accumulated postretirement benefit obligation for health care benefits.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (m)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfEffectOfOnePercentagePointChangeInAssumedHealthCareCostTrendRatesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of benefits expected to be paid by pension plans and/or other employee benefit plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfExpectedBenefitPaymentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net benefit costs for pension plans and/or other employee benefit plans including service cost, interest cost, expected return on plan assets, gain (loss), prior service cost or credit, transition asset or obligation, and gain (loss) recognized due to settlements or curtailments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Name:	us-gaap_ScheduleOfNetBenefitCostsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration