XML 50 R32.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Employee Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2024
Employee Benefit Plans [Abstract] |
Employee Benefit Plans | 22. EMPLOYEE BENEFIT PLANS Emera maintains a number of contributory defined-benefit (“DB”) and defined-contribution (“DC”) pension plans, which cover substantially all of its employees. The Company also provides non-pension benefits for its retirees. Emera’s net periodic benefit cost included the following: Benefit Obligation and Plan Assets: Changes in the benefit obligation and plan assets, and the funded status for plans were as follows: For the Year ended December 31 millions of dollars 2024 2023 DB pension plans Non-pension benefit plans DB pension plans Non-pension benefit plans Change in Projected Benefit Obligation ("PBO") and Accumulated Post-retirement Benefit Obligation ("APBO"): Balance, January 1 $ 2,273 $ 227 $ 2,158 $ 243 Service cost 35 3 30 3 Plan participant contributions 6 5 6 6 Interest cost 110 12 111 13 Plan amendments - - - (14) Benefits paid (153) (21) (147) (29) Actuarial losses (gains) (1) 13 (3) 146 10 Settlements and curtailments - - (8) - FX translation adjustment 83 18 (23) (5) Balance, December 31 $ 2,367 $ 241 $ 2,273 $ 227 Change in plan assets: Balance, January 1 $ 2,298 $ 48 $ 2,163 $ 46 Employer contributions 36 13 42 23 Plan participant contributions 6 5 6 6 Benefits paid (153) (21) (147) (29) Actual return on assets, net of expenses 226 4 262 3 Settlements and curtailments - - (8) - FX translation adjustment 80 5 (20) (1) Balance, December 31 $ 2,493 $ 54 $ 2,298 $ 48 Funded status, end of year $ 126 $ (187) $ 25 $ (179) (1) The actuarial losses recognized in the period are primarily due to changes in the discount rate, higher than expected indexation, and compensation-related assumption changes. Plans with PBO/APBO in Excess of Plan Assets: The aggregate financial position for pension plans where the PBO or APBO (for post-retirement benefit plans) exceeded the plan assets for the years ended December 31 were as follows: millions of dollars 2024 2023 DB pension plans Non-pension benefit plans DB pension plans Non-pension benefit plans PBO/APBO $ 95 $ 219 $ 120 $ 205 FV of plan assets 11 - 37 - Funded status $ (84) $ (219) $ (83) $ (205) Plans with Accumulated Benefit Obligation (“ABO”) in Excess of Plan Assets: The ABO for the DB pension plans was $ 2,255 million as at December 31, 2024 (2023 – $ 2,172 million). The aggregate financial position for those plans with an ABO in excess of the plan assets for the years ended December 31 were as follows: millions of dollars 2024 2023 DB pension plans DB pension plans ABO $ 90 $ 114 FV of plan assets 11 37 Funded status $ (79) $ (77) Balance Sheet: The amounts recognized in the Consolidated Balance Sheets consisted of the following: As at December 31 December 31 millions of dollars 2024 2023 DB pension plans Non-pension benefit plans DB pension plans Non-pension benefit plans Other current liabilities $ (5) $ (21) $ (5) $ (18) Liabilities associated with assets held for sale (1) - (1) - - Long-term liabilities (78) (196) (78) (187) Other long-term assets 208 - 108 26 Assets held for sale (1) 1 31 - - AOCI, net of tax and regulatory assets 354 22 385 20 Deferred income tax expense in AOCI (8) (1) (8) (1) Net amount recognized $ 472 $ (166) $ 402 $ (160) (1) On August 5, 2024, Emera announced an agreement to sell NMGC. As at December 31, 2024, NMGC's assets and liabilities were classified as held for sale. For further details on the pending transaction, refer to note 4. Amounts Recognized in AOCI and Regulatory Assets: Unamortized gains and losses and past service costs arising on post-retirement benefits are recorded in AOCI or regulatory assets. The following table summarizes the change in AOCI and regulatory assets: Regulatory assets Actuarial (gains) losses Past service gains millions of dollars DB Pension Plans: Balance, January 1, 2024 $ 324 $ 53 $ - Amortized in current period (9) (3) - Current year additions 19 (67) - Change in FX rate 29 - - Balance, December 31, 2024 $ 363 $ (17) $ - Non-pension benefits plans: Balance, January 1, 2024 $ 29 $ (8) $ (2) Amortized in current period 2 1 2 Current year reductions (5) (1) - Change in FX rate 3 - - Balance, December 31, 2024 $ 29 $ (8) $ - As at December 31 December 31 millions of dollars 2024 2023 DB pension plans Non-pension benefit plans DB pension plans Non-pension benefit plans Actuarial (gains) losses $ (17) (8) $ 53 (8) Past service gains - - - (2) Deferred income tax expense 8 1 8 1 AOCI, net of tax (9) (7) 61 (9) Regulatory assets 363 29 324 29 AOCI, net of tax and regulatory assets $ 354 $ 22 $ 385 $ 20 Benefit Cost Components: Emera's net periodic benefit cost included the following: As at Year ended December 31 millions of dollars 2024 2023 DB pension plans Non-pension benefit plans DB pension plans Non-pension benefit plans Service cost $ 35 $ 3 $ 30 $ 3 Interest cost 110 12 111 13 Expected return on plan assets (160) (2) (161) (2) Current year amortization of: Actuarial losses (gains) 3 (2) 1 (3) Past service gains - (2) - - Regulatory assets 9 (2) 6 (2) Settlement, curtailments - 1 2 - Total $ (3) $ 8 $ (11) $ 9 The expected return on plan assets is determined based on the market-related value of plan assets of $ 2,571 million as at January 1, 2024 (2023 – $ 2,577 million), adjusted for interest on certain cash flows during the year. The market-related value of assets is based on a smoothed asset value. Any investment gains (or losses) in excess of (or less than) the expected return on plan assets are recognized on a straight-line basis into the market-related value of assets over a multi-year period. Pension Plan Asset Allocations: Emera’s investment policy includes discussion regarding the investment philosophy, the level of risk which the Company is prepared to accept with respect to the investment of the Pension Funds, and the basis for measuring the performance of the assets. Central to the policy is the target asset allocation by major asset categories. The objective of the target asset allocation is to diversify risk and to achieve asset returns that meet or exceed the plan’s actuarial assumptions. The diversification of assets reduces the inherent risk in financial markets by requiring that assets be spread out amongst various asset classes. Further, within each asset class, a diversification is undertaken through the investment in a broad range of investment and non-investment grade securities. Emera’s target asset allocation is as follows: Asset Class Target Range at Market Canadian Pension Plans: Short-term securities 0% to 10% Fixed income 34% to 49% Equities: Canadian 5% to 15% Non-Canadian 37% to 61% Non-Canadian Pension Plans: Cash and cash equivalents 0% to 10% Fixed income 29% to 49% Equities 48% to 68% Pension plan assets are overseen by the respective management pension committees in the sponsoring companies. All pension investments are in accordance with policies approved by the respective Board of Directors of each sponsoring company. The following tables set out the classification of the methodology used by the Company to FV its investments (for more information on the FV hierarchy and measurement, refer to note 17): millions of dollars NAV Level 1 Level 2 Total Percentage As at December 31, 2024 Cash and cash equivalents $ - $ 39 $ - $ 39 2 % Net in-transits - (27) - (27) (1) % Equity securities: Canadian equity - 109 - 109 4 % United States equity - 312 - 312 12 % Other equity - 140 - 140 5 % Fixed income securities: Government - - 132 132 5 % Corporate - - 92 92 4 % Other - - 22 22 1 % Mutual funds - 13 - 13 1 % Open-ended investments measured at NAV (1) 1,142 - - 1,142 46 % Common collective trusts measured at NAV (2) 519 - - 519 21 % Total $ 1,661 $ 586 $ 246 $ 2,493 100 % As at December 31, 2023 Cash and cash equivalents $ - $ 40 $ - $ 40 2 % Net in-transits - (9) - (9) - % Equity securities: Canadian equity - 96 - 96 4 % United States equity - 141 - 141 6 % Other equity - 112 - 112 5 % Fixed income securities: Government - - 172 172 8 % Corporate - - 90 90 4 % Other - 4 5 9 - % Mutual funds - 50 - 50 2 % Other - 6 (1) 5 - % Open-ended investments measured at NAV (1) 1,006 - - 1,006 44 % Common collective trusts measured at NAV (2) 586 - - 586 25 % Total $ 1,592 $ 440 $ 266 $ 2,298 100 % (1) Net asset value ("NAV") investments are open-ended registered and non-registered mutual funds, collective investment trusts, or pooled funds. NAV’s are calculated at least monthly and the funds honour 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 honour subscription and redemption activity regularly. Non-Pension Benefit Plans: There are no assets set aside to pay for most of the Company’s non-pension benefit plans. As is common practice, post-retirement health benefits are paid from general accounts as required. The exception to this is the NMGC Retiree Medical Plan, which is fully funded. Investments in Emera: As at December 31, 2024 and 2023, assets related to the pension funds and post-retirement benefit plans did not hold any material investments in Emera or its subsidiaries securities. However, as a significant portion of assets for the benefit plan are held in pooled assets, there may be indirect investments in these securities. Cash Flows: The following table shows expected cash flows for DB pension and other post-retirement benefit plans: millions of dollars DB pension plans Non-pension benefit plans Expected employer contributions 2025 $ 41 $ 21 Expected benefit payments 2025 175 23 2026 179 23 2027 182 23 2028 184 23 2029 186 22 2030 – 2034 950 103 Assumptions: The following table shows the assumptions that have been used in accounting for DB pension and other post-retirement benefit plans: 2024 2023 (weighted average assumptions) DB pension plans Non-pension benefit plans DB pension plans Non-pension benefit plans Benefit obligation – December 31: Discount rate - past service 5.07 % 4.91 % 4.89 % 4.89 % Discount rate - future service 5.12 % 5.00 % 4.88 % 4.89 % Rate of compensation increase 3.73 % 3.72 % 3.87 % 3.85 % Health care trend - initial (next year) - 6.53 % - 6.04 % - ultimate - 3.77 % - 3.76 % - year ultimate reached 2044 2043 Benefit cost for year ended December 31: Discount rate - past service 4.89 % 4.89 % 5.33 % 5.31 % Discount rate - future service 4.88 % 4.89 % 5.34 % 5.32 % Expected long-term return on plan assets 6.43 % 3.69 % 6.56 % 2.16 % Rate of compensation increase 3.87 % 3.85 % 3.62 % 3.61 % Health care trend - initial (current year) - 6.04 % - 5.40 % - ultimate - 3.76 % - 3.77 % - year ultimate reached 2043 2043 Actual assumptions used differ by plan. The expected long-term rate of return on plan assets is based on historical and projected real rates of return for the plan’s current asset allocation, and assumed inflation. A real rate of return is determined for each asset class. Based on the asset allocation, an overall expected real rate of return for all assets is determined. The asset return assumption is equal to the overall real rate of return assumption added to the inflation assumption, adjusted for assumed expenses to be paid from the plan. The discount rate is based on high-quality long-term corporate bonds, with maturities matching the estimated cash flows from the pension plan. DC Pension Plan: Emera also provides a DC pension plan for certain employees. The Company’s contribution for the year ended December 31, 2024 was $ 51 million (2023 – $ 45 million).

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 The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 70 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480794/715-70-50-1 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480482/715-20-55-17 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (q) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (o) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (p) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480266/715-60-50-3 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration