XML 64 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Sep. 30, 2017
Retirement Benefits [Abstract]  
Summary of Changes in Funded Status of Plans and Liabilities Recognized
The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30:
 
Pension (1)
OPEB
(Thousands)
2017
2016
2017
2016
Change in Benefit Obligation
 
 
 
 
Benefit obligation at beginning of year
$
293,654

$
255,987

$
160,393

$
138,367

Service cost
8,347

7,591

4,380

4,521

Interest cost
9,771

11,342

5,545

6,256

Plan participants’ contributions (2)
45

47

120

104

Actuarial (gain) loss
(5,995
)
26,369

8,985

15,590

Benefits paid, net of retiree subsidies received
(7,987
)
(7,682
)
(4,333
)
(4,445
)
Benefit obligation at end of year
$
297,835

$
293,654

$
175,090

$
160,393

Change in plan assets
 
 
 
 
Fair value of plan assets at beginning of year
$
249,875

$
199,123

$
62,035

$
57,269

Actual return on plan assets
29,736

28,316

7,953

5,872

Employer contributions
74

30,071

6,049

3,235

Benefits paid, net of plan participants’ contributions (2)
(7,942
)
(7,635
)
(4,503
)
(4,341
)
Fair value of plan assets at end of year
$
271,743

$
249,875

$
71,534

$
62,035

Funded status
$
(26,092
)
$
(43,779
)
$
(103,556
)
$
(98,358
)
Amounts recognized on Consolidated Balance Sheets
 
 
 
 
Postemployment employee (liability)
 
 
 
 
Current
$
(158
)
$
(79
)
$
(602
)
$
(454
)
Noncurrent
(25,934
)
(43,700
)
(102,954
)
(97,904
)
Total
$
(26,092
)
$
(43,779
)
$
(103,556
)
$
(98,358
)
(1)
Includes the Company’s PEP.
(2)
Prior to July 1, 1998, employees were eligible to elect an additional participant contribution to enhance their benefits and contributions made during the periods were insignificant.
Summary of Regulatory Assets and Accumulated Other Comprehensive Income
The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income as of September 30:
 
Regulatory Assets
 
Accumulated Other Comprehensive Income (Loss)
 
Pension
OPEB
 
Pension
OPEB
Balance at September 30, 2015
$
86,960

$
50,737

 
$
25,640

$
1,242

Amounts arising during the period:
 
 
 
 
 
Net actuarial loss
13,696

11,274

 
4,475

3,289

Amounts amortized to net periodic costs:
 
 
 
 
 
Net actuarial (loss)
(5,607
)
(3,175
)
 
(1,676
)
(99
)
Prior service (cost) credit
(108
)
311

 
(3
)
54

Balance at September 30, 2016
$
94,941

$
59,147

 
$
28,436

$
4,486

Amounts arising during the period:
 
 
 
 
 
Net actuarial (gain) loss
(9,429
)
5,211

 
(6,990
)
587

Amounts amortized to net periodic costs:
 
 
 
 
 
Net actuarial (loss)
(6,799
)
(4,209
)
 
(2,028
)
(160
)
Prior service (cost) credit
(108
)
311

 
(3
)
54

Balance at September 30, 2017
$
78,605

$
60,460

 
$
19,415

$
4,967



The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost as of September 30 are:
 
Regulatory Assets
Accumulated Other Comprehensive Income (Loss)
 
Pension
OPEB
Pension
OPEB
(Thousands)
2017
2016
2017
2016
2017
2016
2017
2016
Net actuarial loss
$
77,930

$
94,158

$
61,563

$
60,561

$
19,414

$
28,432

$
5,113

$
4,686

Prior service cost (credit)
675

783

(1,103
)
(1,414
)
1

4

(146
)
(200
)
Total
$
78,605

$
94,941

$
60,460

$
59,147

$
19,415

$
28,436

$
4,967

$
4,486
Schedule of Amounts Expected to be Recognized as Components of Net Periodic Benefit Cost
Amounts included in regulatory assets and accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in fiscal 2018 are as follows:
 
Regulatory Assets
 
Accumulated Other Comprehensive Income (Loss)
(Thousands)
Pension
OPEB
 
Pension
OPEB
Net actuarial loss
$
6,177

$
4,464

 
$
1,360

$
196

Prior service cost (credit)
105

(311
)
 
1

(53
)
Total
$
6,282

$
4,153

 
$
1,361

$
143
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The accumulated benefit obligation for the pension plans, including the PEP, exceeded the fair value of plan assets. The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows:
 
Pension
(Thousands)
2017
2016
Projected benefit obligation
$
297,835

$
293,654

Accumulated benefit obligation
$
258,514

$
252,077

Fair value of plan assets
$
271,743

$
249,875
Components of Net Periodic Cost
The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows:
 
Pension
OPEB
(Thousands)
2017
2016
2015
2017
2016
2015
Service cost
$
8,347

$
7,591

$
7,485

$
4,380

$
4,521

$
4,253

Interest cost
9,771

11,342

10,199

5,545

6,256

5,739

Expected return on plan assets
(19,313
)
(20,118
)
(17,090
)
(4,767
)
(4,845
)
(4,977
)
Recognized actuarial loss
8,827

7,281

6,985

4,370

3,274

2,943

Prior service cost (credit) amortization
111

111

111

(365
)
(365
)
(364
)
Net periodic benefit cost recognized as expense
$
7,743

$
6,207

$
7,690

$
9,163

$
8,841

$
7,594
Schedule of Weighted Average Assumptions Used
The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows:
 
Pension
 
OPEB
 
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
Benefit costs:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.96/3.94%
 
4.50
%
 
4.55
%
 
4.08/4.01%

(1) 
4.60/4.55%

(1) 
4.55
%
 
Expected asset return
7.75
%
 
8.75
%
 
8.75
%
 
7.75
%
 
8.75
%
 
8.75
%
 
Compensation increase
3.25/3.50%

(1) 
3.25/3.50%

(1) 
3.25
%
 
3.25/3.50%

(1) 
3.50
%
 
3.50
%
 
Obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.03
%
 
3.96/3.94%

(1) 
4.50
%
 
4.12/4.08%

(1) 
4.08/4.01%

(1) 
4.60/4.55%

(1) 
Compensation increase
3.25/3.50%

(1) 
3.25/3.50%

(1) 
3.25/3.50%

(1) 
3.25/3.50%

(1) 
3.50
%
 
3.50
%
 

(1)
Percentages for represented and nonrepresented plans, respectively.
Information on Assumed HCCTR Used to Determine Expected OPEB Benefits
Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, and the effect of a one percent change in the rate, are as follows:
($ in thousands)
2017
 
2016
 
2015
HCCTR
8.3
%
 
8.5
%
 
6.7
%
Ultimate HCCTR
4.5
%
 
4.5
%
 
4.8
%
Year ultimate HCCTR reached
2025

 
2025

 
2022

Effect of a 1 percentage point increase in the HCCTR on:
 
 
 
 
 
Year-end benefit obligation
$
32,019

 
$
28,803

 
$
26,025

Total service and interest cost
$
2,468

 
$
2,331

 
$
2,026

Effect of a 1 percentage point decrease in the HCCTR on:
 
 
 
 
 
Year-end benefit obligation
$
(25,466
)
 
$
(22,862
)
 
$
(20,427
)
Total service and interest costs
$
(1,909
)
 
$
(1,801
)
 
$
(1,593
)
Schedule of Mix and Targeted Allocation of Plan Assets
The mix and targeted allocation of the pension and OPEB plans’ assets are as follows:
 
2018
Assets at
 
Target
September 30,
Asset Allocation
Allocation
2017

 
2016

 
U.S. equity securities
40
%
 
39
%
 
38
%
 
International equity securities
20

 
21

 
20

 
Fixed income
40

 
40

 
42

 
Total
100
%
 
100
%
 
100
%
 
Schedule of Expected Benefit Payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years:
(Thousands)
Pension
OPEB
2018
$
8,928

$
4,230

2019
$
9,712

$
4,807

2020
$
10,549

$
5,435

2021
$
11,502

$
6,061

2022
$
12,469

$
6,755

2023 - 2027
$
79,081

$
43,267
Schedule of Estimated Subsidy Payments
The estimated subsidy payments are as follows:
 
Estimated Subsidy Payment
Fiscal Year
(Thousands)
2018
$262
2019
$283
2020
$311
2021
$342
2022
$373
2023 - 2027
$2,574
Summary of Pension and OPEB Assets Held in the Master Trust
Pension and OPEB assets held in the master trust, measured at fair value, as of September 30, are summarized as follows:
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
(Thousands)
Pension
 
OPEB
Assets
2017
 
2016
 
2017
 
2016
Money market funds
$
—

 
$
—

 
$
11

 
$
9

Registered Investment Companies:
 
 
 
 
 
 
 
Equity Funds:
 
 
 
 
 
 
 
Large Cap Index
88,321

 
78,306

 
23,986

 
19,532

Extended Market Index
16,329

 
16,250

 
4,409

 
4,114

International Stock
56,446

 
50,702

 
15,000

 
12,997

Fixed Income Funds:
 
 
 
 
 
 
 
Emerging Markets
13,516

 
12,906

 
3,551

 
3,294

Core Fixed Income
—

 
—

 
8,082

 
7,177

Opportunistic Income
—

 
—

 
4,744

 
4,155

Ultra Short Duration
—

 
—

 
4,673

 
4,082

High Yield Bond Fund
26,540

 
25,976

 
7,078

 
6,675

Long Duration Fund
70,591

 
65,735

 
—

 
—

Total assets at fair value
$
271,743

 
$
249,875

 
$
71,534

 
$
62,035