Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Pension and Post-Retirement Medical Plans:

Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability

The following table sets forth the Pension Plan’s and post-retirement medical plan’s funded status and amounts recognized in Registrant’s balance sheets and the components of net pension cost and accrued liability at December 31, 2014 and 2013:



	Pension Benefits						Post-Retirement Medical Benefits
(dollars in thousands)	2014			2013			2014			2013
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	152,680		$	163,230		$	11,388		$	12,296
Service cost	5,643			6,967			348			407
Interest cost	7,520			6,907			495			439
Actuarial loss (gain)	24,339			(19,918		)	437			(1,340		)
Benefits/expenses paid	(4,998		)	(4,506		)	(342		)	(414		)
Projected benefit obligation at end of year	$	185,184		$	152,680		$	12,326		$	11,388

Changes in Plan Assets:
Fair value of plan assets at beginning of year	$	127,534		$	107,638		$	9,873		$	8,359
Actual return on plan assets	9,816			17,846			951			1,320
Employer contributions	8,209			6,556			241			608
Benefits/expenses paid	(4,998		)	(4,506		)	(342		)	(414		)
Fair value of plan assets at end of year	$	140,561		$	127,534		$	10,723		$	9,873

Funded Status:
Net amount recognized as accrued pension cost	$	(44,623	)	$	(25,146	)	$	(1,603	)	$	(1,515	)



	Pension Benefits						Post-Retirement Medical Benefits
(in thousands)	2014			2013			2014			2013
Amounts recognized on the balance sheets:
Current liabilities	$	—		$	—		$	—		$	—
Non-current liabilities	(44,623		)	(25,146		)	(1,603		)	(1,515		)
Net amount recognized	$	(44,623	)	$	(25,146	)	$	(1,603	)	$	(1,515	)
Amounts recognized in regulatory assets consist of:
Initial net obligation	$	—		$	—		$	—		$	417
Prior service cost (credit)	167			285			(234		)	(433		)
Net (gain) loss	39,003			15,581			(2,891		)	(3,159		)
Regulatory assets (liabilities)	39,170			15,866			(3,125		)	(3,175		)
Unfunded accrued pension cost	5,453			9,280			4,728			4,690
Net liability recognized	$	44,623		$	25,146		$	1,603		$	1,515

Changes in plan assets and benefit obligations recognized in regulatory assets:
Regulatory asset at beginning of year	$	15,866		$	49,052		$	(3,175	)	$	(685	)
Net loss (gain)	23,422			(30,190		)	(61		)	(2,278		)
Amortization of initial net obligation	—			—			(419		)	(419		)
Amortization of prior service (cost) credit	(118		)	(118		)	200			200
Amortization of net gain (loss)	—			(2,878		)	330			7
Total change in regulatory asset	23,304			(33,186		)	50			(2,490		)
Regulatory asset (liability) at end of year	$	39,170		$	15,866		$	(3,125	)	$	(3,175	)

Net periodic pension costs	$	4,383		$	9,296		$	278		$	676
Change in regulatory asset	23,304			(33,186		)	50			(2,490		)
Total recognized in net periodic pension cost and regulatory asset (liability)	$	27,687		$	(23,890	)	$	328		$	(1,814	)

Estimated amounts that will be amortized from regulatory asset over the next fiscal year:
Initial net obligation	$	—		$	—		$	—		$	(418	)
Prior service (cost) credit	$	(118	)	$	(118	)	$	200		$	200
Net gain (loss)	$	(1,878	)	$	(29	)	$	213		$	262

Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	185,184		$	152,680		$	12,326		$	11,388
Accumulated benefit obligation	$	160,510		$	131,580		N/A			N/A
Fair value of plan assets	$	140,561		$	127,534		$	10,723		$	9,873

Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	4.25		%	5.10		%	3.80		%	4.65		%
Rate of compensation increase	4.00		%	4.00		%	N/A			N/A

Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool

The components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool, for 2014, 2013 and 2012 are as follows:



	Pension Benefits									Post-Retirement Medical Benefits
(dollars in thousands, except percent)	2014			2013			2012			2014			2013			2012
Components of Net Periodic Benefits Cost:
Service cost	$	5,643		$	6,967		$	6,675		$	348		$	407		$	419
Interest cost	7,520			6,907			6,657			495			439			534
Expected return on plan assets	(8,898		)	(7,574		)	(6,540		)	(453		)	(382		)	(357		)
Amortization of transition	—			—			—			418			419			419
Amortization of prior service cost (credit)	118			118			118			(200		)	(200		)	(200		)
Amortization of actuarial (gain) loss	—			2,878			3,035			(330		)	(7		)	—
Net periodic pension cost under accounting standards	$	4,383		$	9,296		$	9,945		$	278		$	676		$	815
Regulatory adjustment - over/(under) collection	1,622			(1,920		)	(2,305		)	—			—			—
Total expense recognized, before allocation to overhead pool	$	6,005		$	7,376		$	7,640		$	278		$	676		$	815

Weighted-average assumptions used to determine net periodic cost:
Discount rate	5.10		%	4.30		%	4.65		%	4.65		%	3.75		%	4.45		%
Expected long-term return on plan assets	7.00		%	7.00		%	7.00		%	*			*			*
Rate of compensation increase	4.00		%	4.00		%	4.00		%	N/A			N/A			N/A

*7.0% for union plan, 4.2% for non-union, net of income taxes in 2014, 2013 and 2012.

Schedule of pension and post-retirement plan weighted-average asset allocations, by asset category

The Committee approves the target asset allocations. Registrant’s pension and post-retirement plan weighted-average asset allocations at December 31, 2014 and 2013, by asset category are as follows:



	Pension Benefits				Post-Retirement Medical Benefits
Asset Category	2014		2013		2014		2013
Actual Asset Allocations:
Equity securities	61	%	61	%	60	%	61	%
Debt securities	39	%	37	%	38	%	38	%
Cash equivalents	—	%	2	%	2	%	1	%
Total	100	%	100	%	100	%	100	%

Schedule of pension and post-retirement plan target asset allocations

Equity securities did not include AWR’s stock as of December 31, 2014 and 2013.



Target Asset Allocations for 2015:	Pension Benefits		Post-retirement Medical Benefits
Equity securities	60	%	60	%
Debt securities	40	%	40	%
Total	100	%	100	%

Schedule of pension and post-retirement plans' investment assets measured at fair value

The following tables set forth by level, within the fair value hierarchy, the pension and post-retirement plans’ investment assets measured at fair value as of December 31, 2014 and 2013:



	Fair Value as of December 31, 2014
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Pension Plan Assets:
Cash equivalents	$	497	—	—	$	497
Fixed income securities	54,865		—	—	54,865
Equity securities:
U.S. small cap stocks	7,546		—	—	7,546
U.S. mid cap stocks	14,779		—	—	14,779
U.S. large cap stocks	42,886		—	—	42,886
International funds	11,318		—	—	11,318
Real estate funds	8,670		—	—	8,670
Total equity securities	85,199		—	—	85,199
Total investments measured at fair value	$	140,561	—	—	$	140,561

Fair Value of Post-Retirement Plan Assets:
Cash equivalents	$	185	—	—	$	185
Fixed income	4,105		—	—	4,105
U.S. equity securities (large cap stocks)	6,433		—	—	6,433
Total investments measured at fair value	$	10,723	—	—	$	10,723



	Fair Value as of December 31, 2013
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Pension Plan Assets:
Cash equivalents	$	2,096	—	—	$	2,096
Fixed income securities	47,627		—	—	47,627
Equity securities:
U.S. small cap stocks	6,576		—	—	6,576
U.S. mid cap stocks	13,119		—	—	13,119
U.S. large cap stocks	39,280		—	—	39,280
International funds	12,501		—	—	12,501
Real estate funds	6,335		—	—	6,335
Total equity securities	77,811		—	—	77,811
Total investments measured at fair value	$	127,534	—	—	$	127,534

Fair Value of Post-Retirement Plan Assets:
Cash equivalents	$	142	—	—	$	142
Fixed income	3,731		—	—	3,731
U.S. equity securities (large cap stocks)	6,000		—	—	6,000
Total investments measured at fair value	$	9,873	—	—	$	9,873

Schedule of estimated future benefit payments

Registrant’s estimated future benefit payments at December 31, 2014 for the next five years and thereafter are as follows (in thousands):



	Pension Benefits		Post-Retirement Medical Benefits
2015	$	5,468	$	566
2016	5,938		601
2017	6,489		680
2018	7,030		774
2019	7,569		866
Thereafter	48,446		5,247
Total	$	80,940	$	8,734

Schedule of effects of one-percentage-point change in assumed health care cost trend rates

A one-percentage-point change in assumed health care cost trend rates would have the following effects on the post-retirement medical plan:



(dollars in thousands)	1-Percentage-Point Increase		1-Percentage-Point Decrease
Effect on total of service and interest cost components	$	80	$	(70	)
Effect on post-retirement benefit obligation	$	1,438	$	(1,232	)

SERP

Employee benefit plans

Schedule of Pension Plan's funded status and amounts recognized in balance sheets and the components of net pension cost and accrued post-retirement liability

The following provides a reconciliation of benefit obligations, funded status of the SERP, as well as a summary of significant estimates at December 31, 2014 and 2013:



(dollars in thousands)	2014			2013
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	12,296		$	12,406
Service cost	768			803
Interest cost	615			514
Actuarial (gain) loss	2,497			(1,198		)
Benefits paid	(250		)	(229		)
Benefit obligation at end of year	$	15,926		$	12,296
Changes in Plan Assets:
Fair value of plan assets at beginning of year	—			—
Fair value of plan assets at end of year	—			—

Funded Status:
Net amount recognized as accrued cost	$	(15,926	)	$	(12,296	)



(in thousands)	2014			2013
Amounts recognized on the balance sheets:
Current liabilities	$	(379	)	$	(230	)
Non-current liabilities	(15,547		)	(12,066		)
Net amount recognized	$	(15,926	)	$	(12,296	)
Amounts recognized in regulatory assets consist of:
Prior service cost	$	153		$	314
Net loss	4,530			2,172
Regulatory assets	4,683			2,486
Unfunded accrued cost	11,243			9,810
Net liability recognized	$	15,926		$	12,296

Changes in plan assets and benefit obligations recognized in regulatory assets consist of:
Regulatory asset at beginning of year	$	2,486		$	4,184
Net (gain) loss	2,497			(1,199		)
Amortization of prior service credit	(161		)	(161		)
Amortization of net loss	(139		)	(338		)
Total change in regulatory asset	2,197			(1,698		)
Regulatory asset at end of year	$	4,683		$	2,486

Net periodic pension cost	$	1,683		$	1,817
Change in regulatory asset	2,197			(1,698		)
Total recognized in net periodic pension and net income	$	3,880		$	119

Estimated amounts that will be amortized from regulatory asset over the next fiscal year:
Initial net asset (obligation)	—			—
Prior service cost	$	(117	)	$	(161	)
Net loss	(431		)	(139		)
Additional year-end information for plans with an accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	15,926		$	12,296
Accumulated benefit obligation	13,992			10,116
Fair value of plan assets	—			—
Weighted-average assumptions used to determine benefit obligations:
Discount rate	4.15		%	5.05		%
Rate of compensation increase	4.00		%	4.00		%

Schedule of components of net periodic pension and post-retirement benefits cost, before allocation to the overhead pool

The components of SERP expense, before allocation to the overhead pool, for 2014, 2013 and 2012 are as follows:



(dollars in thousands, except percent)	2014			2013			2012
Components of Net Periodic Benefits Cost:
Service cost	$	768		$	803		$	731
Interest cost	615			514			488
Amortization of prior service cost	161			161			161
Amortization of net loss	139			339			307
Net periodic pension cost	$	1,683		$	1,817		$	1,687

Weighted-average assumptions used to determine net periodic cost:
Discount rate	5.05		%	4.20		%	4.65		%
Rate of compensation increase	4.00		%	4.00		%	4.00		%

Schedule of pension and post-retirement plans' investment assets measured at fair value

The following tables set forth by level, within the fair value hierarchy, the Rabbi Trust investment assets measured at fair value as of December 31, 2014 and 2013.



	Fair Value as of December 31, 2014
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Assets held in Rabbi Trust:
Cash equivalents	$	29	—	—	$	29
Fixed income securities	3,454		—	—	3,454
Equity securities	5,282		—	—	5,282
Total investments measured at fair value	$	8,765	—	—	$	8,765



	Fair Value as of December 31, 2013
(dollars in thousands)	Level 1		Level 2	Level 3	Total
Fair Value of Assets held in Rabbi Trust:
Cash equivalents	$	27	—	—	$	27
Fixed income securities	2,587		—	—	2,587
Equity securities	4,202		—	—	4,202
Total investments measured at fair value	$	6,816	—	—	$	6,816

Schedule of estimated future benefit payments

Registrant’s estimated future benefit payments for the SERP at December 31, 2014 for the next ten years are as follows (in thousands):



2015	$	379
2016	391
2017	472
2018	614
2019	712
Thereafter	5,402
Total	$	7,970