XML 29 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Retirement Plans and Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block] Retirement Plans and Postretirement Benefit Plans In accordance with ASC Topic 715, "Compensation - Retirement Benefits," a one-time settlement charge is required to be recorded by an organization when lump sum payments or other settlements that relieve the organization from the responsibility for the pension benefit obligation during the plan year exceed the service cost and interest cost components of the organization's net periodic pension cost. During the nine months ended September 30, 2020, the Company experienced an increase in both the number of employees electing to retire and the amount of lump sum payments paid to such employees upon retirement, which resulted in the Company recording pension settlement charges of $12.8 million. The pension settlement charge did not require a cash outlay by the Company and did not increase the Company's total pension expense over time, as the charge was an acceleration of costs that otherwise would be recognized as pension expense in future periods.
Net Periodic Benefit Cost

The following table presents the net periodic benefit cost components, before consideration of capitalized amounts, of the Company's Pension Plan, Restoration of Retirement Income Plan and postretirement benefit plans that are included in the Condensed Consolidated Financial Statements. Service cost is presented within Other Operation and Maintenance, and the remaining net periodic benefit cost components as listed in the table below are presented within Other Net Periodic Benefit Expense in the Company's Condensed Consolidated Statements of Income. OG&E recovers specific amounts of pension and postretirement medical costs in rates approved in its Oklahoma rate reviews. In accordance with approved orders, OG&E defers the difference between actual pension and postretirement medical expenses and the amount approved in its last Oklahoma rate review as a regulatory asset or regulatory liability. These amounts have been recorded in the Pension tracker in the regulatory assets and liabilities table in Note 1 and within Other Net Periodic Benefit Expense in the Company's Condensed Consolidated Statements of Income.

 Pension PlanRestoration of Retirement
Income Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 30,September 30,September 30,September 30,
(In millions)20202019202020192020201920202019
Service cost$3.3 $3.4 $9.8 $9.7 $0.2 $0.1 $0.6 $0.3 
Interest cost4.2 4.6 13.4 15.5 0.1 0.1 0.2 0.3 
Expected return on plan assets(9.4)(9.5)(28.0)(27.1)— — — — 
Amortization of net loss4.3 4.4 12.7 13.0 0.1 0.1 0.4 0.3 
Settlement cost12.1 2.8 12.1 23.4 0.4 0.4 0.7 0.4 
Total net periodic benefit cost14.5 5.7 20.0 34.5 0.8 0.7 1.9 1.3 
Less: Amount paid by unconsolidated affiliates0.5 0.5 1.6 2.2 0.1 0.1 0.1 0.1 
Net periodic benefit cost$14.0 $5.2 $18.4 $32.3 $0.7 $0.6 $1.8 $1.2 
(A)
In addition to the net periodic benefit cost amounts recognized, as presented in the table above, for the Pension and Restoration of Retirement Income Plans for the three and nine months ended September 30, 2020 and 2019, the Company recognized the following:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2020201920202019
Increase (decrease) of pension expense to maintain allowed recoverable amount in Oklahoma jurisdiction (A)$2.4 $1.5 $5.7 $(0.2)
Deferral of pension expense related to pension settlement charges:
Oklahoma jurisdiction (A)$10.8 $2.3 $11.1 $14.0 
Arkansas jurisdiction (A)$1.0 $0.2 $1.0 $1.3 
(A) Included in the pension regulatory asset or liability in each jurisdiction, as indicated in the regulatory assets and liabilities table in Note 1.
Postretirement Benefit Plans
Three Months EndedNine Months Ended
September 30,September 30,
(In millions)2020201920202019
Service cost$0.1 $0.1 $0.2 $0.2 
Interest cost1.0 1.2 3.1 4.2 
Expected return on plan assets(0.5)(0.5)(1.4)(1.4)
Amortization of net loss0.5 0.5 1.5 1.5 
Amortization of unrecognized prior service cost (A)(2.1)(2.1)(6.3)(6.3)
Total net periodic benefit cost(1.0)(0.8)(2.9)(1.8)
Less: Amount paid by unconsolidated affiliates(0.2)(0.2)(0.6)(0.5)
Net periodic benefit cost$(0.8)$(0.6)$(2.3)$(1.3)
(A)Unamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment.

In addition to the net periodic benefit income amounts recognized, as presented in the table above, for the postretirement benefit plans for the three and nine months ended September 30, 2020 and 2019, the Company recognized the following:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2020201920202019
Increase of postretirement expense to maintain allowed recoverable amount in Oklahoma jurisdiction (A)$0.4 $0.1 $1.2 $0.9 
(A) Included in the Pension tracker, as presented in the regulatory assets and liabilities table in Note 1.

Three Months EndedNine Months Ended
September 30,September 30,
(In millions)2020201920202019
Capitalized portion of net periodic pension benefit cost$0.9 $0.9 $2.7 $2.7 
Capitalized portion of net periodic postretirement benefit cost$— $— $0.1 $0.1 

Pension Plan Funding

In August 2020, the Company contributed $20.0 million to its Pension Plan. No additional contributions are expected in 2020.