EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2019

Summary of target asset allocation percentages for major categories of the pension plan

The Company's target asset allocation percentages for major categories of the pension plan are reflected in the table below:



	Minimum Exposure		Target		Maximum Exposure
Fixed Income	35	%	40	%	45	%
Total Domestic Equity:	40	%	50	%	60	%
Small/Mid Cap Stocks	10	%	15	%	20	%
Large Cap Stocks	30	%	35	%	45	%
Non-U.S. Equities	5	%	10	%	15	%

The following tables present the fair value of plan assets by major asset category at December 31, 2019 and 2018:



	December 31,2019
	Pension Benefits								Other Benefits
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Fixed Income	$	91,231	$	—	$	—	$	91,231	$	50,277	$	—	$	—	$	50,277
Domestic Equity: Small/Mid Cap Stocks	43,238		—		—		43,238		—		—		—		—
Domestic Equity: Large Cap Stocks	155,645		—		—		155,645		78,277		—		—		78,277
Non U.S. Equities	28,874		—		—		28,874		—		—		—		—
Assets measured at net asset value (NAV)							254,587								—
Total Plan Assets	$	318,988	$	—	$	—	$	573,575	$	128,554	$	—	$	—	$	128,554



	December 31,2018
	Pension Benefits								Other Benefits
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Fixed Income	$	188,934	$	—	$	—	$	188,934	$	45,446	$	—	$	—	$	45,446
Domestic Equity: Small/Mid Cap Stocks	68,843		—		—		68,843		—		—		—		—
Domestic Equity: Large Cap Stocks	165,862		—		—		165,862		57,179		—		—		57,179
Non U.S. Equities	46,135		—		—		46,135		—		—		—
Assets measured at NAV							—								—
Total Plan Assets	$	469,774	$	—	$	—	$	469,774	$	102,625	$	—	$	—	$	102,625

Schedule of reconciliation of the funded status of the plans with the accrued pension liability and the net postretirement benefit liability

The following table reconciles the funded status of the plans with the accrued pension liability and the net postretirement benefit liability as of December 31, 2019 and 2018:



	Pension Benefits						Other Benefits
	2019			2018			2019			2018
Change in projected benefit obligation:
Beginning of year	$	639,921		$	671,334		$	127,204		$	143,368
Service cost	26,718			29,027			7,475			8,317
Interest cost	26,966			23,994			5,441			4,873
Assumption change	122,779			(80,192		)	13,695			(21,672		)
Plan amendment	—			—			—			2,203
Experience loss (gain)	10,451			8,523			(1,994		)	(8,226		)
Benefits paid, net of retiree premiums	(14,806		)	(12,765		)	(1,306		)	(1,659		)
End of year	$	812,029		$	639,921		$	150,515		$	127,204
Change in plan assets:
Fair value of plan assets at beginning of year	$	469,774		$	460,878		$	102,625		$	100,563
Actual return on plan assets	97,811			(22,576		)	19,730			(4,320		)
Employer contributions	20,796			44,237			7,505			8,041
Retiree contributions and Medicare part D subsidies	—			—			1,874			2,025
Benefits paid	(14,806		)	(12,765		)	(3,180		)	(3,684		)
Fair value of plan assets at end of year	$	573,575		$	469,774		$	128,554		$	102,625
Funded status(1)	$	(238,454	)	$	(170,147	)	$	(21,961	)	$	(24,579	)
Unrecognized actuarial loss	177,750			117,973			15,822			18,618
Unrecognized prior service cost	10,242			15,290			2,129			2,326
Net amount recognized	$	(50,462	)	$	(36,884	)	$	(4,010	)	$	(3,635	)

_______________________________________________________________________________

(1)

The short-term portion of the pension benefits was $2.1 million as of December 31, 2019 and $1.9 million as of December 31, 2018 and is recorded as part of other accrued liabilities on the Company's 2019 and 2018 Consolidated Balance Sheets.

Schedule of amounts recognized in consolidated balance sheets

Amounts recognized on the balance sheet consist of:



	Pension Benefits						Other Benefits
	2019			2018			2019			2018
Accrued benefit costs	$	62		$	62		$	(2,441	)	$	(2,802	)
Accrued benefit liability	(238,454		)	(170,147		)	(21,961		)	(24,579		)
Regulatory asset	187,930			133,201			20,392			23,746
Net amount recognized	$	(50,462	)	$	(36,884	)	$	(4,010	)	$	(3,635	)

Schedule of actuarial assumptions used in determining the benefit obligation

Below are the actuarial assumptions used in determining the benefit obligation for the benefit plans:



	Pension Benefits				Other Benefits
	2019		2018		2019		2018
Weighted average assumptions as of December 31:
Discount rate	3.20	%	4.20	%	3.25	%	4.25	%
Long-term rate of return on plan assets	6.25	%	6.50	%	5.50	%	5.50	%
Rate of compensation increases - pension plan	3.25	%	3.25	%	—		—
Rate of compensation increases - SERP	3.75	%	3.75	%	—		—
Cost of living adjustment	2.50	%	2.50	%	—		—

Below are the actuarial assumptions used in determining the net periodic benefit costs for the benefit plans, which uses the end of the prior year as the measurement date:



	Pension Benefits				Other Benefits
	2019		2018		2019		2018
Weighted average assumptions as of December 31:
Discount rate	4.20	%	3.60	%	4.25	%	3.65	%
Long-term rate of return on plan assets	6.50	%	6.50	%	5.50	%	5.50	%
Rate of compensation increases - pension plan	3.25	%	3.25	%	—		—
Rate of compensation increases - SERP	3.75	%	3.75	%	—		—
Cost of living adjustment	2.50	%	2.50	%

Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits

Net periodic benefit costs for the pension and other postretirement plans for the years ended December 31, 2019 and 2018, included the following components:



	Pension Plan									Other Benefits
	2019			2018			2017			2019			2018			2017
Service cost	$	26,718		$	29,027		$	23,801		$	7,475		$	8,317		$	7,152
Interest cost	26,966			23,994			23,256			5,441			4,873			4,988
Expected return on plan assets	(30,285		)	(27,702		)	(24,119		)	(5,794		)	(5,639		)	(4,875		)
Net amortization and deferral	10,975			16,233			12,962			758			1,281			1,186
Net periodic benefit cost	$	34,374		$	41,552		$	35,900		$	7,880		$	8,832		$	8,451

Schedule of the effect of a one-percentage point change in assumed health care cost trends

A 1-percentage point change in assumed health care cost trends is estimated to have the following effect:



	1-Percentage Point Increase		1-Percentage Point (Decrease)
Effect on total service and interest costs	$	3,610	$	(2,650	)
Effect on accumulated postretirement benefit obligation	$	33,945	$	(25,757	)