XML 54 R40.htm IDEA: XBRL DOCUMENT v3.25.4
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of expected payments to be made for the pension
Expected payments to be made for the pension and SERP plans are shown in the table below:
Year Ending December 31,PensionSERPTotal
2026$24,557 $3,671 $28,228 
202726,581 4,074 30,655 
202828,586 4,546 33,132 
202930,615 5,044 35,659 
203032,670 5,528 38,198 
2031-2035195,595 32,365 227,960 
Total payments$338,604 $55,228 $393,832 
Schedule of expected benefit payments, net of retiree premiums
The expected benefit payments, net of retiree premiums and Medicare Part D subsidies, are shown in the table below:
Year Ending December 31,    
Expected Benefit Payments Before Medicare Part D Subsidy		Effect of Medicare Part D Subsidy on Expected Benefit PaymentsExpected Benefit Payments Net of Medicare Part D Subsidy
2026$4,999 $(272)$4,727 
20275,550 (301)5,249 
20285,984 (334)5,650 
20296,355 (368)5,987 
20306,883 (399)6,484 
2031-203542,326 (2,439)39,887 
Total payments$72,097 $(4,113)$67,984 
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 Plan assets are reflected in the table below:
Minimum
Exposure		TargetMaximum
Exposure
Fixed Income35 %40 %45 %
Domestic Equity
35 %38 %45 %
Emerging markets
3 %7 %9 %
Non-U.S. Equities11 %15 %17 %
The following tables present the fair value of plan assets by major asset category at December 31, 2025 and 2024:
December 31, 2025
 Pension BenefitsOther Benefits
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Fixed Income$93 $— $— $93 $25,068 $— $— $25,068 
Domestic Equity
— — — — 2,585 — — 2,585 
Non U.S. Equities— — — — 10,309 — — 10,309 
Emerging markets— — — — 4,182 — — 4,182 
Assets measured at net asset value (NAV)— — — 844,877 — — — 157,203 
Total Plan Assets$93 $— $— $844,970 $42,144 $— $— $199,347 
December 31, 2024
 Pension BenefitsOther Benefits
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Fixed Income$288 $— $— $288 $21,769 $— $— $21,769 
Domestic Equity
— — — — 7,039 — — 7,039 
Non U.S. Equities— — — — 7,390 — — 7,390 
Emerging markets— — — — 3,151 — — 3,151 
Assets measured at NAV— — — 749,759 — — — 135,005 
Total Plan Assets$288 $— $— $750,047 $39,349 $— $— $174,354 
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, 2025 and 2024:
 Pension BenefitsOther Benefits
 2025202420252024
Change in projected benefit obligation:    
Beginning of year$692,091 $710,769 $128,269 $134,733 
Service cost21,049 23,421 5,615 6,048 
Interest cost38,769 36,244 6,959 6,900 
Actuarial (gain) loss
52,480 (54,744)(12,310)(17,131)
Benefits paid, net of retiree premiums(25,961)(23,599)(2,420)(2,281)
End of year$778,428 $692,091 $126,113 $128,269 
Change in plan assets:    
Fair value of plan assets at beginning of year$750,047 $716,273 $174,354 $163,367 
Actual return on plan assets112,164 53,687 27,413 13,269 
Employer contributions8,720 3,686 — — 
Retiree contributions and Medicare part D subsidies— — 2,541 2,446 
Benefits paid(25,961)(23,599)(5,146)(4,906)
Other adjustments— — 185 178 
Fair value of plan assets at end of year$844,970 $750,047 $199,347 $174,354 
Funded status (1)
$66,542 $57,956 $73,234 $46,085 
Unrecognized actuarial gain
(133,152)(123,431)(69,400)(44,685)
Unrecognized prior service cost1,630 2,154 1,118 1,273 
Net amount recognized$(64,980)$(63,321)$4,952 $2,673 
_______________________________________________________________________________

1.The short-term portion of the pension benefits was $3.7 million as of December 31, 2025 and $3.1 million as of December 31, 2024 and was recorded as part of other accrued liabilities on the Company’s Consolidated Balance Sheets.
Schedule of amounts recognized in consolidated balance sheets
Amounts recognized on the balance sheet consist of:
 Pension BenefitsOther Benefits
 2025202420252024
Noncurrent assets (1)$164,350 $142,607 $73,234 $46,085 
Accrued benefit costs— — (1)(1)
Accrued benefit liability (2)(97,808)(84,651)— — 
Regulatory liabilities (3)(150,851)(131,297)(68,281)(43,411)
Accumulated other comprehensive loss (4)
19,329 10,020 — — 
Net amount recognized$(64,980)$(63,321)$4,952 $2,673 
_______________________________________________________________________________
1.Noncurrent assets represent the overfunded status of the employee pension plan and PBOP plan in 2025 and 2024. The amounts are included in other noncurrent assets on the Consolidated Balance Sheets.
2.Accrued benefit liability represents the underfunded status of the SERP plan in 2025 and 2024. The amounts are included in pension on the Consolidated Balance Sheets, net of the current portion.
3.Changes in the funded status of the plans that would be recorded in accumulated other comprehensive income for an unregulated entity are recorded as regulatory assets and liabilities as the Company believes it is probable that an amount equal to the regulatory asset or liability will be collected or refunded through the setting of future rates.
4.As a result of the 2021 CA GRC decision that was issued in March of 2024, SERP expenses were disallowed to be recovered from Cal Water’s customers. At this time, the Company believes it is not probable that SERP costs will be recovered in rates for the three-year period in which the 2021 CA GRC is in effect. As a result, the Company has continued to record the changes in the funded status of the SERP for Cal Water to accumulated other comprehensive loss in accordance with generally accepted accounting principles.
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 BenefitsOther Benefits
 2025202420252024
Weighted average assumptions as of December 31:    
Discount rate - employee pension plan5.97 %5.89 %— — 
Discount rate - SERP5.78 %5.82 %— — 
Discount rate - other benefits— — 5.90 %5.88 %
Long-term rate of return on plan assets7.70 %7.59 %7.47 %7.43 %
Rate of compensation increases - employee pension plan5.48 %4.25 %— — 
Rate of compensation increases - SERP6.00 %5.00 %— — 
Cost of living adjustment2.40 %2.20 %— — 
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 BenefitsOther Benefits
 2025202420252024
Weighted average assumptions as of December 31:    
Discount rate - employee pension plan5.89 %5.25 %— — 
Discount rate - SERP5.82 %5.19 %— — 
Discount rate - other benefits— — 5.88 %5.25 %
Long-term rate of return on plan assets7.59 %7.56 %7.43 %7.41 %
Rate of compensation increases - employee pension plan4.25 %4.25 %— — 
Rate of compensation increases - SERP5.00 %5.00 %— — 
Cost of living adjustment2.20 %2.23 %— — 
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, 2025 and 2024, included the following components:
 Pension PlanOther Benefits
 202520242023202520242023
Service cost$21,049 $23,421 $22,159 $5,615 $6,048 $4,489 
Interest cost38,769 36,244 34,190 6,959 6,900 5,219 
Expected return on plan assets(51,171)(52,941)(53,684)(12,788)(11,949)(10,543)
Net amortization and deferral1,732 2,394 (3,043)(2,064)(375)(2,019)
Net periodic (income) cost
$10,379 $9,118 $(378)$(2,278)$624 $(2,854)