Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

The following table sets forth the plans' funded status as of December 31, 2019 and 2018. The measurement of assets and obligations of the plans is as of December 31, 2019 and 2018.

Obligations and Funded Status At December 31	2019			2018

Change in Benefit Obligation
Pension benefit obligation beginning of year	$	41,511		$	44,636
Service cost		849			1,015
Interest cost		1,645			1,515
Actuarial (gain) loss		5,241			(4,140	)
Benefit payments		(1,716	)		(1,515	)
Pension benefit obligation end of year		47,530			41,511

Change in Plan Assets
Fair value of plan assets beginning of year		40,624			41,439
Actual return on plan assets		8,141			(1,600	)
Employer contributions		2,300			2,300
Benefits paid		(1,716	)		(1,515	)
Fair value of plan assets end of year		49,349			40,624

Funded Status of Plans at End of Year	$	1,819		$	(887	)

Changes in Plan Assets and Benefit Obligations Recognized in Regulatory Assets

Changes in plan assets and benefit obligations recognized in regulatory assets are as follows:

	2019			2018
Net gain (loss) arising during the period	$	(167	)	$	252
Recognized net actuarial loss		(421	)		(406	)
Recognized prior service credit		13			13
Total changes in regulatory asset during the year	$	(575	)	$	(141	)

Amounts Recognized in Regulatory Assets That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost

Amounts recognized in regulatory assets that have not yet been recognized as components of net periodic benefit cost consist of the following at December 31:

	2019			2018
Net loss	$	8,154		$	8,742
Prior service credit		(76	)		(89	)
Regulatory asset	$	8,078		$	8,653

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost are as follows:

	2019			2018
Service cost	$	849		$	1,015
Interest cost		1,645			1,515
Expected return on plan assets		(2,733	)		(2,793	)
Amortization of loss		421			406
Amortization of prior service credit		(13	)		(13	)
Rate-regulated adjustment		2,131			2,170
Net periodic benefit cost	$	2,300		$	2,300

Regulatory Assets to be Reclassified into Net Periodic Benefit Cost Over Next Fiscal Year

The estimated costs for the defined benefit pension plans relating to the December 31, 2019 balance sheet that will be amortized from regulatory assets into net periodic benefit cost over the next fiscal year are as follows:

Net loss	$	353
Net prior service credit		(13	)
		340

Benefit Payments Expected to be Paid

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in each of the next five years and the subsequent five years in the aggregate:

2020				2021				2022				2023				2024						2025 – 2029
	$	1,827			$	1,891			$	1,964			$	2,138			$	2,208			$	11,830

Projected Benefit Obligation and Fair Value of Plan Assets

The following tables show the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets as of December 31:

	2019		2018
Projected benefit obligation	$	47,530	$	41,511
Fair value of plan assets		49,349		40,624

Accumulated Benefit Obligation and Fair Value of Plan Assets

	2019		2018
Accumulated benefit obligation	$	44,587	$	39,100
Fair value of plan assets		49,349		40,624

Weighted-Average Assumptions Used

Weighted-average assumptions used to determine benefit obligations at December 31:

	2019	2018
Discount rate	3.10%	4.10%
Rate of compensation increase	2.50% – 3.00%	2.50% – 3.00%

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:

	2019	2018
Discount rate	4.10%	3.50%
Expected long-term return on plan assets	6.50%	6.75%
Rate of compensation increase	2.50% – 3.00%	2.50% – 3.00%

Fair Values of Pension Plan Assets

The fair values of the Company's pension plan assets at December 31, 2019 and 2018 by asset category and fair value hierarchy level are as follows. The majority of the valuations are based on quoted prices on active markets (Level 1), with the remaining valuations based on broker/dealer quotes, active market makers, models, and yield curves (Level 2).

	Total Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)
Asset Category	2019		2018		2019		2018		2019		2018
Cash and Money Market Funds (a)	$	682	$	1,498	$	682	$	1,498	$	–	$	–
Equity Securities:
Common Equity Securities (b)		662		512		662		512		–		–
Equity Mutual Funds (c)		29,677		23,637		29,677		23,637		–		–
Fixed Income Securities:
U.S. Treasury Obligations		615		591		–		–		615		591
Corporate and Foreign Bonds (d)		6,078		5,315		–		–		6,078		5,315
Fixed Income Mutual Funds (e)		11,635		9,071		11,635		9,071		–		–
Total Plan Assets	$	49,349	$	40,624	$	42,656	$	34,718	$	6,693	$	5,906

(a)

The portfolios are designed to keep up to one year of distributions in immediately available funds.

(b)

This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, telecommunications, industrials, real estate, materials, and energy. The individual stocks are primarily large cap stocks which track with the S&P 500.

(c) This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual

funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds.

(d) This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer

staples, healthcare, information technology, energy, transportation, and financial services.

(e)

This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio.