XML 30 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
RETIREMENT BENEFITS AND ASSETS HELD IN TRUST
 6 Months Ended
Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
RETIREMENT BENEFITS AND ASSETS HELD IN TRUST
RETIREMENT BENEFITS AND ASSETS HELD IN TRUST
Pension Plan Benefits
We have a qualified defined benefit pension plan (“retirement plan”) for eligible employees, comprised of a traditional final average pay plan and a cash balance plan. The traditional final average pay plan is noncontributory, covers select employees, and provides retirement benefits based on years of benefit service, average final compensation and age at retirement. The cash balance plan is also noncontributory, covers substantially all employees and provides retirement benefits based on eligible compensation and interest credits. Our funding practice for the retirement plan is to contribute amounts necessary to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974, plus additional amounts as we determine appropriate. During the second quarter of 2016, we contributed $2.8 million to the retirement plan. We do not expect to make any additional contributions to this plan in 2016.
We also have two supplemental nonqualified, noncontributory, defined benefit pension plans for selected management employees (the “supplemental benefit plans” and collectively with the retirement plan, the “pension plans”). The supplemental benefit plans provide for benefits that supplement those provided by the retirement plan. We contributed $5.2 million to the supplemental benefit plans during the second quarter of 2016. We do not expect to make any additional contributions to these plans in 2016.
Net periodic benefit cost for the pension plans, by component, was as follows for the three and six months ended June 30, 2016 and 2015:
 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
(in thousands)
2016
 
2015
 
2016
 
2015
Service cost
$
1,604

 
$
1,624

 
$
3,208

 
$
3,248

Interest cost
872

 
924

 
1,744

 
1,848

Expected return on plan assets
(932
)
 
(959
)
 
(1,864
)
 
(1,919
)
Amortization of prior service credit
(4
)
 
(11
)
 
(8
)
 
(21
)
Amortization of unrecognized loss
876

 
1,060

 
1,752

 
2,121

Net pension cost
$
2,416

 
$
2,638

 
$
4,832

 
$
5,277


Other Postretirement Benefits
We provide certain postretirement health care, dental and life insurance benefits for eligible employees. During the second quarter of 2016, we contributed $3.7 million to the postretirement benefit plan. We expect to make estimated additional contributions of $3.7 million to the postretirement benefit plan during the second half of 2016.
Net postretirement benefit plan cost, by component, was as follows for the three and six months ended June 30, 2016 and 2015:
 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
(in thousands)
2016
 
2015
 
2016
 
2015
Service cost
$
1,855

 
$
2,121

 
$
3,710

 
$
4,243

Interest cost
630

 
619

 
1,260

 
1,238

Expected return on plan assets
(531
)
 
(463
)
 
(1,061
)
 
(926
)
Amortization of unrecognized loss
—

 
125

 
—

 
250

Net postretirement cost
$
1,954

 
$
2,402

 
$
3,909

 
$
4,805


Defined Contribution Plan
We also sponsor a defined contribution retirement savings plan. Participation in this plan is available to substantially all employees. We match employee contributions up to certain predefined limits based upon eligible compensation and the employee’s contribution rate. The cost of this plan was $0.9 million for each of the three month periods ended June 30, 2016 and 2015, and $2.5 million and $2.4 million for the six months ended June 30, 2016 and 2015, respectively.