XML 88 R36.htm IDEA: XBRL DOCUMENT v3.25.0.1
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2024
Employee Benefit Plans [Line Items]  
Defined Benefit Plan, Assumptions
Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for pension and postemployment benefits for the periods indicated:

December 31,
 20242023
Discount rate - pension plans5.70%5.30%
Discount rate - other postemployment plans5.75%5.40%
Compensation increase rate
 3.50% - 4.30%
3.50% - 4.30%
The following table sets forth the weighted-average assumptions used by us to determine the periodic benefit costs for pension and postemployment benefits for the periods indicated:

Year Ended December 31,
 202420232022
Discount rate - pension plans5.30%5.60%
3.05%/4.55% (a)
Discount rate - other postemployment plans5.40%5.70%3.00%
Expected long-term return on plan assets - pension plans6.70%6.75%6.40%
Expected long-term return on plan assets - other postemployment plans5.20%5.55%5.85%
Compensation increase rate
3.50% - 4.30%
3.60% - 5.00%
3.10% - 5.00%
(a) Pension plans were remeasured as of April 30, 2022.
Schedule of Defined Benefit Plans Disclosures
Obligations and Funded Status - The following table sets forth our defined benefit pension and other postemployment benefit plans, benefit obligations and fair value of plan assets for the periods indicated:

Pension BenefitsOther Postemployment Benefits
December 31, December 31,
2024202320242023
Changes in Benefit Obligation(Thousands of dollars)
Benefit obligation, beginning of period$803,605 $784,633 $158,535 $168,342 
Service cost6,204 7,242 610 730 
Interest cost41,123 42,428 8,179 9,154 
Plan participants’ contributions— — 2,631 2,823 
Actuarial loss (gain)
(27,026)23,015 (3,267)(5,551)
Benefits paid
(54,099)(53,713)(15,704)(16,963)
Settlements(38,690)— — — 
Benefit obligation, end of period$731,117 $803,605 $150,984 $158,535 
Change in Plan Assets
Fair value of plan assets, beginning of period$795,381 $768,961 $181,608 $181,877 
Actual return on plan assets
22,322 78,827 8,404 11,325 
Employer contributions1,559 1,306 — 2,546 
Plan participants’ contributions— — 2,631 2,823 
Benefits paid
(54,099)(53,713)(13,154)(16,963)
Settlements(39,762)— — — 
Fair value of assets, end of period725,401 795,381 179,489 181,608 
Benefit asset (obligation), net
$(5,716)$(8,224)$28,505 $23,073 
Pension and other postemployment benefits$14,377 $13,409 $28,505 $23,073 
Current liabilities(1,409)(1,368)— — 
Noncurrent liabilities(18,684)(20,265)— — 
Benefit asset (obligation), net$(5,716)$(8,224)$28,505 $23,073 
Schedule of Net Benefit Costs [Table Text Block]
The following tables set forth the components of net periodic benefit cost for our pension and other postemployment benefit plans for the periods indicated:

Pension Benefits
Year Ended December 31,
202420232022
(Thousands of dollars)
Components of net periodic benefit cost (credit)
 
Service cost$6,204 $7,242 $10,369 
Interest cost (a)
41,123 42,428 36,150 
Expected return on assets (a)
(59,027)(59,518)(58,528)
Amortization of unrecognized prior service cost (a)
372 372 248 
Amortization of net loss (a)
5,786 2,008 16,793 
Net periodic benefit cost (credit)
$(5,542)$(7,468)$5,032 
(a) These amounts, net of any amounts capitalized as a regulatory asset, have been recognized as other (income) expense, net in the consolidated statement of income. See Note 13 for additional detail.

Other Postemployment Benefits
Year Ended December 31,
202420232022
(Thousands of dollars)
Components of net periodic benefit cost (credit)
Service cost$610 $730 $1,274 
Interest cost (a)
8,179 9,154 6,448 
Expected return on assets (a)
(9,134)(9,728)(13,181)
Amortization of unrecognized prior service cost (credit) (a)
— 153 41 
Amortization of net loss (gain) (a)
(16)(48)217 
Net periodic benefit cost (credit)
$(361)$261 $(5,201)
(a) These amounts, net of any amounts capitalized as a regulatory asset, have been recognized as other (income) expense, net in the consolidated statement of income. See Note 13 for additional detail.
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) - The following table sets forth the amounts recognized in other comprehensive income (loss), net of regulatory deferrals, related to our defined benefit pension benefits for the period indicated:

Pension Benefits
Year Ended December 31,
202420232022
(Thousands of dollars)
Net gain (loss) arising during the period
$1,242 $(619)$7,369 
Amortization of net loss (gain)(1)1 159 
Deferred income taxes(281)140 (1,705)
   Total recognized in other comprehensive income (loss)
$960 $(478)$5,823 
Schedule of Net Periodic Benefit Cost Not yet Recognized
The tables below set forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit credit for the periods indicated:

Pension Benefits
December 31,
20242023
(Thousands of dollars)
Prior service cost$(1,720)$(2,091)
Accumulated loss(251,952)(246,988)
Accumulated other comprehensive loss before regulatory asset(253,672)(249,079)
Regulatory asset for regulated entities253,517 247,684 
Accumulated other comprehensive loss after regulatory asset(155)(1,395)
Deferred income taxes(67)213 
Accumulated other comprehensive loss, net of tax$(222)$(1,182)

Other Postemployment Benefits
December 31,
20242023
(Thousands of dollars)
Prior service cost$— $— 
Accumulated gain (loss)1,065 (1,457)
Accumulated other comprehensive loss before regulatory asset1,065 (1,457)
Regulatory asset for regulated entities(1,065)1,457 
Accumulated other comprehensive loss after regulatory asset$— $— 
Schedule of Health Care Cost Trend Rates
Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated:

20242023
Health care cost-trend rate assumed for next year7.00%6.00%
Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate)4.50%4.50%
Year that the rate reaches the ultimate trend rate20352030
Schedule of Allocation of Plan Assets The current target allocation for the assets of our defined benefit pension plan is as follows:
Investment-grade bonds70.0 %
U.S. large-cap equities13.0 %
Alternative investments7.0 %
Developed foreign equities5.0 %
Mid-cap equities3.0 %
Emerging markets equities1.0 %
Small-cap equities1.0 %
  Total100.0 %
Schedule Of Employee Pension Plans Investments At Fair Value
The following tables set forth our pension and other postemployment benefits plan assets by fair value category as of the measurement date:

Pension Benefits
December 31, 2024
Asset CategoryLevel 1Level 2Level 3Total
(Thousands of dollars)
Investments:
Equity securities (a)$81,459 $— $— $81,459 
Government obligations— 213,572 — 213,572 
Corporate obligations (b)— 328,915 — 328,915 
Cash and money market funds (c)5,871 24,737 — 30,608 
Insurance contracts and group annuity contracts— — 11,177 11,177 
Other investments (d)— — 59,670 59,670 
  Total assets$87,330 $567,224 $70,847 $725,401 
(a) - This category represents securities of the various market sectors from diverse industries.
(b) - This category represents bonds from diverse industries.
(c) - This category primarily represents money market funds.
(d) - This category represents alternative investments such as hedge funds and other financial instruments.

Pension Benefits
December 31, 2023
Asset CategoryLevel 1Level 2Level 3Total
(Thousands of dollars)
Investments:
Equity securities (a)$88,477 $— $— $88,477 
Government obligations— 204,669 — 204,669 
Corporate obligations (b)— 366,482 — 366,482 
Cash and money market funds (c)5,300 28,977 — 34,277 
Insurance contracts and group annuity contracts— — 12,350 12,350 
Other investments (d)— — 89,126 89,126 
  Total assets$93,777 $600,128 $101,476 $795,381 
(a) - This category represents securities of the various market sectors from diverse industries.
(b) - This category represents bonds from diverse industries.
(c) - This category primarily represents money market funds.
(d) - This category represents alternative investments such as hedge funds and other financial instruments.

Other Postemployment Benefits
December 31, 2024
Asset CategoryLevel 1Level 2Level 3Total
(Thousands of dollars)
Investments:
Equity securities (a)$7,226 $— $— $7,226 
Government obligations— 41,982 — 41,982 
Corporate obligations (b)— 36,411 — 36,411 
Cash and money market funds (c)806 12,167 — 12,973 
Insurance contracts and group annuity contracts (d)— 80,897 — 80,897 
  Total assets$8,032 $171,457 $— $179,489 
(a) - This category represents securities of the various market sectors from diverse industries.
(b) - This category represents bonds from diverse industries.
(c) - This category primarily represents money market funds.
(d) - This category includes equity securities and bonds held in a captive insurance product.
Other Postemployment Benefits
December 31, 2023
Asset CategoryLevel 1Level 2Level 3Total
(Thousands of dollars)
Investments:
Equity securities (a)$7,031 $— $— $7,031 
Government obligations— 41,863 — 41,863 
Corporate obligations (b)— 38,615 — 38,615 
Cash and money market funds (c)751 13,245 — 13,996 
Insurance contracts and group annuity contracts (d)— 80,102 — 80,102 
  Total assets$7,782 $173,825 $— $181,607 
(a) - This category represents securities of the various market sectors from diverse industries.
(b) - This category represents bonds from diverse industries.
(c) - This category primarily represents money market funds.
(d) - This category includes equity securities and bonds held in a captive insurance product.

Insurance contracts and group annuity contracts include investments in the Immediate Participation Guarantee Fund (“IPG Fund”) with John Hancock and are valued at fair value. John Hancock invests the IPG Fund in its general fund portfolio. The contract value of the IPG Fund at the end of the year, which approximates fair value, is estimated. The difference between this estimated balance and the actual balance, as subsequently determined by John Hancock, is charged or credited to the net assets of the plans.

Certain investments that are categorized as money market funds in Level 2 and other investments in Level 3 represent alternative investments such as hedge funds and other financial instruments measured using the net asset value per share (or its equivalent) practical expedient.

The following tables set forth additional information regarding commitments and redemption limitations of these other investments at the periods indicated:

December 31, 2024
Fair ValueUnfunded CommitmentsRedemption FrequencyRedemption Notice Period
(in thousands)(in days)
Grosvenor Registered Multi Limited Partnership$29,642 $— quarterly65
K2 Institutional Investors II Limited Partnership$30,028 $— quarterly91

December 31, 2023
Fair ValueUnfunded CommitmentsRedemption FrequencyRedemption Notice Period
(in thousands)(in days)
Grosvenor Registered Multi Limited Partnership$40,872 $— quarterly65
K2 Institutional Investors II Limited Partnership$48,254 $— quarterly91
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The following table sets forth the reconciliation of Level 3 fair value measurements of our pension plans for the periods indicated:

Pension Benefits
Insurance
Contracts		Other
Investments		Total
(Thousands of dollars)
January 1, 2023$14,480 $87,031 $101,511 
Unrealized gains— 2,095 2,095 
Unrealized losses(618)— (618)
Purchases1,562 — 1,562 
Settlements(3,074)— (3,074)
December 31, 2023$12,350 $89,126 $101,476 
Unrealized gains445 — 445 
Unrealized losses— (2,984)(2,984)
Expense(167)— (167)
Purchases— 1,408 1,408 
Sales— (27,880)(27,880)
Benefits paid(1,451)— (1,451)
December 31, 2024$11,177 $59,670 $70,847 
Schedule of Expected Benefit Payments The following table sets forth the pension benefits and other postemployment benefits payments expected to be paid in 2025-2034:
Pension
Benefits		Other Postemployment
Benefits
Benefits to be paid in:(Thousands of dollars)
2025$52,832 $14,127 
202653,298 13,734 
202753,470 13,431 
202854,189 13,069 
202954,094 12,745 
2030 through 2034271,532 58,985