Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Amounts Not Yet Reflected in Net Periodic Benefit Cost and Included in Accumulated Other Comprehensive Income Loss or Regulatory Assets

The following table presents the amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income/loss or as a regulatory asset as of December 31, 2012:


(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan		FPU Medical Plan		Total
Prior service cost (credit)		($ 1)	$	—	$	46		($986)	$	—		($941)
Net loss		4,379		15,517		858		1,144		18		21,916

Total	$	4,378	$	15,517	$	904	$	158	$	18	$	20,975
Accumulated other comprehesive loss pre-tax⁽¹⁾	$	4,378	$	2,948	$	904	$	158	$	3	$	8,391
Post-merger regulatory asset		—		12,569		—		—		15		12,584

Subtotal		4,378		15,517		904		158		18		20,975
Pre-merger regulatory asset		—		5,109		—		—		62		5,171

Total unrecognized cost	$	4,378	$	20,626	$	904	$	158	$	80	$	26,146

⁽¹⁾	The total amount of accumulated other comprehensive loss recorded on our consolidated balance sheet as of December 31, 2012 is net of income tax benefits of $3.3 million.

Amounts in Accumulated Other Comprehensive Income/Loss and Regulatory Asset

The amounts in accumulated other comprehensive income/loss and regulatory asset for our pension and postretirement benefits plans that are expected to be recognized as a component of net benefit cost in 2013 are set forth in the following table:


(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan		FPU Medical Plan		Total
Prior service cost (credit)		($1)	$	—	$	19		($77)	$	—		($59)
Net loss	$	308	$	332	$	64	$	74	$	—	$	778
Amortization of pre-merger regulatory asset	$	—	$	761	$	—	$	—	$	8	$	769

Schedule of Assets by Investment Type

The following schedule summarizes the assets of the Chesapeake Pension Plan and the FPU Pension Plan, by investment type, at December 31, 2012, 2011 and 2010:


	Chesapeake Pension Plan									FPU Pension Plan
At December 31,	2012			2011			2010			2012			2011			2010
Asset Category
Equity securities		52.07	%		51.75	%		64.33	%		52.81	%		51.98	%		60.00	%
Debt securities		38.00	%		37.88	%		30.60	%		38.04	%		38.05	%		35.00	%
Other		9.93	%		10.37	%		5.07	%		9.15	%		9.97	%		5.00	%

Total		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Schedule of Asset Allocation Strategy

The following allocation range of asset classes is intended to produce a rate of return sufficient to meet the Plans’ goals and objectives:


Asset Allocation Strategy
Asset Class	Minimum Allocation Percentage			Maximum Allocation Percentage
Domestic Equities (Large Cap, Mid Cap and Small Cap)		14	%		32	%
Foreign Equities (Developed and Emerging Markets)		13	%		25	%
Fixed Income (Inflation Bond and Taxable Fixed)		26	%		40	%
Alternative Strategies (Long/Short Equity and Hedge Fund of Funds)		6	%		14	%
Diversifying Assets (High Yield Fixed Income, Commodities, and Real Estate)		7	%		19	%
Cash		0	%		5	%

Summary of Pension Plan Assets

At December 31, 2012, the assets of the Chesapeake Pension Plan and the FPU Pension Plan were comprised of the following investments:


	Fair Value Measurement Hierarchy
Asset Category	Level 1		Level 2		Level 3		Total
(in thousands)
Equity securities
U.S. Large Cap ⁽¹⁾	$	3,504	$	3,443	$	—	$	6,947
U.S. Mid Cap ⁽¹⁾		—		3,078		—		3,078
U.S. Small Cap ⁽¹⁾		—		1,523		—		1,523
International ⁽²⁾		10,019		—		—		10,019
Alternative Strategies ⁽³⁾		4,978		—		—		4,978

		18,501		8,044		—		26,545
Debt securities
Inflation Protected ⁽⁴⁾		2,507		—		—		2,507
Fixed income ⁽⁵⁾		—		14,109		—		14,109
High Yield ⁽⁵⁾		—		2,547		—		2,547

		2,507		16,656		—		19,163
Other
Commodities ⁽⁶⁾		1,918		—		—		1,918
Real Estate ⁽⁷⁾		2,048		—		—		2,048
Guaranteed deposit ⁽⁸⁾		—		—		710		710

		3,966		—		710		4,676

Total Pension Plan Assets	$	24,974	$	24,700	$	710	$	50,384

⁽¹⁾	Includes funds that invest primarily in United States common stocks.

⁽²⁾	Includes funds that invest primarily in foreign equities and emerging markets equities.

⁽³⁾	Includes funds that actively invest in both equity and debt securities, funds that sell short securities and funds that provide long-term capital appreciation. The funds may invest in debt securities below investment grade.

⁽⁴⁾	Includes funds that invest primarily in inflation-indexed bonds issued by the U.S. government.

⁽⁵⁾	Includes funds that invest in investment grade and fixed income securities.

⁽⁶⁾	Includes funds that invest primarily in commodity-linked derivative instruments and fixed income securities.

⁽⁷⁾	Includes funds that invest primarily in real estate.

⁽⁸⁾	Includes investment in a group annuity product issued by an insurance company.

At December 31, 2011, the assets of the Chesapeake Pension Plan and the FPU Pension Plan were comprised of the following investments:


	Fair Value Measurement Hierarchy
Asset Category	Level 1		Level 2		Level 3		Total
(in thousands)
Equity securities
U.S. Large Cap ⁽¹⁾	$	3,146	$	3,151	$	—	$	6,297
U.S. Mid Cap ⁽¹⁾		—		2,683		—		2,683
U.S. Small Cap ⁽¹⁾		—		1,341		—		1,341
International ⁽²⁾		8,563		—		—		8,563
Alternative Strategies ⁽³⁾		4,489		—		—		4,489

		16,198		7,175		—		23,373
Debt securities
Inflation Protected ⁽⁴⁾		2,237		—		—		2,237
Fixed income ⁽⁵⁾		—		12,617		—		12,617
High Yield ⁽⁵⁾		—		2,256		—		2,256

		2,237		14,873		—		17,110
Other
Commodities ⁽⁶⁾		1,789		—		—		1,789
Real Estate ⁽⁷⁾		1,797		—		—		1,797
Guaranteed deposit ⁽⁸⁾		—		—		897		897
Other		32		—		—		32

		3,618		—		897		4,515

Total Pension Plan Assets	$	22,053	$	22,048	$	897	$	44,998

⁽¹⁾	Includes funds that invest primarily in United States common stocks.

⁽²⁾	Includes funds that invest primarily in foreign equities and emerging markets equities.

⁽³⁾	Includes funds that actively invest in both equity and debt securities, funds that sell short securities and funds that provide long-term capital appreciation. The funds may invest in debt securities below investment grade.

⁽⁴⁾	Includes funds that invest primarily in inflation-indexed bonds issued by the U.S. government.

⁽⁵⁾	Includes funds that invest in investment grade and fixed income securities.

⁽⁶⁾	Includes funds that invest primarily in commodity-linked derivative instruments and fixed income securities.

⁽⁷⁾	Includes funds that invest primarily in real estate.

⁽⁸⁾	Includes investment in a group annuity product issued by an insurance company.

Summary of Changes in Fair Value of Level 3 Investments

The following table sets forth the summary of the changes in the fair value of Level 3 investments for the years ended December 31, 2012 and 2011:


At December 31,	2012			2011
(in thousands)
Balance, beginning of year	$	897		$	—
Purchases		79			897
Transfers in		3,620			—
Disbursements		(3,902	)		—
Investment Income		16			—

Balance, end of year	$	710		$	897

Schedule of Estimated Future Benefit Payments

The schedule below shows the estimated future benefit payments for each of the plans previously described:


	Chesapeake Pension Plan⁽¹⁾		FPU Pension Plan⁽¹⁾		Chesapeake SERP⁽²⁾		Chesapeake Postretirement Plan⁽²⁾		FPU Medical Plan⁽²⁾
(in thousands)
2013	$	564	$	2,816	$	88	$	97	$	258
2014	$	496	$	2,881	$	86	$	99	$	241
2015	$	628	$	2,930	$	136	$	101	$	221
2016	$	576	$	2,974	$	143	$	98	$	183
2017	$	1,194	$	3,006	$	141	$	97	$	147
Years 2018 through 2022	$	3,945	$	16,037	$	654	$	451	$	441

⁽¹⁾	The pension plan is funded; therefore, benefit payments are expected to be paid out of the plan assets.

⁽²⁾	Benefit payments are expected to be paid out of our general funds.

Pension Plans, Defined Benefit [Member]

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following schedule sets forth the funded status at December 31, 2012 and 2011:


	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2012			2011			2012			2011
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	11,672		$	11,760		$	57,999		$	52,478
Interest cost		458			520			2,577			2,695
Actuarial loss		726			941			6,915			5,403
Benefits paid		(923	)		(705	)		(2,979	)		(2,577	)
Effect of settlement		—			(844	)		—			—

Benefit obligation — end of year		11,933			11,672			64,512			57,999

Change in plan assets:
Fair value of plan assets — beginning of year		7,162			7,787			37,836			40,201
Actual return on plan assets		849			(124	)		4,526			(1,101	)
Employer contributions		1,342			1,048			2,571			1,313
Benefits paid		(923	)		(705	)		(2,979	)		(2,577	)
Effect of settlement		—			(844	)		—			—

Fair value of plan assets — end of year		8,430			7,162			41,954			37,836

Reconciliation:
Funded status		(3,503	)		(4,510	)		(22,558	)		(20,163	)

Accrued pension cost		($3,503	)		($4,510	)		($22,558	)		($20,163	)

Assumptions:
Discount rate		3.50	%		4.25	%		3.75	%		4.50	%
Expected return on plan assets		6.00	%		6.00	%		7.00	%		7.00	%

Component of Net Periodic Pension Cost (Benefit)

Net periodic pension cost (benefit) for the plans for 2012, 2011 and 2010 include the components shown below:


	Chesapeake									FPU
	Pension Plan									Pension Plan
For the Years Ended December 31,	2012			2011			2010			2012			2011			2010
(in thousands)
Components of net periodic pension cost:
Interest cost	$	458		$	520		$	570		$	2,577		$	2,695		$	2,729
Expected return on assets		(418	)		(424	)		(423	)		(2,627	)		(2,783	)		(2,532	)
Amortization of prior service cost		(5	)		(5	)		(5	)		—			—			—
Amortization of actuarial loss		255			156			155			196			—			—

Net periodic pension cost		290			247			297			146			(88	)		197
Settlement expense		—			217			—			—			—			—
Amortization of pre-merger regulatory asset		—			—			—			761			761			888

Total periodic cost	$	290		$	464		$	297		$	907		$	673		$	1,085

Assumptions:
Discount rate		4.25	%		5.00	%		5.25	%		4.50	%		5.25	%		5.75	%
Expected return on plan assets		6.00	%		6.00	%		6.00	%		7.00	%		7.00	%		7.00	%

Rabbi trust (associated with Supplemental Executive Retirement Savings Plan) [Member]

Schedule of Funded Status of Benefit Obligation and Plan Assets


At December 31,	2012			2011
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	2,160		$	2,731
Interest cost		90			107
Actuarial loss		191			176
Benefits paid		(89	)		(89	)
Effect of settlement		—			(765	)

Benefit obligation — end of year		2,352			2,160

Change in plan assets:
Fair value of plan assets — beginning of year		—			—
Employer contributions		89			854
Benefits paid		(89	)		(89	)
Effect of settlement		—			(765	)

Fair value of plan assets — end of year		—			—

Reconciliation:
Funded status		(2,352	)		(2,160	)

Accrued pension cost		($2,352	)		($2,160	)

Assumptions:
Discount rate		3.50	%		4.25	%

Component of Net Periodic Pension Cost (Benefit)

Net periodic pension costs for the Chesapeake SERP for 2012, 2011, and 2010 include the components shown below:


For the Years Ended December 31,	2012			2011			2010
(in thousands)
Components of net periodic pension cost:
Interest cost	$	90		$	107		$	136
Amortization of prior service cost		19			19			18
Amortization of actuarial loss		46			38			59

Net periodic pension cost		155			164			213
Settlement expense		—			219			—

Total periodic cost	$	155		$	383		$	213

Assumptions:
Discount rate		4.25	%		5.00	%		5.25	%

Other Postretirement Benefit Plans [Member]

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following schedule sets forth the status of other postretirement benefit plans:


	Chesapeake						FPU
	Postretirement Plan						Medical Plan
At December 31,	2012			2011			2012			2011
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	1,396		$	2,474		$	4,081		$	3,098
Service cost		—			—			1			125
Interest cost		55			64			79			176
Plan amendments		—			(1,140	)		—			—
Plan participants contributions		111			108			92			88
Curtailment gain		—			—			(2,651	)		—
Actuarial loss		39			100			500			802
Benefits paid		(186	)		(210	)		(328	)		(208	)

Benefit obligation — end of year		1,415			1,396			1,774			4,081

Change in plan assets:
Fair value of plan assets — beginning of year		—			—			—			—
Employer contributions⁽¹⁾		75			102			236			120
Plan participants contributions		111			108			92			88
Benefits paid		(186	)		(210	)		(328	)		(208	)

Fair value of plan assets — end of year		—			—			—			—

Reconciliation:
Funded status		(1,415	)		(1,396	)		(1,774	)		(4,081	)

Accrued postretirement cost		($1,415	)		($1,396	)		($1,774	)		($4,081	)

Assumptions:
Discount rate		3.50	%		4.25	%		3.75	%		4.50	%

⁽¹⁾	Chesapeake’s Postretirement Plan does not receive a Medicare Part-D subsidy. The FPU Medical Plan did not receive a significant subsidy for the post-merger period.

Component of Net Periodic Pension Cost (Benefit)

Net periodic postretirement benefit costs for 2012, 2011, and 2010 include the following components:


	Chesapeake									FPU
	Postretirement Plan									Medical Plan
For the Years Ended December 31,	2012			2011			2010			2012			2011			2010
(in thousands)
Components of net periodic postretirement cost:
Service cost	$	—		$	—		$	—		$	1		$	125		$	76
Interest cost		55			64			122			79			176			123
Amortization of:
Actuarial (gain) loss		73			67			57			—			55			(6	)
Prior service cost		(77	)		(77	)		—			—			—			—

Net periodic postretirement cost	$	51		$	54		$	179		$	80		$	356		$	193

Curtailment gain		—			—			—			(892	)		—			—

Net periodic postretirement cost	$	51		$	54		$	179			($812	)	$	356		$	193

Assumptions
Discount rate		4.25	%		5.00	%		5.25	%		4.50	%		5.25	%		5.75	%