XML 64 R45.htm IDEA: XBRL DOCUMENT

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

The following schedule summarizes the assets of the Chesapeake Pension Plan and the FPU Pension Plan, by investment type, at December 31, 2015, 2014 and 2013:



	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2015		2014		2013		2015		2014		2013
Asset Category
Equity securities	48.01	%	51.42	%	54.40	%	48.56	%	52.62	%	55.02	%
Debt securities	39.62	%	37.31	%	36.54	%	41.74	%	37.69	%	36.54	%
Other	12.37	%	11.27	%	9.06	%	9.70	%	9.69	%	8.44	%
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, 2014, 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⁾	$	4,069	$	4,028	$	—	$	8,097
U.S. Mid Cap ⁽¹⁾	1,733		1,714		—		3,447
U.S. Small Cap ⁽¹⁾	873		821		—		1,694
International ⁽²⁾	9,621		—		—		9,621
Alternative Strategies ⁽³⁾	5,531		—		—		5,531
	21,827		6,563		—		28,390
Debt securities
Fixed income ⁽⁴⁾	17,717		—		—		17,717
High Yield ⁽⁴⁾	2,658		—		—		2,658
	20,375		—		—		20,375
Other
Commodities ⁽⁵⁾	1,819		—		—		1,819
Real Estate ⁽⁶⁾	2,427		—		—		2,427
Guaranteed deposit ⁽⁷⁾	—		—		1,144		1,144
	4,246		—		1,144		5,390
Total Pension Plan Assets	$	46,448	$	6,563	$	1,144	$	54,155

At December 31, 2015, 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⁾	$	3,641	$	4,030	$	—	$	7,671
U.S. Mid Cap ⁽¹⁾	1,577		1,609		—		3,186
U.S. Small Cap ⁽¹⁾	865		818		—		1,683
International ⁽²⁾	9,416		—		—		9,416
Alternative Strategies ⁽³⁾	2,737		—		—		2,737
	18,236		6,457		—		24,693
Debt securities
Fixed income ⁽⁴⁾	18,565		—		—		18,565
High Yield ⁽⁴⁾	2,521		—		—		2,521
	21,086		—		—		21,086
Other
Commodities ⁽⁵⁾	1,365		—		—		1,365
Real Estate ⁽⁶⁾	2,529		—		—		2,529
Guaranteed deposit ⁽⁷⁾	—		—		1,286		1,286
	3,894		—		1,286		5,180
Total Pension Plan Assets	$	43,216	$	6,457	$	1,286	$	50,959


⁽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 in investment grade and fixed income securities.


⁽⁵⁾	Includes funds that invest primarily in commodity-linked derivative instruments and fixed income securities.


⁽⁶⁾	Includes funds that invest primarily in real estate.


⁽⁷⁾	Includes investment in a group annuity product issued by an insurance company.

Schedule of Level Three Defined Benefit Plan Assets Roll Forward

The following table sets forth the summary of the changes in the fair value of Level 3 investments for the years ended December 31, 2015 and 2014:



	For the Year Ended December 31,
	2015			2014
(in thousands)
Balance, beginning of year	$	1,144		$	602
Purchases	1,926			1,811
Transfers in	1,900			2,390
Disbursements	(3,688		)	(3,704		)
Investment income	4			45
Balance, end of year	$	1,286		$	1,144

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, 2015:



(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
Prior service cost (credit)	$	—	$	—	$	—	$	(755	)	$	—	$	(755	)
Net loss	4,434		20,410		866		793			99		26,602
Total	$	4,434	$	20,410	$	866	$	38		$	99	$	25,847
Accumulated other comprehensive loss pre-tax⁽¹⁾	$	4,434	$	3,878	$	866	$	38		$	19	$	9,235
Post-merger regulatory asset	—		16,532		—		—			80		16,612
Subtotal	4,434		20,410		866		38			99		25,847
Pre-merger regulatory asset	—		2,826		—		—			38		2,864
Total unrecognized cost	$	4,434	$	23,236	$	866	$	38		$	137	$	28,711


⁽¹⁾	The total amount of accumulated other comprehensive loss recorded on our consolidated balance sheet as of December 31, 2015 is net of income tax benefits of $3.7 million.

Amounts in Accumulated Other Comprehensive Income/Loss and Regulatory Asset

The amounts in accumulated other comprehensive income/loss and recorded as a regulatory asset for our pension and postretirement benefits plans that are expected to be recognized as a component of net benefit cost in 2016 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)	$	—	$	—	$	—	$	(77	)	$	—	$	(77	)
Net loss	$	412	$	512	$	87	$	67		$	—	$	1,078
Amortization of pre-merger regulatory asset	$	—	$	761	$	—	$	—		$	8	$	769

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)
2016	$	591	$	2,980	$	151	$	82	$	149
2017	$	717	$	3,000	$	150	$	80	$	130
2018	$	640	$	3,047	$	150	$	79	$	93
2019	$	686	$	3,129	$	148	$	79	$	100
2020	$	646	$	3,218	$	147	$	73	$	94
Years 2021 through 2025	$	4,706	$	17,469	$	960	$	322	$	424


⁽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 benefit

Component of Net Periodic Pension Cost (Benefit)



	Chesapeake Pension Plan									FPU Pension Plan
For the Years Ended December 31,	2015			2014			2013			2015			2014			2013
(in thousands)
Components of net periodic pension cost:
Interest cost	$	407		$	425		$	405		$	2,504		$	2,613		$	2,367
Expected return on assets	(530		)	(516		)	(486		)	(3,107		)	(3,089		)	(2,866		)
Amortization of prior service cost	—			—			(1		)	—			—			—
Amortization of actuarial loss	392			176			322			456			8			330
Net periodic pension cost	269			85			240			(147		)	(468		)	(169		)
Amortization of pre-merger regulatory asset	—			—			—			761			761			761
Total periodic cost	$	269		$	85		$	240		$	614		$	293		$	592
Assumptions:
Discount rate	3.50		%	4.25		%	3.50		%	3.75		%	4.75		%	3.75		%
Expected return on plan assets	6.00		%	6.00		%	6.00		%	7.00		%	7.00		%	7.00		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following schedule sets forth the funded status at December 31, 2015 and 2014 and the net periodic cost for the years ended December 31, 2015, 2014 and 2013 for the Chesapeake and FPU Pension Plans:



	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2015			2014			2015			2014
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	11,981		$	10,268		$	68,173		$	55,876
Interest cost	407			425			2,504			2,613
Actuarial loss (gain)	(401		)	1,891			(3,374		)	12,785
Benefits paid	(486		)	(603		)	(2,868		)	(3,101		)
Benefit obligation — end of year	11,501			11,981			64,435			68,173
Change in plan assets:
Fair value of plan assets — beginning of year	9,078			8,743			45,077			44,337
Actual return on plan assets	(289		)	305			(1,464		)	1,485
Employer contributions	449			633			1,462			2,356
Benefits paid	(486		)	(603		)	(2,868		)	(3,101		)
Fair value of plan assets — end of year	8,752			9,078			42,207			45,077
Reconciliation:
Funded status	(2,749		)	(2,903		)	(22,228		)	(23,096		)
Accrued pension cost	$	(2,749	)	$	(2,903	)	$	(22,228	)	$	(23,096	)
Assumptions:
Discount rate	3.75		%	3.50		%	4.00		%	3.75		%
Expected return on plan assets	6.00		%	6.00		%	7.00		%	7.00		%

Rabbi trust (associated with Supplemental Executive Retirement Savings Plan)

Component of Net Periodic Pension Cost (Benefit)



For the Years Ended December 31,	2015			2014			2013
(in thousands)
Components of net periodic pension cost:
Interest cost	$	91		$	92		$	81
Amortization of prior service cost	9			19			19
Amortization of actuarial loss	99			47			64
Net periodic pension cost	$	199		$	158		$	164
Assumptions:
Discount rate	3.50		%	4.25		%	3.50		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following sets forth the funded status at December 31, 2015 and 2014 and the net periodic cost for the years ended December 31, 2015, 2014 and 2013 for the Chesapeake SERP:



At December 31,	2015			2014
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	2,650		$	2,210
Interest cost	91			92
Actuarial loss (gain)	(85		)	437
Benefits paid	(146		)	(89		)
Benefit obligation — end of year	2,510			2,650
Change in plan assets:
Fair value of plan assets — beginning of year	—			—
Employer contributions	146			89
Benefits paid	(146		)	(89		)
Fair value of plan assets — end of year	—			—
Reconciliation:
Funded status	(2,510		)	(2,650		)
Accrued pension cost	$	(2,510	)	$	(2,650	)
Assumptions:
Discount rate	3.75		%	3.50		%