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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

The following schedule summarizes the assets of the Chesapeake Pension Plan and the FPU Pension Plan, by investment type, at December 31, 2017, 2016 and 2015:



	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2017		2016		2015		2017		2016		2015
Asset Category
Equity securities	52.70	%	52.93	%	48.01	%	55.17	%	53.18	%	48.56	%
Debt securities	37.79	%	37.64	%	39.62	%	36.56	%	37.74	%	41.74	%
Other	9.51	%	9.43	%	12.37	%	8.27	%	9.08	%	9.70	%
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, 2017 and 2016, the assets of the Chesapeake Pension Plan and the FPU Pension Plan were comprised of the following investments:



	Fair Value Measurement Hierarchy

	At December 31, 2017								At December 31, 2016
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(in thousands)
Mutual Funds - Equity securities
U.S. Large Cap ⁽¹⁾	$	4,245	$	—	$	—	$	4,245	$	4,031	$	—	$	—	$	4,031
U.S. Mid Cap ⁽¹⁾	1,775		—		—		1,775		1,677		—		—		1,677
U.S. Small Cap ⁽¹⁾	918		—		—		918		845		—		—		845
International ⁽²⁾	11,916		—		—		11,916		9,574		—		—		9,574
Alternative Strategies ⁽³⁾	5,528		—		—		5,528		5,238		—		—		5,238
	24,382		—		—		24,382		21,365		—		—		21,365
Mutual Funds - Debt securities
Fixed income ⁽⁴⁾	18,454		—		—		18,454		16,958		—		—		16,958
High Yield ⁽⁴⁾	2,772		—		—		2,772		2,636		—		—		2,636
	21,226		—		—		21,226		19,594		—		—		19,594
Mutual Funds - Other
Commodities ⁽⁵⁾	2,154		—		—		2,154		2,134		—		—		2,134
Real Estate ⁽⁶⁾	2,300		—		—		2,300		2,116		—		—		2,116
Guaranteed deposit ⁽⁷⁾	—		—		436		436		—		—		498		498
	4,454		—		436		4,890		4,250		—		498		4,748
Total Pension Plan Assets in fair value hierarchy	$	50,062	$	—	$	436	50,498		$	45,209	$	—	$	498	45,707
Investments measured at net asset value ⁽⁸⁾							7,248								6,233
Total Pension Plan Assets							$	57,746							$	51,940

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, 2017 and 2016:



	For the Year Ended December 31,
	2017			2016
(in thousands)
Balance, beginning of year	$	498		$	1,286
Purchases	2,271			2,023
Transfers in	1,743			1,435
Disbursements	(4,101		)	(4,268		)
Investment income	25			22
Balance, end of year	$	436		$	498

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 loss or as a regulatory asset as of December 31, 2017:



(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
Prior service cost (credit)	$	—	$	—	$	—	$	(601	)	$	—	$	(601	)
Net loss	3,629		17,483		733		767			10		22,622
Total	$	3,629	$	17,483	$	733	$	166		$	10	$	22,021

Accumulated other comprehensive loss pre-tax⁽¹⁾	$	3,629	$	3,322	$	733	$	166		$	2	$	7,852
Post-merger regulatory asset	—		14,161		—		—			8		14,169
Subtotal	3,629		17,483		733		166			10		22,021
Pre-merger regulatory asset	—		1,304		—		—			22		1,326
Total unrecognized cost	$	3,629	$	18,787	$	733	$	166		$	32	$	23,347


⁽¹⁾	The total amount of accumulated other comprehensive loss recorded on our consolidated balance sheet as of December 31, 2017 is net of income tax benefits of $3.1 million.

Amounts in Accumulated Other Comprehensive Income/Loss and Regulatory Asset

The amounts in accumulated other comprehensive 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 periodic benefit cost in 2018 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	$	351	$	434	$	101	$	58		$	—	$	944
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)
2018	$	687	$	3,078	$	151	$	97	$	88
2019	$	490	$	3,207	$	150	$	96	$	94
2020	$	675	$	3,304	$	149	$	85	$	87
2021	$	779	$	3,362	$	385	$	82	$	91
2022	$	592	$	3,536	$	146	$	81	$	93
Years 2023 through 2027	$	5,278	$	18,608	$	738	$	290	$	404


⁽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,	2017			2016			2015			2017			2016			2015
(in thousands)
Components of net periodic pension cost:
Interest cost	$	402		$	421		$	407		$	2,482		$	2,525		$	2,504
Expected return on assets	(495		)	(501		)	(530		)	(2,779		)	(2,702		)	(3,107		)
Amortization of actuarial loss	399			459			392			513			519			456
Settlement expense	—			161			—			—			—			—
Net periodic pension cost	306			540			269			216			342			(147		)
Amortization of pre-merger regulatory asset	—			—			—			761			761			761
Total periodic cost	$	306		$	540		$	269		$	977		$	1,103		$	614
Assumptions:
Discount rate	3.75		%	3.75		%	3.50		%	4.00		%	4.00		%	3.75		%
Expected return on plan assets	6.00		%	6.00		%	6.00		%	6.50		%	6.50		%	7.00		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following schedule sets forth the funded status at December 31, 2017 and 2016 and the net periodic cost for the years ended December 31, 2017, 2016 and 2015 for the Chesapeake and FPU Pension Plans:



	Chesapeake Pension Plan						FPU Pension Plan
At December 31,	2017			2016			2017			2016
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	11,355		$	11,501		$	63,832		$	64,435
Interest cost	402			421			2,482			2,525
Actuarial loss (gain)	454			330			1,199			(216		)
Effect of settlement	—			(433		)	—			—
Benefits paid	(768		)	(464		)	(2,849		)	(2,912		)
Benefit obligation — end of year	11,443			11,355			64,664			63,832
Change in plan assets:
Fair value of plan assets — beginning of year	8,668			8,752			43,272			42,207
Actual return on plan assets	1,144			424			6,025			2,343
Employer contributions	306			389			1,948			1,634
Benefits paid	(768		)	(464		)	(2,849		)	(2,912		)
Effect of settlement	—			(433		)	—			—
Fair value of plan assets — end of year	9,350			8,668			48,396			43,272
Reconciliation:
Funded status	(2,093		)	(2,687		)	(16,268		)	(20,560		)
Accrued pension cost	$	(2,093	)	$	(2,687	)	$	(16,268	)	$	(20,560	)
Assumptions:
Discount rate	3.50		%	3.75		%	3.75		%	4.00		%
Expected return on plan assets	6.00		%	6.00		%	6.50		%	6.50		%

Other Postretirement Benefit Plans

Component of Net Periodic Pension Cost (Benefit)

Net periodic postretirement benefit costs for 2017, 2016, and 2015 include the following components:



	Chesapeake Postretirement Plan									FPU Medical Plan
For the Years Ended December 31,	2017			2016			2015			2017			2016			2015
(in thousands)
Components of net periodic postretirement cost:
Interest cost	$	41		$	43		$	42		$	50		$	55		$	57
Amortization of:
Actuarial loss	53			64			72			—			—			—
Prior service cost	(77		)	(77		)	(77		)	—			—			—
Net periodic cost	17			30			37			50			55			57
Amortization of pre-merger regulatory asset	—			—			—			8			8			8
Net periodic cost	$	17		$	30		$	37		$	58		$	63		$	65
Assumptions
Discount rate	3.75		%	3.75		%	3.50		%	4.00		%	4.00		%	3.75		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following table sets forth the funded status at December 31, 2017 and 2016 and the net periodic cost for the years ended December 31, 2017, 2016, and 2015:



	Chesapeake Postretirement Plan						FPU Medical Plan
At December 31,	2017			2016			2017			2016
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	1,132		$	1,153		$	1,349		$	1,444
Interest cost	41			43			50			55
Plan participants contributions	118			90			48			64
Actuarial loss (gain)	72			20			(48		)	(41		)
Benefits paid	(235		)	(174		)	(112		)	(173		)
Benefit obligation — end of year	1,128			1,132			1,287			1,349
Change in plan assets:
Fair value of plan assets — beginning of year	—			—			—			—
Employer contributions⁽¹⁾	117			84			64			109
Plan participants contributions	118			90			48			64
Benefits paid	(235		)	(174		)	(112		)	(173		)
Fair value of plan assets — end of year	—			—			—			—
Reconciliation:
Funded status	(1,128		)	(1,132		)	(1,287		)	(1,349		)
Accrued postretirement cost	$	(1,128	)	$	(1,132	)	$	(1,287	)	$	(1,349	)
Assumptions:
Discount rate	3.50		%	3.75		%	3.75		%	4.00		%


⁽¹⁾	The Chesapeake 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.

Rabbi trust (associated with Supplemental Executive Retirement Savings Plan)

Component of Net Periodic Pension Cost (Benefit)



For the Years Ended December 31,	2017			2016			2015
(in thousands)
Components of net periodic pension cost:
Interest cost	$	89		$	91		$	91
Amortization of prior service cost	—			—			9
Amortization of actuarial loss	87			87			99
Net periodic pension cost	$	176		$	178		$	199
Assumptions:
Discount rate	3.75		%	3.75		%	3.50		%

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following sets forth the funded status at December 31, 2017 and 2016 and the net periodic cost for the years ended December 31, 2017, 2016 and 2015 for the Chesapeake SERP:



At December 31,	2017			2016
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	2,428		$	2,510
Interest cost	89			91
Actuarial loss (gain)	63			(21		)
Benefits paid	(152		)	(152		)
Benefit obligation — end of year	2,428			2,428
Change in plan assets:
Fair value of plan assets — beginning of year	—			—
Employer contributions	152			152
Benefits paid	(152		)	(152		)
Fair value of plan assets — end of year	—			—
Reconciliation:
Funded status	(2,428		)	(2,428		)
Accrued pension cost	$	(2,428	)	$	(2,428	)
Assumptions:
Discount rate	3.50		%	3.75		%