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Retirement and Post-Retirement Employee Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Net Periodic Benefit Cost Not yet Recognized

The amounts that have not yet been recognized in net periodic pension cost that have been recorded as regulatory assets or liabilities are as follows:



	Defined Benefit Plan			Supplemental Executive Retirement Plans		Postretirement Plans			Total
	(In thousands)
September 30, 2018
Unrecognized prior service (credit) cost	$	(1,047	)	$	—	$	1,298		$	251
Unrecognized actuarial (gain) loss	(2,310		)	33,912		(100,966		)	(69,364		)
	$	(3,357	)	$	33,912	$	(99,668	)	$	(69,113	)
September 30, 2017
Unrecognized prior service (credit) cost	$	(1,278	)	$	—	$	1,309		$	31
Unrecognized actuarial (gain) loss	62,388			42,170		(87,196		)	17,362
	$	61,110		$	42,170	$	(85,887	)	$	17,393

Schedule of Allocation of Plan Assets

The following table presents asset allocation information for the postretirement benefit plan assets as of September 30, 2018 and 2017.



	Actual Allocation September 30
Security Class	2018	2017
Diversified investment funds	97.5%	97.5%
Cash and cash equivalents	2.5%	2.5%

The following table presents asset allocation information for the Master Trust as of September 30, 2018 and 2017.



	Targeted Allocation Range	Actual Allocation September 30
Security Class	Targeted Allocation Range	2018	2017
Domestic equities	35%-55%	44.3%	43.9%
International equities	10%-20%	15.4%	17.2%
Fixed income	5%-30%	16.9%	10.6%
Company stock	0%-15%	12.7%	11.8%
Other assets	0%-20%	10.7%	16.5%

Schedule of Assumptions Used

The actuarial assumptions used to determine the pension liability for our postretirement plan were determined as of September 30, 2018 and 2017 and the actuarial assumptions used to determine the net periodic pension cost for the postretirement plan were determined as of September 30, 2017, 2016 and 2015. The assumptions are presented in the following table:



	Postretirement Liability				Postretirement Cost
	2018		2017		2018		2017		2016
Discount rate	4.38	%	3.89	%	3.89	%	3.73	%	4.55	%
Expected return on plan assets	5.33	%	4.29	%	4.29	%	4.45	%	4.45	%
Initial trend rate	6.50	%	7.00	%	7.00	%	7.50	%	7.50	%
Ultimate trend rate	5.00	%	5.00	%	5.00	%	5.00	%	5.00	%
Ultimate trend reached in	2022		2022		2022		2022		2021

The actuarial assumptions used to determine the pension liability for the supplemental plans were determined as of September 30, 2018 and 2017 and the actuarial assumptions used to determine the net periodic pension cost for the supplemental plans were determined as of September 30, 2017, 2016 and 2015. These assumptions are presented in the following table:



	Pension Liability				Pension Cost
	2018		2017		2018		2017		2016
Discount rate⁽¹⁾	4.38	%	3.89	%	4.08	%	3.73	%	4.55	%
Rate of compensation increase	3.50	%	3.50	%	3.50	%	3.50	%	3.50	%


(1)	Reflects a weighted average discount rate for pension cost for fiscal 2018 due to settlements during the year.

As of September 30, 2018, we updated our assumed mortality rates to incorporate the updated mortality table.

Additional assumptions are presented in the following table:



	Pension Liability				Pension Cost
	2018		2017		2018		2017		2016
Discount rate	4.38	%	3.89	%	3.89	%	3.73	%	4.55	%
Rate of compensation increase	3.50	%	3.50	%	3.50	%	3.50	%	3.50	%
Expected return on plan assets	6.75	%	6.75	%	6.75	%	7.00	%	7.00	%

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

The following table presents the Plan’s accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2018 and 2017:



	2018			2017
	(In thousands)
Accumulated benefit obligation	$	478,750		$	505,355
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	533,455		$	545,480
Service cost	17,264			18,109
Interest cost	20,803			20,443
Actuarial (gain) loss	(29,087		)	(16,347		)
Benefits paid	(37,716		)	(34,230		)
Benefit obligation at end of year	504,719			533,455
Change in plan assets:
Fair value of plan assets at beginning of year	508,244			473,950
Actual return on plan assets	54,163			63,524
Employer contributions	7,000			5,000
Benefits paid	(37,716		)	(34,230		)
Fair value of plan assets at end of year	531,691			508,244
Reconciliation:
Funded status	26,972			(25,211		)
Unrecognized prior service cost	—			—
Unrecognized net loss	—			—
Net amount recognized	$	26,972		$	(25,211	)

The following table presents the postretirement plan’s benefit obligation and funded status as of September 30, 2018 and 2017:



	2018			2017
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	274,098		$	279,222
Service cost	12,078			12,436
Interest cost	10,907			10,679
Plan participants’ contributions	4,720			4,936
Actuarial gain	(17,252		)	(21,750		)
Benefits paid	(18,565		)	(13,970		)
Plan amendments	—			2,545
Benefit obligation at end of year	265,986			274,098
Change in plan assets:
Fair value of plan assets at beginning of year	184,790			158,977
Actual return on plan assets	10,997			21,160
Employer contributions	17,419			13,687
Plan participants’ contributions	4,720			4,936
Benefits paid	(18,565		)	(13,970		)
Fair value of plan assets at end of year	199,361			184,790
Reconciliation:
Funded status	(66,625		)	(89,308		)
Unrecognized transition obligation	—			—
Unrecognized prior service cost	—			—
Unrecognized net loss	—			—
Accrued postretirement cost	$	(66,625	)	$	(89,308	)

The following table presents the supplemental plans’ accumulated benefit obligation, projected benefit obligation and funded status as of September 30, 2018 and 2017:



	2018			2017
	(In thousands)
Accumulated benefit obligation	$	116,943		$	130,070
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	134,480		$	142,574
Service cost	1,332			2,756
Interest cost	4,988			4,744
Actuarial (gain) loss	(1,020		)	(2,452		)
Benefits paid	(4,523		)	(4,588		)
Settlements	(13,887		)	(8,554		)
Benefit obligation at end of year	121,370			134,480
Change in plan assets:
Fair value of plan assets at beginning of year	—			—
Employer contribution	18,410			13,142
Benefits paid	(4,523		)	(4,588		)
Settlements	(13,887		)	(8,554		)
Fair value of plan assets at end of year	—			—
Reconciliation:
Funded status	(121,370		)	(134,480		)
Unrecognized prior service cost	—			—
Unrecognized net loss	—			—
Accrued pension cost	$	(121,370	)	$	(134,480	)

Schedule of Net Benefit Costs Supplemental Plan

Net periodic postretirement cost for fiscal 2018, 2017 and 2016 is recorded as operating expense and included the components presented below.



	Fiscal Year Ended September 30
	2018			2017			2016
	(In thousands)
Components of net periodic postretirement cost:
Service cost	$	12,078		$	12,436		$	10,823
Interest cost	10,907			10,679			12,424
Expected return on assets	(8,006		)	(7,185		)	(6,264		)
Amortization of transition obligation	—			—			82
Amortization of prior service cost (credit)	11			(1,644		)	(1,644		)
Recognized actuarial gain	(6,473		)	(2,827		)	(2,167		)
Net periodic postretirement cost	$	8,517		$	11,459		$	13,254

Net periodic pension cost for the Plan for fiscal 2018, 2017 and 2016 is recorded as operating expense and included the following components:



	Fiscal Year Ended September 30
	2018			2017			2016
	(In thousands)
Components of net periodic pension cost:
Service cost	$	17,264		$	18,109		$	16,419
Interest cost	20,803			20,443			23,193
Expected return on assets	(27,666		)	(27,975		)	(27,522		)
Amortization of prior service credit	(231		)	(231		)	(226		)
Recognized actuarial loss	9,114			12,744			10,693
Net periodic pension cost	$	19,284		$	23,090		$	22,557

Net periodic pension cost for the supplemental plans for fiscal 2018, 2017 and 2016 is recorded as operating expense and included the following components:



	Fiscal Year Ended September 30
	2018		2017		2016
	(In thousands)
Components of net periodic pension cost:
Service cost	$	1,332	$	2,756	$	2,371
Interest cost	4,988		4,744		5,185
Recognized actuarial loss	3,079		4,251		2,586
Settlements	4,159		2,685		—
Net periodic pension cost	$	13,558	$	14,436	$	10,142

Schedule of Employee Pension Plans Investments at Fair Value

In addition to the assets shown below, the Plan had net accounts receivable of $2.0 million and $0.6 million at September 30, 2018 and 2017, which materially approximates fair value due to the short-term nature of these assets.



	Assets at Fair Value as of September 30, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Investments:
Common stocks	$	197,577	$	—	$	—	$	197,577
Money market funds	—		19,153		—		19,153
Registered investment companies	50,895		—		—		50,895
Government securities:
Mortgage-backed securities	—		18,821		—		18,821
U.S. treasuries	23,071		868		—		23,939
Corporate bonds	—		46,498		—		46,498
Total investments at fair value	$	271,543	$	85,340	$	—	356,883
Investments measured at net asset value:
Common/collective trusts ⁽¹⁾							108,391
Limited partnerships ⁽¹⁾							64,399
Total investments at fair value							$	529,673



	Assets at Fair Value as of September 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Investments:
Common stocks	$	164,910	$	—	$	—	$	164,910
Money market funds	—		9,588		—		9,588
Registered investment companies	64,102		—		—		64,102
Government securities:
Mortgage-backed securities	—		15,664		—		15,664
U.S. treasuries	5,129		822		—		5,951
Corporate bonds	—		32,314		—		32,314
Total assets in the fair value hierarchy	$	234,141	$	58,388	$	—	292,529
Investments measured at net asset value:
Common/collective trusts ⁽¹⁾							150,976
Limited partnerships ⁽¹⁾							64,135
Total investments at fair value							$	507,640


(1)	The fair value of our common/collective trusts and limited partnerships are measured using the net asset value per share practical expedient. There are no redemption restrictions, redemption notice periods or unfunded commitments for these investments. The redemption frequency is daily.

Schedule of Expected Benefit Payments

The following benefit payments paid by us, retirees and prescription drug subsidy payments for our postretirement benefit plans, which reflect expected future service, as appropriate, are expected to be paid in the following fiscal years. Company payments for fiscal 2018 include contributions to our postretirement plan trusts.



	Company Payments		Retiree Payments		Subsidy Payments		Total Postretirement Benefits
	(In thousands)
2019	$	14,407	$	3,532	$	—	$	17,939
2020	13,363		3,742		—		17,105
2021	13,572		3,975		—		17,547
2022	14,503		4,412		—		18,915
2023	15,405		4,832		—		20,237
2024-2028	88,120		29,514		—		117,634

The following benefit payments for our defined benefit plans, which reflect expected future service, as appropriate, are expected to be paid in the following fiscal years:



	Pension Plan		Supplemental Plans
	(In thousands)
2019	$	32,603	$	10,475
2020	33,509		24,778
2021	35,838		4,597
2022	37,176		20,882
2023	38,684		12,735
2024-2028	206,563		43,070

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates have a significant effect on the amounts reported for the plan. A one-percentage point change in assumed health care cost trend rates would have the following effects on the latest actuarial calculations:



	One-Percentage Point Increase		One-Percentage Point Decrease
	(In thousands)
Effect on total service and interest cost components	$	4,228	$	(3,377	)
Effect on postretirement benefit obligation	$	38,633	$	(31,872	)

Schedule of Postretirement Benefit Plans Investments at Fair Value

The following tables set forth by level, within the fair value hierarchy, the Retiree Medical Plan’s assets at fair value as of September 30, 2018 and 2017. The methods used to determine fair value for the assets held by the Retiree Medical Plan are fully described in Note 2.



	Assets at Fair Value as of September 30, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Investments:
Money market funds	$	—	$	5,003	$	—	$	5,003
Registered investment companies	194,358		—		—		194,358
Total investments at fair value	$	194,358	$	5,003	$	—	$	199,361



	Assets at Fair Value as of September 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Investments:
Money market funds	$	—	$	4,534	$	—	$	4,534
Registered investment companies	180,256		—		—		180,256
Total investments at fair value	$	180,256	$	4,534	$	—	$	184,790