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Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]  
Schedule of Assumptions Used
Net periodic cost for the defined benefit plans and other postretirement benefits was calculated using the following weighted-average assumptions:

 
Pension Benefits
 
Other Benefits
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
 
%
  
%
  
%
 
%
 
%
 
%
Discount rate
4.34
 
5.48
 
5.92/5.51
*
4.25
 
5.40
 
5.83
Expected return on plan assets
7.00
 
7.00
 
8.00/7.00
*
7.00
 
7.00
 
8.00
Rate of compensation increase
4.00
  
4.00
  
4.00
 
N/A
 
N/A
 
N/A

* San Jose Water Company updated its expected return on plan assets assumption in November 2010 to reflect the approved redistribution of investments held between equity and fixed income securities in the plan asset portfolio. As a result, San Jose Water Company remeasured the plan assets and benefit obligation as of that date and the discount rate applied was updated accordingly.
Benefit obligations for the defined benefit plans and other postretirement benefits were calculated using the following weighted-average assumptions as of December 31:

 
Pension Benefits
 
Other Benefits
 
2012
 
2011
 
2012
 
2011
 
%
 
%
 
%
 
%
Discount rate
3.92
 
4.34
 
3.80
 
4.25
Rate of compensation increase
4.00
 
4.00
 
N/A
 
N/A
Schedule of Net Benefit Costs
Net periodic costs for the defined benefit plans and other postretirement benefits for the years ended December 31 was as follows:

 
Pension Benefits
 
Other Benefits
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
4,288

 
3,516

 
3,171

 
$
339

 
273

 
229

Interest cost
5,349

 
5,313

 
5,231

 
452

 
467

 
433

Expected return on assets
(4,442
)
 
(4,289
)
 
(3,599
)
 
(151
)
 
(129
)
 
(130
)
Amortization of transition obligation

 

 

 
1

 
57

 
57

Amortization of prior service cost
414

 
450

 
470

 
197

 
197

 
197

Recognized actuarial loss
3,857

 
2,147

 
2,129

 
195

 
96

 
48

Net periodic benefit cost
$
9,466

 
7,137

 
7,402

 
$
1,033

 
961

 
834

Schedule of Net Funded Status
The actuarial present value of benefit obligations and the funded status of San Jose Water Company’s defined benefit pension and other postretirement plans as of December 31 were as follows:

 
Pension Benefits
 
Other Benefits
 
2012
 
2011
 
2012
 
2011
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
123,904

 
102,783

 
$
10,796

 
8,731

Service cost
4,288

 
3,516

 
339

 
273

Interest cost
5,349

 
5,313

 
452

 
467

Actuarial loss
11,090

 
15,732

 
994

 
1,641

Benefits paid
(3,632
)
 
(3,440
)
 
(338
)
 
(316
)
Benefit obligation at end of year
$
140,999

 
123,904

 
$
12,243

 
10,796

Change in plan assets
 
 
 
 
 
 
 
Fair value of assets at beginning of year
$
62,763

 
58,761

 
$
2,321

 
1,993

Actual return on plan assets
6,645

 
(27
)
 
838

 
(20
)
Employer contributions
9,766

 
7,469

 
596

 
567

Benefits paid
(3,632
)
 
(3,440
)
 
(277
)
 
(219
)
Fair value of plan assets at end of year
75,542

 
62,763

 
3,478

 
2,321

Funded status at end of year
$
(65,457
)
 
(61,141
)
 
$
(8,765
)
 
(8,475
)
Schedule of Amounts Recognized in Balance Sheet
The amounts recognized on the balance sheet as of December 31 were as follows:

 
Pension Benefits
 
Other Benefits
 
2012
 
2011
 
2012
 
2011
Current liabilities
$
737

 
705

 
$
60

 
56

Noncurrent liabilities
64,720

 
60,436

 
8,705

 
8,419

 
$
65,457

 
61,141

 
$
8,765

 
8,475

Schedule of Regulatory Asset Recorded on the Projected Benefit Obligation of the Postretirement Benefit Plans
San Jose Water Company recorded a regulatory asset, including a gross-up for taxes, on the projected benefit obligation of the postretirement benefit plans as follows:

 
2012
 
2011
Funded status of obligation
$
74,222

 
69,616

Accrued benefit cost
(6,904
)
 
(6,827
)
Amount to be recovered in future rates
67,318

 
62,789

Tax gross-up
46,315

 
43,199

Regulatory asset
$
113,633

 
105,988

Schedule of Estimated Amortization
The estimated amortization for the year ended December 31, 2013 is as follows:

 
Pension Benefits
 
Other Benefits
Amortization of prior service cost
$
376

 
197

Amortization of loss
3,920

 
219

Total
$
4,296

 
416

Schedule of Allocation of Plan Assets
The following tables summarize the fair values of plan assets by major categories as of December 31, 2012 and 2011:

 
 
 
 
 
Fair Value Measurements at December 31, 2012
Asset Category
Benchmark
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
 
 
$
7,056

 
$
7,056

 
$

 
$

Actively Managed (a):
 
 
 
 
 
 
 
 
 
U.S. Large Cap Equity
Russell 1000, Russell 1000 Growth, Russell 1000 Value
 
22,749

 
22,749

 

 

U.S. Mid Cap Equity
Russell Mid Cap,
Russell Mid Cap Growth, Russell Mid Cap Value
 
3,989

 
3,989

 

 

U.S. Small Cap Equity
Russell 2000, Russell 2000 Growth, Russell 2000 Value
 
2,174

 
2,174

 

 

Non-U.S. Large Cap Equity
MSCI EAFE
 
4,169

 
4,169

 

 

REIT
NAREIT—Equity REIT’s
 
3,792

 

 
3,792

 

Fixed Income (b)
(b)
 
35,091

 

 
35,091

 

Total
 
 
$
79,020

 
$
40,137

 
$
38,883

 
$

___________________________________
The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income.
(a)
Actively managed portfolio of securities with the goal to exceed the stated benchmark performance.
(b)
Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate.

 
 
 
 
 
Fair Value Measurements at December 31, 2011
Asset Category
Benchmark
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
 
 
$
4,301

 
$
4,301

 
$

 
$

Actively Managed (a):
 
 
 
 
 
 
 
 
 
U.S. Large Cap Equity
Russell 1000 Growth
 
3,716

 
3,716

 

 

U.S. Small Mid Cap Equity
Russell 2500
 
1,814

 
1,814

 

 

U.S. Small Cap Equity
Russell 2000
 
6,303

 
6,303

 

 

Emerging Market Equity
MSCI Emerging
Markets Net
 
3,547

 
3,547

 

 

Non-U.S. Large Cap Equity
MSCI EAFE Net
 
4,271

 
4,271

 

 

Passive Index Fund ETFs (b):
 
 
 
 
 
 
 
 
 
U.S. Large Cap Equity
S&P 500/Russell 1000 Growth
 
5,525

 
5,525

 

 

U.S. Mid Cap Equity
Russell Mid Cap
 
69

 
69

 

 

U.S. Small Mid Cap Equity
Russell 2500
 
617

 
617

 

 

U.S. Small Cap Equity
Russell 2000
 
143

 
143

 

 

Non-U.S. Large Cap Equity
MSCI EAFE Net
 
4,356

 
4,356

 

 

REIT
Nareit—Equity REITS
 
3,213

 

 
3,213

 

Fixed Income (c)
(c)
 
27,209

 

 
27,209

 

Total
 
 
$
65,084

 
$
34,662

 
$
30,422

 
$

___________________________________
The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income.
(a)
Actively managed portfolio of securities with the goal to exceed the stated benchmark performance.
(b)
Open-ended fund of securities with the goal to track the stated benchmark performance.
(c)
Actively managed portfolio of fixed income securities with the goal to exceed the Barclays Capital Aggregate Bond, Barclays Capital 1-3 Year Government/Credit, and Merrill Lynch High Yield Master II performance.

Plan assets for the years ended December 31 were as follows:

 
Pension Benefits
 
Other Benefits
 
2012
 
2011
 
2012
 
2011
Fair value of assets at end of year:
 
 
 
 
 
 
 
Debt securities
$
33,922

 
26,271

 
$
1,168

 
938

 
45
%
 
42
%
 
33
%
 
40
%
Equity securities
35,352

 
32,653

 
1,522

 
921

 
47
%
 
52
%
 
44
%
 
40
%
Cash and equivalents
6,268

 
3,839

 
788

 
462

 
8
%
 
6
%
 
23
%
 
20
%
Total
$
75,542

 
62,763

 
$
3,478

 
2,321

Schedule of Expected Benefit Payments
Benefits expected to be paid in the next five years and in the aggregate for the five years thereafter are:

 
Pension Plan
 
Other Postretirement
Benefit Plan
2013
$
4,523

 
$
416

2014
4,697

 
441

2015
4,914

 
475

2016
5,185

 
511

2017
5,458

 
544

2018 - 2022
31,438

 
3,193