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Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Components of net periodic benefit cost
The following tables 11.1, 11.2, and 11.3 provide the components of aggregate annual net periodic benefit cost for each of the years ended December 31, 2017, 2016, and 2015 and changes in the benefit obligation and the funded status of the pension, supplemental executive retirement and other postretirement benefit plans as recognized in the consolidated balance sheets as of December 31, 2017 and 2016.
 
Table
11.1
 
 
 
 
 
 
 
 
 
 
 
 
Components of net periodic benefit cost
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(in thousands)
 
12/31/2017
 
12/31/2016
 
12/31/2015
 
12/31/2017
 
12/31/2016
 
12/31/2015
 
1. Company Service Cost
 
$
9,556

 
$
9,130

 
$
10,256

 
$
813

 
$
751

 
$
833

 
2. Interest Cost
 
15,475

 
15,906

 
15,847

 
706

 
704

 
697

 
3. Expected Return on Assets
 
(20,099
)
 
(19,508
)
 
(21,109
)
 
(5,248
)
 
(4,886
)
 
(4,991
)
 
4. Other Adjustments
 
—

 
—

 
—

 
—

 
—

 
—

 
Subtotal
 
4,932

 
5,528

 
4,994

 
(3,729
)
 
(3,431
)
 
(3,461
)
 
5. Amortization of:
 
 

 
 

 
 

 
 

 
 

 
 

 
a. Net Transition Obligation/(Asset)
 
—

 
—

 
—

 
—

 
—

 
—

 
b. Net Prior Service Cost/(Credit)
 
(426
)
 
(687
)
 
(845
)
 
(6,649
)
 
(6,649
)
 
(6,649
)
 
c. Net Losses/(Gains)
 
6,169

 
5,856

 
5,485

 
—

 
—

 
(175
)
 
Total Amortization
 
5,743

 
5,169

 
4,640

 
(6,649
)
 
(6,649
)
 
(6,824
)
 
6. Net Periodic Benefit Cost
 
10,675

 
10,697

 
9,634

 
(10,378
)
 
(10,080
)
 
(10,285
)
 
7. Cost of settlements
 
—

 
1,277

 
3,172

 
—

 
—

 
—

 
8. Total Expense for Year
 
$
10,675

 
$
11,974

 
$
12,806

 
$
(10,378
)
 
$
(10,080
)
 
$
(10,285
)
Development of funded status
 
Table
11.2
 
 
 
 
 
 
 
 
Development of funded status
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
 
(in thousands)
 
12/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
 
Actuarial Value of Benefit Obligations
 
 
 
 
 
 
 
 
 
1. Measurement Date
 
12/31/2017

 
12/31/2016

 
12/31/2017

 
12/31/2016

 
2. Accumulated Benefit Obligation
 
$
411,996

 
$
360,423

 
$
24,716

 
$
17,378

 
 
 
 
 
 
 
 
 
 
 
Funded Status/Asset (Liability) on the Consolidated Balance Sheet
 
 
 
 
 
 
 
 
 
1. Projected Benefit Obligation
 
$
(417,770
)
 
$
(369,808
)
 
$
(24,716
)
 
$
(17,378
)
 
2. Plan Assets at Fair Value
 
401,142

 
360,900

 
85,303

 
70,408

 
3. Funded Status - Overfunded/Asset
 
N/A

 
N/A

 
$
60,587

 
$
53,030

 
4. Funded Status - Underfunded/Liability
 
(16,628
)
 
(8,908
)
 
N/A

 
N/A


 
Table
11.3
 
 
 
 
 
 
 
 
Accumulated other comprehensive income (loss)
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(in thousands)
 
12/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
1. Net Actuarial (Gain)/Loss
 
$
109,904

 
$
103,861

 
$
(10,234
)
 
$
(6,088
)
 
2. Net Prior Service Cost/(Credit)
 
(1,850
)
 
(2,286
)
 
(5,342
)
 
(11,991
)
 
3. Net Transition Obligation/(Asset)
 
—

 
—

 
—

 
—

 
4. Total at Year End
 
$
108,054

 
$
101,575

 
$
(15,576
)
 
$
(18,079
)
Change in projected benefit obligation
Table 11.4 shows the changes in the projected benefit obligation for 2017 and 2016.
 
Table
11.4
 
 
 
 
 
 
 
 
Change in projected benefit / accumulated benefit obligation
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(in thousands)
 
12/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
1. Benefit Obligation at Beginning of Year
 
$
369,808

 
$
349,483

 
$
17,378

 
$
16,423

 
2. Company Service Cost
 
9,556

 
9,130

 
813

 
751

 
3. Interest Cost
 
15,475

 
15,906

 
706

 
704

 
4. Plan Participants' Contributions
 
—

 
—

 
395

 
408

 
5. Net Actuarial (Gain)/Loss due to Assumption Changes
 
38,496

 
14,450

 
5,981

 
497

 
6. Net Actuarial (Gain)/Loss due to Plan Experience
 
2,338

 
5,428

 
924

 
357

 
7. Benefit Payments from Fund (1)
 
(17,578
)
 
(21,831
)
 
(1,404
)
 
(1,678
)
 
8. Benefit Payments Directly by Company
 
(335
)
 
(2,669
)
 
—

 
—

 
9. Plan Amendments
 
10

 
16

 
—

 
—

 
10. Other Adjustment
 
—

 
(105
)
 
(77
)
 
(84
)
 
11. Benefit Obligation at End of Year
 
$
417,770

 
$
369,808

 
$
24,716

 
$
17,378

(1) 
Includes lump sum payments of $6.3 million and $11.2 million in 2017 and 2016, respectively, from our pension plan to eligible participants, which were former employees with vested benefits.
Change in plan assets
Tables 11.5 and 11.6 shows the changes in the fair value of the net assets available for plan benefits, and changes in other comprehensive income (loss) during 2017 and 2016.
 
Table
11.5
 
 
 
 
 
 
 
 
Change in plan assets
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
 
(in thousands)
 
12/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
 
1. Fair Value of Plan Assets at Beginning of Year
 
$
360,900

 
$
350,107

 
$
70,408

 
$
65,568

 
2. Company Contributions
 
9,435

 
11,369

 
—

 
—

 
3. Plan Participants' Contributions
 
—

 
—

 
395

 
408

 
4. Benefit Payments from Fund
 
(17,578
)
 
(21,831
)
 
(1,404
)
 
(1,678
)
 
5. Benefit Payments paid directly by Company
 
(335
)
 
(2,669
)
 
—

 
—

 
6. Actual Return on Assets
 
48,720

 
23,924

 
16,299

 
6,518

 
7. Other Adjustment
 
—

 
—

 
(395
)
 
(408
)
 
8. Fair Value of Plan Assets at End of Year
 
$
401,142

 
$
360,900

 
$
85,303

 
$
70,408
Change in accumulated other comprehensive income (AOCI)
 
Table
11.6
 
 
 
 
 
 
 
 
Change in accumulated other comprehensive income (loss) ("AOCI")
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(in thousands)
 
12/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
1. AOCI in Prior Year
 
$
101,575

 
$
92,647

 
$
(18,079
)
 
$
(23,951
)
2. Increase/(Decrease) in AOCI
 
 

 
 

 
 

 
 

 
a. Recognized during year - Prior Service (Cost)/Credit
 
426

 
687

 
6,649

 
6,649

 
b. Recognized during year - Net Actuarial (Losses)/Gains
 
(6,169
)
 
(5,856
)
 
—

 
—

 
c. Occurring during year - Prior Service Cost
 
10

 
16

 
—

 
—

 
d. Occurring during year - Net Actuarial Losses/(Gains)
 
12,212

 
15,358

 
(4,146
)
 
(777
)
 
e.  Occurring during year - Net Settlement Losses/(Gains)
 
—

 
(1,277
)
 
—

 
—

 
f. Other adjustments
 
—

 
—

 
—

 
—

 
3. AOCI in Current Year
 
$
108,054

 
$
101,575

 
$
(15,576
)
 
$
(18,079
)
Amortizations expected to be recognized during next fiscal year
Table 11.7 shows the amount of amortization on components of net periodic benefit costs expected to be recognized during the year ending December 31, 2018.
 
Table
11.7
 
 
 
 
Amortization expected to be recognized during next fiscal year ending
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2018
1. Amortization of Net Transition Obligation/(Asset)
 
$
—

 
$
—

 
2. Amortization of Prior Service Cost/(Credit)
 
(349
)
 
(4,104
)
 
3. Amortization of Net Losses/(Gains)
 
7,140

 
(183
)
Actuarial assumptions
The projected benefit obligations, net periodic benefit costs and accumulated postretirement benefit obligation for the plans were determined using the following weighted average assumptions.
 
Table
11.8
 
 
 
 
 
 
 
 
Actuarial assumptions
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
 
 
 
12/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
 
Weighted-Average Assumptions Used to Determine
 
 
 
 
 
 
 
 
 
Benefit Obligations at year end
 
 
 
 
 
 
 
 
 
1. Discount Rate
 
3.75
%
 
4.30
%
 
3.55
%
 
3.95
%
 
2. Rate of Compensation Increase
 
3.00
%
 
3.00
%
 
N/A

 
N/A

 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Assumptions Used to Determine
 
 

 
 

 
 

 
 

 
Net Periodic Benefit Cost for Year
 
 

 
 

 
 

 
 

 
1. Discount Rate
 
4.30
%
 
4.65
%
 
3.95
%
 
4.30
%
 
2. Expected Long-term Return on Plan Assets
 
5.75
%
 
5.75
%
 
7.50
%
 
7.50
%
 
3. Rate of Compensation Increase
 
3.00
%
 
3.00
%
 
N/A

 
N/A

 
 
 
 
 
 
 
 
 
 
 
Assumed Health Care Cost Trend Rates at year end
 
 

 
 

 
 

 
 

 
1. Health Care Cost Trend Rate Assumed for Next Year
 
N/A

 
N/A

 
6.50
%
 
6.50
%
 
2. Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate)
 
N/A

 
N/A

 
5.00
%
 
5.00
%
 
3. Year That the Rate Reaches the Ultimate Trend Rate
 
N/A

 
N/A

 
2024

 
2020
Year-end asset allocations of the plans
The year-end asset allocations of the plans are shown in table 11.9 below.
 
Table
11.9
 
 
 
 
 
 
 
 
Plan assets
 
 
 Pension Plan
 
Other Postretirement Benefits
 
 
 
12/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
 
1. Equity Securities
 
21
%
 
23
%
 
100
%
 
100
%
 
2. Debt Securities
 
79
%
 
77
%
 
—
%
 
—
%
 
3. Total
 
100
%
 
100
%
 
100
%
 
100
%
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Schedule of investment allocation strategies
The equity investments utilize combinations of mutual funds, ETFs, and pooled equity account structures focused on the following strategies:
Strategy
 
Objective
 
Investment types
Return seeking growth
 
Funded ratio improvement over the long term
 
●
Global quality growth
 
 
●
Global low volatility
Return seeking bridge
 
Downside protection in the event of a declining equity market
 
●
Enduring asset
 
 
●
Durable company
Minimum and maximum allocation ranges for fixed income securities and equity securities
The primary focus in developing asset allocation ranges for the portfolio is the assessment of the portfolio's investment objectives and the level of risk that is acceptable to obtain those objectives.  To achieve these objectives the minimum and maximum allocation ranges for fixed income securities and equity securities are:
 
Minimum
 
Maximum
Equities (long only)
70
%
 
100
%
Real estate
0
%
 
15
%
Commodities
0
%
 
10
%
Fixed income/Cash
0
%
 
10
%
Actual and estimated future contributions and actual and estimated future benefit payments
Tables 11.12 and 11.13 show the current and estimated future contributions and benefit payments.
 
Table
11.12
 
 
 
 
Company contributions
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
 
(in thousands)
 
12/31/2017
 
12/31/2017
 
Company Contributions for the Year Ending:
 
 
 
 
 
1. Current
 
$
9,435

 
$
—

 
2. Current + 1
 
10,950

 
—


 
Table
11.13
 
 
 
 
Benefit payments - total
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
 
(in thousands)
 
12/31/2017
 
12/31/2017
 
Actual Benefit Payments for the Year Ending:
 
 
 
 
 
1. Current
 
$
17,913

 
$
1,086

 
Expected Benefit Payments for the Year Ending:
 
 

 
 

 
2. Current + 1
 
28,639

 
1,174

 
3. Current + 2
 
33,127

 
1,368

 
4. Current + 3
 
29,669

 
1,689

 
5. Current + 4
 
31,085

 
1,944

 
6. Current + 5
 
31,899

 
2,044

 
7. Current + 6 - 10
 
151,512

 
11,914
Effect of a 1% change in the health care trend rate assumption
A 1 percentage point change in the health care trend rate assumption would have the following effects on other postretirement benefits:
 
Table
11.14
 
 
 
 
Health care trend rate assumption
(in thousands)
 
1-Percentage
Point Increase
 
1-Percentage
Point Decrease
 
Effect on total service and interest cost components
 
$
252

 
$
(217
)
 
Effect on postretirement benefit obligation
 
3,093

 
(2,748
)
Pension Plan  
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Fair value of plan assets
Tables 11.10a and 11.10b set forth by level, within the fair value hierarchy, the pension plan assets and related accrued investment income at fair value as of December 31, 2017 and 2016. There were no securities that utilized Level 3 inputs.
 
Table
11.10a
 
 
 
 
 
 
Pension plan - current year
Assets at fair value as of December 31, 2017
(in thousands)
 
Level 1
 
Level 2
 
Total
 
Domestic Mutual Funds
 
$
1,006

 
$
—

 
$
1,006

 
Corporate Bonds
 
—

 
202,840

 
202,840

 
U.S. Government Securities
 
17,996

 
1,400

 
19,396

 
Municipal Bonds
 
—

 
62,293

 
62,293

 
Foreign Bonds
 
—

 
32,949

 
32,949

 
ETFs
 
5,734

 
—

 
5,734

 
Pooled Equity Accounts
 
—

 
76,924

 
76,924

 
Total Assets at fair value
 
$
24,736

 
$
376,406

 
$
401,142


 
Table
11.10b
 
 
 
 
 
 
Pension plan - prior year
Assets at fair value as of December 31, 2016
(in thousands)
 
Level 1
 
Level 2
 
Total
 
Domestic Mutual Funds
 
$
11,805

 
$
—

 
$
11,805

 
Corporate Bonds
 
—

 
178,412

 
178,412

 
U.S. Government Securities
 
6,761

 
354

 
7,115

 
Municipal Bonds
 
—

 
63,492

 
63,492

 
Foreign Bonds
 
—

 
27,917

 
27,917

 
ETFs
 
5,694

 
—

 
5,694

 
Pooled Equity Accounts
 
—

 
66,465

 
66,465

 
Total Assets at fair value
 
$
24,260

 
$
336,640

 
$
360,900
Other Postretirement Benefit Plan  
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Fair value of plan assets
Tables 11.11a and 11.11b set forth the other postretirement benefits plan assets at fair value as of December 31, 2017 and 2016. All are Level 1 assets.
 
Table
11.11a
 
 
 
 
Other postretirement benefits plan - current year
Assets at fair value as of December 31, 2017
(in thousands)
 
Level 1
 
Total
Domestic Mutual Funds
 
$
64,489

 
$
64,489

 
International Mutual Funds
 
20,814

 
20,814

 
Total Assets at fair value
 
$
85,303

 
$
85,303


 
Table
11.11b
 
 
 
 
Other postretirement benefits plan - prior year
Assets at fair value as of December 31, 2016
(in thousands)
 
Level 1
 
Total
Domestic Mutual Funds
 
$
54,426

 
$
54,426

 
International Mutual Funds
 
15,982

 
15,982

 
Total Assets at fair value
 
$
70,408

 
$
70,408