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SEC Filings
10-Q
SOUTHERN UNION CO filed this Form 10-Q on 11/07/2013
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6.
RETIREMENT BENEFITS:
Components of Net Periodic Benefit Cost  
The following tables set forth the components of net periodic benefit cost of the Company’s pension and postretirement benefit plans:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
Three Months
Ended
September 30, 2013

Three Months Ended
September 30, 2012
 
Three Months
Ended
September 30, 2013
 
Three Months Ended
September 30, 2012
Net Periodic Benefit Cost:
 
 
 
 
 
 
 
 
Service cost
 
$

 
$
1

 
$
(1
)
 
$

Interest cost
 
2

 
2

 
1

 
1

Expected return on plan assets
 
(3
)
 
(3
)
 
(2
)
 
(2
)
Prior service credit amortization
 

 

 
1

 

Actuarial gain amortization
 
1

 

 

 

 
 

 

 
(1
)
 
(1
)
Regulatory adjustment (1)
 
1

 
3

 

 
1

Net periodic benefit cost
 
$
1

 
$
3

 
$
(1
)
 
$


 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
Successor
 
 
Predecessor
 
Successor
 
 
Predecessor
 
 
Nine Months Ended
September 30, 2013
 
Period from Acquisition (March 26, 2012) to September 30, 2012
 
 
Period from January 1, 2012 to March 25, 2012
 
Nine Months Ended
September 30, 2013
 
Period from Acquisition (March 26, 2012) to September 30, 2012
 
 
Period from January 1, 2012 to March 25, 2012
Net Periodic Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
3

 
$
2

 
 
$
1

 
$

 
$

 
 
$
1

Interest cost
 
6

 
5

 
 
2

 
2

 
1

 
 
1

Expected return on plan assets
 
(9
)
 
(6
)
 
 
(2
)
 
(5
)
 
(3
)
 
 
(1
)
Prior service credit amortization
 

 

 
 

 
1

 

 
 
(1
)
Actuarial gain amortization
 
2

 

 
 
2

 

 

 
 

Curtailment recognition (2)
 

 

 
 

 

 
(15
)
 
 

 
 
2

 
1

 
 
3

 
(2
)
 
(17
)
 
 

Regulatory adjustment (1)
 
5

 
6

 
 

 

 
1

 
 
1

Net periodic benefit cost (credit)
 
$
7

 
$
7

 
 
$
3

 
$
(2
)
 
$
(16
)
 
 
$
1

(1) 
The Company has historically recovered certain qualified pension benefit plan and other postretirement benefit plan costs through rates charged to utility customers in its MGE and NEG divisions.  Certain utility commissions require that the recovery of these costs be based on the Employee Retirement Income Security Act of 1974, as amended, or other utility commission specific guidelines.  The difference between these regulatory-based amounts and the periodic benefit cost calculated pursuant to GAAP is deferred as a regulatory asset or liability and amortized to expense over periods in which this difference will be recovered in rates, as promulgated by the applicable utility commission.
(2) 
Subsequent to the ETE Merger, the Company amended certain of its OPEB plans, which prospectively restrict participation in the plans for the impacted active employees.  The plan amendments resulted in the plans becoming currently over-funded and, accordingly, the Company recorded a pre-tax curtailment gain of $75 million.  Such gain was offset by establishment of a non-current refund liability in the amount of $60 million.  As such, the net curtailment gain recognition was $15 million.

11

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