The following table presents a period-end reconciliation of DB Plan assets measured and
recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3):
(in thousands) 2016 2015
Balance, beginning of year $ 2,581 $ 2,625
Plan transfers 493 182
Contributions 196 187
Benefits paid (1,068) (497)
Return on plan assets (net of investment expenses) 62 84
Balance, end of year $ 2,264 $ 2,581
(continued)
(in thousands) Totals Level 1 Level 2 Level 3
OPEB Plans:
Common stocks 268 268 - -
Mutual funds 131 131
Fixed income funds 173 173 - -
Cash and cash equivalents:
Money market funds 13 - 13 -
Total OPEB Plans 585 572 13 -
Totals $ 15,474 $ 572 $ 12,638 $ 2,264
The fair value of DB Plan and OPEB Plan assets by levels within the fair value hierarchy
used as of December 31, 2015 was as follows:
The DB Plan also holds assets under an immediate participation guarantee group annuity
contract with a life insurance company. The assets under the contract are invested in pooled
separate accounts and in a general investment account. The pooled separate accounts are
valued based on net asset value per unit of participation in the fund and have no unfunded
commitments or significant redemption restrictions at year-end. The value of these units is
determined by the trustee based on the current market values of the underlying assets of the
The assets of our Post-65 Plan are held in two separate Voluntary Employee Beneficiary
Association (“VEBA”)} trusts. The VEBA plan assets are maintained in directed trust
accounts at a commercial bank.
The investment strategy for the Company’s DB Plan and OPEB Plans utilizes several
different asset classes with varying risk/return characteristics. The following table indicates
the asset allocation percentages of the fair value of the DB Plan and OPEB Plans’ assets for
Amounts recognized in regulatory assets for the DB and OPEB Plans that have not yet been
recognized as components of net periodic benefit cost of the following as of December 31,
2016:
(in thousands) DB Plan OPEB Plans
Net actuarial loss $ 7,067 $ 570
Prior service cost - (180)
Regulatory asset $ 7,067 $ 390
Amounts recognized in regulatory assets for the DB and OPEB Plans that have not yet been
recognized as components of net periodic benefit cost of the following as of December 31,
2015:
The following table sets forth information regarding our DB Plan and our OPEB Plans as of
December 31, 2015 and for the year then ended:
(in thousands) DB Plan OPEB Plans
Projected benefit obligations $ 22,158 $ 2,861
Employer contribution 936 298
Benefits paid, excluding expenses (497) (37)
Fair value of plan assets 13,872 619
Accumulated benefit obligation 19,911 N/A
Funded status (8,286) (2,242)
Net periodic benefit cost 1,215 158
Amount of the funded status recognized in the
Consolidated Balance Sheet consisted of:
Note 6 — Post-retirement Benefit Plans
Pension Plan and Other Post-retirement Benefits
Note 4— Accounts Receivable
Accounts receivable consisted of the following at December 31, 2016 and 2015:
(in thousands) 2016 2015
Accounts receivable - billed $ 4,188 $ 2,235
Less allowance for doubtful accounts (51) (51)
Accounts Receivable - billed, net $ 4,137 $ 2,184
Accounts receivable - unbilled $ 1,921 $ 2,283
Less allowance for doubtful accounts - -
Accounts Receivable - unbilled, net $ 1,921 $ 2,283
Note 5 — Deferred Charges and Other Assets
Note 2 — Property, Plant and Equipment
The components of property, plant and equipment as of December 31, 2016 and 2015 were
as follows:
Non-regulated water management services include contract operations and maintenance, and
water testing and billing services to municipalities and small, privately owned community
water systems. Contract revenues are billed and recognized on a monthly recurring basis in
accordance with agreed-upon contract rates. Revenues from unplanned additional work are
based upon time and materials incurred in connection with activities not specifically identi-
fied in the contract, or for which work levels exceed contracted amounts.
